83_FR_52315 83 FR 52115 - Federal Home Loan Bank Community Support Program-Administrative Amendments

83 FR 52115 - Federal Home Loan Bank Community Support Program-Administrative Amendments

FEDERAL HOUSING FINANCE AGENCY

Federal Register Volume 83, Issue 200 (October 16, 2018)

Page Range52115-52118
FR Document2018-22451

The Federal Housing Finance Agency (FHFA) is issuing a final rule amending its community support regulation to require that FHFA establish relevant dates for FHFA's biennial community support review by written notice to the Federal Home Loan Banks (Banks). The amendments do not affect the substantive requirements of the regulation and do not change the criteria for determining member compliance with the community support standards and eligibility for access to long-term Bank advances.

Federal Register, Volume 83 Issue 200 (Tuesday, October 16, 2018) 
[Federal Register Volume 83, Number 200 (Tuesday, October 16, 2018)]
[Rules and Regulations]
[Pages 52115-52118]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22451]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / 
Rules and Regulations

[[Page 52115]]



FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1290

RIN 2590-AA96


Federal Home Loan Bank Community Support Program--Administrative 
Amendments

AGENCY: Federal Housing Finance Agency.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Agency (FHFA) is issuing a final 
rule amending its community support regulation to require that FHFA 
establish relevant dates for FHFA's biennial community support review 
by written notice to the Federal Home Loan Banks (Banks). The 
amendments do not affect the substantive requirements of the regulation 
and do not change the criteria for determining member compliance with 
the community support standards and eligibility for access to long-term 
Bank advances.

DATES: This final rule will take effect on November 15, 2018.

FOR FURTHER INFORMATION CONTACT: Ted Wartell, Manager, Office of 
Housing and Community Investment, 202-649-3157, ted.wartell@fhfa.gov; 
Deattra Perkins, Senior Policy Analyst, Office of Housing and Community 
Investment, 202-649-3133, deattra.perkins@fhfa.gov; or Marshall Adam 
Pecsek, Senior Counsel, Office of General Counsel, 202-649-3380, 
marshall.pecsek@fhfa.gov. (These are not toll-free numbers.) The 
telephone number for the Telecommunications Device for the Hearing 
Impaired is (800) 877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

A. Community Support Regulation Established Under the Bank Act

    Section 10(g) of the Federal Home Loan Bank Act (Bank Act) requires 
FHFA to adopt regulations establishing standards of community 
investment or service for members of Banks to maintain access to long-
term Bank advances. 12 U.S.C. 1430(g). Section 10(g) states that such 
regulations ``shall take into account factors such as a member's 
performance under the Community Reinvestment Act of 1977 (CRA) and the 
member's record of lending to first-time homebuyers.''
    FHFA's current community support regulation implements section 
10(g). 12 CFR part 1290. The regulation details the CRA and first-time 
homebuyer standards that have been established pursuant to section 
10(g). Each Bank member, except as provided in the regulation, must 
meet these standards in order to maintain access to long-term Bank 
advances.\1\ A long-term advance is defined as an advance with a term 
to maturity greater than one year. 12 CFR 1290.1. The regulation sets 
forth the process that FHFA follows in reviewing, evaluating, and 
communicating each member's community support performance. The 
regulation also requires each Bank to establish and maintain a 
community support program that includes providing technical assistance 
to its members.
---------------------------------------------------------------------------

    \1\ The regulation excepts non-depository Community Development 
Financial Institutions, and excepts new members. 12 CFR 1290.2(d), 
(e).
---------------------------------------------------------------------------

B. Review Schedule Under the Current Regulation

    Under the current community support regulation, each Bank member 
subject to community support review must submit to FHFA a completed 
Community Support Statement once every two years. The regulation 
establishes December 31 of each odd-numbered year as the submission 
deadline. FHFA provides instructions to the Banks each review cycle 
with detailed requirements for submissions, including the start date 
for the submission period. 12 CFR 1290.2(b)(1). For the 2017 review 
cycle, the instructions indicated that FHFA would begin accepting 
submissions on April 1, 2017.
    The regulation also establishes two notice obligations for the 
Banks. Each Bank is required to provide notice to each of its members 
subject to community support review of the member's obligation to 
submit a Community Support Statement. Each Bank is also required to 
provide notice to its Advisory Council and other interested parties of 
the opportunity to submit comments on the activities of Bank members 
subject to community support review. The Banks are required to provide 
these notices by March 31 of each odd-numbered year.

II. Analysis of Final Rule

A. Establishment of Review Schedule Via Written Notice

Submission Deadline
    Under the current community support regulation, each Bank member 
subject to community support review must submit its completed Community 
Support Statement by December 31 of the applicable review year. 12 CFR 
1290.2(b)(1). Many members submit their Community Support Statements 
close to the end of the calendar year. In the 2017 review, for example, 
2,584 of the 6,690 Community Support Statements submitted by December 
31 were submitted on or after November 1. This influx of submissions 
comes when both the Banks and FHFA face holiday-related staffing 
shortages and multiple end-of-year obligations, including those related 
to community support review. For example, the Banks must provide 
requested technical assistance to members in completing the Community 
Support Statements. 12 CFR 1290.2(a). FHFA must review each submitted 
Community Support Statement and notify the Bank of its determination, 
and the Bank must then promptly notify each member of FHFA's 
determination. 12 CFR 1290.4.
    FHFA expects that many Bank members subject to community support 
review are likely to continue to submit their Community Support 
Statements near the submission deadline. Moving the submission deadline 
away from the year-end holidays will reduce the burden on FHFA and the 
Banks. However, the most appropriate deadline for future review cycles 
may change based on FHFA's experience and based on feedback from the 
Banks and Bank members. Codifying a specific date in the regulation 
would unnecessarily limit FHFA's flexibility. Therefore, the final rule 
replaces the December 31 Community Support Statement submission 
deadline with a requirement that FHFA establish the submission deadline 
for each biennial community support review by written notice to the 
Banks. The final rule does not change

[[Page 52116]]

the requirement that members subject to community support review be 
reviewed once every two years.
Notice Deadlines
    The current regulation establishes March 31 of each odd-numbered 
year as the date by which each Bank must provide written notice to each 
of its members subject to community support review of the member's 
obligation to submit a Community Support Statement by the submission 
deadline. 12 CFR 1290.2(a). Because this date establishes the beginning 
of the biennial review cycle, retaining it in the regulation would 
limit FHFA's ability to provide an appropriate amount of time for 
members to submit their Community Support Statements. Therefore, the 
final rule replaces the March 31 date with a requirement that FHFA 
establish, via written notice to the Banks, the date by which each Bank 
must provide written notice to each of its members subject to community 
support review of the member's obligation to submit a Community Support 
Statement by the submission deadline.
    The current regulation also establishes March 31 of each odd-
numbered year as the date by which each Bank must provide notice to its 
Advisory Council and other interested parties of the opportunity to 
submit comments on the activities of Bank members subject to community 
support review. 12 CFR 1290.2(c)(1). This date need not coincide with 
the deadline for the Banks to notify their members. However, these two 
dates currently coincide, and FHFA would like to retain the ability to 
continue this practice in future review cycles. Therefore, the final 
rule replaces this date with a requirement that the deadline for notice 
to Advisory Councils and other interested parties also be established 
by FHFA via written notice to the Banks.
Submission Acceptance Date
    The current regulation does not provide a date by which FHFA will 
begin accepting Community Support Statements for a particular biennial 
review cycle. For the 2017 community support review, FHFA began 
accepting Community Support Statements on April 1, 2017. While members 
that are on probation or restriction may submit a Community Support 
Statement at any time to demonstrate compliance with the requirements 
of the regulation, most members will submit only one Community Support 
Statement in each biennial review cycle. Proper administration of the 
community support review process requires the establishment of a 
starting point for each biennial review. Otherwise, submission at the 
discretion of the submitting members would effectively dictate the 
review schedule. Therefore, FHFA will continue to establish a date by 
which it will begin accepting Community Support Statements for review 
for each review cycle. The final rule requires that members submit 
their Community Support Statements in accordance with the submission 
dates designated by FHFA in the written notice to the Banks 
establishing the submission and notice deadlines.
Timing of FHFA Notice Establishing Review Schedule
    While the final rule provides substantial flexibility for FHFA to 
establish appropriate deadlines for each step in the community support 
review process, FHFA recognizes that the Banks and Bank members will 
need adequate advance notice to allow them to prepare to meet their 
respective obligations under the regulation. To ensure that the Banks 
and members continue to have adequate time to prepare for the 
submission period, the final rule requires that FHFA notify the Banks 
of the applicable dates for the review period at least 90 days before 
the deadline for the Banks to notify their members.
2019 Community Support Review
    For the 2019 biennial community support review, FHFA will issue the 
written notice establishing the applicable deadlines concurrently with 
or shortly after publication of this final rule in the Federal 
Register. FHFA intends to establish April 1, 2019 as the date on which 
FHFA will begin accepting Community Support Statements submitted for 
the 2019 review period. FHFA intends to establish October 31, 2019 as 
the date by which each member subject to community support review must 
submit a completed Community Support Statement for the 2019 review 
period. FHFA intends to establish March 29, 2019 as the date by which 
each Bank must notify each of its members subject to community support 
review of its obligation to submit a completed Community Support 
Statement by the submission deadline. Finally, March 29, 2019 would 
also be the date by which each Bank must provide notice to its Advisory 
Council and other interested parties of the opportunity to submit 
comments on the activities of Bank members subject to community support 
review.

B. Clarifications and Updates

    The final rule makes certain clarifying revisions to the community 
support regulation and removes outdated text.
Clarifications
    The current regulation provides that the Banks must provide a blank 
Community Support Statement form to each member, and that FHFA will 
maintain a blank copy of the form on its website. 12 CFR 1290.2(a). 
Starting with the 2017 review cycle, FHFA has established an online 
process for submission of the Community Support Statements. Members are 
strongly encouraged to use the online submission system for submitting 
their Community Support Statements, although FHFA will accept hard copy 
submissions from members experiencing technical difficulties in 
submitting via the online process. The final rule amends the regulation 
to remove the outdated requirement to provide blank forms to each 
member, and to require instead that Banks provide a copy of the blank 
form upon request. In addition, FHFA maintains an informational version 
of the form on its website, but it is overlaid with explanatory text 
and therefore not a blank version of the form which any member could 
complete and submit. The blank form referenced in the regulation is 
transmitted directly by FHFA to the Banks. The final rule amends the 
regulation to align with this practice.
Conforming Changes
    The final rule removes an outdated transition provision in Sec.  
1290.2 that clarified the community support review obligations for the 
2014-2015 review cycle of members who had already been selected for 
community support review during that review cycle. 12 CFR 1290.2(b)(2). 
The final rule also updates a cross-reference in Sec.  1290.5 to 
reflect the revised paragraph numbering in Sec.  1290.2.

C. Section-by-Section Analysis of Final Rule

Section 1290.2
Paragraph (a)
    The final rule removes all references to specific dates in 
paragraph (a) and provides that the applicable deadline will be 
established pursuant to new paragraph (f). The final rule removes the 
reference to FHFA's website, providing instead that the referenced 
blank Community Support Statement form will be provided by FHFA to the 
Banks. The final rule also removes the requirement that each Bank 
provide a

[[Page 52117]]

blank copy of the Community Support Statement form to its members, 
replacing it with a requirement that each Bank provide the form upon 
request.
Paragraph (b)
    The final rule removes all references to specific dates in 
paragraph (b)(1) and provides that the applicable deadline will be 
established pursuant to new paragraph (f). The final rule removes 
paragraph (b)(2) and redesignates paragraph (b)(1) as paragraph (b).
Paragraph (c)(1)
    The final rule removes all references to specific dates in 
paragraph (c)(1) and provides that the applicable deadline will be 
established pursuant to new paragraph (f).
Paragraph (f)
    The final rule adds new paragraph (f), which provides that FHFA 
will designate applicable dates for each biennial community support 
review via written notice to the Banks. Paragraph (f) provides that 
this notice will designate the dates referenced in paragraphs (a), (b) 
and (c)(1), and will be issued at least 90 days before the date by 
which each Bank must notify members of their community support review 
obligations under paragraph (a).

III. Notice and Public Participation

    Section 553(b)(A) of the Administrative Procedures Act provides 
that when a regulation involves matters of agency organization, 
procedure, or practice, the agency may publish the regulation in final 
form without prior public notice and comment. 5 U.S.C. 553(b)(A). This 
final rule involves matters of agency procedure and practice. The final 
rule does not make any change to the substantive standards for 
compliance with the community support regulation. The changes in the 
final rule are limited to administrative changes in the process that 
FHFA uses to evaluate members. As a result, the final rule is exempt 
from the public notice and comment provisions of section 553.

IV. Considerations of Differences Between the Banks and the Enterprises

    Section 1313(f) of the Safety and Soundness Act requires the FHFA 
Director, when promulgating regulations ``of general applicability and 
future effect'' relating to the Banks, to consider the differences 
between the Banks and the Enterprises as they may relate to the Banks' 
cooperative ownership structure, mission of providing liquidity to 
members, affordable housing and community development mission, capital 
structure, and joint and several liability. In preparing this final 
rule, the Director considered the differences between the Banks and the 
Enterprises as they relate to these factors. The rule would apply only 
to the Banks. There is no direct Enterprise-specific analog to the 
Banks' community support requirements. Under the existing community 
support regulation, it is possible that a Bank member's access to long-
term advances may be restricted as a result of a failure to meet the 
community support standards. While such restrictions may affect an 
individual member's access through the Bank to liquidity for home 
mortgage financing, they do not fundamentally change the role of the 
Banks in providing such liquidity, and the restriction is mandated by 
the Bank Act in such a case. See 12 U.S.C. 1430(g). In any case, the 
final rule would not make any substantive change to these provisions 
governing member restriction. Consequently, the Director has determined 
the rule to be appropriate.

V. Regulatory Impacts

A. Paperwork Reduction Act

    FHFA currently collects information from Bank members regarding 
their compliance with the community support requirements under existing 
part 1290. Existing part 1290 also permits Bank members whose access to 
long-term advances has been restricted for failure to meet the 
community support requirements to apply directly to FHFA to remove the 
restriction under certain circumstances. The current collection of 
information has been approved by the Office of Management and Budget 
(OMB), and the control number, OMB No. 2590-0005, will expire on March 
31, 2020. The final rule amends the community support provisions in 
part 1290 but does not substantively or materially modify the approved 
information collection with respect to the members' information 
collection burden.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
a regulation that has a significant economic impact on a substantial 
number of small entities, small businesses or small organizations must 
include an initial regulatory flexibility analysis describing the 
regulation's impact on small entities. Such an analysis need not be 
undertaken if the agency has certified that the regulation will not 
have a significant economic impact on a substantial number of small 
entities. 5 U.S.C. 605(b). FHFA has considered the impact of this final 
rule under the Regulatory Flexibility Act. FHFA certifies that this 
final rule will not have a significant economic impact on a substantial 
number of small business entities because the regulation is applicable 
only to the Banks, which are not small entities for purposes of the 
Regulatory Flexibility Act.

VI. Congressional Review Act

    FHFA has determined that this regulatory action does not qualify as 
a ``rule'' under the Congressional Review Act. See 5 U.S.C. 804(3).

List of Subjects in 12 CFR Part 1290

    Banks and banking, Credit, Federal home loan banks, Housing, 
Mortgages, Reporting and recordkeeping requirements.

    Accordingly, for the reasons stated in the preamble, FHFA is 
amending title 12, chapter XII, part 1290, of the Code of Federal 
Regulations as follows:

PART 1290--COMMUNITY SUPPORT REQUIREMENTS

0
1. The authority citation for part 1290 is revised to read as follows:

    Authority: 12 U.S.C. 1430(g).


0
2. Revise Sec.  1290.2 to read as follows:


Sec.  1290.2   Community support requirements.

    (a) Bank notice to members. By a date designated by FHFA notice 
pursuant to paragraph (f) of this section, each Bank must provide 
written notice to each of its members subject to community support 
review that each such member must submit to FHFA a completed Community 
Support Statement in accordance with the requirements of paragraph (b) 
of this section. Unless instructed otherwise by FHFA, the Bank must 
provide to each member a blank Community Support Statement Form upon 
request by the member. FHFA will provide a copy of this blank form to 
the Bank. Upon a member's request, the Bank must provide assistance to 
the member in completing the Community Support Statement.
    (b) Community Support Statement submission requirements. Except as 
provided in paragraphs (d) and (e) of this section, in each odd-
numbered year, each member must submit to FHFA a completed Community 
Support Statement (and any other related information FHFA may require) 
in accordance with the submission dates designated by FHFA notice 
pursuant to paragraph (f) of this section. The member's completed 
Community

[[Page 52118]]

Support Statement must be executed by an appropriate senior officer of 
the member and must be submitted to FHFA pursuant to FHFA's submission 
instructions.
    (c) Notice to public.--(1) By the Banks. By a date designated by 
FHFA notice pursuant to paragraph (f) of this section, each Bank must 
provide written notice to its Advisory Council, and to interested 
nonprofit housing developers, community groups, and other interested 
parties in its district, and include a notice on its public website, of 
the opportunity to submit comments on the community support programs 
and activities of Bank members, with the name and address of each 
member subject to community support review, and the deadline and FHFA 
contact information for submission of any comments to FHFA.
    (2) By FHFA. FHFA may publish a notice in the Federal Register 
notifying the public of the opportunity to submit comments on the 
community support programs and activities of Bank members, with the 
deadline and FHFA contact information for submission of any comments to 
FHFA.
    (3) Consideration of comments. In reviewing a member for compliance 
with the community support requirements, FHFA will take into 
consideration any public comments it has received concerning the 
member.
    (d) Non-Depository Community Development Financial Institutions. A 
member that has been certified as a community development financial 
institution by the CDFI Fund, other than a member that also is an 
insured depository institution or a CDFI credit union (as defined in 12 
CFR 1263.1), is deemed to be in compliance with the community support 
requirements of section 10(g) of the Federal Home Loan Bank Act (12 
U.S.C. 1430(g)) and this part, by virtue of that certification. Such 
non-depository CDFIs, therefore, are not required to submit Community 
Support Statements to FHFA under paragraph (b) of this section and are 
not subject to community support review under this part.
    (e) New Bank members. A member of a Bank is not required to submit 
a Community Support Statement under paragraph (b) of this section if 
the institution has been a member of a Bank for a total of less than 
one year as of March 31 of the year in which submissions are due under 
paragraph (b) of this section.
    (f) Designation of submission and notice dates. FHFA will designate 
applicable dates for each biennial review cycle via written notice to 
the Banks. The notice will designate the date by which FHFA will begin 
accepting Community Support Statements and the date by which Community 
Support Statements must be submitted, as well as the dates by which the 
Banks must notify members under paragraph (a) of this section and the 
public under paragraph (c)(1) of this section. FHFA's written notice to 
the Banks will be issued at least 90 days prior to the date by which 
the Banks must notify members under paragraph (a).


Sec.  1290.5   [Amended]

0
3. Amend Sec.  1290.5 by removing ``Sec.  1290.2(b)(1)'' in paragraph 
(b)(1) and adding in its place ``Sec.  1290.2(b).''

    Dated: October 2, 2018.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2018-22451 Filed 10-15-18; 8:45 am]
 BILLING CODE 8070-01-P

52115 Rules and Regulations Federal Register Vol. 83, No. 200 Tuesday, October 16, 2018 This section of the FEDERAL REGISTER standards of community investment or interested parties of the opportunity to contains regulatory documents having general service for members of Banks to submit comments on the activities of applicability and legal effect, most of which maintain access to long-term Bank Bank members subject to community are keyed to and codified in the Code of advances. 12 U.S.C. 1430(g). Section support review. The Banks are required Federal Regulations, which is published under 10(g) states that such regulations ‘‘shall to provide these notices by March 31 of 50 titles pursuant to 44 U.S.C. 1510. take into account factors such as a each odd-numbered year. The Code of Federal Regulations is sold by member’s performance under the Community Reinvestment Act of 1977 II. Analysis of Final Rule the Superintendent of Documents. (CRA) and the member’s record of A. Establishment of Review Schedule lending to first-time homebuyers.’’ Via Written Notice FEDERAL HOUSING FINANCE FHFA’s current community support AGENCY regulation implements section 10(g). 12 Submission Deadline CFR part 1290. The regulation details Under the current community support 12 CFR Part 1290 the CRA and first-time homebuyer regulation, each Bank member subject to RIN 2590–AA96 standards that have been established community support review must submit pursuant to section 10(g). Each Bank its completed Community Support Federal Home Loan Bank Community member, except as provided in the Statement by December 31 of the Support Program—Administrative regulation, must meet these standards in applicable review year. 12 CFR Amendments order to maintain access to long-term 1290.2(b)(1). Many members submit Bank advances.1 A long-term advance is their Community Support Statements AGENCY: Federal Housing Finance defined as an advance with a term to Agency. close to the end of the calendar year. In maturity greater than one year. 12 CFR the 2017 review, for example, 2,584 of ACTION: Final rule. 1290.1. The regulation sets forth the the 6,690 Community Support process that FHFA follows in reviewing, Statements submitted by December 31 SUMMARY: The Federal Housing Finance evaluating, and communicating each were submitted on or after November 1. Agency (FHFA) is issuing a final rule member’s community support This influx of submissions comes when amending its community support performance. The regulation also both the Banks and FHFA face holiday- regulation to require that FHFA requires each Bank to establish and related staffing shortages and multiple establish relevant dates for FHFA’s maintain a community support program end-of-year obligations, including those biennial community support review by that includes providing technical related to community support review. written notice to the Federal Home Loan assistance to its members. For example, the Banks must provide Banks (Banks). The amendments do not affect the substantive requirements of B. Review Schedule Under the Current requested technical assistance to the regulation and do not change the Regulation members in completing the Community criteria for determining member Support Statements. 12 CFR 1290.2(a). Under the current community support FHFA must review each submitted compliance with the community regulation, each Bank member subject to support standards and eligibility for Community Support Statement and community support review must submit notify the Bank of its determination, and access to long-term Bank advances. to FHFA a completed Community DATES: This final rule will take effect on the Bank must then promptly notify Support Statement once every two each member of FHFA’s determination. November 15, 2018. years. The regulation establishes 12 CFR 1290.4. FOR FURTHER INFORMATION CONTACT: Ted December 31 of each odd-numbered FHFA expects that many Bank Wartell, Manager, Office of Housing and year as the submission deadline. FHFA members subject to community support Community Investment, 202–649–3157, provides instructions to the Banks each review are likely to continue to submit ted.wartell@fhfa.gov; Deattra Perkins, review cycle with detailed requirements their Community Support Statements Senior Policy Analyst, Office of Housing for submissions, including the start date near the submission deadline. Moving and Community Investment, 202–649– for the submission period. 12 CFR the submission deadline away from the 3133, deattra.perkins@fhfa.gov; or 1290.2(b)(1). For the 2017 review cycle, year-end holidays will reduce the Marshall Adam Pecsek, Senior Counsel, the instructions indicated that FHFA burden on FHFA and the Banks. Office of General Counsel, 202–649– would begin accepting submissions on However, the most appropriate deadline 3380, marshall.pecsek@fhfa.gov. (These April 1, 2017. for future review cycles may change are not toll-free numbers.) The The regulation also establishes two based on FHFA’s experience and based telephone number for the notice obligations for the Banks. Each on feedback from the Banks and Bank Telecommunications Device for the Bank is required to provide notice to members. Codifying a specific date in Hearing Impaired is (800) 877–8339. each of its members subject to the regulation would unnecessarily SUPPLEMENTARY INFORMATION: community support review of the limit FHFA’s flexibility. Therefore, the member’s obligation to submit a I. Background final rule replaces the December 31 amozie on DSK3GDR082PROD with RULES Community Support Statement. Each Community Support Statement A. Community Support Regulation Bank is also required to provide notice submission deadline with a requirement Established Under the Bank Act to its Advisory Council and other that FHFA establish the submission Section 10(g) of the Federal Home 1 The regulation excepts non-depository deadline for each biennial community Loan Bank Act (Bank Act) requires Community Development Financial Institutions, support review by written notice to the FHFA to adopt regulations establishing and excepts new members. 12 CFR 1290.2(d), (e). Banks. The final rule does not change VerDate Sep<11>2014 16:24 Oct 15, 2018 Jkt 247001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\16OCR1.SGM 16OCR1

52116 Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Rules and Regulations the requirement that members subject to each biennial review. Otherwise, B. Clarifications and Updates community support review be reviewed submission at the discretion of the The final rule makes certain clarifying once every two years. submitting members would effectively revisions to the community support Notice Deadlines dictate the review schedule. Therefore, regulation and removes outdated text. FHFA will continue to establish a date The current regulation establishes by which it will begin accepting Clarifications March 31 of each odd-numbered year as Community Support Statements for The current regulation provides that the date by which each Bank must review for each review cycle. The final the Banks must provide a blank provide written notice to each of its Community Support Statement form to rule requires that members submit their members subject to community support each member, and that FHFA will Community Support Statements in review of the member’s obligation to maintain a blank copy of the form on its submit a Community Support Statement accordance with the submission dates designated by FHFA in the written website. 12 CFR 1290.2(a). Starting with by the submission deadline. 12 CFR the 2017 review cycle, FHFA has 1290.2(a). Because this date establishes notice to the Banks establishing the submission and notice deadlines. established an online process for the beginning of the biennial review submission of the Community Support cycle, retaining it in the regulation Timing of FHFA Notice Establishing Statements. Members are strongly would limit FHFA’s ability to provide Review Schedule encouraged to use the online an appropriate amount of time for submission system for submitting their members to submit their Community While the final rule provides Community Support Statements, Support Statements. Therefore, the final substantial flexibility for FHFA to although FHFA will accept hard copy rule replaces the March 31 date with a establish appropriate deadlines for each submissions from members requirement that FHFA establish, via step in the community support review experiencing technical difficulties in written notice to the Banks, the date by process, FHFA recognizes that the submitting via the online process. The which each Bank must provide written Banks and Bank members will need final rule amends the regulation to notice to each of its members subject to adequate advance notice to allow them remove the outdated requirement to community support review of the to prepare to meet their respective provide blank forms to each member, member’s obligation to submit a obligations under the regulation. To and to require instead that Banks Community Support Statement by the ensure that the Banks and members provide a copy of the blank form upon submission deadline. request. In addition, FHFA maintains an continue to have adequate time to The current regulation also informational version of the form on its establishes March 31 of each odd- prepare for the submission period, the final rule requires that FHFA notify the website, but it is overlaid with numbered year as the date by which explanatory text and therefore not a each Bank must provide notice to its Banks of the applicable dates for the review period at least 90 days before the blank version of the form which any Advisory Council and other interested member could complete and submit. parties of the opportunity to submit deadline for the Banks to notify their members. The blank form referenced in the comments on the activities of Bank regulation is transmitted directly by members subject to community support 2019 Community Support Review FHFA to the Banks. The final rule review. 12 CFR 1290.2(c)(1). This date amends the regulation to align with this need not coincide with the deadline for For the 2019 biennial community practice. the Banks to notify their members. support review, FHFA will issue the However, these two dates currently written notice establishing the Conforming Changes coincide, and FHFA would like to retain applicable deadlines concurrently with The final rule removes an outdated the ability to continue this practice in or shortly after publication of this final transition provision in § 1290.2 that future review cycles. Therefore, the final rule in the Federal Register. FHFA clarified the community support review rule replaces this date with a intends to establish April 1, 2019 as the obligations for the 2014–2015 review requirement that the deadline for notice date on which FHFA will begin cycle of members who had already been to Advisory Councils and other accepting Community Support selected for community support review interested parties also be established by Statements submitted for the 2019 during that review cycle. 12 CFR FHFA via written notice to the Banks. review period. FHFA intends to 1290.2(b)(2). The final rule also updates Submission Acceptance Date establish October 31, 2019 as the date by a cross-reference in § 1290.5 to reflect which each member subject to the revised paragraph numbering in The current regulation does not § 1290.2. provide a date by which FHFA will community support review must submit begin accepting Community Support a completed Community Support C. Section-by-Section Analysis of Final Statements for a particular biennial Statement for the 2019 review period. Rule review cycle. For the 2017 community FHFA intends to establish March 29, Section 1290.2 support review, FHFA began accepting 2019 as the date by which each Bank Community Support Statements on must notify each of its members subject Paragraph (a) April 1, 2017. While members that are to community support review of its The final rule removes all references on probation or restriction may submit obligation to submit a completed to specific dates in paragraph (a) and a Community Support Statement at any Community Support Statement by the provides that the applicable deadline time to demonstrate compliance with submission deadline. Finally, March 29, will be established pursuant to new the requirements of the regulation, most 2019 would also be the date by which paragraph (f). The final rule removes the amozie on DSK3GDR082PROD with RULES members will submit only one each Bank must provide notice to its reference to FHFA’s website, providing Community Support Statement in each Advisory Council and other interested instead that the referenced blank biennial review cycle. Proper parties of the opportunity to submit Community Support Statement form administration of the community comments on the activities of Bank will be provided by FHFA to the Banks. support review process requires the members subject to community support The final rule also removes the establishment of a starting point for review. requirement that each Bank provide a VerDate Sep<11>2014 16:24 Oct 15, 2018 Jkt 247001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\16OCR1.SGM 16OCR1

Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Rules and Regulations 52117 blank copy of the Community Support community development mission, impact on a substantial number of small Statement form to its members, capital structure, and joint and several entities. 5 U.S.C. 605(b). FHFA has replacing it with a requirement that liability. In preparing this final rule, the considered the impact of this final rule each Bank provide the form upon Director considered the differences under the Regulatory Flexibility Act. request. between the Banks and the Enterprises FHFA certifies that this final rule will as they relate to these factors. The rule not have a significant economic impact Paragraph (b) on a substantial number of small would apply only to the Banks. There is The final rule removes all references no direct Enterprise-specific analog to business entities because the regulation to specific dates in paragraph (b)(1) and the Banks’ community support is applicable only to the Banks, which provides that the applicable deadline requirements. Under the existing are not small entities for purposes of the will be established pursuant to new community support regulation, it is Regulatory Flexibility Act. paragraph (f). The final rule removes possible that a Bank member’s access to VI. Congressional Review Act paragraph (b)(2) and redesignates long-term advances may be restricted as paragraph (b)(1) as paragraph (b). a result of a failure to meet the FHFA has determined that this community support standards. While regulatory action does not qualify as a Paragraph (c)(1) ‘‘rule’’ under the Congressional Review such restrictions may affect an The final rule removes all references individual member’s access through the Act. See 5 U.S.C. 804(3). to specific dates in paragraph (c)(1) and Bank to liquidity for home mortgage List of Subjects in 12 CFR Part 1290 provides that the applicable deadline financing, they do not fundamentally will be established pursuant to new Banks and banking, Credit, Federal change the role of the Banks in paragraph (f). home loan banks, Housing, Mortgages, providing such liquidity, and the Reporting and recordkeeping Paragraph (f) restriction is mandated by the Bank Act requirements. in such a case. See 12 U.S.C. 1430(g). In The final rule adds new paragraph (f), Accordingly, for the reasons stated in any case, the final rule would not make which provides that FHFA will the preamble, FHFA is amending title any substantive change to these designate applicable dates for each 12, chapter XII, part 1290, of the Code provisions governing member biennial community support review via of Federal Regulations as follows: restriction. Consequently, the Director written notice to the Banks. Paragraph has determined the rule to be PART 1290—COMMUNITY SUPPORT (f) provides that this notice will appropriate. REQUIREMENTS designate the dates referenced in paragraphs (a), (b) and (c)(1), and will be V. Regulatory Impacts issued at least 90 days before the date ■ 1. The authority citation for part 1290 A. Paperwork Reduction Act is revised to read as follows: by which each Bank must notify members of their community support FHFA currently collects information Authority: 12 U.S.C. 1430(g). review obligations under paragraph (a). from Bank members regarding their ■ 2. Revise § 1290.2 to read as follows: compliance with the community III. Notice and Public Participation support requirements under existing § 1290.2 Community support Section 553(b)(A) of the part 1290. Existing part 1290 also requirements. Administrative Procedures Act provides permits Bank members whose access to (a) Bank notice to members. By a date that when a regulation involves matters long-term advances has been restricted designated by FHFA notice pursuant to of agency organization, procedure, or for failure to meet the community paragraph (f) of this section, each Bank practice, the agency may publish the support requirements to apply directly must provide written notice to each of regulation in final form without prior to FHFA to remove the restriction under its members subject to community public notice and comment. 5 U.S.C. certain circumstances. The current support review that each such member 553(b)(A). This final rule involves collection of information has been must submit to FHFA a completed matters of agency procedure and approved by the Office of Management Community Support Statement in practice. The final rule does not make and Budget (OMB), and the control accordance with the requirements of any change to the substantive standards number, OMB No. 2590–0005, will paragraph (b) of this section. Unless for compliance with the community expire on March 31, 2020. The final rule instructed otherwise by FHFA, the Bank support regulation. The changes in the amends the community support must provide to each member a blank final rule are limited to administrative provisions in part 1290 but does not Community Support Statement Form changes in the process that FHFA uses substantively or materially modify the upon request by the member. FHFA will to evaluate members. As a result, the approved information collection with provide a copy of this blank form to the final rule is exempt from the public respect to the members’ information Bank. Upon a member’s request, the notice and comment provisions of collection burden. Bank must provide assistance to the section 553. member in completing the Community B. Regulatory Flexibility Act Support Statement. IV. Considerations of Differences The Regulatory Flexibility Act (5 (b) Community Support Statement Between the Banks and the Enterprises U.S.C. 601 et seq.) requires that a submission requirements. Except as Section 1313(f) of the Safety and regulation that has a significant provided in paragraphs (d) and (e) of Soundness Act requires the FHFA economic impact on a substantial this section, in each odd-numbered Director, when promulgating regulations number of small entities, small year, each member must submit to ‘‘of general applicability and future businesses or small organizations must FHFA a completed Community Support amozie on DSK3GDR082PROD with RULES effect’’ relating to the Banks, to consider include an initial regulatory flexibility Statement (and any other related the differences between the Banks and analysis describing the regulation’s information FHFA may require) in the Enterprises as they may relate to the impact on small entities. Such an accordance with the submission dates Banks’ cooperative ownership structure, analysis need not be undertaken if the designated by FHFA notice pursuant to mission of providing liquidity to agency has certified that the regulation paragraph (f) of this section. The members, affordable housing and will not have a significant economic member’s completed Community VerDate Sep<11>2014 16:24 Oct 15, 2018 Jkt 247001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\16OCR1.SGM 16OCR1

52118 Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Rules and Regulations Support Statement must be executed by date by which FHFA will begin Toronto, Ontario M3K 1Y5, Canada; an appropriate senior officer of the accepting Community Support telephone 416–375–4000; fax 416–375– member and must be submitted to Statements and the date by which 4539; email thd.qseries@ FHFA pursuant to FHFA’s submission Community Support Statements must be aero.bombardier.com; internet http:// instructions. submitted, as well as the dates by which www.bombardier.com. You may view (c) Notice to public.—(1) By the the Banks must notify members under this service information at the FAA, Banks. By a date designated by FHFA paragraph (a) of this section and the Transport Standards Branch, 2200 notice pursuant to paragraph (f) of this public under paragraph (c)(1) of this South 216th St., Des Moines, WA. For section, each Bank must provide written section. FHFA’s written notice to the information on the availability of this notice to its Advisory Council, and to Banks will be issued at least 90 days material at the FAA, call 206–231–3195. interested nonprofit housing developers, prior to the date by which the Banks It is also available on the internet at community groups, and other interested must notify members under http://www.regulations.gov by searching parties in its district, and include a paragraph (a). for and locating Docket No. FAA–2018– notice on its public website, of the 0449. opportunity to submit comments on the § 1290.5 [Amended] community support programs and Examining the AD Docket ■ 3. Amend § 1290.5 by removing activities of Bank members, with the ‘‘§ 1290.2(b)(1)’’ in paragraph (b)(1) and You may examine the AD docket on name and address of each member adding in its place ‘‘§ 1290.2(b).’’ the internet at http:// subject to community support review, www.regulations.gov by searching for Dated: October 2, 2018. and the deadline and FHFA contact and locating Docket No. FAA–2018– information for submission of any Melvin L. Watt, 0449; or in person at Docket Operations comments to FHFA. Director, Federal Housing Finance Agency. between 9 a.m. and 5 p.m., Monday (2) By FHFA. FHFA may publish a [FR Doc. 2018–22451 Filed 10–15–18; 8:45 am] through Friday, except Federal holidays. notice in the Federal Register notifying BILLING CODE 8070–01–P The AD docket contains this final rule, the public of the opportunity to submit the regulatory evaluation, any comments on the community support comments received, and other programs and activities of Bank DEPARTMENT OF TRANSPORTATION information. The address for Docket members, with the deadline and FHFA Operations (phone: 800–647–5527) is contact information for submission of Federal Aviation Administration U.S. Department of Transportation, any comments to FHFA. Docket Operations, M–30, West (3) Consideration of comments. In 14 CFR Part 39 Building Ground Floor, Room W12–140, reviewing a member for compliance 1200 New Jersey Avenue SE, [Docket No. FAA–2018–0449; Product with the community support Washington, DC 20590. Identifier 2018–NM–042–AD; Amendment requirements, FHFA will take into 39–19452; AD 2018–20–18] consideration any public comments it FOR FURTHER INFORMATION CONTACT: John has received concerning the member. RIN 2120–AA64 P. DeLuca, Aerospace Engineer, (d) Non-Depository Community Avionics and Administrative Services Development Financial Institutions. A Airworthiness Directives; Bombardier, Section, FAA, New York ACO Branch, member that has been certified as a Inc., Airplanes 1600 Stewart Avenue, Suite 410, community development financial Westbury, NY 11590; telephone 516– AGENCY: Federal Aviation 228–7369; fax 516–794–5531; email institution by the CDFI Fund, other than Administration (FAA), Department of a member that also is an insured 9-avs-nyaco-cos@faa.gov. Transportation (DOT). depository institution or a CDFI credit SUPPLEMENTARY INFORMATION: ACTION: Final rule. union (as defined in 12 CFR 1263.1), is Discussion deemed to be in compliance with the SUMMARY: We are adopting a new community support requirements of airworthiness directive (AD) for certain We issued a notice of proposed section 10(g) of the Federal Home Loan Bombardier, Inc., Model DHC–8–400 rulemaking (NPRM) to amend 14 CFR Bank Act (12 U.S.C. 1430(g)) and this series airplanes. This AD was prompted part 39 by adding an AD that would part, by virtue of that certification. Such by a report of uncommanded apply to certain Bombardier, Inc., Model non-depository CDFIs, therefore, are not deployment of the ground spoilers when DHC–8–400 series airplanes. The NPRM required to submit Community Support the power levers were advanced for published in the Federal Register on Statements to FHFA under paragraph (b) takeoff, which was caused by faulty May 25, 2108 (83 FR 24248). The NPRM of this section and are not subject to switches in the power lever module. was prompted by a report of community support review under this This AD requires revising the uncommanded deployment of the part. maintenance or inspection program, as ground spoilers when the power levers (e) New Bank members. A member of applicable. We are issuing this AD to were advanced for takeoff, which was a Bank is not required to submit a address the unsafe condition on these caused by faulty switches in the power Community Support Statement under products. lever module. The NPRM proposed to paragraph (b) of this section if the require revising the maintenance or institution has been a member of a Bank DATES: This AD is effective November inspection program, as applicable. for a total of less than one year as of 20, 2018. We are issuing this AD to address March 31 of the year in which The Director of the Federal Register faulty switches in the power lever submissions are due under paragraph approved the incorporation by reference module, which could result in amozie on DSK3GDR082PROD with RULES (b) of this section. of a certain publication listed in this AD uncommanded deployment of the (f) Designation of submission and as of November 20, 2018. ground spoilers and a possible runway notice dates. FHFA will designate ADDRESSES: For service information excursion. applicable dates for each biennial identified in this final rule, contact Transport Canada Civil Aviation review cycle via written notice to the Bombardier, Inc., Q-Series Technical (TCCA), which is the aviation authority Banks. The notice will designate the Help Desk, 123 Garratt Boulevard, for Canada, has issued Canadian AD VerDate Sep<11>2014 16:24 Oct 15, 2018 Jkt 247001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\16OCR1.SGM 16OCR1


Document Created: 2018-10-15 23:42:19
Document Modified: 2018-10-15 23:42:19
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
ActionFinal rule.
DatesThis final rule will take effect on November 15, 2018.
ContactTed Wartell, Manager, Office of Housing and Community Investment, 202-649-3157, [email protected]; Deattra Perkins, Senior Policy Analyst, Office of Housing and Community Investment, 202-649-3133, [email protected]; or Marshall Adam Pecsek, Senior Counsel, Office of General Counsel, 202-649-3380, [email protected] (These are not toll-free numbers.) The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339.
FR Citation83 FR 52115 
RIN Number2590-AA96
CFR AssociatedBanks and Banking; Credit; Federal Home Loan Banks; Housing; Mortgages and Reporting and Recordkeeping Requirements
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