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HUD/OH RIN: 2502-AJ62 Publication ID: Fall 2024 
Title: Consolidated Regulation for the Improvement of the Section 8 Program (CRISP) (FR-6320) 
Abstract:

After seeking comment from owners, tenants, and other program stakeholders, the Office of Multifamily Housing (MFH) will propose a set of uniform policies to govern MFH’s Section 8 Project-Based Rental Assistance various contract types that provide Housing Assistance Payments (HAP). Currently, MFH administers multiple Section 8 program contract type each governed by its own regulation or notice and subject to differing requirements. To reduce regulatory complexities, MFH proposes a standard program regulation and a standard contract that would be used to renew HAP contracts subject to section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). Section 524 of MAHRA affords the Secretary broad leeway to establish the terms and conditions under which such contracts are renewed.

 
Agency: Department of Housing and Urban Development(HUD)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 24 CFR 880 and 881    24 CFR 883 and 884    24 CFR 886    24 CFR 891   
Legal Authority: Section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, as amended (Title V of Pub. L. 105–65, October 27, 1997, 111 Stat. 1384)   
Legal Deadline:  None

Statement of Need:

  HUD currently operates multiple Section 8 PBRA contract types under its statutory authority. The various program requirements are currently encompassed in seven regulatory parts, the RAD PBRA Notice, and subregulatory guidance.  The HAP contracts used to administer the assistance include requirements specific to the individual program.  To further the complexity, some PBRA programs administer both old and new regulation HAP contracts depending on when the notice of selection or initial application for the project was issued. 

  The Section 8 PBRA programs at issue, and the related regulatory or notice requirements that govern those programs, are: New Construction (24 CFR part 880) (old and new); Substantial Rehabilitation (24 CFR part 881) (old and new); State Housing Agencies (24 CFR part 883) (old and new); New Construction financed under Section 515 of the Housing Act of 1949 (24 CFR part 884); Loan Management Set-Aside Program (24 CFR part 886, subpart A); Section 202/8 Program (24 CFR part 891, subpart E) (formerly part 885); Disposition of HUD-Owned Projects (24 CFR part 886, subpart C); and RAD PBRA Program (RAD PBRA Notice, Appendix I).   

  The various Section 8 PBRA program regulations that result in different HAP contract terms contribute to complexities that could be reduced by having standard program requirements and a standard HAP contract. The proposed standard program regulation would bring consistency to PBRA requirements and incorporate policy changes and consistent program requirements into regulation.  This would reduce the complexity faced by owners and tenants, as well as HUD staff and contractors who are responsible for the administration and oversight of assisted projects.  HUD sees a clear benefit to moving toward a consolidated and consistent regulatory structure and a single HAP contract that will be used when property owners renew HAP contracts under Section 524 of MAHRA or enter into new HAP contracts.

Summary of the Legal Basis:

These regulatory revisions would be implemented consistent with Section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, as amended, and Section 8 of the U.S. Housing Act of 1937.

Alternatives:

An alternative to promulgating the rule would be to maintain the various existing Section 8 requirements for the eight different contract types in separate regulatory sections, notices, and subregulatory guidance.  This would result in the Section 8 PBRA programs continuing to operate under disparate requirements.  Doing so would fail to realize the advantages of streamlining, updating, and simplifying the program requirements, and would fail to bring consistency to the Section 8 PBRA program.

Anticipated 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 pursued in fiscal year 2025.  HUD expects that neither the total economic costs nor the total efficiency gains will exceed $200 million for this proposed rulemaking. There are expected to be administrative costs during the transition period to the consolidated program requirements set out in the rule and to a new HAP contract form.  Those costs are likely offset by the long-term efficiency of operating under one consistent Section 8 PBRA program regulations.

Risks:

The rule may result in increased administrative costs as property owners and HUD staff transition to the consolidated program requirements set out in the rule and to a new HAP contract form.  That risk is likely offset by the increased efficiency of operating all HAP contracts under consistent requirements.  It is always possible that a change to the Section 8 PBRA program requirements could influence an owner’s decision to opt out of the program; but HUD expects that many property owners will view the proposed regulatory revisions favorably. 

Timetable:
Action Date FR Cite
ANPRM  02/20/2023  88 FR 7044   
ANPRM Comment Period End  04/03/2023 
NPRM  05/00/2025 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Jennifer Lavorel
Director, Program Administration Office, Asset Management and Portfolio Oversight
Department of Housing and Urban Development
Office of Housing
451 7th Street SW,
Washington, DC 20410
Phone:202 402-2515