81_FR_73235 81 FR 73030 - Housing Opportunity Through Modernization Act of 2016: Initial Guidance

81 FR 73030 - Housing Opportunity Through Modernization Act of 2016: Initial Guidance

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 205 (October 24, 2016)

Page Range73030-73034
FR Document2016-25147

On July 29, 2016, President Obama signed into law the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This new statute provides updates and improvements to statutes that authorize and prescribe requirements for multiple HUD programs and the Department of Agriculture's single-family housing guaranteed loan program. The purpose of this document is to advise HUD program participants and interested members of the public of those statutory provisions that are effective immediately and those provisions that will require further action by HUD to become effective or to be used by HUD program participants.

Federal Register, Volume 81 Issue 205 (Monday, October 24, 2016)
[Federal Register Volume 81, Number 205 (Monday, October 24, 2016)]
[Rules and Regulations]
[Pages 73030-73034]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25147]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Subtitle A and Chapters II, IV, V, VIII, IX, and XX

[Docket No. FR-5976-N-01]


Housing Opportunity Through Modernization Act of 2016: Initial 
Guidance

AGENCY: Office of General Counsel, HUD.

ACTION: Initial implementation guidance.

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SUMMARY: On July 29, 2016, President Obama signed into law the Housing 
Opportunity Through Modernization Act of 2016 (HOTMA). This new statute 
provides updates and improvements to statutes that authorize and 
prescribe requirements for multiple HUD programs and the Department of 
Agriculture's single-family housing guaranteed loan program. The 
purpose of this document is to advise HUD program participants and 
interested members of the public of those statutory provisions that are 
effective immediately and those provisions that will require further 
action by HUD to become effective or to be used by HUD program 
participants.

DATES: Effective Date: This document is effective October 24, 2016.

FOR FURTHER INFORMATION CONTACT: If you have any questions, please 
contact the following people (none of the phone numbers are toll-free):
    Public Housing, Housing Choice Voucher (including project-based 
vouchers), and moderate rehabilitation programs: email 
[email protected].
    Multifamily Housing programs: Danielle Garcia, Branch Chief, 
Assistant Housing Oversight Division, Office of Housing, 202-402-2768.
    HOME Investment Partnerships program: Virginia Sardone, Director, 
Office of Affordable Housing Programs, Office of Community Planning and 
Development, 202-708-2684.
    Self-Help Homeownership Opportunity Program (SHOP) program: Jackie 
Williams, Director, Office of Rural Housing and Economic Development, 
Office of Community Planning and Development, (202) 708-2290.
    Housing Opportunities for Persons With AIDS (HOPWA) program: Rita 
Flegel, Director, Office of HIV/AIDS Housing, Office of Community 
Planning and Development, 202-402-5374.
    Homeless programs: Norm Suchar, Director, Office of Special Needs 
Assistance, Office of Community Planning and Development, 202-708-4300.
    The address for all offices is the Department of Housing and Urban 
Development, 451 7th Street SW., Washington, DC 20410. Persons with 
hearing or speech impairments may access these numbers through TTY by 
calling the Federal Relay Service, toll-free, at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Introduction

    On July 29, 2016, President Obama signed HOTMA into law (Pub. L. 
114-201, 130 Stat. 782). HOTMA amends the United States Housing Act of 
1937 (1937 Act) and other housing laws to modify multiple HUD programs, 
along with the Department of Agriculture's Single Family Housing 
Guaranteed Loan Program. Significant amendments include setting a 
maximum income level for continued occupancy in public housing, 
expanding the availability of Family Unification Program vouchers for 
children aging out of foster care, changes to the housing quality 
standards for Section 8 Voucher units, multiple changes to the Project-
Based Voucher program, modifying requirements for mortgage insurance 
for condominiums under the Federal Housing Administration, creating a 
Special Assistant for Veterans Affairs in HUD, and changing the 
allocation formula for the Housing Opportunities for Persons With AIDS 
(HOPWA) program.

II. Implementation, Generally

    HOTMA makes several of its provisions effective upon enactment 
(July 29, 2016). Other statutory changes made by HOTMA become effective 
only after the issuance of a notice or regulations by HUD, or at the 
start of the calendar year following the publication of a notice or 
regulation. Some provisions require rulemaking to implement, while some 
are strictly changes in terminology or conforming changes.
    This document is intended to:
    (1) Advise the public of statutory provisions that are effective 
immediately and advise of actions that may or should be taken now to 
comply with the changes (Section III of the document).
    (2) Identify those provisions of HOTMA that are not effective until 
HUD subsequently issues a notice or regulation (Section IV of the 
document).
    This document does not provide a section-by-section analysis of 
HOTMA, nor does it provide guidance on all sections. However, the 
guidance in this document, read together with the statutory 
language,\1\ is intended to aid HUD program participants and the public 
generally in understanding (1) the prompt action HUD recommends be 
taken now or in the very near future, and (2) the reasons for any 
deferred action with respect to certain statutory provisions. HUD is 
committed to working closely with its program participants to see that 
the changes made by HOTMA are successfully implemented and that these 
programs are significantly improved to provide assistance to the 
families HUD serves.
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    \1\ The text of HOTMA, along with a summary prepared by the 
Congressional Research Service, can be found at https://www.congress.gov/bill/114th-congress/house-bill/3700.
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III. Provisions of HOTMA Effective Upon Enactment or Otherwise Already 
in Effect--No HUD Action Required To Implement

    This section outlines provisions of HOTMA that are effective upon 
enactment of HOTMA (July 29, 2016) and can be implemented immediately.

[[Page 73031]]

HUD notes that in many cases the statutory provisions listed in this 
section may require conforming rulemaking at a later date to update 
HUD's regulations to reflect these statutory changes. HUD may also 
issue other types of guidance to further explain these provisions. 
Below is the list of HOTMA sections that are effective immediately.

Section 102(d). Reasonable Accommodation Payment Standards

    Section 102(d) of HOTMA amends section 8(o) of the 1937 Act to 
allow PHAs to establish a payment standard of up to 120 percent of the 
FMR as a reasonable accommodation for a person with a disability, 
without HUD approval.
    Implementation action: The final rule on ``Streamlining 
Administrative Regulations for Public Housing, Housing Choice Voucher, 
Multifamily Housing, and Community Planning and Development Programs,'' 
published on March 8, 2016, at 81 FR 12354, previously provided PHAs 
with the flexibility establish a payment standard up to 120 percent of 
the FMR as a reasonable accommodation for a person with a disability, 
effective April 7, 2016. As a result, no further action is needed to 
implement this section.
    It is noted the PHA may also establish an exception payment 
standard of more than 120 percent of the published FMR if required as a 
reasonable accommodation in accordance with 24 CFR part 8 for a family 
that includes a person with a disability, but in such cases must 
request approval from HUD.

Section 107. Establishment of Fair Market Rent

    This section changes how HUD publishes Fair Market Rents (FMRs), 
and the procedure to allow PHAs and other interested parties to comment 
on the FMRs and request HUD to reevaluate the FMRs in a jurisdiction 
before those rents become effective. Section 107 also amends section 
8(o)(1)(B) of the 1937 Act to provide that in the Housing Choice 
Voucher (HCV) Program no PHA is required, as a result of a reduction in 
the FMR, to reduce the payment standard applied to a family continuing 
to reside in a unit under a HAP contract at the time the FMR was 
reduced. Currently, if a reduction in the FMR causes the PHA's payment 
standard to exceed the basic range (110 percent of the FMR), the PHA is 
required to reduce the payment standard so that the payment standard 
would be within the basic range of the new FMR. The program regulations 
at 24 CFR 982.505(c)(3) further provide that for families under a 
housing assistance payment (HAP) contract at the time of the decrease 
in the payment standard, the new decreased payment standard would be 
applied to the family's subsidy calculation at the family's second 
regular re-examination following the decrease in the payment standard 
amount. As a result of the change in the law, the PHA may choose to 
continue to use the higher payment standard for the family's subsidy 
calculation for as long as the family continues to receive voucher 
assistance in that unit. If a PHA chooses to continue to use the higher 
payment standard for the subsidy calculation for the family, then the 
PHA must adopt policies in its administrative plan that further explain 
this provision.
    Implementation action: This provision was effective upon enactment 
of HOTMA. HUD's FMRs for Fiscal Year 2017, published in the Federal 
Register on August 26, 2016, reflect the new procedures for calculation 
of FMRs. Effective July 29, 2016, PHAs may choose, but are no longer 
required, to reduce the payment standard for a family who remains under 
HAP contract at the family's second annual reexamination. HUD will 
issue additional guidance on this change in the future. PHAs with 
questions in the interim may contact the local HUD Field Office.

Section 110. Family Unification Program for Children Aging Out of 
Foster Care

    This section of HOTMA makes changes to the Family Unification 
Program (FUP) for children aging out of foster care. The law revises 
the length of the term that a FUP-eligible youth may receive FUP 
assistance from 18 months to 36 months. Please note that this change 
applies to youth currently receiving FUP assistance as well as any new 
participants. In addition, the law revises the eligibility requirements 
for FUP-eligible youth. Previously, FUP-eligible youth must be at least 
18 years old and not more than 21 and have left foster care at age 16 
or older. Under the new law, FUP-eligible youth must: Be at least 18 
years old and not more than 24; have left foster care at age 16 or 
older or will leave foster care within 90 days, in accordance with a 
transition plan described in section 475(5)(H) of the Social Security 
Act; and be homeless or at risk of being homeless. PHAs should refer to 
the definition of ``at risk of homelessness'' at 24 CFR 576.2. HOTMA 
also requires HUD to issue guidance, after consultation with other 
appropriate Federal agencies, on how to improve coordination between 
PHAs and public child welfare agencies to carry out the FUP program.
    Implementation action: The changes to the FUP program were 
effective upon enactment of HOTMA. PIH issued a letter on August 29, 
2016, to FUP PHA Executive Directors to ensure that such PHAs are aware 
that this provision was effective upon enactment. In addition, HUD 
plans to issue the guidance on improving coordination between PHAs and 
public child welfare agencies by the statutory deadline of January 25, 
2017.

Section 113. Preference for United States Citizens or Nationals

    This section only applies to Guam and establishes a preference or 
priority in receiving financial assistance (e.g., admission to public 
housing, the HCV program, etc.) for any citizen or national of the 
United States over aliens covered by section 141 of the Compacts of 
Free Association between the United States and the Marshall Islands, 
the Federated States of Micronesia, and Palau.
    Implementation action: This provision was effective upon enactment 
of HOTMA. No regulatory action is needed for this section of HOTMA to 
be implemented.

Section 114. Exception to Public Housing Agency Resident Board Member 
Requirement

    This section provides for an exception for certain jurisdictions 
(Housing Authority of the County of Los Angeles or any PHA in the 
States of Alaska, Iowa, and Mississippi) from the resident board member 
requirements under section 2(b) of the 1937 Act.
    Implementation action: This provision was effective upon enactment 
of HOTMA, and the exception has been in effect for a number of years 
through the appropriations acts. As a result, no further action is 
needed to implement this section. This statutory provision does not 
alter the regulatory provision at 24 CFR 964.405(b).

Section 402. Inclusion of Public Housing Agencies and Local Development 
Authorities in Emergency Solutions Grants

    Section 402 of HOTMA amended section 414(c) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11373(c)) to authorize local 
governments that receive Emergency Solutions Grants (ESG) funds to 
subaward all or a portion of those funds to public housing agencies, as 
defined under section 3(b)(6) of the 1937 Act (42 U.S.C. 1437a(b)(6)), 
and local redevelopment authorities, as defined under State law. 
Implementation action: This provision was effective upon

[[Page 73032]]

enactment of HOTMA. No regulatory action is needed to authorize local 
governments to subaward ESG funds to public housing agencies and local 
redevelopment authorities. However, HUD intends to issue guidance 
explaining the conditions and requirements that apply to subawarding 
ESG funds to PHAs and local redevelopment authorities.

Section 501. Inclusion of Disaster Housing Assistance Program in 
Certain Fraud and Abuse Prevention Measures

    This section provides that the Disaster Housing Assistance Program 
shall be considered a program of HUD under section 904 of the Stewart 
B. McKinney Homeless Assistance Amendments Act of 1988 for the purpose 
of income verifications.
    Implementation action: This provision was effective upon enactment 
of HOTMA, and it has previously been in effect through HUD 
appropriations acts for a number of years, and therefore no additional 
action is needed for implementation.

Section 502. Energy Efficiency Requirements Under Self-Help 
Homeownership Opportunity Program

    This provision prohibits HUD from requiring units developed under 
the Self-Help Homeownership Opportunity Program (SHOP) to meet energy 
efficiency standards other than those in section 109 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12709).
    Implementation action: This provision was effective upon enactment 
of HOTMA. The changes will be reflected in the future SHOP Notice of 
Funding Availability, and HUD will provide current grantees with 
additional information on how this provision affects their prior year 
funding.

Section 701. Formula and Terms for Allocations To Prevent Homelessness 
for Individuals Living With HIV or AIDS

    This provision makes several changes to the Housing Opportunities 
for Persons with AIDS (HOPWA) program. These changes include: 
Alterations to the allocation formula; continued eligibility of Fiscal 
Year 2016 grantees; authorization to award funds to alternative 
grantees as requested by the original grantee in accordance with 
specified criteria; and amended definitions.
    Implementation action: These changes apply to the formula for 
Fiscal Year 2017 funds. HUD's Office of Community Planning and 
Development (CPD) is preparing more detailed guidance to explain how 
these changes will affect Fiscal Year 2017 funding. This section 
requires HUD to issue regulations in order to exercise discretion 
regarding reallocations of funds distributed by formula, and HUD is 
developing those regulations.

IV. Provisions That Require Rulemaking or Guidance by HUD

    There are several provisions in HOTMA that amend HUD statutes but, 
under their own terms, are not effective until HUD issues a notice or 
regulation. Other provisions make changes to HUD statutes that, while 
effective upon enactment of HOTMA, require HUD rulemaking or the 
issuance of detailed guidance for implementation. This section 
addresses both types of HOTMA provisions requiring further HUD action. 
For these provisions, PHAs, multifamily owners, or grantees may not use 
the provisions of HOTMA until HUD issues a rule or notice.

Section 101(a)(1). Initial Inspections in Section 8 Voucher Units

    Section 101(a)(1) amends section 8(o) of the 1937 Act to authorize 
assistance payments for up to 30 days if an initial inspection reveals 
non-life-threatening defects and to authorize occupancy of units before 
an inspection by the PHA if the property has met the requirements of an 
alternative inspection in the previous 24 months.
    Implementation action: HUD has the ability to implement these 
changes by notice or by regulation, and the statutory amendments are 
not effective until the notice or regulation is issued. HUD is 
considering the appropriate method for implementation.

Sections 101(a)(2) and (3). Enforcement of Housing Quality Standards 
for Section 8 Voucher Units

    Section 101(a)(3) amends section 8(o) of the 1937 Act to require 
timeframes for correcting deficiencies discovered by inspections. The 
statute requires life-threatening deficiencies to be corrected within 
24 hours and sets the time for correcting other deficiencies at 30 days 
unless the PHA determines otherwise. The section also provides families 
with 90 days to relocate to a new unit if an owner fails to correct the 
defaults and allows PHAs to use up to two months of any assistance 
amounts withheld or abated for costs directly associated with 
relocation of these families. Section 101(a)(2) is a technical 
amendment to make room for the new subparagraph (G) added by section 
101(a)(3).
    Implementation action: For section 101(a)(3), HUD is in the process 
of developing regulations, and section 101(a)(2) requires only a 
conforming rule by HUD. The statutory amendments made by sections 
101(a)(2) and (3) will only go into effect when the regulations are 
issued to implement the new subparagraph added by section 101(a)(3).

Sections 102(a), (c), and (e). Income Reviews

    Section 102(a) of HOTMA amends section 3(a) of the 1937 Act to 
revise the frequency of family income reviews and the calculation of 
income. Specifically, this section requires that reviews of family 
income must be conducted upon admission and annually thereafter, 
depending on certain decreases or increases in annual adjusted income. 
This section also requires HUD, in consultation with other appropriate 
Federal agencies, to develop electronic procedures enabling PHAs to 
access income determinations for other Federal means-tested programs.
    Section 102(c) of HOTMA amends section 3(b) of the 1937 Act to 
change the definitions for the public housing and Section 8 programs of 
income and adjusted income for each member of the household who is 18 
years or older and unearned income for each dependent who is less than 
18. The changes in definitions require rulemaking to implement, and the 
statutory amendments are not effective until the rulemaking is 
complete.
    Section 102(e) changes the definition of ``income'' to ``annual 
adjusted income'' for the Enhanced Voucher Program.
    Implementation action: HUD has the ability to implement these 
changes by notice or by regulation, and the statutory amendments are 
not effective until the beginning of the calendar year after the notice 
or regulation is issued. HUD is considering the appropriate method for 
implementation.

Section 102(f). Income Review for Project-Based Housing

    This section amends strikes the last sentence of paragraph (3) of 
section 8(c) of the 1937 Act (42 U.S.C. 1437f(c)(3). This eliminates 
the requirement that reviews of family income shall be made no less 
frequently than annually.
    Implementation action: HUD has the ability to implement these 
changes by notice or by regulation, and the statutory amendments are 
not effective until the beginning of the calendar year after the notice 
or regulation is issued. HUD is considering the appropriate method for 
implementation.

[[Page 73033]]

Section 103. Limitation on Public Housing Tenancy for Over-Income 
Families

    The statute sets the maximum amount of annual adjusted income for 
continued occupancy in public housing at 120 percent area median income 
(AMI), which the Secretary may adjust based on certain statutory 
factors. The statute also requires that a family is only subject to 
this limitation if their annual adjusted income meets or exceeds the 
maximum amount for two consecutive years. In addition, for a family 
meeting this threshold for two consecutive years, the PHA has the 
option to terminate the family's tenancy or to allow them to remain in 
the unit at a higher rent amount.
    Implementation action: The statutory language recognizes that it is 
necessary in some areas to deviate from the income cap of 120 percent 
AMI. In order to allow HUD to exercise its discretion in a fair and 
effective manner, HUD will issue additional information in the future. 
In addition, the new section 16(a)(5)(A)(i)(II) of the 1937 Act 
requires regulations to determine the amount of subsidy allocated to a 
specific unit in order to determine family rent in the event a family 
chooses to remain in the unit.

Section 104. Limitation on Eligibility for Assistance Based on Assets

    Section 104 sets limits on the assets that families residing in 
assisted housing may have. Section 104 also directs HUD, beginning 
October 1, 2017, to direct PHAs to require all applicants and 
recipients under the 1937 Act to authorize the PHA to obtain financial 
information needed in connection with a determination with respect to 
eligibility.
    Implementation action: This requirement must be put in place by 
rulemaking.

Section 105. Units Owned by Public Housing Agencies

    This section provides that the term `owned by a public housing 
agency' means, with respect to a dwelling unit, that the dwelling unit 
is in a project that is owned by a PHA, by an entity wholly controlled 
by a PHA, or by a limited liability company or limited partnership in 
which a PHA (or an entity wholly controlled by a PHA) holds a 
controlling interest in the managing member or general partner. This 
section also provides that a dwelling unit is not deemed to be owned by 
a PHA where the PHA holds a fee interest as ground lessor in the 
property on which the unit is situated, holds a security interest under 
a mortgage or deed of trust on the unit, or holds a non-controlling 
interest in an entity which owns the unit or in the managing member or 
general partner of an entity which owns the unit.
    Implementation action: PHAs should continue their current practices 
until HUD can issue additional information on how affected PHAs can 
comply with any new requirements.

Section 106. PHA Project-Based Assistance

    This section makes several statutory changes to the Project-Based 
Voucher (PBV) Program in section 8(o)(13) of the 1937 Act. The 
amendments include (1) changing the portfolio limitation on PBV 
vouchers from a funding to a unit calculation and allowing for 
additional project-basing of vouchers for homeless families, families 
with veterans, supportive housing for persons with disabilities or 
elderly persons, or in areas where vouchers are difficult to use; (2) 
changing the cap on the number of PBV units in a project to be the 
greater of 25 units in a project or 25 percent of the units in a 
project; (3) allowing PHAs to provide for an initial PBV contract of up 
to 20 years; (4) providing owners and PHAs the ability to adjust rents 
based on an operating cost adjustment factor; (5) permitting owners to 
use site-based waiting lists; (6) allowing PHAs to attach assistance to 
structures in which the PHA has an ownership interest or control 
without following a competitive process; and (7) allowing PHAs to use 
project-based HUD-VASH and FUP vouchers under the same policies and 
procedures applicable to general purpose vouchers.
    Implementation action: HUD has the ability to implement these 
changes by notice or regulation, and the statutory amendments are not 
effective until the notice or regulation is issued. Some sections 
require regulations to add onto baselines set by the statute. HUD is 
considering the appropriate method for implementation.

Section 109. Public Housing Capital and Operating Funds

    Section 109 revises section 9 of the 1937 Act regarding (1) PHAs 
establishing a Capital Fund Replacement Reserve, for which HUD may 
allow a PHA to transfer more than 20 percent of its operating fund to 
establish the reserve; (2) a 20 percent operating funds cap for capital 
improvements; and (3) PHA accounting and reporting on replacement 
reserves funds.
    Implementation action: These statutory changes are effective upon 
the enactment of HOTMA. However, in order for PHAs to implement the 
changes, additional guidance or rulemaking is required.

Section 112. Use of Vouchers for Manufactured Housing

    Section 112(b) of HOTMA extends the definition of ``rent'' for 
vouchers to include monthly payments for purchasing a manufactured 
home, tenant-paid utilities, and monthly rent for real property.
    Implementation action: These statutory changes are only effective 
upon issuance by HUD of an implementing notice. The statutory 
amendments are not effective until HUD issues that implementation 
notice.

Section 301. Modification of FHA Requirements for Mortgage Insurance 
for Condominiums

    Section 301 mandates several changes to FHA's mortgage insurance 
for condominiums, including changes to requirements on project 
recertification, exceptions to the percentage of floor space that may 
be used for nonresidential or commercial purposes, private transfer fee 
covenants, and the minimum required percentage of units that must be 
owner occupied.
    Implementation action: Some of these changes must be done by 
regulations, while the revision to the owner occupancy percentage may 
be done by rulemaking or an administrative document. HUD issued a 
proposed rule to implement provisions on all these subjects other than 
transfer fees, and including general parameters on owner occupancy, on 
September 28, 2016, at 81 FR 66565. In the near future, HUD will be 
issuing a Mortgagee Letter to establish the specific owner occupancy 
percentage. For other provisions of section 301, HUD is considering the 
appropriate implementation action.

Section 401. Definition of Geographic Area for Continuum of Care 
Program

    Section 401 requires HUD to issue a notice by October 27, 2016 
defining ``geographic area'' for the Continuum of Care (CoC) program.
    Implementation action: HUD is currently developing the notice.

Section 701. HOPWA Allocations

    Section 701 of HOTMA adds four paragraphs to section 854(c) of the 
AIDS Housing Opportunity Act (42 U.S.C. 12903(c)). The new paragraph 
(1)(C) allows the Secretary to change the allocation formula set in 
paragraph (1)(A) to account for differences in housing costs and 
poverty rates. The new paragraph (4) allows the Secretary to set 
criteria by which the Secretary

[[Page 73034]]

determines a grantee is unable to properly administer its allocation.
    Implementation action: Both of these provisions require HUD to 
issue regulations to exercise the Secretary's discretion, and HUD is 
developing those regulations.

    Dated: October 12, 2016.
Ariel Pereira,
Associate General Counsel for Legislation and Regulations.
[FR Doc. 2016-25147 Filed 10-21-16; 8:45 am]
 BILLING CODE 4210-67-P



                                                73030            Federal Register / Vol. 81, No. 205 / Monday, October 24, 2016 / Rules and Regulations

                                                and distal tip insertion limitation                     members of the public of those statutory              changes to the housing quality
                                                mechanisms.                                             provisions that are effective                         standards for Section 8 Voucher units,
                                                   (2) Simulated use testing in a                       immediately and those provisions that                 multiple changes to the Project-Based
                                                clinically relevant model must                          will require further action by HUD to                 Voucher program, modifying
                                                demonstrate the reliability of the device               become effective or to be used by HUD                 requirements for mortgage insurance for
                                                to remain mechanically functional                       program participants.                                 condominiums under the Federal
                                                throughout the anticipated conditions of                DATES: Effective Date: This document is               Housing Administration, creating a
                                                use, and validate that the design                       effective October 24, 2016.                           Special Assistant for Veterans Affairs in
                                                features limit access to only the                       FOR FURTHER INFORMATION CONTACT: If
                                                                                                                                                              HUD, and changing the allocation
                                                cartilaginous portion of the Eustachian                 you have any questions, please contact                formula for the Housing Opportunities
                                                tube.                                                   the following people (none of the phone               for Persons With AIDS (HOPWA)
                                                   (3) The patient-contacting                                                                                 program.
                                                                                                        numbers are toll-free):
                                                components of the device must be                           Public Housing, Housing Choice                     II. Implementation, Generally
                                                demonstrated to be biocompatible.                       Voucher (including project-based
                                                   (4) Performance data must                                                                                     HOTMA makes several of its
                                                                                                        vouchers), and moderate rehabilitation                provisions effective upon enactment
                                                demonstrate the sterility of the device.                programs: email HOTMAquestions@
                                                   (5) Performance data must support                                                                          (July 29, 2016). Other statutory changes
                                                                                                        hud.gov.                                              made by HOTMA become effective only
                                                shelf life by demonstrating continued                      Multifamily Housing programs:
                                                sterility of the device, package integrity,                                                                   after the issuance of a notice or
                                                                                                        Danielle Garcia, Branch Chief, Assistant              regulations by HUD, or at the start of the
                                                and device functionality over the                       Housing Oversight Division, Office of
                                                identified shelf life.                                                                                        calendar year following the publication
                                                                                                        Housing, 202–402–2768.                                of a notice or regulation. Some
                                                   (6) Training must include simulated                     HOME Investment Partnerships
                                                use on cadavers to ensure users can                                                                           provisions require rulemaking to
                                                                                                        program: Virginia Sardone, Director,                  implement, while some are strictly
                                                follow the instructions for use to allow                Office of Affordable Housing Programs,
                                                safe use of the device.                                                                                       changes in terminology or conforming
                                                                                                        Office of Community Planning and                      changes.
                                                   (7) Labeling must include:                           Development, 202–708–2684.
                                                   (i) Detailed instructions for use.                                                                            This document is intended to:
                                                                                                           Self-Help Homeownership                               (1) Advise the public of statutory
                                                   (ii) A detailed summary of the device                Opportunity Program (SHOP) program:                   provisions that are effective
                                                technical parameters, including                         Jackie Williams, Director, Office of                  immediately and advise of actions that
                                                maximum allowed inflation pressure,                     Rural Housing and Economic                            may or should be taken now to comply
                                                allowable catheter geometries, and                      Development, Office of Community                      with the changes (Section III of the
                                                available balloon sizes.                                Planning and Development, (202) 708–                  document).
                                                   (iii) A shelf life.                                  2290.                                                    (2) Identify those provisions of
                                                  Dated: October 18, 2016.                                 Housing Opportunities for Persons                  HOTMA that are not effective until HUD
                                                Leslie Kux,                                             With AIDS (HOPWA) program: Rita                       subsequently issues a notice or
                                                Associate Commissioner for Policy.                      Flegel, Director, Office of HIV/AIDS                  regulation (Section IV of the document).
                                                [FR Doc. 2016–25602 Filed 10–21–16; 8:45 am]            Housing, Office of Community Planning                    This document does not provide a
                                                BILLING CODE 4164–01–P
                                                                                                        and Development, 202–402–5374.                        section-by-section analysis of HOTMA,
                                                                                                           Homeless programs: Norm Suchar,                    nor does it provide guidance on all
                                                                                                        Director, Office of Special Needs                     sections. However, the guidance in this
                                                                                                        Assistance, Office of Community                       document, read together with the
                                                DEPARTMENT OF HOUSING AND
                                                                                                        Planning and Development, 202–708–                    statutory language,1 is intended to aid
                                                URBAN DEVELOPMENT
                                                                                                        4300.                                                 HUD program participants and the
                                                24 CFR Subtitle A and Chapters II, IV,                     The address for all offices is the                 public generally in understanding (1)
                                                V, VIII, IX, and XX                                     Department of Housing and Urban                       the prompt action HUD recommends be
                                                                                                        Development, 451 7th Street SW.,                      taken now or in the very near future,
                                                [Docket No. FR–5976–N–01]                               Washington, DC 20410. Persons with                    and (2) the reasons for any deferred
                                                                                                        hearing or speech impairments may                     action with respect to certain statutory
                                                Housing Opportunity Through                             access these numbers through TTY by                   provisions. HUD is committed to
                                                Modernization Act of 2016: Initial                      calling the Federal Relay Service, toll-              working closely with its program
                                                Guidance                                                free, at 800–877–8339.                                participants to see that the changes
                                                AGENCY:    Office of General Counsel,                   SUPPLEMENTARY INFORMATION:                            made by HOTMA are successfully
                                                HUD.                                                                                                          implemented and that these programs
                                                                                                        I. Introduction                                       are significantly improved to provide
                                                ACTION:Initial implementation
                                                guidance.                                                 On July 29, 2016, President Obama                   assistance to the families HUD serves.
                                                                                                        signed HOTMA into law (Pub. L. 114–                   III. Provisions of HOTMA Effective
                                                SUMMARY:   On July 29, 2016, President                  201, 130 Stat. 782). HOTMA amends the                 Upon Enactment or Otherwise Already
                                                Obama signed into law the Housing                       United States Housing Act of 1937 (1937               in Effect—No HUD Action Required To
                                                Opportunity Through Modernization                       Act) and other housing laws to modify                 Implement
                                                Act of 2016 (HOTMA). This new statute                   multiple HUD programs, along with the
                                                provides updates and improvements to                    Department of Agriculture’s Single                       This section outlines provisions of
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                                                statutes that authorize and prescribe                   Family Housing Guaranteed Loan                        HOTMA that are effective upon
                                                requirements for multiple HUD                           Program. Significant amendments                       enactment of HOTMA (July 29, 2016)
                                                programs and the Department of                          include setting a maximum income                      and can be implemented immediately.
                                                Agriculture’s single-family housing                     level for continued occupancy in public                 1 The text of HOTMA, along with a summary
                                                guaranteed loan program. The purpose                    housing, expanding the availability of                prepared by the Congressional Research Service,
                                                of this document is to advise HUD                       Family Unification Program vouchers                   can be found at https://www.congress.gov/bill/
                                                program participants and interested                     for children aging out of foster care,                114th-congress/house-bill/3700.



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                                                                 Federal Register / Vol. 81, No. 205 / Monday, October 24, 2016 / Rules and Regulations                                         73031

                                                HUD notes that in many cases the                        that for families under a housing                     and public child welfare agencies to
                                                statutory provisions listed in this                     assistance payment (HAP) contract at                  carry out the FUP program.
                                                section may require conforming                          the time of the decrease in the payment                  Implementation action: The changes
                                                rulemaking at a later date to update                    standard, the new decreased payment                   to the FUP program were effective upon
                                                HUD’s regulations to reflect these                      standard would be applied to the                      enactment of HOTMA. PIH issued a
                                                statutory changes. HUD may also issue                   family’s subsidy calculation at the                   letter on August 29, 2016, to FUP PHA
                                                other types of guidance to further                      family’s second regular re-examination                Executive Directors to ensure that such
                                                explain these provisions. Below is the                  following the decrease in the payment                 PHAs are aware that this provision was
                                                list of HOTMA sections that are                         standard amount. As a result of the                   effective upon enactment. In addition,
                                                effective immediately.                                  change in the law, the PHA may choose                 HUD plans to issue the guidance on
                                                                                                        to continue to use the higher payment                 improving coordination between PHAs
                                                Section 102(d). Reasonable
                                                                                                        standard for the family’s subsidy                     and public child welfare agencies by the
                                                Accommodation Payment Standards
                                                                                                        calculation for as long as the family                 statutory deadline of January 25, 2017.
                                                   Section 102(d) of HOTMA amends                       continues to receive voucher assistance
                                                section 8(o) of the 1937 Act to allow                                                                         Section 113. Preference for United
                                                                                                        in that unit. If a PHA chooses to
                                                PHAs to establish a payment standard of                 continue to use the higher payment                    States Citizens or Nationals
                                                up to 120 percent of the FMR as a                       standard for the subsidy calculation for                This section only applies to Guam
                                                reasonable accommodation for a person                   the family, then the PHA must adopt                   and establishes a preference or priority
                                                with a disability, without HUD                          policies in its administrative plan that              in receiving financial assistance (e.g.,
                                                approval.                                               further explain this provision.                       admission to public housing, the HCV
                                                   Implementation action: The final rule                   Implementation action: This                        program, etc.) for any citizen or national
                                                on ‘‘Streamlining Administrative                        provision was effective upon enactment                of the United States over aliens covered
                                                Regulations for Public Housing, Housing                 of HOTMA. HUD’s FMRs for Fiscal Year                  by section 141 of the Compacts of Free
                                                Choice Voucher, Multifamily Housing,                    2017, published in the Federal Register               Association between the United States
                                                and Community Planning and                              on August 26, 2016, reflect the new                   and the Marshall Islands, the Federated
                                                Development Programs,’’ published on                    procedures for calculation of FMRs.                   States of Micronesia, and Palau.
                                                March 8, 2016, at 81 FR 12354,                          Effective July 29, 2016, PHAs may                       Implementation action: This
                                                previously provided PHAs with the                       choose, but are no longer required, to                provision was effective upon enactment
                                                flexibility establish a payment standard                reduce the payment standard for a                     of HOTMA. No regulatory action is
                                                up to 120 percent of the FMR as a                       family who remains under HAP contract                 needed for this section of HOTMA to be
                                                reasonable accommodation for a person                   at the family’s second annual                         implemented.
                                                with a disability, effective April 7, 2016.             reexamination. HUD will issue
                                                As a result, no further action is needed                                                                      Section 114. Exception to Public
                                                                                                        additional guidance on this change in
                                                to implement this section.                                                                                    Housing Agency Resident Board
                                                                                                        the future. PHAs with questions in the
                                                   It is noted the PHA may also establish                                                                     Member Requirement
                                                                                                        interim may contact the local HUD Field
                                                an exception payment standard of more                   Office.                                                 This section provides for an exception
                                                than 120 percent of the published FMR                                                                         for certain jurisdictions (Housing
                                                if required as a reasonable                             Section 110. Family Unification                       Authority of the County of Los Angeles
                                                accommodation in accordance with 24                     Program for Children Aging Out of                     or any PHA in the States of Alaska,
                                                CFR part 8 for a family that includes a                 Foster Care                                           Iowa, and Mississippi) from the resident
                                                person with a disability, but in such                      This section of HOTMA makes                        board member requirements under
                                                cases must request approval from HUD.                   changes to the Family Unification                     section 2(b) of the 1937 Act.
                                                                                                        Program (FUP) for children aging out of                 Implementation action: This
                                                Section 107. Establishment of Fair                      foster care. The law revises the length of            provision was effective upon enactment
                                                Market Rent                                             the term that a FUP-eligible youth may                of HOTMA, and the exception has been
                                                  This section changes how HUD                          receive FUP assistance from 18 months                 in effect for a number of years through
                                                publishes Fair Market Rents (FMRs),                     to 36 months. Please note that this                   the appropriations acts. As a result, no
                                                and the procedure to allow PHAs and                     change applies to youth currently                     further action is needed to implement
                                                other interested parties to comment on                  receiving FUP assistance as well as any               this section. This statutory provision
                                                the FMRs and request HUD to                             new participants. In addition, the law                does not alter the regulatory provision at
                                                reevaluate the FMRs in a jurisdiction                   revises the eligibility requirements for              24 CFR 964.405(b).
                                                before those rents become effective.                    FUP-eligible youth. Previously, FUP-
                                                Section 107 also amends section                         eligible youth must be at least 18 years              Section 402. Inclusion of Public Housing
                                                8(o)(1)(B) of the 1937 Act to provide that              old and not more than 21 and have left                Agencies and Local Development
                                                in the Housing Choice Voucher (HCV)                     foster care at age 16 or older. Under the             Authorities in Emergency Solutions
                                                Program no PHA is required, as a result                 new law, FUP-eligible youth must: Be at               Grants
                                                of a reduction in the FMR, to reduce the                least 18 years old and not more than 24;                Section 402 of HOTMA amended
                                                payment standard applied to a family                    have left foster care at age 16 or older              section 414(c) of the McKinney-Vento
                                                continuing to reside in a unit under a                  or will leave foster care within 90 days,             Homeless Assistance Act (42 U.S.C.
                                                HAP contract at the time the FMR was                    in accordance with a transition plan                  11373(c)) to authorize local
                                                reduced. Currently, if a reduction in the               described in section 475(5)(H) of the                 governments that receive Emergency
                                                FMR causes the PHA’s payment                            Social Security Act; and be homeless or               Solutions Grants (ESG) funds to
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                                                standard to exceed the basic range (110                 at risk of being homeless. PHAs should                subaward all or a portion of those funds
                                                percent of the FMR), the PHA is                         refer to the definition of ‘‘at risk of               to public housing agencies, as defined
                                                required to reduce the payment                          homelessness’’ at 24 CFR 576.2.                       under section 3(b)(6) of the 1937 Act (42
                                                standard so that the payment standard                   HOTMA also requires HUD to issue                      U.S.C. 1437a(b)(6)), and local
                                                would be within the basic range of the                  guidance, after consultation with other               redevelopment authorities, as defined
                                                new FMR. The program regulations at                     appropriate Federal agencies, on how to               under State law. Implementation action:
                                                24 CFR 982.505(c)(3) further provide                    improve coordination between PHAs                     This provision was effective upon


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                                                73032            Federal Register / Vol. 81, No. 205 / Monday, October 24, 2016 / Rules and Regulations

                                                enactment of HOTMA. No regulatory                       will affect Fiscal Year 2017 funding.                 rule by HUD. The statutory amendments
                                                action is needed to authorize local                     This section requires HUD to issue                    made by sections 101(a)(2) and (3) will
                                                governments to subaward ESG funds to                    regulations in order to exercise                      only go into effect when the regulations
                                                public housing agencies and local                       discretion regarding reallocations of                 are issued to implement the new
                                                redevelopment authorities. However,                     funds distributed by formula, and HUD                 subparagraph added by section
                                                HUD intends to issue guidance                           is developing those regulations.                      101(a)(3).
                                                explaining the conditions and                           IV. Provisions That Require
                                                requirements that apply to subawarding                                                                        Sections 102(a), (c), and (e). Income
                                                                                                        Rulemaking or Guidance by HUD                         Reviews
                                                ESG funds to PHAs and local
                                                redevelopment authorities.                                There are several provisions in
                                                                                                        HOTMA that amend HUD statutes but,                       Section 102(a) of HOTMA amends
                                                Section 501. Inclusion of Disaster                      under their own terms, are not effective              section 3(a) of the 1937 Act to revise the
                                                Housing Assistance Program in Certain                   until HUD issues a notice or regulation.              frequency of family income reviews and
                                                Fraud and Abuse Prevention Measures                     Other provisions make changes to HUD                  the calculation of income. Specifically,
                                                  This section provides that the Disaster               statutes that, while effective upon                   this section requires that reviews of
                                                Housing Assistance Program shall be                     enactment of HOTMA, require HUD                       family income must be conducted upon
                                                considered a program of HUD under                       rulemaking or the issuance of detailed                admission and annually thereafter,
                                                section 904 of the Stewart B. McKinney                  guidance for implementation. This                     depending on certain decreases or
                                                Homeless Assistance Amendments Act                      section addresses both types of HOTMA                 increases in annual adjusted income.
                                                of 1988 for the purpose of income                       provisions requiring further HUD                      This section also requires HUD, in
                                                verifications.                                          action. For these provisions, PHAs,                   consultation with other appropriate
                                                  Implementation action: This                           multifamily owners, or grantees may not               Federal agencies, to develop electronic
                                                provision was effective upon enactment                  use the provisions of HOTMA until                     procedures enabling PHAs to access
                                                of HOTMA, and it has previously been                    HUD issues a rule or notice.                          income determinations for other Federal
                                                in effect through HUD appropriations                                                                          means-tested programs.
                                                                                                        Section 101(a)(1). Initial Inspections in
                                                acts for a number of years, and therefore
                                                                                                        Section 8 Voucher Units                                  Section 102(c) of HOTMA amends
                                                no additional action is needed for
                                                                                                           Section 101(a)(1) amends section 8(o)              section 3(b) of the 1937 Act to change
                                                implementation.
                                                                                                        of the 1937 Act to authorize assistance               the definitions for the public housing
                                                Section 502. Energy Efficiency                          payments for up to 30 days if an initial              and Section 8 programs of income and
                                                Requirements Under Self-Help                            inspection reveals non-life-threatening               adjusted income for each member of the
                                                Homeownership Opportunity Program                       defects and to authorize occupancy of                 household who is 18 years or older and
                                                   This provision prohibits HUD from                    units before an inspection by the PHA                 unearned income for each dependent
                                                requiring units developed under the                     if the property has met the requirements              who is less than 18. The changes in
                                                Self-Help Homeownership Opportunity                     of an alternative inspection in the                   definitions require rulemaking to
                                                Program (SHOP) to meet energy                           previous 24 months.                                   implement, and the statutory
                                                efficiency standards other than those in                   Implementation action: HUD has the                 amendments are not effective until the
                                                section 109 of the Cranston-Gonzalez                    ability to implement these changes by                 rulemaking is complete.
                                                National Affordable Housing Act (42                     notice or by regulation, and the                         Section 102(e) changes the definition
                                                U.S.C. 12709).                                          statutory amendments are not effective                of ‘‘income’’ to ‘‘annual adjusted
                                                   Implementation action: This                          until the notice or regulation is issued.             income’’ for the Enhanced Voucher
                                                provision was effective upon enactment                  HUD is considering the appropriate                    Program.
                                                of HOTMA. The changes will be                           method for implementation.
                                                reflected in the future SHOP Notice of                                                                           Implementation action: HUD has the
                                                                                                        Sections 101(a)(2) and (3). Enforcement               ability to implement these changes by
                                                Funding Availability, and HUD will
                                                                                                        of Housing Quality Standards for                      notice or by regulation, and the
                                                provide current grantees with additional
                                                                                                        Section 8 Voucher Units                               statutory amendments are not effective
                                                information on how this provision
                                                affects their prior year funding.                          Section 101(a)(3) amends section 8(o)              until the beginning of the calendar year
                                                                                                        of the 1937 Act to require timeframes for             after the notice or regulation is issued.
                                                Section 701. Formula and Terms for                      correcting deficiencies discovered by                 HUD is considering the appropriate
                                                Allocations To Prevent Homelessness                     inspections. The statute requires life-               method for implementation.
                                                for Individuals Living With HIV or AIDS                 threatening deficiencies to be corrected
                                                   This provision makes several changes                 within 24 hours and sets the time for                 Section 102(f). Income Review for
                                                to the Housing Opportunities for                        correcting other deficiencies at 30 days              Project-Based Housing
                                                Persons with AIDS (HOPWA) program.                      unless the PHA determines otherwise.                     This section amends strikes the last
                                                These changes include: Alterations to                   The section also provides families with               sentence of paragraph (3) of section 8(c)
                                                the allocation formula; continued                       90 days to relocate to a new unit if an               of the 1937 Act (42 U.S.C. 1437f(c)(3).
                                                eligibility of Fiscal Year 2016 grantees;               owner fails to correct the defaults and               This eliminates the requirement that
                                                authorization to award funds to                         allows PHAs to use up to two months                   reviews of family income shall be made
                                                alternative grantees as requested by the                of any assistance amounts withheld or                 no less frequently than annually.
                                                original grantee in accordance with                     abated for costs directly associated with
                                                specified criteria; and amended                         relocation of these families. Section                    Implementation action: HUD has the
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                                                definitions.                                            101(a)(2) is a technical amendment to                 ability to implement these changes by
                                                   Implementation action: These                         make room for the new subparagraph                    notice or by regulation, and the
                                                changes apply to the formula for Fiscal                 (G) added by section 101(a)(3).                       statutory amendments are not effective
                                                Year 2017 funds. HUD’s Office of                           Implementation action: For section                 until the beginning of the calendar year
                                                Community Planning and Development                      101(a)(3), HUD is in the process of                   after the notice or regulation is issued.
                                                (CPD) is preparing more detailed                        developing regulations, and section                   HUD is considering the appropriate
                                                guidance to explain how these changes                   101(a)(2) requires only a conforming                  method for implementation.


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                                                                 Federal Register / Vol. 81, No. 205 / Monday, October 24, 2016 / Rules and Regulations                                         73033

                                                Section 103. Limitation on Public                       under a mortgage or deed of trust on the              order for PHAs to implement the
                                                Housing Tenancy for Over-Income                         unit, or holds a non-controlling interest             changes, additional guidance or
                                                Families                                                in an entity which owns the unit or in                rulemaking is required.
                                                   The statute sets the maximum amount                  the managing member or general partner
                                                                                                                                                              Section 112. Use of Vouchers for
                                                of annual adjusted income for continued                 of an entity which owns the unit.
                                                                                                          Implementation action: PHAs should                  Manufactured Housing
                                                occupancy in public housing at 120                                                                               Section 112(b) of HOTMA extends the
                                                                                                        continue their current practices until
                                                percent area median income (AMI),                                                                             definition of ‘‘rent’’ for vouchers to
                                                                                                        HUD can issue additional information
                                                which the Secretary may adjust based                    on how affected PHAs can comply with                  include monthly payments for
                                                on certain statutory factors. The statute               any new requirements.                                 purchasing a manufactured home,
                                                also requires that a family is only                                                                           tenant-paid utilities, and monthly rent
                                                subject to this limitation if their annual              Section 106. PHA Project-Based
                                                                                                                                                              for real property.
                                                adjusted income meets or exceeds the                    Assistance
                                                                                                                                                                 Implementation action: These
                                                maximum amount for two consecutive                         This section makes several statutory               statutory changes are only effective
                                                years. In addition, for a family meeting                changes to the Project-Based Voucher                  upon issuance by HUD of an
                                                this threshold for two consecutive years,               (PBV) Program in section 8(o)(13) of the              implementing notice. The statutory
                                                the PHA has the option to terminate the                 1937 Act. The amendments include (1)                  amendments are not effective until HUD
                                                family’s tenancy or to allow them to                    changing the portfolio limitation on                  issues that implementation notice.
                                                remain in the unit at a higher rent                     PBV vouchers from a funding to a unit
                                                amount.                                                 calculation and allowing for additional               Section 301. Modification of FHA
                                                   Implementation action: The statutory                 project-basing of vouchers for homeless               Requirements for Mortgage Insurance
                                                language recognizes that it is necessary                families, families with veterans,                     for Condominiums
                                                in some areas to deviate from the                       supportive housing for persons with                     Section 301 mandates several changes
                                                income cap of 120 percent AMI. In order                 disabilities or elderly persons, or in                to FHA’s mortgage insurance for
                                                to allow HUD to exercise its discretion                 areas where vouchers are difficult to                 condominiums, including changes to
                                                in a fair and effective manner, HUD will                use; (2) changing the cap on the number               requirements on project recertification,
                                                issue additional information in the                     of PBV units in a project to be the                   exceptions to the percentage of floor
                                                future. In addition, the new section                    greater of 25 units in a project or 25                space that may be used for
                                                16(a)(5)(A)(i)(II) of the 1937 Act requires             percent of the units in a project; (3)                nonresidential or commercial purposes,
                                                regulations to determine the amount of                  allowing PHAs to provide for an initial               private transfer fee covenants, and the
                                                subsidy allocated to a specific unit in                 PBV contract of up to 20 years; (4)                   minimum required percentage of units
                                                order to determine family rent in the                   providing owners and PHAs the ability                 that must be owner occupied.
                                                event a family chooses to remain in the                 to adjust rents based on an operating                   Implementation action: Some of these
                                                unit.                                                   cost adjustment factor; (5) permitting                changes must be done by regulations,
                                                Section 104. Limitation on Eligibility for              owners to use site-based waiting lists;               while the revision to the owner
                                                Assistance Based on Assets                              (6) allowing PHAs to attach assistance to             occupancy percentage may be done by
                                                                                                        structures in which the PHA has an                    rulemaking or an administrative
                                                   Section 104 sets limits on the assets                ownership interest or control without                 document. HUD issued a proposed rule
                                                that families residing in assisted                      following a competitive process; and (7)              to implement provisions on all these
                                                housing may have. Section 104 also                      allowing PHAs to use project-based                    subjects other than transfer fees, and
                                                directs HUD, beginning October 1, 2017,                 HUD–VASH and FUP vouchers under                       including general parameters on owner
                                                to direct PHAs to require all applicants                the same policies and procedures                      occupancy, on September 28, 2016, at
                                                and recipients under the 1937 Act to                    applicable to general purpose vouchers.               81 FR 66565. In the near future, HUD
                                                authorize the PHA to obtain financial                      Implementation action: HUD has the                 will be issuing a Mortgagee Letter to
                                                information needed in connection with                   ability to implement these changes by                 establish the specific owner occupancy
                                                a determination with respect to                         notice or regulation, and the statutory               percentage. For other provisions of
                                                eligibility.                                            amendments are not effective until the                section 301, HUD is considering the
                                                   Implementation action: This                          notice or regulation is issued. Some                  appropriate implementation action.
                                                requirement must be put in place by                     sections require regulations to add onto
                                                rulemaking.                                             baselines set by the statute. HUD is                  Section 401. Definition of Geographic
                                                                                                        considering the appropriate method for                Area for Continuum of Care Program
                                                Section 105. Units Owned by Public
                                                Housing Agencies                                        implementation.                                          Section 401 requires HUD to issue a
                                                                                                                                                              notice by October 27, 2016 defining
                                                   This section provides that the term                  Section 109. Public Housing Capital and               ‘‘geographic area’’ for the Continuum of
                                                ‘owned by a public housing agency’                      Operating Funds                                       Care (CoC) program.
                                                means, with respect to a dwelling unit,                   Section 109 revises section 9 of the                   Implementation action: HUD is
                                                that the dwelling unit is in a project that             1937 Act regarding (1) PHAs                           currently developing the notice.
                                                is owned by a PHA, by an entity wholly                  establishing a Capital Fund
                                                controlled by a PHA, or by a limited                    Replacement Reserve, for which HUD                    Section 701. HOPWA Allocations
                                                liability company or limited partnership                may allow a PHA to transfer more than                    Section 701 of HOTMA adds four
                                                in which a PHA (or an entity wholly                     20 percent of its operating fund to                   paragraphs to section 854(c) of the AIDS
                                                controlled by a PHA) holds a controlling                establish the reserve; (2) a 20 percent               Housing Opportunity Act (42 U.S.C.
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                                                interest in the managing member or                      operating funds cap for capital                       12903(c)). The new paragraph (1)(C)
                                                general partner. This section also                      improvements; and (3) PHA accounting                  allows the Secretary to change the
                                                provides that a dwelling unit is not                    and reporting on replacement reserves                 allocation formula set in paragraph
                                                deemed to be owned by a PHA where                       funds.                                                (1)(A) to account for differences in
                                                the PHA holds a fee interest as ground                    Implementation action: These                        housing costs and poverty rates. The
                                                lessor in the property on which the unit                statutory changes are effective upon the              new paragraph (4) allows the Secretary
                                                is situated, holds a security interest                  enactment of HOTMA. However, in                       to set criteria by which the Secretary


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                                                73034            Federal Register / Vol. 81, No. 205 / Monday, October 24, 2016 / Rules and Regulations

                                                determines a grantee is unable to                          Under the provisions of 33 CFR                     Marine Events within the Fifth Coast
                                                properly administer its allocation.                     100.701, all persons and vessels are                  Guard District identifies the regulated
                                                  Implementation action: Both of these                  prohibited from entering the regulated                area for this event. During the
                                                provisions require HUD to issue                         area unless they receive permission to                enforcement period, no person or vessel
                                                regulations to exercise the Secretary’s                 do so from the Captain of the Port                    may enter, transit through, anchor in, or
                                                discretion, and HUD is developing those                 Savannah, or designated                               remain within the regulated area
                                                regulations.                                            representatives. This action is to                    without approval from the Captain of
                                                  Dated: October 12, 2016.                              provide enforcement action of regulated               the Port or a designated representative.
                                                                                                        area that will encompass the entire
                                                Ariel Pereira,                                                                                                DATES:  The regulations in 33 CFR
                                                                                                        Savannah River in Savannah, GA
                                                Associate General Counsel for Legislation and           beginning at the Talmadge Bridge near                 100.501 will be enforced for the location
                                                Regulations.
                                                                                                        River Street, coordinates 32°05′20″ N.,               listed in item (c.)8 of the Table to
                                                [FR Doc. 2016–25147 Filed 10–21–16; 8:45 am]
                                                                                                        081°05′56.3″ W., and proceeding down                  § 100.501, from 1 p.m. through 4 p.m.
                                                BILLING CODE 4210–67–P                                  river to a line drawn at 146 degrees true             on October 23, 2016.
                                                                                                        from day board 62, approximate                        FOR FURTHER INFORMATION CONTACT:   If
                                                                                                        coordinates are: 32°04′48.7″ N., 081°                 you have questions about this notice of
                                                DEPARTMENT OF HOMELAND                                  04′47.9″ W.                                           enforcement, call or email ENS Chandra
                                                SECURITY                                                   Spectator vessels may safely transit               Saunders, U.S. Coast Guard Sector
                                                                                                        outside the regulated area, but may not               Hampton Roads (WWM); telephone
                                                Coast Guard                                             anchor, block, loiter in, impede the                  757–668–5582, email
                                                                                                        transit of festival participants or official          Chandra.M.Saunders@uscg.mil.
                                                33 CFR Part 100                                         patrol vessels or enter the regulated area
                                                                                                        without approval from the Captain of                  SUPPLEMENTARY INFORMATION:      The Coast
                                                [Docket No. USCG–2016–0859]
                                                                                                        the Port Savannah or a designated                     Guard will enforce the special local
                                                                                                        representative. The Coast Guard may be                regulation in the table to 33 CFR
                                                Special Local Regulations; Savannah                                                                           100.501, item (c.)8, from 1 p.m. until 4
                                                Harbor Boat Parade of Lights and                        assisted by other Federal, State, or local
                                                                                                        law enforcement agencies in enforcing                 p.m. on October 23, 2016, for the 2016
                                                Fireworks, Savannah River                                                                                     Poquoson Seafood Festival Workboat
                                                                                                        this regulation.
                                                AGENCY:  Coast Guard, DHS.                                 This notice of enforcement is issued               Races on Back River. This action is
                                                                                                        under authority of 33 CFR 100.701 and                 being taken to provide for the safety of
                                                ACTION: Notice of enforcement of
                                                                                                        5 U.S.C. 552 (a). In addition to this                 life on navigable waterways during this
                                                regulation.
                                                                                                        notice of enforcement in the Federal                  event. Our regulation for Recurring
                                                SUMMARY:   The Coast Guard will enforce                 Register, the Coast Guard will provide                Marine Events within the Fifth Coast
                                                the Savannah Harbor Boat Parade of                      notice of the regulated area by Local                 Guard District, § 100.501, specifies the
                                                Lights and Fireworks Special Local                      Notice to Mariners, Broadcast Notice to               location of the special regulated area
                                                Regulation from 5 p.m. through 10 p.m.                  Mariners, and on-scene designated                     bounded on the north by a line drawn
                                                on November 26, 2016. This action is                    representatives.                                      along latitude 37°06′30″ N., bounded on
                                                necessary to ensure safety of life on                                                                         the south by a line drawn along latitude
                                                                                                          Dated: September 14, 2016.
                                                navigable waters of the United States                                                                         37°06′15″ N., bounded on the east by a
                                                                                                        A.M. Beach,                                           line drawn along longitude 076°18′52″
                                                during the Savannah Harbor Boat
                                                                                                        Commander, U.S. Coast Guard, Captain of               W. and bounded on the west by a line
                                                Parade of Lights and Fireworks displays.                the Port, Savannah.
                                                During the enforcement period, and in                                                                         drawn along longitude 076°19′30″ W.
                                                                                                        [FR Doc. 2016–25600 Filed 10–21–16; 8:45 am]          located in the vicinity of Messick Point,
                                                accordance with previously issued
                                                special local regulations, no person or
                                                                                                        BILLING CODE 9110–04–P                                in Back River, Poquoson, VA. As
                                                vessel may enter, transit through,                                                                            specified in § 100.501(c), during the
                                                anchor in, or remain within the                                                                               enforcement period, no vessel may not
                                                                                                        DEPARTMENT OF HOMELAND                                enter, remain in, or transit through the
                                                designated area unless authorized by the                SECURITY
                                                Captain of the Port Savannah or a                                                                             special local regulation without
                                                designated representative.                              Coast Guard                                           approval from the Captain of the
                                                                                                                                                              Hampton Roads (COTP) or a COTP
                                                DATES: The regulation in 33 CFR
                                                                                                        33 CFR Part 100                                       designated representative. The Coast
                                                100.701, Table to § 100.71, Item (f)4 will
                                                                                                                                                              Guard may be assisted by other Federal,
                                                be enforced from 5 p.m. until 10 p.m.                   [Docket No. USCG–2016–0745]                           state or local law enforcement agencies
                                                on November 26, 2016.
                                                                                                                                                              in enforcing this regulation.
                                                FOR FURTHER INFORMATION CONTACT: If                     Special Local Regulation; Back River,
                                                you have questions about this notice of                 Poquoson, VA                                             This notice of enforcement is issued
                                                enforcement, call or email MST1                                                                               under authority of 33 CFR 100.501 and
                                                                                                        AGENCY:  Coast Guard, DHS.                            5 U.S.C. 552(a). In addition to this
                                                Cliffton Hendry, Marine Safety Unit
                                                Savannah Office of Waterways                            ACTION: Notice of enforcement of                      notice of enforcement in the Federal
                                                Management, Coast Guard; telephone                      regulation.                                           Register, the Coast Guard plans to
                                                912–652–4353, extension 243, or email                                                                         provide notification of this enforcement
                                                                                                        SUMMARY:   The Coast Guard will enforce               period via the Local Notice to Mariners
                                                Cliffton.R.Hendry@uscg.mil.                             a special local regulation to keep vessels            and marine information broadcasts.
jstallworth on DSK7TPTVN1PROD with RULES




                                                SUPPLEMENTARY INFORMATION: The Coast                    from entering the Poquoson Seafood
                                                Guard will enforce the special local                    Festival Workboat Races route near the                  Dated: October 14, 2016.
                                                regulation for the Savannah Habor                       vicinity of Messick Point, in Back River,             Richard J. Wester,
                                                Parade of Lights and Fireworks in 33                    Poquoson, VA on October 23, 2016. This                Captain, U.S. Coast Guard, Captain of the
                                                CFR 100.701, Table to § 100.71, Item (f)4               action is necessary to ensure safety of               Port, Hampton Roads, VA.
                                                from 5 p.m. until 10 p.m. on November                   life on navigable waters during this                  [FR Doc. 2016–25679 Filed 10–21–16; 8:45 am]
                                                26, 2016.                                               event. Our regulation for Recurring                   BILLING CODE 9110–04–P




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Document Created: 2016-10-21 23:45:51
Document Modified: 2016-10-21 23:45:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInitial implementation guidance.
ContactIf you have any questions, please contact the following people (none of the phone numbers are toll-free):
FR Citation81 FR 73030 

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