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Rules and Regulations Federal Register Vol 35003 Rules and Regulations Federal Register Vol. 84, No. 140 Monday, July 22, 2019 This section of the FEDERAL REGISTER Division, STOP 0784, Room 2250, provisions of Title II of the UMRA) for contains regulatory documents having general USDA Rural Development, South State, local, and tribal governments or applicability and legal effect, most of which Agriculture Building, 1400 the private sector. Therefore, this rule is are keyed to and codified in the Code of Independence Avenue SW, Washington, not subject to the requirements of Federal Regulations, which is published under DC 20250–0784, telephone: (503) 894– sections 202 and 205 of the UMRA. 50 titles pursuant to 44 U.S.C. 1510. 2382, email is [email protected]. Environmental Impact Statement The Code of Federal Regulations is sold by SUPPLEMENTARY INFORMATION: the Superintendent of Documents. This document has been reviewed in Executive Order 12866, Classification accordance with 7 CFR part 1970, This rule has been determined to be subpart A, ‘‘Environmental Programs.’’ DEPARTMENT OF AGRICULTURE non-significant and therefore was not It is the determination of the Agency reviewed by the Office of Management that this action does not constitute a Rural Housing Service and Budget (OMB) under Executive major Federal action significantly Order 12866. affecting the quality of the human 7 CFR Part 3555 environment, and, in accordance with Executive Order 12988, Civil Justice RIN 0575–AD10 the National Environmental Policy Act Reform of 1969, Public Law 91–190, neither an Single Family Housing Guaranteed This final rule has been reviewed Environmental Assessment nor an Loan Program under Executive Order 12988, Civil Environmental Impact Statement is Justice Reform. Except where specified, required. AGENCY: Rural Housing Service, USDA. all State and local laws and regulations Executive Order 13132, Federalism ACTION: Final rule. that are in direct conflict with this rule will be preempted. Federal funds carry The policies contained in this rule do SUMMARY: The Rural Housing Service Federal requirements. No person is not have any substantial direct effect on (RHS or Agency) published a proposed required to apply for funding under States, on the relationship between the rule on June 20, 2018 to amend the SFHGLP, but if they do apply and are national government and States, or on current regulation for the Single-Family selected for funding, they must comply the distribution of power and Housing Guaranteed Loan Program with the requirements applicable to the responsibilities among the various (SFHGLP) Single Close Combination Federal program funds. This final rule is levels of government. Nor does this rule Construction to Permanent Loans (aka not retroactive. It will not affect impose substantial direct compliance ‘‘single close loans’’), and now adopts agreements entered into prior to the costs on State and local governments. the proposed changes in this final rule effective date of the rule. Before any Therefore, consultation with the States with some modifications. As proposed, judicial action may be brought regarding is not required. the Agency will amend the regulation to the provisions of this rule, the ease the financial costs of interim Regulatory Flexibility Act administrative appeal provisions of 7 construction financing for non- CFR part 11 must be exhausted. In compliance with the Regulatory depository lenders (warehouse line of Flexibility Act (5 U.S.C. 601 et seq.) the credit lenders or warehouse lenders) by Unfunded Mandates Reform Act undersigned has determined and allowing a temporary interest rate Title II of the Unfunded Mandates certified by signature of this document higher than the permanent note rate for Reform Act of 1995 (UMRA), Public that this rule change will not have a interim construction financing, remove Law 104–4, establishes requirements for significant impact on a substantial the requirement for loan modification or Federal agencies to assess the effect of number of small entities. This rule does re-amortization once construction is their regulatory actions on State, local, not impose any significant new complete, and allow for the reserve of and tribal governments and the private requirements on Agency applicants and regularly scheduled principal, interest, sector. Under section 202 of the UMRA, borrowers, and the regulatory changes taxes and insurance (PITI) payments the Agency generally must prepare a affect only Agency determination of during the construction period. The written statement, including a cost- program benefits for guarantees of loans final rule clarifies that the PITI reserve benefit analysis, for proposed and final made to individuals. is an eligible use of single close loan rules with ‘‘Federal mandates’’ that may Executive Order 13175, Consultation funds. In addition, based on comments result in expenditures to State, local, or received, the Agency will allow single tribal governments, in the aggregate, or and Coordination With Indian Tribal close loans for the rehabilitation of to the private sector, of $100 million, or Governments existing dwellings upon their purchase more, in any one year. When such a Executive Order 13175 imposes and eliminate maximum interest rate statement is needed for a rule, section requirements on RHS in the cap requirements for all SFHGLP loans. 205 of the UMRA generally requires the development of regulatory policies that For clarity and completeness, the final Agency to identify and consider a have Tribal implications or preempt rule also provides a definition of a reasonable number of regulatory tribal laws. RHS has determined that the warehouse lender and updates lender alternatives and adopt the least costly, final rule does not have a substantial mortgage record retention requirements. most cost-effective, or least burdensome direct effect on one or more Indian DATES: Effective on August 21, 2019. alternative that achieves the objectives Tribe(s) or on either the relationship or FOR FURTHER INFORMATION CONTACT: Kate of the rule. the distribution of powers and Jensen, Finance and Loan Analyst, This final rule contains no Federal responsibilities between the Federal Single Family Housing Guaranteed Loan mandates (under the regulatory Government and Indian Tribes. Thus, VerDate Sep<11>2014 15:49 Jul 19, 2019 Jkt 247001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\22JYR1.SGM 22JYR1 jbell on DSK3GLQ082PROD with RULES 35004 Federal Register / Vol. 84, No. 140 / Monday, July 22, 2019 / Rules and Regulations this final rule is not subject to the Persons with disabilities who require both their existing housing payment and requirements of Executive Order 13175. alternative means of communication for the construction loan payment at the If a Tribe determines that this rule has program information (e.g., Braille, large same time during construction. While implications of which RHS is not aware print, audiotape, American Sign this change is available to all lenders, it and would like to engage with RHS on Language, etc.) should contact the will be predominantly utilized by those this rule, please contact USDA’s Native responsible Agency or USDA’s TARGET lenders who immediately securitize a American Coordinator at (720) 544– Center at (202) 720–2600 (voice and loan after loan closing. The PITI reserve 2911 or [email protected]. TTY) or contact USDA through the is intended solely for the use of making Federal Relay Service at (800) 877–8339. the borrower’s fully amortized PITI Executive Order 12372, Additionally, program information may payment during the construction period. Intergovernmental Review of Federal be made available in languages other The PITI reserve cannot be combined Programs than English. with any other reserve account and These loans are subject to the To file a program discrimination should any funds remain in the PITI provisions of Executive Order 12372, complaint, complete the USDA Program reserve after construction is complete which require intergovernmental Discrimination Complaint Form, AD– the lender is required to apply the consultation with State and local 3027, found online at http:// excess funds as a principal payment. officials. RHS conducts www.ascr.usda.gov/complaint_filing_ • Remove the requirement for a loan intergovernmental consultations for cust.html and at any USDA office or modification or re-amortization at the each SFHGLP loan in accordance with write a letter addressed to USDA and end of the construction period, allowing 2 CFR part 415, subpart C. provide in the letter all of the loans to remain in mortgage backed information requested in the form. To securities without interruption. Programs Affected request a copy of the complaint form, In addition to adopting the proposed The program affected by this call (866) 632–9992. Submit your changes above, the final rule also makes regulation is listed in the Catalog of completed form or letter to USDA by: several other changes based on Federal Domestic Assistance under (1) Mail: U.S. Department of comments received in response to the Number 10.410, Very Low to Moderate Agriculture, Office of the Assistant proposed rule. First, single close loan Income Housing Loans (Section 502 Secretary for Civil Rights, 1400 purposes will include rehabilitation Rural Housing Loans). Independence Avenue SW, Washington, when the property being purchased requires rehabilitation to meet program Paperwork Reduction Act DC 20250–9410; (2) Fax: (202) 690–7442; or standards. Second, the final rule adds The information collection and
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