DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FALL 2015 STATEMENT OF REGULATORY PRIORITIES
Introduction - HUD's Mission
Secretary Julián Castro has called the Department of Housing and Urban Development (HUD) the Department of Opportunity because of the unique impact it can make on the lives of Americans. As Secretary Castro has noted, where people live shapes how they live - the types and number of available jobs, the quality of the education their children receive, and the overall quality of life.[1] Although one of HUD's core objectives is to help families secure quality, affordable housing, its mission is much broader. HUD celebrated the 50th anniversary of its establishment in September 2015. President Lyndon Johnson, in his remarks on the passage of the legislation in 1965 establishing HUD, provided a clear and succinct statement of the objectives for the new Department: "to make sure that every family in America lives in a home of dignity and a neighborhood of pride, a community of opportunity, and a city of promise and hope."[2]
In brief, HUD's mission is to provide families and communities with the tools to build a brighter future. Consistent with this vision, HUD programs impact small towns, big cities, rural communities, and tribal communities across the country. HUD works to strengthen the housing market and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.
Statement of Regulatory Priorities
This Statement of Regulatory Priorities, together with HUD's Fall Semiannual Agenda of Regulations, highlights the most significant regulatory and deregulatory initiatives that HUD seeks to complete during the upcoming fiscal year.
As noted in the Introduction, a central feature of HUD's mission is to use housing as a platform for improving quality of life. HUD housing serves at least two broad populations: people who are in a position to markedly increase their self-sufficiency and people who will need long-term support (for example, the frail elderly and people with severe disabilities). For those individuals who are able, increasing self-sufficiency requires access to life-skills training, wealth-creation and asset-building opportunities, job training, and career services.
Knowledge is one pillar to achieving self-sufficiency and the American Dream-a catalyst for upward mobility, as well as an investment that ensures each generation is, at least, as successful as the last. The adoption, associated programming, and use of broadband technology are powerful tools to increase access to knowledge; however, there is a "digital divide" in this nation between those with broadband Internet access and those without it.
This Statement of Regulatory Priorities highlights two rules that will focus on narrowing the digital divide in low-income communities served by HUD.
Regulatory Priority: Narrowing the Digital Divide in HUD Communities
On March 23, 2015, President Obama issued a Presidential Memorandum on "Expanding Broadband Deployment and Adoption by Addressing Regulatory Barriers and Encouraging Investment and Training."[3] In this memorandum, the President noted that access to high-speed broadband is no longer a luxury, but a necessity for American families, businesses, and consumers. Mobile wireless access to the Internet, such as provided through smartphone, is an insufficient alternative to broadband connectivity. Such wireless access provides lower connection speeds and lesser functionality for the full range of household uses (such as word processing and other software) compared to place-based broadband Internet connection. The President further noted that the Federal government has an important role to play in developing coordinated policies to promote broadband deployment and adoption, including promoting best practices, breaking down regulatory barriers, and encouraging further investment.
On July 15, 2015, HUD launched its Digital Opportunity Demonstration, known as "ConnectHome," in which HUD provided a platform for collaboration among local governments, public housing agencies, Internet service providers, philanthropic foundations, nonprofit organizations, and other relevant stakeholders to work together to produce local solutions for narrowing the digital divide in communities served by HUD across the nation. The demonstration, or pilot as it is also called, commenced with the participation of 28 communities. Through contributions made by the Internet service providers and other participating organizations, these 28 communities will benefit from the ConnectHome collaboration by receiving, for the residents living in HUD public and assisted housing in these communities, broadband infrastructure, literacy training, related content, and devices that provide for accessing high-speed Internet. [4]
The importance of all Americans having access to the Internet cannot be overstated. As HUD stated in its announcement of the Digital Opportunity Demonstration, published in the Federal Register on April 3, 2015, at 80 FR 18248, many low-income Americans do not have broadband Internet at home, contributing to the estimated 66 million Americans who are without the most basic digital literacy skills. It is for these reasons that HUD is exploring ways beyond ConnectHome, to narrow the digital divide for the low-income individuals and families served by HUD multifamily rental housing programs.
The following two rules featured in this Regulatory Plan are part of this effort.
Aggregate Costs and Benefits
Executive Order 12866, as amended, requires the agency to provide its best estimate of the combined aggregate costs and benefits of all regulations included in the agency's Regulatory Plan that will be made pursued in FY 2016. HUD expects that the neither the total economic costs nor the total efficiency gains will exceed $100 million.
Narrowing the Digital Divide through Broadband Installation in HUD-Funded New Construction and Substantial Rehabilitation
HUD Office: Office of the Secretary
Rulemaking Stage: Proposed Rule
Priority: Significant
Legal Authority: 12 U.S.C. 1701q and 4568; 42 U.S.C., 1437a, 1437c, 1437d, 1437f, 1437g, 1437n, 1437z-2, 1437z-7, 3535(d), 5301-5320, 8013, 11371 et seq., 12701-12839, 12901-12912, 13611-13619; sec. 327, Pub. L. 109-115, 119 Stat. 2936, and sec. 607, Pub. L. 109-162, 119 Stat. 3051.
CFR Citation: 24 CFR 5, 92, 93, 570, 574, 578, 880, 891, 905, and 983
Legal Deadline: None
Abstract:
Through this proposed rule, HUD continues its efforts to narrow the digital divide in low-income communities served by HUD by providing broadband access to communities in need of such access, where feasible and under HUD programs that authorize use of HUD funds for such purpose. Broadband is the common term used to refer to a very fast connection to the Internet. Such connection is also referred to as high-speed broadband or high-speed Internet. In this rule, HUD proposes to require installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing that is funded by HUD. Installation of broadband infrastructure at the time of new construction or substantial rehabilitation is generally easier and less costly than when such installation is undertaken as a stand-alone effort. The proposed rule, however, recognizes that installation of broadband infrastructure may not be feasible for all new construction or substantial rehabilitation, and therefore the proposed rule allows limited exceptions to the installation requirements. Installing unit-based high-speed Internet in multifamily rental housing that is newly constructed or substantially rehabilitated with HUD funding will not only expand affordable housing for low-income families but will provide a platform for individuals and families residing in such housing to participate in the digital economy and increase their access to economic opportunities.
Statement of Need
The proposed rule is part of several mutually supportive efforts being taken by the Administration to close the digital divide for low-income communities. As noted above, many low-income Americans do not have broadband Internet at home. Given the populations impacted by the digital divide, HUD is at the forefront of implementing these Administration efforts. The digital divide in broadband access, connectivity, and use disproportionately affects certain Americans: those who earn less than $25,000 annually; individuals who did not finish high school; and African Americans and Hispanics. Eighty-four percent of households with HUD assistance make less than $20,000 per year, and 63 percent are African American or Hispanic (46 percent and 17 percent, respectively). Of these HUD-assisted household, 38 percent have children who are 18 years or younger. The proposed rule will build on the success of ConnectHome by ensuring that when construction or significant rehabilitation is done using HUD funds, the infrastructure needed for broadband access is included in the work.
Alternatives:
Construction and rehabilitation standards are regulatory in nature, so amending them to require the installation of broadband infrastructure requires rulemaking. Without amending the construction and rehabilitation standards, there is no way to require grantees to install broadband infrastructure in multifamily housing.
Anticipated Costs and Benefits
The proposed rule would provide that for new construction or substantial rehabilitation of multifamily rental housing funded by HUD that, as part of the new construction or substantial rehabilitation to be undertaken, such activity must include installation of broadband infrastructure. Installing broadband infrastructure will be an additional cost when doing HUD-funded new construction/substantial rehabilitation. However, HUD notes that none of the HUD covered programs listed in this rule require a grantee to undertake new construction or substantial rehabilitation. New construction and substantial rehabilitation are eligible activities that grantees may undertake under HUD-funded programs. Therefore, entities will not incur any costs than they otherwise would incur by using their HUD funds to voluntarily undertake new construction or substantial rehabilitation under HUD funded-programs that authorize such activities.
Further, HUD is seeking to minimize the costs of installation by pairing the installation requirements with new construction or rehabilitation work when costs are lower than installation broadband infrastructure when no other work is being done. Additionally, HUD is proposing to define "substantial rehabilitation" as significant work (50 percent or more of full system replacement) on one or more of the following systems: electrical, mechanical, or plumbing. This further minimizes the costs of the rule by ensuring that only significant work that would lower the burden of installing broadband infrastructure triggers the proposed requirements.
HUD also recognizes that there may be some communities or buildings where installing broadband infrastructure is infeasible or impractical due to a variety of circumstances (e.g., no broadband access is available near the community, the building itself may have some difficulties in supporting the infrastructure). In these instances, HUD is reserving the right to determine that installation of broadband infrastructure is not feasible and excusing the grantee from the installation requirement.
Risks:
This rule poses no risk to public health, safety, or the environment.
TIMETABLE:
Action Date FR CITE
NPRM 01/00/2016
Regulatory Flexibility Analysis Required: No
Small Entities Affected: No
Government Levels Affected: State, Local
Federalism Affected: No
Energy Affected: No
International Impacts: No
Agency Contact:
Camille E. Acevedo
Associate General Counsel for Legislation and Regulations
Department of Housing and Urban Development,
451 7th Street SW., Washington, DC 20410
PHONE: 202 708-3055
RIN: 2501-AD75
Narrowing the Digital Divide through Community Planning: Integrating Broadband Planning into HUD's Consolidated Planning Process
HUD Office: Office of the Assistant Secretary for Community Planning and Development
Rulemaking Stage: Proposed Rule
Priority: Significant
Legal Authority: 42 U.S.C. 3535(d), 3601-3619, 5301-5315, 11331-11388, 12701-12711, 12741-12756, and 12901-12912.
CFR Citation: 24 CFR 91
Legal Deadline: None
Abstract:
For communities to survive in this digital era, planning for broadband access must be a basic component of their community planning process. HUD's Consolidated Plan is a planning mechanism designed to help States and local governments assess their affordable housing and community development needs and make data-driven, place-based investment decisions. The consolidated planning process serves as the framework for a community-wide dialogue to identify housing and community development priorities that align and focus funding from HUD's formula block grant programs.
This proposed rule would amend HUD's Consolidated Plan regulations to require that jurisdictions, in their planning efforts, consider the needs of broadband access for low-income residents in the communities they serve. Broadband is the common term used to refer to a very fast connection to the Internet. Such connection is also referred to as high-speed broadband or high-speed Internet. Specifically, the rule would require that States and localities that submit a consolidated plan evaluate whether residents of HUD-funded housing have access to high-speed Internet and, if so, in what ways is such access made available to these residents. If low-income residents in the communities do not have access to high-speed Internet, States and jurisdictions must consider whether such access can be made available to their communities as part of their investment of HUD funds. The proposed regulatory amendments build upon other HUD efforts to close the digital divide and help ensure that the benefits of high-speed Internet reach every American household, regardless of their economic backgrounds.
Statement of Need:
The proposed rule is part of several mutually supportive efforts being taken by the Administration to close the digital divide for low-income communities. As noted above, many low-income Americans do not have broadband Internet at home. Given the populations impacted by the digital divide, HUD is at the forefront of implementing these Administration efforts. The digital divide in broadband access, connectivity, and use disproportionately affects certain Americans: those who earn less than $25,000 annually; individuals who did not finish high school; and African Americans and Hispanics. Eighty-four percent of households with HUD assistance make less than $20,000 per year, and 63 percent are African American or Hispanic (46 percent and 17 percent, respectively). Of these HUD-assisted household, 38 percent have children who are 18 years or younger. The proposed regulatory amendments will build on the success of ConnectHome by codifying the policy goals of increased Internet access and digital literacy as permanent features of HUD's community planning regulations.
Alternatives:
The Consolidated Plan requirements are regulatory in nature so rulemaking is necessary to revise them. While non-regulatory guidance encouraging the consideration of broadband access in the consolidated planning process is a possible alternative, such guidance is non-binding. Accordingly, rulemaking is the only possible option to accomplish the policy goals described above.
Anticipated Costs and Benefits:
The proposed rule will amend the Consolidated Plan regulations to require that States and local governments evaluate the access of public and other assisted housing residents to broadband Internet service. The proposed regulatory changes are concerned with the consolidated planning process and HUD does not anticipate that the costs of the revised consultation and reporting requirements, as proposed in this rule, will be significant since the regulatory changes merely build upon similar existing requirements rather than mandating completely new procedures. While the proposed rule would require States and local governments to consider, as part of their Consolidated Planning process, the broadband access needs of resident of public and other assisted housing, the rule does not mandate that actions be taken to meet those needs. The significant interest expressed by many communities in participating in ConnectHome demonstrated to HUD that many jurisdictions that are already engaged in planning to bring high-speed Internet access to their low-income communities. These jurisdictions also demonstrated their awareness of the harmful effects of the digital divide and a high interest in narrowing that divide. Additionally, given the positive response to ConnectHome, HUD anticipates that many State and local governments will devote resources, whether public or private, without any mandate from HUD, to bring high-speed Internet access to their communities. This rule therefore, which only requires consideration of the needs in low-income communities to access to broadband Internet service, has a minimal cost impact on all grantees subject to the Consolidated Planning process.
Risks:
This rule poses no risk to public health, safety, or the environment.
TIMETABLE:
Action Date FR CITE
NPRM 01/00/2016
Regulatory Flexibility Analysis Required: No
Small Entities Affected: No
Government Levels Affected: State, Local
Federalism Affected: No
Energy Affected: No
International Impacts: No
Agency Contact:
Camille E. Acevedo
Associate General Counsel for Legislation and Regulations
Department of Housing and Urban Development,
451 7th Street SW., Washington, DC 20410
PHONE: 202 708-3055
RIN: 2506- AC41
[1] Secretary Julián, Castro, Remarks to the Department of Housing and Urban Development, "A Year of Progress: Building a Stronger HUD for the Next 50 Years" (July 27, 2015). See http://portal.hud.gov/hudportal/HUD?src=/press/speeches_remarks_statements/2015/Remarks_072715.
[2] President Lyndon Baines Johnson, Remarks upon Enactment of the Housing and Urban Development Act of 1965 (April 10, 1965). http://www.lbjlibrary.org/mediakits/hud/p6.html.
[3] https://www.whitehouse.gov/the-press-office/2015/03/23/presidential-memorandum-expanding-broadband-deployment-and-adoption-addr
[4] http://connecthome.hud.gov/