[Federal Register: September 25, 2007 (Volume 72, Number 185)]
[Rules and Regulations]
[Page 54515-54517]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se07-19]
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Part II
Department of Housing and Urban Development
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24 CFR Part 200
Uniform Physical Condition Standards and Physical Inspection
Requirements for Certain HUD Housing; Revision to Response Time for
Requesting a Technical Review of a Physical Inspection Report; Final
Rule
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 200
[Docket No. FR-5070-F-02]
RIN 2502-AI43
Uniform Physical Condition Standards and Physical Inspection
Requirements for Certain HUD Housing; Revision to Response Time for
Requesting a Technical Review of a Physical Inspection Report
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Final rule.
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SUMMARY: HUD's regulations provide for the assessment of the physical
condition of HUD-assisted multifamily properties and notification to
owners of such assessment. The owners, under certain circumstances, are
provided an opportunity to seek a technical review of the physical
condition assessment, and HUD may take action in certain cases where
the housing is found not to be in compliance with the physical
condition standards. Because the current regulations establish
different time frames for owners to request a technical review,
depending on whether HUD transmits the inspection results via the
Internet or by certified mail, HUD published a proposed rule on April
24, 2007, that would improve uniformity in the technical review request
process by implementing a standard time frame of 30 calendar days for
the submission of a request for a technical review. This final rule
takes into consideration the public comment received on the proposed
rule and adopts the rule without change.
DATES: Effective Date: October 25, 2007.
FOR FURTHER INFORMATION CONTACT: Kenneth Hannon, Director, Business
Relationships and Special Initiatives Division, Office of Housing,
Department of Housing and Urban Development, 451 Seventh Street, SW.,
Room 6176, Washington, DC 20410-8000; telephone number (202) 708-3944,
extension 2599 (this is not a toll-free number). Hearing- and speech-
impaired persons may access this number through TTY by calling the
toll-free Federal Information Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background--the April 24, 2007, Proposed Rule
For multifamily housing, HUD's regulations in 24 CFR part 200,
subpart P, establish certain administrative processes by which HUD
notifies owners of HUD's assessment of the physical condition of their
multifamily housing. The regulations provide owners, under certain
circumstances, with the opportunity to seek a technical review of HUD's
physical condition assessment of the multifamily housing. Currently,
these regulations provide for two different time frames for owners to
request a technical review of HUD's physical inspection assessment,
depending on whether HUD transmits the inspection results to the owner
via the Internet or by certified mail. Owners receiving their
inspection results by certified mail are provided 30 calendar days to
submit a request for a technical review, while those owners receiving
their results electronically have only 15 calendar days to request a
review.
On April 24, 2007, HUD published a proposed rule to establish a
uniform time frame for requesting technical review (72 FR 20405).
Specifically, HUD proposed to revise 24 CFR 200.857(c)(3) and (d) to
include a uniform, 30-calendar-day time frame for the submission of a
request for a technical review for physical inspection results that are
transmitted to the owner either via the Internet or in hard copy by
certified mail. The proposed rule provided that HUD must receive
requests for review no later than 30 calendar days from the date that
HUD transmits the physical inspection report to the owner (as
established by the postmark, if applicable). HUD proposed this rule
because a single time frame for requesting a technical review would be
more equitable to its clients and simpler for its multifamily field
offices to administer.
II. This Final Rule
The public comment period on the April 24, 2007, proposed rule
closed on May 24, 2007. HUD received one comment from a trade
association that offered support for the rule. The commenter urged HUD
to establish uniformity in the technical review request process and
provide communication about the time frames, once implemented. HUD
appreciates the commenter's support and has adopted the uniform time
frames, in the April 24, 2007, proposed rule, without change.
III. Findings and Certifications
Paperwork Reduction Act
The information collection requirements contained in this final
rule have been approved by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and
assigned OMB Control Number 2502-0369. In accordance with the Paperwork
Reduction Act, an agency may not conduct or sponsor, and a person is
not required to respond to, a collection of information, unless the
collection displays a currently valid OMB control number.
Environmental Impact
In accordance with 24 CFR 50.19(c)(1) of the Department's
regulations, this rule does not direct, provide for assistance or loan
and mortgage insurance for, or otherwise govern or regulate, real
property acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Therefore, this final rule is categorically
excluded from the requirements of the National Environmental Policy Act
(42 U.S.C. 4321 et seq.).
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally
requires an agency to conduct a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements, unless the
agency certifies that the rule will not have a significant economic
impact on a substantial number of small entities. The rule establishes
a uniform time frame for submission of review requests for all owners,
regardless of size. The regulatory change is procedural and does not
revise or establish new binding requirements on owners. HUD anticipates
that a uniform time frame will eliminate confusion and, therefore,
expedite the processing of review requests. Accordingly, the
undersigned certifies that this rule will not have a significant
economic impact on a substantial number of small entities.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (2
U.S.C. 1531-1538) establishes requirements for federal agencies to
assess the effects of their regulatory actions on state, local, and
tribal governments and the private sector. This rule does not impose
any federal mandate on state, local, or tribal government or the
private sector within the meaning of UMRA.
Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on
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state and local governments and is not required by statute, or the rule
preempts state law, unless the agency meets the consultation and
funding requirements of section 6 of the Executive Order. This rule
does not have federalism implications and does not impose substantial
direct compliance costs on state and local governments nor preempt
state law within the meaning of the Executive Order.
List of Subjects in 24 CFR Part 200
Administrative practice and procedure, Claims, Equal employment
opportunity, Fair housing, Home improvement, Housing standards,
Incorporation by reference, Lead poisoning, Loan programs, Housing and
community development, Minimum property standards, Mortgage insurance,
Organization and functions (government agencies), Penalties, Reporting
and recordkeeping requirements, Social Security, Unemployment
compensation, and Wages.
0
Accordingly, for the reasons stated in the preamble, HUD amends 24 CFR
part 200 as follows:
PART 200--INTRODUCTION TO FHA PROGRAMS
0
1. The authority citation for 24 CFR part 200 continues to read as
follows:
Authority: 12 U.S.C. 1702-1715z-21; 42 U.S.C. 3535(d).
0
2. Revise Sec. 200.857(c)(3) and (d) introductory text to read as
follows:
Sec. 200.857 Administrative process for scoring and ranking the
physical condition of multifamily housing properties.
* * * * *
(c) * * *
(3) If, following review of the physical inspection results and
score, the owner reasonably believes that an objectively verifiable and
material error (or errors) occurred in the inspection, which, if
corrected, will result in a significant improvement in the property's
overall score (``significant improvement'' is defined in paragraph
(d)(4) of this section), the owner may submit a written request for a
technical review. The technical review request must be received in
writing no later than 30 calendar days (as established by the postmark,
if applicable) from the date the physical inspection results are
transmitted to the owner by REAC, whether the results and score are
transmitted to the owner via the Internet or by hard copy via certified
mail.
(d) Technical review of physical inspection results. A request for
a technical review of physical inspection results must be submitted in
writing to REAC and must be received by REAC no later than the 30th
calendar day, as applicable under paragraph (c)(3) of this section,
following submission of the physical inspection report to the owner, as
provided in paragraph (c)(1) of this section.
* * * * *
Dated: September 19, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E7-18892 Filed 9-24-07; 8:45 am]
BILLING CODE 4210-67-P