Uniform Financial Reporting Standards for HUD Housing Programs; Technical Amendment

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 5

[Docket No. FR-4321-F-06]

RIN 2501-AC49

Uniform Financial Reporting Standards for HUD Housing Programs;

Technical Amendment

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing

Commissioner, HUD.

ACTION: Final rule; technical amendment.

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SUMMARY: This final rule makes a technical amendment to HUD's

regulations on Uniform Financial Reporting Standards, published on

September 1, 1998. The amendment will provide a delayed submission date

for the first annual financial report required by all multifamily

entities subject to these standards. The delayed submission date is

only for the first year of compliance with HUD's uniform financial

reporting standards.

DATES: Effective July 26, 1999.

FOR FURTHER INFORMATION CONTACT: For further information contact James

Martin, Real Estate Assessment Center, Department of Housing and Urban

Development, 1280 Maryland Avenue, SW, Suite 800, Washington, DC 20410;

telephone Customer Service Center 1-888-245-4860. Persons with hearing

or speech impairments may access that number via TTY by calling the

Federal Information Relay Service at 1-800-877-8399. (Both telephone

numbers are toll free numbers).

SUPPLEMENTARY INFORMATION: On September 1, 1998 (63 FR 46582), HUD

published a final rule that established uniform annual financial

reporting standards for HUD's Public Housing, Section 8 housing, and

multifamily insured housing programs. The rule provides that the

financial information already required to be submitted to HUD on an

annual basis under these programs must be submitted electronically to

HUD and must be prepared in accordance with generally accepted

accounting principles.

The September 1, 1998 final rule also established annual financial

report filing dates. The rule provides for all covered entities an

annual financial report submission date that is 60 days after the end

of a covered entity's fiscal year. For the first year of compliance

with the new standards, the September 1, 1998 rule provided an April

30, 1999 annual financial report submission date for those entities

that are:

(1) Owners of housing assisted under Section 8 project-based

housing assistance payments programs, described in Sec. 5.801(a)(3) of

the new rule; or

(2) Owners of multifamily projects receiving direct or indirect

assistance from HUD, or with mortgages insured, coinsured, or held by

HUD, including but not limited to housing under certain HUD programs

described in Sec. 5.801(a)(4) of the new rule; and

(3) Have fiscal years ending December 31, 1998.

The majority of non-public housing entities covered by this rule

fall into the category of entities that will have reports due by April

30, 1999. (Note that for public housing agencies (PHAs), the rule

provides that compliance with the uniform financial reporting standards

begins for PHAs with fiscal years ending September 30, 1999.)

On January 11, 1999 (64 FR 1504), HUD amended the September 1, 1998

rule to change the April 30, 1999 due date to June 30, 1999, to provide

additional time for participants (subject to the April 30, 1999 report

deadline) to convert to the new reporting system and to complete the

first annual financial report.

All entities subject to HUD's uniform financial reporting

requirements, (including those entities provided the deferred date of

June 30, 1999) advise of the necessity for additional time for

successful conversion to the new reporting system. For this first year

with HUD's new financial reporting system, HUD has agreed to provide

additional time. This technical amendment provides for delayed report

submission dates as shown in the regulatory text.

Other Matters

Justification for Final Rulemaking

In general, the Department publishes a rule for public comment

before issuing a rule for effect, in accordance with its own

regulations on rulemaking at 24 CFR part 10. Part 10, however, does

provide for exceptions from that general rule where the Department

finds good cause to omit advance notice and public participation. The

good cause requirement is satisfied when the prior public procedure is

``impracticable, unnecessary, or contrary to the public interest'' (24

CFR 10.1). The Department finds that good cause exists to publish this

final rule for effect without first soliciting public comment, in that

prior public procedure is unnecessary. Public procedure is unnecessary

because this final rule simply makes a technical amendment to its

uniform financial reporting standards regulations to provide, for

covered entities, for a delayed submission date for the first financial

report due under HUD's uniform financial reporting standards. HUD

acknowledges that conversion to the new reporting system and completion

of the required report involves more time than originally contemplated

for these entities. The regulatory amendment made by this rule,

therefore, alleviates a burden for these entities. No policies or

standards are changed by this rulemaking.

Regulatory Flexibility Act

The Secretary, in accordance with the Regulatory Flexibility Act (5

U.S.C. 605(b)), has reviewed and approved this final rule, and in so

doing certifies that this rule will not have a significant economic

impact on a substantial number of small entities. This rule only makes

a technical amendment to existing regulations by changing a reporting

deadline for the first year of compliance with HUD's uniform financial

reporting standards. Although this change alleviates a burdensome

requirement for covered entities and the covered entities include small

entities, the rulemaking nevertheless does not result either adversely

or beneficially in any significant economic impact on a substantial

number of small entities.

Environmental Impact

This final rule is exempt from the environmental review procedures

under HUD regulations in 24 CFR part 50 that implement section

102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.

4332) because of the exemption under Sec. 50.19(c)(1). This final rule

only makes a technical correction to existing regulations.

Executive Order 12612, Federalism

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612, Federalism, has

[[Page 33755]]

determined that this rule will not have substantial direct effects on

States or their political subdivisions, or the relationship between the

Federal Government and the States, or on the distribution of power and

responsibilities among the various levels of government. No

programmatic or policy changes will result from this rule that would

affect the relationship between the Federal Government and State and

local governments.

Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance numbers for the programs

that would be affected by this rule are:

14.126--Mortgage Insurance--Cooperative Projects (Section 213)

14.129--Mortgage Insurance--Nursing Homes, Intermediate Care

Facilities, Board and Care Homes and Assisted Living Facilities

(Section 232)

14.134--Mortgage Insurance--Rental Housing (Section 207)

14.135--Mortgage Insurance--Rental and Cooperative Housing for Moderate

Income Families and Elderly, Market Rate Interest (Sections 221(d) (3)

and (4))

14.138--Mortgage Insurance--Rental Housing for Elderly (Section 231)

14.139--Mortgage Insurance--Rental Housing in Urban Areas (Section 220

Multifamily)

14.157--Supportive Housing for the Elderly (Section 202)

14.181--Supportive Housing for Persons with Disabilities (Section 811)

14.188--Housing Finance Agency (HFA) Risk Sharing Pilot Program

(Section 542(c))

14.850--Public Housing

14.851--Low Income Housing--Homeownership Opportunities for Low Income

Families (Turnkey III)

14.852--Public Housing--Comprehensive Improvement Assistance Program

14.855--Section 8 Rental Voucher Program

14.856--Lower Income Housing Assistance Program--Section 8 Moderate

Rehabilitation

14.857--Section 8 Rental Certificate Program

14.859--Public Housing--Comprehensive Grant Program

List of Subjects in 24 CFR Part 5

Administrative practice and procedure, Aged, Claims, Drug abuse,

Drug traffic control, Grant programs--housing and community

development, Grant programs--Indians, Individuals with disabilities,

Loan programs--housing and community development, Low- and moderate-

income housing, Mortgage insurance, Pets, Public housing, Rent

subsidies, Reporting and recordkeeping requirements.

Accordingly, for the reasons stated in the preamble, title 24 of

the CFR is amended as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

1. The authority citation for 24 CFR part 5 continues to read as

follows:

Authority: 42 U.S.C. 3535(d), unless otherwise noted.

2. Paragraph (c) of Sec. 5.801 is revised to read as follows;

Sec. 5.801 Uniform financial reporting standards.

* * * * *

(c) Annual financial report filing dates. (1) The financial

information to be submitted to HUD in accordance with paragraph (b) of

this section, must be submitted to HUD annually, no later than 60 days

after the end of the fiscal year of the reporting period, and as

otherwise provided by law.

(2) For entities listed in paragraphs (a) (3) and (4) of this

section, the first annual financial report shall be due on the date

provided in this paragraph (2), or at such later date that HUD may

provide through notice. This delayed submission date is only for the

first year of compliance with the requirements of this section:

(i) For entities with fiscal years ending December 31, 1998, the

first annual financial report shall be due August 31, 1999;

(ii) For entities with fiscal years ending in January through April

1999, the first annual financial report shall be due August 31, 1999;

(iii) For entities with fiscal years ending in May through November

1999, the first annual financial report shall be due 120 days after the

end of the applicable fiscal year end date.

* * * * *

Dated: June 18, 1999.

William C. Apgar,

Assistant Secretary for Housing--Federal Housing Commissioner.

[FR Doc. 99-16134 Filed 6-21-99; 4:34 pm]

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