[Federal Register: January 28, 2004 (Volume 69, Number 18)]
[Proposed Rules]
[Page 4211-4213]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ja04-19]
[[Page 4211]]
-----------------------------------------------------------------------
Part II
Department of Housing and Urban Development
-----------------------------------------------------------------------
24 CFR Part 990
Operating Fund Program; Notice of Intent To Establish a Negotiated
Rulemaking Committee and Notice of First Meeting; Proposed Rule
[[Page 4212]]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 990
[Docket No. FR-4874-N-02]
Operating Fund Program; Notice of Intent To Establish a
Negotiated Rulemaking Committee and Notice of First Meeting
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of intent to establish a negotiated rulemaking advisory
committee and notice of first meeting.
-----------------------------------------------------------------------
SUMMARY: The Department of Housing and Urban Development (HUD) is
establishing a Negotiated Rulemaking Advisory Committee (Committee)
under the Federal Advisory Committee Act. The purpose of the Committee
is to provide advice and recommendations on developing a rule for
effectuating changes to the Public Housing Operating Fund Program in
response to the Harvard University Graduate School of Design's ``Public
Housing Operating Cost Study'' (Harvard Cost Study). In accordance with
the Negotiated Rulemaking Act of 1990, this document: Advises the
public of the establishment of the Committee; provides the public with
information regarding the Committee; solicits public comment on the
proposed membership of the Committee; and explains how persons may be
nominated for membership on the Committee.
DATES: Comment Due Date: February 27, 2004.
ADDRESSES: Interested persons are invited to submit comments regarding
the Committee and its proposed members to the Regulations Division,
Office of General Counsel, Room 10276, Department of Housing and Urban
Development, 451 Seventh Street, SW., Washington, DC 20410-0500.
Comments or any other communications submitted should consist of an
original and four copies and refer to the above docket number and
title. Facsimile (FAX) comments are not acceptable. The docket will be
available for public inspection and copying between 8 a.m. and 5 p.m.
weekdays at the above address.
FOR FURTHER INFORMATION CONTACT: Chris Kubacki, Director, Funding and
Financial Management Division, Public and Indian Housing--Real Estate
Assessment Center, Suite 800, Department of Housing and Urban
Development, 1280 Maryland Ave, SW., Washington, DC 20024-2135;
telephone (202) 708-4932 (this telephone numbers is not toll-free).
Individuals with speech or hearing impairments may access this number
through TTY by calling the toll-free Federal Information Relay Service
at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
HUD currently uses a formula approach called the Operating Fund
Formula to distribute operating subsidies to public housing agencies
(PHAs). A regulatory description of the Operating Fund Formula can be
found at 24 CFR part 990. Generally, the amount of subsidy received by
a PHA is the difference between an ``allowable expense level'' and
projected rental income, with the Operating Fund Formula regulations
detailing how these projections will be made. ``Allowable expense
level'' is defined in 24 CFR part 990 and does not necessarily reflect
the actual cost of operating public housing properties. PHAs calculate
their Operating Fund Formula eligibility annually and submit a request
for funding as part of their budget process. The amount of subsidy can
vary from one year to the next as a result of the annual appropriations
process and accounts for approximately 57 percent of a PHA's total
operating revenue, the balance coming from rents and other sources,
e.g., fees. For fiscal year 2003, HUD distributed over $3.34 billion in
operating subsidies to PHAs.
On October 21, 1998, Congress enacted the Quality Housing and Work
Responsibility Act of 1998 (Pub. L. 105-276, 112 Stat. 2461, approved
October 21, 1998) (QHWRA). Section 519 of QHWRA established an
Operating Fund for the purpose of making assistance available to PHAs
for the operation and management of public housing and required the
amount of assistance made available to a PHA to be determined using a
formula developed through negotiated rule-making procedures. Negotiated
rulemaking for an Operating Fund Formula was initiated in March 1999,
and resulted in a proposed rule, published on July 10, 2000 (65 FR
42488), which was followed by an interim rule published on March 29,
2001 (66 FR 17276). The March 29, 2001, interim rule established the
Operating Fund Formula that is currently in effect.
During the negotiated rulemaking for the Operating Fund Formula,
Congress in the Conference Report (H.Rept. 106-379, October 13, 1999)
accompanying HUD's Fiscal Year (FY) 2000 Appropriation Act (Pub. L.
106-74, approved October 20, 1999) directed HUD to contract with the
Harvard University Graduate School of Design (Harvard GSD) to conduct a
study on the costs incurred in operating well-run public housing. A
Final Report, the Harvard Cost Study, was issued by Harvard GSD on June
6, 2003.
HUD is publishing this notice to announce it intends to establish a
negotiated rulemaking committee that will provide advice and
recommendations on developing a rule for effectuating changes to the
Public Housing Operating Fund Program in response to the Harvard Cost
Study.
II. Regulatory Negotiation
The basic concept of negotiated rulemaking is to have the agency
that is considering drafting a rule bring together representatives of
affected interests for face-to-face negotiations that are open to the
public. The give-and-take of the negotiation process is expected to
foster constructive, creative, and acceptable solutions to difficult
problems. The Committee's role will be advisory and the Committee's
goal will be to provide ``consensus'' recommendations to HUD.
``Consensus'' will be defined in the initial meeting of the Committee.
The Committee will consist of representatives of the various interests
that are potentially affected by the rulemaking. Members may include
public housing agencies, tenant organizations, elected officials,
community based organizations, national organizations representing the
interests of these entities, other interested parties, and HUD. Members
will serve at HUD's discretion.
III. Committee Membership
HUD has tentatively identified the following list of possible
interests and parties. The final list of participants may not include
all of these parties. HUD will decide on the final list of participants
based upon comments on this notice, as well as its own efforts to
identify other entities having an interest in the outcome of this
rulemaking. The Negotiated Rulemaking Act of 1990 (5 U.S.C. 561-570)
provides, at 5 U.S.C. 565(b), that the membership of a negotiated
rulemaking committee should generally be limited to 25 members. In this
instance, the Committee's proposed membership is greater than 25
members, since HUD has determined that a greater number of members may
be required to adequately represent the interests affected by changes
to the Public Housing Operating Fund Program.
Housing Agencies
1. Atlanta Housing Authority, Atlanta, GA
[[Page 4213]]
2. New York City Housing Authority, NYC, NY
3. Puerto Rico Housing Authority, San Juan, PR
4. Chicago Housing Authority, Chicago, IL
5. Dallas Housing Authority, Dallas, TX
6. Anne Arundel Housing Authority, Anne Arundel, MD
7. Indianapolis Housing Authority, Indianapolis, IN
8. Albany Housing Authority, Albany, NY
9. Jackson Housing Authority, Jackson, MS
10. Boise City/Ada County Housing Authority, Boise City, ID
11. Reno Housing Authority, Reno, NV
12. Alameda Housing Authority, Alameda, CA
13. Athens Housing Authority, Athens, GA
14. Housing Authority of East Baton Rouge, Baton Rouge, LA
15. Housing Authority of the City of Montgomery, Montgomery, AL
Tenant Organizations
1. Jack Cooper, Massachusetts Union of Public Housing Tenants, Needham,
MA
Other Interests/Policy Groups
1. Ned Epstein, Housing Partners, Inc.
2. Howard Husock, Director of Kenney School Case Program
3. Greg Byrne, Project Director for Harvard Cost Study
4. Dan Anderson, Bank of America
5. David Land, Lindsey and Company
6. Council of Large Public Housing Agencies
7. National Association of Housing and Redevelopment Officials
8. Public Housing Authorities Directors Association
9. National Organization of African Americans in Housing
Federal Government
1. Assistant Secretary Michael Liu, U.S. Department of Housing and
Urban Development
2. Deputy Assistant Secretary William Russell, U.S. Department of
Housing and Urban Development
We invite you to give us comments and suggestions on this tentative
list of Committee members. We do not believe that each potentially
affected organization or individual must necessarily have its own
representative. However, we must be satisfied that the group as a whole
reflects a proper balance and mix of interests. Accordingly, the
composition of the final list may be different from this tentative
list. Negotiation sessions will be open to members of the public, so
individuals and organizations that are not members of the Committee may
attend sessions and communicate informally with members of the
Committee.
IV. Requests for Representation
If you are interested in serving as a member of the Committee or in
nominating another person to serve as a member of the Committee, you
must submit a written nomination to HUD at the address listed in the
ADDRESSES section of this notice. Your nomination for membership on the
Committee must include:
(1) The name of your nominee and a description of the interests the
nominee would represent;
(2) Evidence that your nominee is authorized to represent parties
with the interests the nominee would represent;
(3) A written commitment that the nominee will actively participate
in good faith in the development of the rule; and
(4) The reasons that the parties listed in this notice do not
adequately represent your interests.
HUD will determine whether a proposed member should be included in
the makeup of the Committee. HUD will make that decision based on
whether a proposed member would be significantly affected by the
proposed rule and whether the interest of the proposed member could be
represented adequately by other members.
V. Final Notice Regarding Committee Establishment
After reviewing any comments on this notice and any requests for
representation, HUD will publish a notice in the Federal Register that
will announce the final composition of the Committee and the firm date,
time, and place of the initial meeting.
VI. Tentative Schedule
At this time, HUD's tentative plan is to hold the first meeting of
the Committee on March 23-March 25, 2004. All meetings are expected to
start at 8:30 a.m. and run until approximately 5 p.m. unless the
Committee agrees otherwise. HUD plans to hold the meetings at the Real
Estate Assessment Center, 1280 Maryland Ave, SW., Suite 800,
Washington, DC 20024. The purpose of the first meeting will be to
orient members to the negotiated rulemaking process, to establish a
basic set of understandings and ground rules (protocols) regarding the
process that will be followed in seeking a consensus, and to begin to
address the issues. This meeting will be open to the public. In the
event that the date and times of these meetings are changed, HUD will
advise the public through Federal Register notice.
Decisions with respect to future meetings will be made at the first
meeting and from time to time thereafter. Notices of future meetings
will be published in the Federal Register.
VII. Administrative Support
HUD will take steps to ensure that the Committee has the dedicated
resources it requires to conduct its work in a timely fashion,
consistent with the requirements of the Negotiated Rulemaking Act of
1990.
Dated: January 14, 2004.
Paula O. Blunt,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 04-1747 Filed 1-27-04; 8:45 am]
BILLING CODE 4210-33-P