Office of the Assistant Secretary for Public and Indian Housing, HUD.
Interim rule.
The purpose of this interim rule is to implement HUD's Office of Public and Indian Housing (PIH) procedures and requirements for two new programs to address the housing needs of Native Hawaiians. The Native Hawaiian Housing Block Grant Program will provide housing block grants to fund affordable housing activities. The Section 184A Loan Guarantees for Native Hawaiian Housing Program will provide Native Hawaiian families with greater access to private mortgage resources by guaranteeing loans for one- to four-family housing located on Hawaiian Home Lands.
Interested persons are invited to submit comments regarding this interim rule to the Rules Docket Clerk, Office of General Counsel, Room 10278, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410. Communications should refer to the above docket number and title. A copy of each communication submitted will be available for public inspection and copying between 7:30 a.m. and 5:30 p.m. weekdays at the above address. FAXED comments will not be accepted.
Sherone Ivey, Office of Native American Programs, Office of Public and Indian Housing, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410, telephone (202) 401–7914. Persons with hearing or speech impairments may access this number via TTY by calling the toll-free Federal Information Relay Service at 1–800–877–8339.
The Hawaiian Homelands Homeownership Act of 2000 (HHH Act) was enacted as both Title II of the Omnibus Indian Advancement Act (Public Law 106–568, 114 Stat. 2868, approved December 27, 2000) and Subtitle B of Title V of the American Homeownership and Economic Opportunity Act of 2000 (Public Law 106–569, 114 Stat. 2944, approved December 27, 2000). Because the Office of the Law Revision Counsel of the U.S. House of Representatives, which prepares and publishes the United States Code (U.S.C.), bases its codification of the HHH Act on Public Law 106–569, and for convenience of reference, the discussion of the HHH Act in this preamble will refer only to sections of Public Law 106–569.
The HHH Act consists of four sections. The first two sections, 511 and 512, provide the short title and the Congressional findings for the legislation, respectively. Section 513 of the HHH Act establishes a block grant program to provide housing assistance for Native Hawaiians (25 U.S.C. 4221
Section 513 of the HHH Act amends the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101
Readers of this rule will encounter references to NAHASDA in the rule text, even though this program is exclusively for Native Hawaiians rather than Native Americans. That is because the single section 513 of the HHH Act adds sections 801 through 824, which authorize this NHHBG Program, as Title VIII of NAHASDA. To avoid possible confusion arising from references to NAHASDA, this rule uses the term “the Act” when referring to Title VIII of NAHASDA. Therefore, when it is necessary to cite an authorizing statutory section in section 1006 of this rule, the reference will be to a section of “the Act” rather than to Title VIII of NAHASDA. For example, the environmental requirements in § 1006.350 of this rule cite section 806 of the Act as their authority. Also because the NHHBG Program is authorized under the same statute as the IHBG Program, there are overlapping requirements that apply to both programs, such as the definitions that appear in section 4 of NAHASDA. The
As noted above, the NHHBG Program is modelled after the IHBG Program. In broad outline, the Department of Hawaiian Home Lands (DHHL) is required to submit annually to HUD a housing plan with a one-year and a five-year component in order to qualify for an annual grant, just as each Tribe or its tribally designated housing entity (TDHE) is required to submit an annual Indian Housing Plan. Grant funds are then made available to the DHHL by HUD to be used in accordance with the housing plan. In the IHBG Program, the total amount of funding made available annually is divided among Tribes according to an allocation formula under section 302 of NAHASDA. Section 817 of NAHASDA similarly provides for an allocation formula for Native Hawaiian funding. However, since the DHHL is the sole recipient of funds under this NHHBG Program, a formula to allocate funds is not necessary, and this rule does not include an allocation formula.
In other respects, 24 CFR part 1006 as implemented by this interim rule closely follows Title VIII of NAHASDA with some clarifications added, such as specific references to cross-cutting requirements that are generally applicable to Federal assistance (
Not every section of Title VIII of NAHASDA or every requirement necessary for the full implementation of the NHHBG Program is addressed in this rule. Some provisions of the statute, such as the formula discussed above, do not require implementation. Another statutory provision not addressed in this rule is section 811(b)(1) of the Act. Section 811(b)(1) states: “The Director shall, using amounts of any grants
In addition, there are certain statutory provisions (such as section 802(d)(1), which requires HUD, by regulation, to authorize the DHHL to use a percentage of grant amounts for reasonable administrative and planning expenses) and additional non-statutory, discretionary requirements (such as additional program administration requirements) that must be implemented by proposed rulemaking to give interested parties an opportunity for public comment before they become effective. HUD intends to issue a proposed rule to address such additional requirements. This interim rule implements the NHHBG program to a sufficient extent to permit HUD to make available to the DHHL the funds already appropriated for this significant program in an expeditious manner.
Because the statutes authorizing the IHBG Program and the NHHBG Program are nearly identical, the requirements in the proposed rule HUD will issue for the NHHBG Program will closely follow the requirements of the IHBG rule at 24 CFR part 1000. During the interim period before the requirements of the NHHBG proposed rule are implemented in a final rule, HUD will allow the DHHL to undertake activities authorized by the Act and awaiting implementation through the proposed rule upon the DHHL's written agreement to follow the relevant requirements in part 1000. For example, the DHHL would be permitted to invest NHHBG funds, as authorized by section 812(b) of the Act, before the effective date of the rule implementing section 812(b), upon agreeing in writing to follow the requirements of 24 CFR 1000.58, which governs the investment of IHBG funds. If the DHHL chooses to exercise this option, HUD will advise the public through notice published in the
Section 514 of the HHH Act adds a new section 184A to the Housing and Community Development Act of 1992 to authorize a new program of housing loan guarantees for Native Hawaiians. Just as the NHHBG Program under section 513 of the HHH Act is closely modelled on the IHBG Program under NAHASDA, the Section 184A Loan Guarantee for Native Hawaiian Housing Program is based upon the Section 184 Loan Guarantee for Indian Housing Program, which is implemented at 24 CFR part 1005. This rule proposes to implement the Native Hawaiian Housing Loan Guarantee Program at 24 CFR part 1007 in accordance with the basic statutory requirements provided for Section 184A with the discretionary aspects, such as identifying eligible collateral, following the requirements adopted in the Indian Housing Loan Guarantee Program.
In general, the Department publishes a rule for public comment before issuing a rule for effect, in accordance with its own regulations on rulemaking at 24 CFR part 10. Part 10, however, does provide in § 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”. The Department finds that good cause exists to publish this interim rule for effect without first soliciting public comment. Prior public procedure is contrary to the public interest in that it will unduly delay the availability of funding already appropriated to address the pressing housing needs of Native Hawaiians. In addition, prior public procedure is unnecessary because the interim rule closely follows the statutory requirements for the programs to be implemented, and any subsequent adjustments and additions to the rule, including provisions resulting from the public comment that is here requested, can be timely implemented through proposed rulemaking, if necessary, without disrupting program implementation.
The information collection requirements contained in this rule have been submitted to the Office of Management and Budget (OMB) for review under section 3507(d) of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).
Estimate of the total reporting and recordkeeping burden that will result from the collection of information:
Reporting and Recordkeeping Burden:
In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments from members of the public and affected agencies concerning this collection of information to:
(1) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
(2) Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information;
(3) Enhance the quality, utility, and clarity of the information to be collected; and
(4) Minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology,
Interested persons are invited to submit comments regarding the information collection requirements in this proposal. Comments must be received within sixty (60) days from the date of this proposal. Comments must refer to the proposal by name and docket number (FR–4668) and must be sent to: Lauren Wittenberg, HUD Desk Officer, Office of Management and Budget, New Executive Office Building, Washington, DC 20503; and Mildred Hamman, Reports Liaison Officer, Office of the Assistant Secretary for Public and Indian Housing, Department of Housing & Urban Development, 451—7th Street, SW., Room 4244, Washington, DC 20410.
Additional information on these information collection requirements may be obtained from the Reports Liaison Officer.
A Finding of No Significant Impact with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4223). The Finding of No Significant Impact is available for public inspection between the hours of 7:30 a.m. and 5:30 p.m. weekdays in the Office of General Counsel, Rules Docket Clerk, Room 10276, U.S. Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410–0500.
The Office of Management and Budget has reviewed this interim rule under Executive Order 12866 (captioned “Regulatory Planning and Review”) and determined that this rule is a “significant regulatory action” as defined in section 3(f) of the Order, although not an economically significant regulatory action under the Order. Any changes made to this rule as a result of that review are identified in the docket file, which is available for public inspection during regular business hours (7:30 a.m. to 5:30 p.m.) at the Office of the General Counsel, Rules Docket Clerk, Room 10276, U.S. Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410–0500.
The Secretary has reviewed this interim rule before publication and by approving it certifies, in accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)), that this interim rule would not have a significant economic impact on a substantial number of small entities. Notwithstanding HUD's determination that this rule will not have a significant economic effect on a substantial number of small entities, HUD specifically invites comments regarding any less burdensome alternatives to this rule that will meet HUD's objectives as described in this preamble.
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531–1538) (UMRA) requires Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and on the private sector. This interim rule does not impose, within the meaning of the UMRA, any Federal mandates on any State, local, or tribal governments or on the private sector.
Community development block grants, Grant programs—housing and community development, Grant programs—Native Hawaiians, Low and moderate income housing, Native Hawaiians, Reporting and recordkeeping requirements.
Loan programs—Native Hawaiians, Native Hawaiians, Reporting and recordkeeping requirements.
The Catalog of Federal Domestic Assistance number is 14.873 for the Native Hawaiian Housing Block Grant Program, and 14.874 for the Loan Guarantees for Native Hawaiian Housing Program.
Accordingly, chapter IX of title 24 of the Code of Federal Regulations is amended by adding new parts 1006 and 1007 as follows:
25 U.S.C. 4221
The requirements and procedure of this part apply to grants under the Native Hawaiian Housing Block Grant (NHHBG) Program, authorized by the Hawaiian Homelands Homeownership Act of 2000 (HHH Act), which adds Title VIII—Housing Assistance For Native Hawaiians (25 U.S.C. 4221
The following definitions apply in this part:
(1)
(i) Who is under 18 years of age; or
(ii) Who is:
(A) 18 years of age or older; and
(B) A person with disabilities or a full-time student.
(2)
(3)
(i) Medical expenses, in the case of an elderly or disabled family; and
(ii) Reasonable attendant care and auxiliary apparatus expenses for each family member who is a person with disabilities, to the extent necessary to enable any member of the family (including a member who is a person with disabilities) to be employed.
(4)
(5)
(6)
(7)
(1)
(i) For an elderly family, an elderly person; or
(ii) For a near-elderly family, a near-elderly person.
(2)
(i) Two or more elderly persons or near-elderly persons, as the case may be, living together; and
(ii) One or more persons described in paragraph (2)(i) of this definition living with one or more persons determined under the housing plan to be essential to their care or well-being.
(1) Have the status as Hawaiian home lands under section 204 of the HHCA 1920 (42 Stat. 110); or
(2) Are acquired pursuant to the HHCA 1920.
(1) The median income for the housing area, which shall be determined by HUD; or
(2) The median income for the State of Hawaii.
(1) A citizen of the United States; and
(2) A descendant of the aboriginal people, who, prior to 1778, occupied and exercised sovereignty in the area that currently constitutes the State of Hawaii, as evidenced by:
(i) Genealogical records;
(ii) Verification by kupuna (elders) or kama'aina (long-term community residents); or
(iii) Birth records of the State of Hawaii.
(1) Is designed to provide housing and appropriate supportive services to persons, including (but not limited to) deinstitutionalized individuals with disabilities, homeless individuals with disabilities, and homeless families with children; and
(2) Has as its purpose facilitating the movement of individuals and families to independent living within a time period that is set by the DHHL or project owner before occupancy.
(a)
(1) The Director has submitted to HUD a housing plan for that fiscal year; and
(2) HUD has determined that the housing plan complies with the requirements of § 1006.101.
(b)
Upon determination of good cause, the Secretary may, subject to statutory limitations, waive any provision of this part and delegate this authority in accordance with section 106 of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3535(q)).
The DHHL must submit a housing plan for each Federal Fiscal Year grant. The housing plan has two components, a five-year plan and a one-year plan, as follows:
(a)
(1)
(2)
(3)
(b)
(1)
(2)
(i) A description of the estimated housing needs and the need for assistance for the low-income families to be served by the DHHL, including a description of the manner in which the geographical distribution of assistance is consistent with:
(A) The geographical needs of those families; and
(B) Needs for various categories of housing assistance; and
(ii) A description of the estimated housing needs for all families to be served by the DHHL.
(3)
(i) The NHHBG funds and other financial resources reasonably available to the DHHL to carry out eligible activities, including an explanation of the manner in which NHHBG funds will be used to leverage additional resources; and
(ii) Eligible activities to be undertaken and their projected cost, including administrative expenses.
(4)
(i) A description of the significant characteristics of the housing market in the State of Hawaii, including the availability of housing from other public sources and private market housing;
(ii) The effect of the characteristics identified under paragraph (b)(4)(i) of this section, on the DHHL's decision to use the NHHBG for:
(A) Rental assistance;
(B) The production of new units;
(C) The acquisition of existing units; or
(D) The rehabilitation of units;
(iii) A description of the structure, coordination, and means of cooperation between the DHHL and any other governmental entities in the development, submission, or implementation of the housing plan, including a description of:
(A) The involvement of private, public, and nonprofit organizations and institutions;
(B) The use of loan guarantees under section 184A of the Housing and Community Development Act of 1992; and
(C) Other housing assistance provided by the United States, including loans, grants, and mortgage insurance;
(iv) A description of the manner in which the plan will address the needs identified pursuant to paragraph (b)(2) of this section;
(v) A description of:
(A) Any existing or anticipated homeownership programs and rental programs to be carried out during the period covered by the plan; and
(B) The requirements and assistance available under the programs referred to in paragraph (b)(4)(v)(A) of this section;
(vi) A description of:
(A) Any existing or anticipated housing rehabilitation programs necessary to ensure the long-term viability of housing to be carried out during the period covered by the plan; and
(B) The requirements and assistance available under the programs referred to in paragraph (b)(4)(vi)(A) of this section;
(vii) A description of:
(A) All other existing or anticipated housing assistance provided by the DHHL during the period covered by the plan, including transitional housing; homeless housing; college housing; and supportive services housing; and
(B) The requirements and assistance available under such programs; (viii) A description of:
(A) Any housing to be demolished or disposed of;
(B) A timetable for that demolition or disposition;
(C) A financial analysis of the proposed demolition/disposition; and
(D) Any additional information HUD may request with respect to that demolition or disposition.
(ix) A description of the manner in which the DHHL will coordinate with welfare agencies in the State of Hawaii to ensure that residents of the affordable housing will be provided with access to resources to assist in obtaining employment and achieving self-sufficiency;
(x) A description of the requirements established by the DHHL to:
(A) Promote the safety of residents of the affordable housing;
(B) Facilitate the undertaking of crime prevention measures;
(C) Allow resident input and involvement, including the establishment of resident organizations; and
(D) Allow for the coordination of crime prevention activities between the DHHL and local law enforcement officials; and
(xi) A description of the entities that will carry out the activities under the plan, including the organizational capacity and key personnel of the entities.
(5)
(i) Will comply with:
(A) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d
(B) Other applicable Federal statutes;
(ii) Will require adequate insurance coverage for housing units that are owned and operated or assisted with NHHBG funds, in compliance with the requirements of § 1006.330;
(iii) Has policies in effect and available for review by HUD and the public governing the eligibility, admission, and occupancy of families for housing assisted with NHHBG funds and governing the selection of families receiving other assistance under the Act and this part;
(iv) Has policies in effect and available for review by HUD and the public governing rents charged, including the methods by which such rents or homebuyer payments are determined, for housing assisted with NHHBG funds; and
(v) Has policies in effect and available for review by HUD and the public governing the management and maintenance of rental and lease-purchase housing assisted with NHHBG funds.
(c)
(2)
(d)
(a)
(2)
(3)
(b)
(2)
(i) The reasons for noncompliance; and
(ii) Any modifications necessary for the plan to be in compliance.
(3)
Eligible affordable housing activities are development, housing services, housing management services, crime prevention and safety activities and model activities. NHHBG funds may only be used for eligible activities that are consistent with the DHHL's housing plan.
(a) NHHBG funds may be used for the acquisition, new construction, reconstruction, or moderate or substantial rehabilitation of affordable housing for homeownership or rental, which may include:
(1) Real property acquisition;
(2) Acquisition of affordable housing;
(3) Financing acquisition of affordable housing by homebuyers through:
(i) Down payment assistance;
(ii) Closing costs assistance;
(iii) Direct lending; and
(iv) Interest subsidies or other financial assistance
(4) New construction of affordable housing;
(5) Reconstruction of affordable housing;
(6) Moderate rehabilitation of affordable housing, including but not limited to:
(i) Lead-based paint hazards elimination or reduction;
(ii) Improvements to provide physical accessibility for disabled persons; and
(iii) Energy-related improvements;
(7) Substantial rehabilitation of affordable housing, including but not limited to:
(i) Lead-based paint hazards elimination or reduction;
(ii) Improvements to provide physical accessibility for disabled persons; and
(iii) Energy-related improvements;
(8) Site improvement, including recreational areas and playgrounds for use by residents of affordable housing and on-site streets and sidewalks;
(9) The development of utilities and utility services;
(10) Conversion;
(11) Demolition;
(12) Administration and planning; and
(13) Other related activities, such as environmental review and architectural and engineering plans for the affordable housing project.
(b)
NHHBG funds may be used for the provision of housing-related services for affordable housing, including:
(a) Housing counseling in connection with rental or homeownership assistance;
(b) The establishment and support of resident organizations and resident management corporations;
(c) Energy auditing;
(d) Activities related to the provisions of self-sufficiency and other services;
(e) Homelessness prevention activities, which may include short term subsidies to defray rent and utility bills of an eligible family;
(f) Payments to prevent foreclosure on a home;
(g) Tenant-based rental assistance, which may include security deposits and/or first month's rent; and
(h) Other services related to assisting owners, tenants, contractors, and other entities participating or seeking to participate in other housing activities assisted pursuant to the Act and this part.
NHHBG funds may be used for the provision of management services for affordable housing, including:
(a) The preparation of work specifications;
(b) Loan processing;
(c) Inspections;
(d) Tenant selection;
(e) Management of tenant-based rental assistance; and
(f) Management of affordable housing projects.
NHHBG funds may be used for the provision of safety, security, and law enforcement measures and activities appropriate to protect residents of affordable housing from crime, including the costs of:
(a) Physical improvements for affordable housing to enhance security, such as, fences, monitors, locks, and additional lighting;
(b) Security personnel for affordable housing; and
(c) Equipment for patrols.
NHHBG funds may be used for housing activities under model programs that are:
(a) Designed to carry out the purposes of the Act and this part; and
(b) Specifically approved by HUD as appropriate for those purposes.
Up to such amount as HUD may authorize, or such other limit as may be specified by statute, of each grant received under the Act may be used for any reasonable administrative and planning expenses of the DHHL relating to carrying out the Act and this part and activities assisted with NHHBG funds, including:
(a)
(1) Salaries, wages, and related costs of the DHHL's staff. In charging costs to this category the DHHL may either include the entire salary, wages, and related costs allocable to the NHHBG Program of each person whose
(i) Developing systems and schedules for ensuring compliance with program requirements;
(ii) Developing interagency agreements and agreements with entities receiving NHHBG funds;
(iii) Monitoring NHHBG-assisted housing for progress and compliance with program requirements;
(iv) Preparing reports and other documents related to the program for submission to HUD;
(v) Coordinating the resolution of audit and monitoring findings;
(vi) Evaluating program results against stated objectives; and
(vii) Managing or supervising persons whose primary responsibilities with regard to the program include such assignments as those described in paragraphs (a)(1)(i) through (vi) of this section;
(2) Travel costs incurred for official business in carrying out the program;
(3) Administrative services performed under third party contracts or agreements, including such services as general legal services, accounting services, and audit services; and
(4) Other costs for goods and services required for administration of the program, including such goods and services as rental or purchase of equipment, insurance, utilities, office supplies, and rental and maintenance (but not purchase) of office space.
(b)
(c)
(d)
(e)
(f)
Subject to the requirements of this part and to the DHHL's housing plan, the DHHL has the discretion to use NHHBG funds for affordable housing activities in the form of equity investments, interest-bearing loans or advances, noninterest-bearing loans or advances, interest subsidies, the leveraging of private investments, and other forms of assistance that HUD determines to be consistent with the purposes of the Act. The DHHL has the right to establish the terms of assistance provided with NHHBG funds.
(a) Assistance for eligible housing activities under the Act and this part is limited to low-income Native Hawaiian families who are eligible to reside on the Hawaiian Home Lands, except as provided under paragraphs (b) and (c), of this section.
(b)
(2)
(c)
(1) The presence of the family in the housing involved is essential to the well-being of Native Hawaiian families; and
(2) The need for housing for the family cannot be reasonably met without the assistance.
(d)
(a)
(1) In the case of rental housing, is made available for occupancy only by a family that is a low-income family at the time of the initial occupancy of that family of that unit; and
(2) In the case of housing for homeownership, is made available for purchase only by a family that is a low-income family at the time of purchase, or is an owner-occupied unit in which the family is low-income at the time it receives NHHBG assistance.
(b) NHHBG-assisted rental units must meet the affordability requirements for the remaining useful life of the property, as determined by HUD, or such other period as HUD determines in accordance with section 813(a)(2)(B) of the Act.
(c)
(2) The agreements referred to in paragraph (c)(1) of this section shall provide for:
(i) To the extent allowable by Federal and State law, the enforcement of the provisions of the Act and this part by the DHHL and HUD; and
(ii) Remedies for breach of the provisions of the Act and this part.
(d)
(a)
(b)
(c)
(d) Low-income families who receive homeownership assistance other than lease-purchase assistance are not subject to the limitations in paragraphs (a) and (b) of this section.
Except to the extent otherwise provided by or inconsistent with the laws of the State of Hawaii, in renting dwelling units in affordable housing assisted with NHHBG funds, the DHHL, owner, or manager must use leases that:
(a) Do not contain unreasonable terms and conditions;
(b) Require the DHHL, owner, or manager to maintain the housing in compliance with applicable local housing codes and quality standards;
(c) Require the DHHL, owner, or manager to give adequate written notice of termination of the lease, which shall be the period of time required under applicable State or local law;
(d) Specify that, with respect to any notice of eviction or termination, notwithstanding any State or local law, a resident shall be informed of the opportunity, before any hearing or trial, to examine any relevant documents, record, or regulations directly related to the eviction or termination;
(e) Require that the DHHL, owner, or manager may not terminate the tenancy, during the term of the lease, except for serious or repeated violation of the terms and conditions of the lease, violation of applicable Federal, State, or local law, or for other good cause; and
(f) Provide that the DHHL, owner, or manager may terminate the tenancy of a resident for any activity, engaged in by the resident, any member of the household of the resident, or any guest or other person under the control of the resident, that:
(1) Threatens the health or safety of, or right to peaceful enjoyment of the premises by, other residents or employees of the DHHL, owner, or manager;
(2) Threatens the health or safety of, or right to peaceful enjoyment of their premises by, persons residing in the immediate vicinity of the premises; or
(3) Involves criminal activity (including drug-related criminal activity) on or off the premises.
As a condition to receiving grant amounts under the Act, the DHHL must adopt and use written tenant and homebuyer selection policies and criteria that:
(a) Are consistent with the purpose of providing housing for low-income families;
(b) Are reasonably related to program eligibility and the ability of the tenant or homebuyer assistance applicant to perform the obligations of the lease; and
(c) Provide for:
(1) The selection of tenants and homebuyers from a written waiting list in accordance with the policies and goals set forth in the housing plan; and
(2) The prompt notification in writing of any rejected applicant of the grounds for that rejection.
(a)
(b)
(a)
(b)
(c)
(d)
(e)
(a)
(b)
(a)
(b)
(1) That income was realized after the initial disbursement of the NHHBG funds received by the DHHL; and
(2) The DHHL agrees to use the program income for affordable housing activities in accordance with the provisions of the Act and this part; and
(3) The DHHL disburses program income before disbursing additional NHHBG funds in accordance with 24 CFR part 85.
(c)
(a)
(2) When NHHBG assistance is only used to assist homebuyers to acquire single family housing, the Davis-Bacon wage rates apply to the construction of the housing if there is a written agreement with the owner or developer of the housing that NHHBG assistance will be used to assist homebuyers to buy the housing.
(3) Prime contracts not in excess of $2000 are exempt from Davis-Bacon wage rates.
(b)
(c)
(d)
(e)
(a) In order to ensure that the policies of the National Environmental Policy Act of 1969 (42 U.S.C. 4321
(b) An environmental review does not have to be completed before a HUD finding of compliance for the housing plan or amendments to the housing plan submitted by the DHHL.
(c) No funds may be committed to a grant activity or project before the completion of the environmental review and approval of the request for release of funds and related certification required by sections 806(b) and 806(c) of the Act, except as authorized by 24 CFR part 58.
(d) As set forth in section 806(a)(2)(B) of the Act and 24 CFR 58.77, HUD will:
(1) Provide for the monitoring of environmental reviews performed by the DHHL under this section;
(2) At its discretion, facilitate training for the performance of such reviews by the DHHL; and,
(3) At its discretion, provide for the suspension or termination of the assumption of responsibilities under this section based upon a finding of substantial failure of the DHHL to execute responsibilities under this section.
Program eligibility under the Act and this part may be restricted to Native
(a) The requirements of the Age Discrimination Act of 1975 (42 U.S.C. 6101–6107) and HUD's implementing regulations in 24 CFR part 146;
(b) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD's regulations at 24 CFR part 8; and
(c) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d
(1) To the DHHL on the basis that the DHHL served Native Hawaiians; or
(2) To an eligible family on the basis that the family is a Native Hawaiian family.
In the procurement of property and services by the DHHL and contractors, the conflict of interest provisions in 24 CFR 85.36 or 24 CFR 84.42 apply.
(a)
(b)
(a)
(b)
(c)(1) With respect to the applicability of cost principles, all items of cost listed in Attachment B of OMB Circular A–87 which require prior Federal agency approval are allowable without the prior approval of HUD to the extent that they comply with the general policies and principles stated in Attachment A of this circular and are otherwise eligible under this part, except for the following:
(i) Depreciation methods for fixed assets shall not be changed without specific approval of HUD or, if charged through a cost allocation plan, the Federal cognizant agency.
(ii) Fines and penalties are unallowable costs to the NHHBG program.
(2) In addition, no person providing consultant services in an employer-employee type of relationship shall receive more than a reasonable rate of compensation for personal services paid with NHHBG funds. In no event, however, shall such compensation exceed the equivalent of the daily rate paid for Level IV of the Executive Schedule.
(d) OMB Circulars referenced in this part may be obtained from
(a)
(1) Subpart A, “Disclosure of Known Lead-Based Paint Hazards Upon Sale or Lease of Residential Property”;
(2) Subpart B, “General Lead-Based Paint Requirements and Definitions for All Programs”;
(3) Subpart H, “Project-Based Rental Assistance”;
(4) Subpart J, “Rehabilitation”;
(5) Subpart K, “Acquisition, Leasing, Support Services, or Operation”;
(6) Subpart M, “Tenant-Based Rental Assistance”; and
(7) Subpart R, “Methods and Standards for Lead-Based Paint Hazard Evaluation and Hazard Reduction Activities”.
(b)
(c)
(1)
(2)
(3)
(4)
(5)
(ii) The cost of required relocation assistance is an eligible project cost in the same manner and to the same extent as other project costs. However, such assistance may also be paid for with funds available to the DHHL from any other source.
(iii) The DHHL shall maintain records in sufficient detail to demonstrate compliance with this section.
(6)
(A) A tenant-occupant of a dwelling unit who moves from the building/complex permanently after the submission to HUD of a housing plan that is later approved;
(B) Any person, including a person who moves before the date described in paragraph (d)(7)(i)(A) of this section, that the DHHL determines was displaced as a direct result of acquisition, rehabilitation, or demolition for the assisted project;
(C) A tenant-occupant of a dwelling unit who moves from the building/complex permanently after execution of the agreement between the DHHL and HUD, if the move occurs before the tenant is provided written notice offering him or her the opportunity to lease and occupy a suitable, decent, safe and sanitary dwelling in the same building/complex, under reasonable terms and conditions, upon completion of the project. Such reasonable terms and conditions include a monthly rent and estimated average monthly utility costs that do not exceed the greater of:
(
(
(D) A tenant-occupant of a dwelling who is required to relocate temporarily, but does not return to the building/complex, if either:
(
(
(E) A tenant-occupant of a dwelling who moves from the building/complex after he or she has been required to move to another dwelling unit in the same building/complex in order to carry out the project, if either:
(
(
(ii) Notwithstanding the provisions of paragraph (c)(6)(i) of this section, a person does not qualify as a “displaced person” (and is not eligible for relocation assistance under the URA or this section), if:
(A) The person moved into the property after the submission of the housing plan to HUD, but before signing a lease or commencing occupancy, was provided written notice of the project, its possible impact on the person (e.g., the person may be displaced, temporarily relocated or suffer a rent increase) and the fact that the person would not qualify as a “displaced person” or for any assistance provided under this section as a result of the project;
(B) The person is ineligible under 49 CFR 24.2(g)(2); or
(C) The DHHL determines the person is not displaced as a direct result of acquisition, rehabilitation, or demolition for an assisted project. To exclude a person on this basis, HUD must concur in that determination.
(iii) The DHHL may at any time ask HUD to determine whether a specific displacement is or would be covered under this section.
(7)
(d)
(a)
(b)
(c)
(1) Included in a performance report of the DHHL submitted to HUD under § 1006.410; and
(2) Made available to the public.
(a)
(1) Review the progress the DHHL has made during that fiscal year in achieving goals stated in its housing plan; and
(2) Submit a report in a form acceptable to HUD, within 60 days of the end of the DHHL's fiscal year, to HUD describing the conclusions of the review.
(b)
(1) Describe the use of grant amounts provided to the DHHL for that fiscal year;
(2) Assess the relationship of the use referred to in paragraph (b)(1), of this section, to the goals identified in its housing plan;
(3) Indicate the programmatic accomplishments of the DHHL; and
(4) Describe the manner in which the DHHL would change its housing plan as a result of its experiences administering the grant under the Act.
(c)
(2)
(d)
(1) Review each report submitted under the Act and this part; and
(2) With respect to each such report, make recommendations as HUD considers appropriate to carry out the purposes of the Act.
(a)
(1) Carried out eligible activities in a timely manner;
(2) Carried out and made certifications in accordance with the requirements and the primary objectives of the Act and this part and with other applicable laws;
(3) A continuing capacity to carry out the eligible activities in a timely manner;
(4) Complied with its housing plan; and
(5) Submitted accurate performance reports.
(b)
(1) The DHHL's housing plan and any amendments thereto;
(2) Reports prepared by the DHHL;
(3) Records maintained by the DHHL;
(4) Results of HUD's monitoring of the DHHL's performance, including field evaluation of the quality of the work performed;
(5) Audit reports;
(6) Records of drawdowns on the line of credit;
(7) Records of comments and complaints by citizens and organizations; and
(8) Litigation.
(c) The DHHL's failure to maintain records may result in a finding that the DHHL failed to meet the applicable requirement to which the record pertains.
(a)
(1) Complied with the requirements of the Act and this part and other applicable laws and regulations, including the environmental responsibilities assumed under § 1006.350;
(2) Carried out its activities substantially as described in its housing plan;
(3) Made substantial progress in carrying out its program and achieving its quantifiable goals as described in its housing plan; or
(4) Shown the continuing capacity to carry out its approved activities in a timely manner.
(b)
(1) Issue a letter of warning advising the DHHL of the performance problem(s), describing the corrective actions that HUD believes should be taken, establishing a completion date for corrective actions, and notifying the DHHL that more serious actions may be taken if the performance problem(s) is not corrected or is repeated;
(2) Request the DHHL to submit progress schedules for completing activities or complying with the requirements of the Act and this part;
(3) Recommend that the DHHL suspend, discontinue, or not incur costs for the affected activity;
(4) Recommend that the DHHL redirect funds from affected activities to other eligible activities;
(5) Recommend that the DHHL reimburse its program account or line of credit under the Act in the amount improperly expended and reprogram the use of the funds; and
(6) Recommend that the DHHL obtain appropriate technical assistance using existing grant funds or other available resources to overcome the performance problem(s).
(a)
(1) Terminate payments to the DHHL;
(2) Reduce payments to the DHHL by an amount equal to the amount not expended in accordance with the Act or this part;
(3) Limit the availability of payments to programs, projects, or activities not affected by such failure to comply; or
(4) Adjust, reduce or withdraw grant amounts or take other action as appropriate in accordance with reviews and audits.
(b)
(c) HUD may, upon due notice, suspend payments at any time after the issuance of the opportunity for hearing pending such hearing and final decision, to the extent HUD determines such action necessary to preclude the further expenditure of funds for activities affected by such failure to comply.
(d)
(1) Take at least one of the corrective or remedial actions specified under § 1006.430 and permit the DHHL to make an appropriate and timely response;
(2) Provide the DHHL with the opportunity for an informal consultation with HUD regarding the proposed action; and
(3) Provide DHHL with reasonable notice and opportunity for a hearing.
(e)
(f)
12 U.S.C. 1715z–13b; 42 U.S.C. 3535(d).
This part provides the requirements and procedures that apply to loan guarantees for Native Hawaiian Housing under section 184A of the Housing and Community Development Act of 1992. Section 184A permits HUD to guarantee an amount not to exceed 100 percent of the unpaid principal and interest that is due on an eligible loan. The purpose of section 184A and this part is to provide access to sources of private financing to Native Hawaiian families who otherwise could not acquire housing financing because of the unique legal status of the
The following definitions apply in this part:
(1) Have the status of Hawaiian Home Lands under section 204 of the Hawaiian Homes Commission Act (42 Stat. 110); or
(2) Are acquired pursuant to that Act.
(1) A citizen of the United States; and
(2) A descendant of the aboriginal people, who, prior to 1778, occupied and exercised sovereignty in the area that currently constitutes the State of Hawaii, as evidenced by:
(i) Genealogical records;
(ii) Verification by kupuna (elders) or kama'aina (long-term community residents); or
(iii) Birth records of the State of Hawaii.
A loan guaranteed under this part may only be made to the following borrowers:
(a) A Native Hawaiian family;
(b) The Department of Hawaiian Home Lands;
(c) The Office of Hawaiian Affairs; or
(d) A private, nonprofit organization experienced in the planning and development of affordable housing for Native Hawaiians.
(a)
(b)
(1) The mortgagor and the mortgagee execute a building loan agreement, approved by HUD, setting forth the terms and conditions under which advances will be made;
(2) The advances are made only as provided in the building loan agreement;
(3) The principal amount of the mortgage is held by the mortgagee in an interest bearing account, trust, or escrow for the benefit of the mortgagor, pending advancement to the mortgagor or to his or her creditors as provided in the loan agreement; and
(4) The mortgage bears interest on the amount advanced to the mortgagor or to his or her creditors and on the amount held in an account or trust for the benefit of the mortgagor.
(a) A loan guaranteed under this part may only be made for one to four-family dwellings that are standard housing, in accordance with paragraph (b), of this section. The housing must be located on Hawaiian Home Lands for which a housing plan that provides for the use of loan guarantees under this part has been submitted and approved under part 1006 of this chapter.
(b) Standard housing must meet housing safety and quality standards that:
(1) Provide sufficient flexibility to permit the use of various designs and materials; and
(2) Require each dwelling unit to:
(i) Be decent, safe, sanitary, and modest in size and design;
(ii) Conform with applicable general construction standards for the region in which the housing is located;
(iii) Contain a plumbing system that:
(A) Uses a properly installed system of piping;
(B) Includes a kitchen sink and a partitional bathroom with lavatory, toilet, and bath or shower; and
(C) Uses water supply, plumbing, and sewage disposal systems that conform to any minimum standards established by the applicable county or State;
(iv) Contain an electrical system using wiring and equipment properly installed to safely supply electrical energy for adequate lighting and for operation of appliances that conforms to any appropriate county, State, or national code;
(v) Be not less than the size provided under the applicable locally adopted standards for size of dwelling units, except that HUD, upon request of the DHHL may waive the size requirements under this paragraph; and
(vi) Conform with the energy performance requirements for new construction established by HUD under section 526(a) of the National Housing Act (12 U.S.C.A. 1735f–4), unless HUD determines that the requirements are not applicable.
(c) The relevant requirements of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821–4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851–4856), and implementing regulations at part 35, subparts A, B, and R of this title and §§ 200.805 and 200.810 of this title apply to housing eligible for a loan guaranteed under this part.
(a)
(b)
(1) Any mortgagee approved by HUD for participation in the single family mortgage insurance program under title II of the National Housing Act (12 U.S.C.A. 1707
(2) Any lender that makes housing loans under chapter 37 of title 38, United States Code, that are automatically guaranteed under section 3702(d) of title 38, United States Code;
(3) Any lender approved by the Secretary of Agriculture to make guaranteed loans for single family housing under the Housing Act of 1949 (42 U.S.C.A. 1441
(4) Any other lender that is supervised, approved, regulated, or insured by any agency of the Federal Government; and
(5) Any other lender approved by HUD under this part.
(a)
(1) The property and/or improvements to be acquired, constructed, or rehabilitated, to the extent that an interest in such property is not subject to any restrictions against alienation applicable to Hawaiian Home Lands;
(2) A security interest in non-Hawaiian Home Lands property;
(3) Personal property; or
(4) Cash, notes, an interest in securities, royalties, annuities, or any other property that is transferable and whose present value may be determined.
(b)
(1)
(2)
(3)
(4)
(i)
(ii)
Upon notification of an adverse decision by the Deputy Assistant Secretary, the DHHL has 30 additional days to file an appeal with the Assistant Secretary for Public and Indian Housing. The determination of the Assistant Secretary shall be final, but the DHHL may resubmit the issue to the Assistant Secretary for review at any subsequent time if new evidence or changed circumstances warrant reconsideration.
To be eligible for guarantee under this part, the loan shall:
(a) Be made for a term not exceeding 30 years;
(b) Bear interest (exclusive of the guarantee fee under § 1007.55 and service charges, if any) at a rate agreed upon by the borrower and the lender and determined by HUD to be reasonable, but not to exceed the rate generally charged in the area (as determined by HUD) for home mortgage loans not guaranteed or insured by any agency or instrumentality of the Federal Government;
(c) Involve a principal obligation not exceeding:
(1) 97.75 percent of the appraised value of the property as of the date the loan is accepted for guarantee (or 98.75 percent if the value of the property is $50,000 or less); or
(2) The amount approved by HUD under this section; and
(d) Involve a payment on account of the property:
(1) In cash or its equivalent; or
(2) Through the value of any improvements, appraised in accordance with generally accepted practices and procedures.
Before HUD issues a commitment to guarantee any loan or (if no commitment is issued) before guarantee of any loan, there must be compliance with environmental review procedures to the extent applicable under part 50 of this title. If the loan involves proposed or new construction, HUD will require compliance with procedures similar to those required by § 203.12(b)(2) of this title for FHA mortgage insurance.
To the extent that the requirements of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d
(a)
(2)
(b)
(c)
(2)
(d)
(1) To preclude HUD from establishing defenses against the
(2) To bar HUD from establishing regulations that are (on the date of issuance or disbursement, whichever is earlier) partial defenses to the amount payable on the guarantee.
The lender shall pay to HUD, at the time of issuance of the guarantee, a fee for the guarantee of loans under this part, in an amount equal to 1 percent of the principal obligation of the loan. This amount is payable by the borrower at closing.
The liability under a guarantee provided under this section shall decrease or increase on a pro rata basis according to any decrease or increase in the amount of the unpaid obligation under the provisions of the loan agreement involved.
Notwithstanding any other provision of law, any loan guaranteed under this section, including the security given for the loan, may be sold or assigned by the lender to any financial institution subject to examination and supervision by an agency of the Federal Government or of any State or the District of Columbia.
(a)
(i) Has failed:
(A) To maintain adequate accounting records;
(B) To service adequately loans guaranteed under this section; or
(C) To exercise proper credit or underwriting judgment; or
(ii) Has engaged in practices otherwise detrimental to the interest of a borrower or the United States.
(2)
(i) Refuse, either temporarily or permanently, to guarantee any further loans made by such lender or holder;
(ii) Bar such lender or holder from acquiring additional loans guaranteed under this part; and
(iii) Require that such lender or holder assume not less than 10 percent of any loss on further loans made or held by the lender or holder that are guaranteed under this part.
(b)
(i) To maintain adequate accounting records;
(ii) To adequately service loans guaranteed under this section; or
(iii) To exercise proper credit or underwriting judgment.
(2)
(c)
(a)
(2)
(i)
(ii)
(b)