[Federal Register Volume 74, Number 167 (Monday, August 31, 2009)]
[Rules and Regulations]
[Pages 44751-44752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-20903]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
31 CFR Part 32
RIN 1505-AC17
Payments in Lieu of Low Income Housing Tax Credits
AGENCY: Office of the Fiscal Assistant Secretary, Treasury.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury is amending its policy
regarding the time limitation within which State housing credit
agencies must disburse funds received under section 1602 of the
American Recovery and Reinvestment Tax Act of 2009. This change will
allow States to disburse section 1602 funds to subawardees through
December 31, 2011 under certain conditions.
DATES: This final rule is effective August 31, 2009. Comments must be
received on or before September 30, 2009.
ADDRESSES: Treasury participates in the U.S. government's eRulemaking
Initiative by publishing rulemaking information on http://www.regulations.gov. Regulations.gov offers the public the ability to
comment on, search, and view publicly available rulemaking materials,
including comments received on rules. Comments on this rule should be
submitted using only the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions on the Web site for submitting comments.
Mail: Ellen Neubauer, Fiscal Service, U.S. Department of the
Treasury, 1500 Pennsylvania Ave., Washington, DC 20220. Instructions:
All submissions received must include the agency name (``Fiscal
Service'') and the title of this rulemaking. In general, comments
received will be published on Regulations.gov without change, including
any business or personal information provided. Comments received,
including attachments and other supporting materials, are part of the
public record and subject to public disclosure. Do not enclose any
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
You may also inspect and copy this interim rule at: Treasury
Department Library, Freedom of Information Act (FOIA) Collection, Room
1428, Main Treasury Building, 1500 Pennsylvania Avenue, NW.,
Washington, DC 20220. Before visiting, you must call (202) 622-0990 for
an appointment.
FOR FURTHER INFORMATION CONTACT: Ellen Neubauer, Program Manager, at
(202) 622-0560 or at [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Section 1602 of the American Recovery and Reinvestment Tax Act of
2009 (Act) (Pub. L. 111-5) (hereinafter Section 1602) allows State
housing credit agencies to elect to receive payments in lieu of low-
income housing credits under section 42 of the Internal Revenue Code.
Payments must be used to make subawards to finance the construction or
acquisition and rehabilitation of qualified low-income
[[Page 44752]]
buildings. The United States Department of the Treasury (Treasury)
awards Section 1602 funds to State housing credit agencies in an amount
equal to their low-income housing grant election amount which may not
exceed a portion of the States' low-income housing tax credit ceiling
for 2009.
Section 1602(d) of the Act requires that State housing credit
agencies return to the Treasury funds not used to make subawards before
January 1, 2011. The Terms and Conditions promulgated by the Treasury
to govern the program require that any funds not disbursed before
January 1, 2011, be returned to the Treasury. Upon further
consideration Treasury has determined that this requirement is overly
restrictive and may preclude funding of otherwise eligible projects
that may not reach final completion by the end of 2010. This rule
therefore changes this requirement. Under this rule set forth at 31 CFR
part 32, State housing credit agencies are required to return to the
Treasury any funds not used to make subawards by December 31, 2010.
However, once a subaward has been made, a State can continue to
disburse funds for the subaward through December 31, 2011, provided the
project is at least 30 percent complete by the end of 2010.
II. Procedural Analyses
Administrative Procedures Act
This rule is being issued without prior public notice and comment
because under 5 U.S.C. 553(b) and (d)(3) good cause exists to determine
that prior notice and comment rulemaking is unnecessary and contrary to
the public interest. The policy being implemented through this rule
impacts procedural requirements imposed on State housing credit
agencies that receive funds from the Federal government under Section
1602 and does not adversely affect the rights of the public.
Additionally, delay in the effective date of this rule is contrary to
the public interest because without clarity regarding the time period
within which State housing credit agencies may disburse funds under the
program, State housing credit agencies are unable to make decisions
regarding which projects to fund thereby delaying the construction or
rehabilitation of low-income housing.
Request for Comment on Plain Language
Executive Order 12866 requires each agency in the Executive branch
to write regulations that are simple and easy to understand. We invite
comment on how to make the interim rule clearer. For example, you may
wish to discuss: (1) Whether we have organized the material to suit
your needs; (2) whether the requirements of the rules are clear; or (3)
whether there is something else we could do to make these rules easier
to understand.
Regulatory Planning and Review
The rule is a ``significant regulatory action'' as defined in
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget.
Regulatory Flexibility Act Analysis
Because no notice of rulemaking is required, the provisions of the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply.
List of Subjects in 31 CFR Part 32
Low-income housing tax credits.
0
For the reasons set forth in the preamble, we add 31 CFR Part 32 to
read as follows:
PART 32--PAYMENTS IN LIEU OF LOW INCOME HOUSING TAX CREDITS
Sec.
32.1. Timing of disbursements.
Authority: Public Law 111-5.
Sec. 32.1 Timing of disbursements.
(a) State housing credit agencies that receive funds under section
1602 of Division B of the American Recovery and Reinvestment Tax Act of
2009 must make subawards to subawardees to finance the construction or
acquisition and rehabilitation of low-income housing no later than
December 31, 2010. Any funds that are not used to make subawards by
December 31, 2010, must be returned to the Treasury by January 1, 2011.
(b) The requirement in subsection (a) above does not prevent State
housing credit agencies from continuing to disburse funds to
subawardees after December 31, 2010 provided:
(1) A subaward has been made to the subawardee on or before
December 31, 2010;
(2) The subawardee has, by the close of 2010, paid or incurred at
least 30 percent of the subawardee's total adjusted basis in land and
depreciable property that is reasonably expected to be part of the low-
income housing project; and
(3) Any funds not disbursed to the subawardee by December 31, 2011,
must be returned to the Treasury by January 1, 2012.
Dated: August 19, 2009.
Gary Grippo,
Acting Fiscal Assistant Secretary.
[FR Doc. E9-20903 Filed 8-28-09; 8:45 am]
BILLING CODE 4810-25-P