SUPPLEMENTARY INFORMATION:

I. Background

On January 18, 2011, President Obama issued Executive Order 13563, “Improving Regulation and Regulatory Review.” ^[1] The Executive Order directs heads of Federal departments and agencies to review all existing regulations to eliminate those that are outdated and modify others to increase flexibility and reduce burden. As a part of HUD's overall effort to reduce regulatory burden and streamline the content of title 24 of the Code of Federal Regulations (CFR), this rule removes obsolete references to the Certificate Program, which has long been merged with the HCV program.

In the HCV program (and also formerly in the Certificate Program), HUD pays rental subsidies so eligible families can afford decent, safe, and sanitary housing. HUD provides housing assistance funds to public housing agencies (PHAs) that administer the program. Eligible families select and rent units that meet program housing quality standards. The PHA contracts with the owner of the housing to make rent subsidy payments on behalf of the family.

The Certificate Program was first created by the Housing and Community Development Act of 1974,^[2] which amended section 8 of the United States Housing Act of 1937 (1937 Act).^[3] Building on the success of the Certificate Program, Congress authorized a new rental voucher demonstration program in 1984, by adding a new section 8(o) to the 1937 Act, as part of the Supplemental Appropriations Act, 1984.^[4] The rental voucher program was similar to the Certificate Program but provided families with more options in housing selection. The rental voucher program was made permanent by the Housing and Community Development Act of 1987.^[5]

HUD published a series of regulatory changes in the 1990s to align the two programs as closely as possible, given the statutory framework of each program. The Quality Housing and Work Responsibility Act of 1998 (QHWRA) ^[6] amended section 8 of the 1937 Act to fully merge the Certificate and rental voucher programs and eliminated all differences between the two. On May 14, 1999,^[7] HUD published an interim rule implementing the merger of the two programs into the new HCV program. The interim rule was followed by publication of an October 21, 1999, final rule.^[8] In accordance with the regulations implementing the merger, the Certificate Program was phased out by October 2001.

The removal of obsolete references to the Certificate Program from 24 CFR will eliminate any misunderstanding that the Certificate Program is an active program. No new assistance is being provided under this program. To the extent that any Project-Based Certificate Program contracts remain in effect, they are now governed by the regulations in 24 CFR 983.10, entitled “Project-based certificate (PBC) program”.

In addition to eliminating obsolete regulatory provisions in 24 CFR part, this rule makes certain minor editorial corrections to the regulations in 24 CFR part 982. For example, in certain places, the regulations refer to PHAs as PHAs but in other places the regulations refer to PHAs as housing authorities or HAs. HUD revised the regulations to consistently use the terms PHA or PHAs throughout. Similarly, the rule revises the part 982 regulations to refer to the tenant-based voucher program as the HCV program.

II. Justification for Final Rulemaking

In accordance with 24 CFR part 10, it is the practice of HUD to offer interested parties the opportunity to comment on proposed regulations. Part 10, consistent with 5 U.S.C. 553(b), provides for exceptions to the general rule if an agency, for good cause, finds that “notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.” (See 24 CFR 10.1.)

The removal of these regulations from 24 CFR does not establish or affect substantive policy. This final rule removes obsolete and unnecessary regulatory provisions for a program that is no longer being funded and makes non-substantive editorial corrections. Therefore, HUD finds that public notice and comment are unnecessary and contrary to the public interest.

III. Findings and Certifications

Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) (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. Because HUD has determined that good cause exists to issue this rule without prior public comment, this rule is not subject to the requirement to publish an initial or final regulatory flexibility analysis under the RFA as part of such action.

Unfunded Mandates Reform

Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532) requires that an agency prepare a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. If a budgetary impact statement is required, section 205 of UMRA (2 U.S.C. 1534) also requires an agency to identify and consider a reasonable number of regulatory alternatives before promulgating a rule. However, the UMRA applies only to rules for which an agency publishes a general notice of proposed rulemaking. As discussed above, HUD has determined, for good cause, that prior notice and public comment is not required on this rule and, therefore, the UMRA does not apply to this final rule.

Executive Order 13132, 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 state and local governments and is not required by statute, or the rule preempts ( printed page 8245) state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This final rule will not have federalism implications and would not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive order.

Environmental Review

This final 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. Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

Accordingly, for the reasons stated in the preamble, and pursuant to the Secretary's authority under 42 U.S.C. 3535(d), 24 CFR part 982 is amended as follows:

1. The authority citation for part 982 continues to read as follows:

Authority: 42 U.S.C. 1437f and 3535(d).

2. Revise § 982.1(a) to read as follows:

3. Revise § 982.2 to read as follows:

4. Amend § 982.4 as follows:

a. Revise paragraph (a)(2); and

b. In paragraph (b), remove the definition of “Tenant rent” and revise the definitions of “Absorption”, “Administrative plan”, “Admission”, “Applicant”, “Budget authority”, “Continuously assisted”, “Housing quality standards (HQS)”, “Merger date”, “Program”, “Receiving PHA”, and “Utility reimbursement”.

The revisions read as follows:

5. In § 982.51(b), revise the second sentence to read as follows:

6. In § 982.53(e), remove the phrase “incidents of” and add in its place “an incidence of”.

7. In § 982.54, remove paragraph (d)(19) and redesignate paragraphs (d)(20) through (23) as paragraphs (d)(19) through (22), respectively.

8. In § 982.101(c), remove the word “HAs” and add in its place “PHAs” and remove the parenthetical “(NOFA)” and add in its place “(NOFAs)”.

9. Amend § 982.102 as follows:

a. In paragraph (a), remove the phrase “part 983 of this title” and add in its place “ 24 CFR part 983” and remove the “,” at the end of the paragraph and add a “.” in its place;

b. In paragraph (e)(1)(i), remove the words “PHA certificate and voucher programs (including project-based assistance under such programs)” and add, in their place, the words “HCV program (including project-based assistance under such program)”;

c. Redesignate the second paragraph (e)(3)(iii) as paragraph (e)(3)(iv); and

d. In paragraph (f), capitalize the word “consolidated” in the paragraph heading.

10. In § 982.103(a), capitalize the word “a” at the beginning of the paragraph.

11. In § 982.151(a)(2), remove the words “PHA tenant-based assistance program” and add in their place “PHA's HCV program”.

12. Amend § 982.152 as follows:

a. In paragraph (a), remove all references to “HA” and add in their place “PHA”; and

b. In paragraph (b)(2), remove the phrase “tenant-based” and add in its place “HCV”.

13. In § 982.158(c), remove the word “tPHAt” and add in its place “that”.

14. In § 982.161(a), remove the phrase “tenant-based programs” and add in its place “HCV program”.

15. Amend § 982.201 as follows:

a. In the paragraph heading of paragraph (a), add the word “In” before the word “general”;

b. In paragraph (b)(2)(i), remove the phrase “tenant-based voucher” and add in its place “HCV”;

c. Remove paragraph (b)(2)(iv) and redesignate paragraphs (b)(2)(v) through (vii) as paragraphs (b)(2)(iv) through (vi), respectively;

d. In newly redesignated paragraph (b)(2)(v), remove the phrase “tenant-based voucher” and add in its place “HCV”; and

e. Revise newly redesignated paragraph (b)(2)(vi) and paragraph (b)(3).

The revisions read as follows:

16. In § 982.205(a)(1), capitalize the word “a” in the first sentence following the paragraph heading.

17. Add § 982.305(b)(1)(iii) to read as follows:

18. In § 982.311(b), remove the word “HA” and add in its place “PHA”.

19. In § 982.315(b)(3), remove the words “or actual” and add in their place “of actual”.

20. Amend § 982.355 as follows:

a. In paragraph (a), remove the phrase “a tenant-based” and add in its place “an HCV”;

b. Revise paragraph (c)(1);

c. In paragraph (d)(1), remove the phrase “PHA voucher” and add in its place “PHA's HCV” and remove the phrase “PHA tenant-based” and add in its place “PHA's HCV”;

d. In paragraph (e)(6), capitalize the word “a” at the beginning of the paragraph and remove the phrase “PHA tenant-based” and add in its place “PHA's HCV”; and

e. In paragraph (e)(7), remove the phrase “tenant-based” and add in its place “HCV”.

The revision reads as follows:

21. Amend § 982.401 as follows:

a. In paragraph (a)(1), remove the phrase “in the programs” and add in its place “under the HCV program”;

b. In paragraph (c)(1)(ii), add a period after “e.g”; and

c. In paragraph (n)(1), remove ” -” after “hearing-impaired person,”.

22. In § 982.403, remove paragraph (b) and redesignate paragraph (c) as paragraph (b).

23. In § 982.406, remove “tPHAn” and add in its place “than”.

24. In § 982.452(b)(5)(ii), remove the line break between “tenant contribution” and “(the part of rent”.

25. Revise § 982.501 to read as follows:

26. Remove § 982.502.

27. Amend § 982.503 as follows:

a. Remove “Voucher tenancy:” from the section heading; and

b. Remove paragraph (c)(7).

28. Amend § 982.504 as follows: ( printed page 8247)

a. Remove “Voucher tenancy:” from the section heading;

b. In paragraph (a) introductory text, remove the phrase “tenant-based assistance under the voucher program” and add in its place “HCV assistance”;

c. In paragraph (a)(1), remove the phrase “tenant-based voucher” and add in its place “HCV” and remove the phrase “§ 401.421 of this title” and add in its place “ 24 CFR 401.421”; and

d. In paragraph (a)(2), remove “tenant-based” and add in its place “HCV”.

29. In § 982.505, remove “Voucher tenancy:” from the section heading.

30. Revise § 982.516(d)(2) to read as follows:

31. In § 982.517(c)(1), capitalize the word “a” at the beginning of the paragraph and remove the word “PHAs” and add in its place “has”.

32. Remove §§ 982.518 through 982.520.

33. Remove § 982.521(c).

34. In § 982.522(c)(2)(iii), add “may” before “consider whether”.

35. In § 982.553(a)(2)(ii)(B), remove the phrase “not to have” and add in its place “not have”.

36. Amend § 982.555 as follows:

a. In paragraph (a), add a space between the paragraph heading and paragraph (a)(1), capitalize the word “a” at the beginning of paragraph (a)(1), remove paragraph (a)(1)(iv), and redesignate paragraphs (a)(1)(v) and (vi) as paragraphs (a)(1)(iv) and (v), respectively; and

b. In paragraphs (b)(4), (5), (6), and (7), capitalize the word “a” at the beginning of each paragraph.

37. In § 982.601(c)(1), add a period after “e.g”.

38. In § 982.615(b), remove “HA” and add in its place “PHA”.

39. Revise § 982.619(b)(4) to read as follows:

40. Amend § 982.623 as follows:

a. Remove paragraph (a);

b. Remove the heading of paragraph (b).

c. Redesignate paragraphs (b)(1) through (4) as paragraphs (a) through (d), respectively;

d. In newly redesignated paragraph (c), further redesignate paragraphs (i) and (ii) as paragraphs (c)(1) and (2), respectively; and

e. In newly redesignated paragraph (d), further redesignate paragraphs (i) through (iii) as paragraphs (d)(1) through (3), respectively.

41. In § 982.625(g)(2), add a space between “its” and “Section 8”.

42. In § 982.627(c)(2)(ii)(A), remove the line break between “voucher” and “program”.

43. In § 982.631(c)(2)(iii), remove the line break between “unit” and “unless”.

44. In § 982.636(c), add a period after “e.g”.

45. In § 982.641(c)(3), in the cross-reference “§ 982.353(b)(1), (2), and (3)”, remove “(b)(1),(2), and (3)”.