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Statement of Need: Based on the congressionally mandated Harvard Public Housing Cost Study, which concerned changing public housing’s regulatory environment and HUD’s goal to consolidate or remove obsolete or unnecessary program requirements, this proposed rule would revise several sections of HUD’s public housing regulations in 24 CFR parts 903, 945, 964, and subpart B of 966. The purpose of the revisions is to streamline those regulations the Department believes could impede a PHA’s ability to manage its operations within the parameters of the United States Housing Act of 1937 (12 U.S.C. 1437 et seq.) (1937 Act). The rule also is designed to promote more effective governance by PHAs and provide PHAs with maximum flexibility, within the requirements of the 1937 Act, to design, manage, and operate their programs to address local needs. PHAs and local communities, through collaboration and partnership, are in the best position to create a positive living environment for their residents.

Summary of the Legal Basis: Section 5a of the United States Housing Act of 1937 (42 U.S.C. 1437c-1), which provides that each PHA shall submit a plan to HUD that contains a mission statement and statement of goals and objectives of the PHA that will enable it to serve the needs of low-income and very low-income families, and HUD’s general rulemaking authority under the Department of Housing and Urban Development Act, which authorizes HUD to establish regulatory policies and procedures governing the submission of a PHA’s annual plan.

Alternatives: The changes made by this proposed rule would modify an existing regulatory requirement and, therefore, must be promulgated through regulation. Non-regulatory alternatives (such as promulgation through a handbook or notice) would not be binding upon PHAs and other program participants.

Anticipated Costs and Benefits: This rule would support HUD’s overall objective to streamline public housing programs, facilitate the transition to public housing project-based management, and consider recommendations of the congressionally mandated Harvard Cost Study. In general, this rule is directed to more closely align public housing with the conventional real estate industry, giving PHAs maximum flexibility within the parameters of current law to administer public housing programs. As a result, the rule is not anticipated to result in the imposition of new regulatory burdens on program participants nor significantly alter the costs associated with the public housing program.

Risks: This rule poses no threat to public safety, health, or the environment.