[Federal Register Volume 74, Number 166 (Friday, August 28, 2009)]
[Rules and Regulations]
[Pages 44285-44286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-20879]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 92, and 908
[Docket No. FR-4998-F-05]
RIN 2501-AD16
Refinement of Income and Rent Determination Requirements in
Public and Assisted Housing Programs; Delay of Effective Date
AGENCY: Office of the Secretary, HUD.
ACTION: Final rule; delay of effective date.
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SUMMARY: HUD is delaying the effective date of the rule entitled
``Refinement of Income and Rent Determination Requirements in Public
and Assisted Housing Programs'' published in the Federal Register on
January 27, 2009. The January 27, 2009, final rule, which was scheduled
to become effective on September 30, 2009, will become effective on
January 31, 2010. Today's action will provide the Department with the
necessary additional time to review the subject matter of the January
27, 2009, final rule and to consider the public comments on HUD's
February 11, 2009, Federal Register notice that
[[Page 44286]]
solicited public comments on the regulatory amendments made by the
January 27, 2009 final rule.
DATES: Effective Date: The effective date of the final rule, which was
published on January 27, 2009 (74 FR 4832), delayed March 27, 2009 (74
FR 13339), is further delayed until January 31, 2010.
FOR FURTHER INFORMATION CONTACT: For Office of Public and Indian
Housing programs, contact Nicole Faison, Program Advisor for the Office
of Public Housing and Voucher Programs, Department of Housing and Urban
Development, 451 7th Street, SW., Room 4226, Washington, DC 20410,
telephone number 202-402-4267. For Office of Housing Programs, contact
Gail Williamson, Director of the Housing Assistance Policy Division,
Department of Housing and Urban Development, 451 7th Street, SW., Room
6138, Washington, DC 20410, telephone number 202-402-2473. (These are
not toll-free numbers.) Persons with hearing or speech impairments may
access these numbers through TTY by calling the toll-free Federal
Information Relay Service at 800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On January 27, 2009 (74 FR 4832), HUD published a final rule,
entitled ``Refinement of Income and Rent Determination Requirements in
Public and Assisted Housing Programs.'' The January 27, 2009, final
rule revises HUD's public and assisted housing program regulations to
implement the upfront income verification process for program
participants and to require the use of HUD's Enterprise Income
Verification (EIV) system by public housing agencies (PHAs) and owners
and management agents. The January 27, 2009, final rule was originally
scheduled to become effective on March 30, 2009, but provided
multifamily housing owners and management agents with an additional six
months (until September 30, 2009) to implement use of the EIV system.
On February 11, 2009 (74 FR 6839), HUD published a notice in the
Federal Register seeking public comment on whether to delay the
effective date of the January 27, 2009, final rule. The February 11,
2009, notice was issued in accordance with the memorandum of January
20, 2009, from the assistant to the President and Chief of Staff,
entitled ``Regulatory Review'' and subsequently published in the
Federal Register on January 26, 2009 (74 FR 4435). The notice explained
that HUD was considering a temporary 60-day delay in the effective date
to allow the Department an opportunity for further review and
consideration of new regulations, consistent with the Chief of Staff
memorandum of January 20, 2009. In addition to soliciting comments
specifically delaying the effective date, the February 11, 2009, notice
also requested comment generally on the January 27, 2009 final rule.
The comment period on the February 11, 2009 notice closed on March
13, 2009. HUD received 50 public comments. Comments were submitted by a
variety of organizations including PHAs, property owners, management
agents, program training organizations, legal aid organizations,
community development organizations, and public interest organizations.
The majority of comments were supportive of a delayed effective date,
but also raised additional questions and comments about various aspects
of the January 27, 2009, final rule. Among other issues, commenters
requested that HUD clarify the definition of annual income, questioned
how the rule would affect participants that might have difficulty
obtaining social security numbers for their children, and noted
confusion regarding the use of HUD's EIV system.
Following publication of the February 11, 2009, Federal Register
notice, HUD issued a final rule on March 27, 2009 (74 FR 13339) that
delayed the effective date of the January 27, 2009, final rule to
September 30, 2009, for the purpose of providing HUD with time to
review the public comments received in response to the February 11,
2009 notice (March 2009 extension final rule).
II. This Final Rule
Through this final rule published in today's Federal Register, HUD
further delays the effective date of the January 27, 2009, final rule
until January 31, 2010. The two HUD Assistant Secretaries with
responsibility for the programs affected by the rule were only recently
confirmed. HUD seeks to ensure that these two officials have sufficient
time to review the subject matter of this rule, and to review and
consider the public comments received in response to HUD's February 11,
2009, Federal Register notice.
HUD notes that it generally publishes regulatory changes, including
revisions to the effective date of its rules, for public comment before
issuing them for effect, in accordance with its own regulations on
rulemaking in 24 CFR part 10. Part 10, however, does provide in Sec.
10.1 for exceptions from that general rule where the Department finds
good cause to omit advance notice and public participation. The good
cause requirement is satisfied when the prior public procedure is
``impracticable, unnecessary, or contrary to the public interest.''
Given the possibility of changes to the provisions of the January 27,
2009, final rule and the fast approaching September 30, 2009, effective
date of the regulatory amendments, HUD has determined that it would be
contrary to the public interest to delay issuance of today's rule for
effect. A delay in the extension of the effective date of the January
27, 2009, final rule would compel PHAs, owners and management agents,
and residents of HUD-assisted housing to bear the burden of compliance
with regulatory requirements that may be subject to further amendment
in the near-term. Moreover, and as noted above, the 50 public comments
received on HUD's February 11, 2009, notice raised several substantive
questions and concerns regarding the provisions of the final rule. It
would be contrary to the public interest to defer extending the
effective date and require compliance with the January 27, 2009, final
rule before the appropriate and newly confirmed HUD officials have the
opportunity to review and consider the issues raised by the commenters.
The Department remains committed to the implementation of the EIV
system and continues to believe that the use of upfront income
verification will help to identify and cure inaccuracies in public and
assisted housing rental determinations. Given the number of public
comments submitted in response to the February 11, 2009 notice, and the
concerns and questions raised in those comments, the additional time
provided by today's final rule will allow the Department to carefully
weigh available policy options and to help ensure the successful
implementation of the enhanced income and rent verification procedures.
Should HUD determine that additional rulemaking is necessary or
appropriate, HUD will provide the public with the opportunity to
comment on any proposed changes to the regulations in the January 27,
2009 final rule.
Therefore, the effective date of the final rule, which was
published on January 27, 2009 (74 FR 4832), delayed March 27, 2009 (74
FR 13339), is further delayed until January 31, 2010.
Dated: August 25, 2009.
Shaun Donovan,
Secretary.
[FR Doc. E9-20879 Filed 8-27-09; 8:45 am]
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