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-05]

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 change for certain entities whose

fiscal years ends December 31st, as further described in the

Supplementary Information section of this rule, the first financial

report submission date from April 30, 1999 to June 30, 1999. The June

30, 1999 report submission date is only for the first year of

compliance with these standards.

DATES: Effective February 10, 1999.

FOR FURTHER INFORMATION CONTACT: For further information contact

Kenneth Hannon, Office of Housing, Department of Housing and Urban

Development, 451 Seventh Street, SW, Room 6274, Washington, DC 20410;

telephone (202) 708-0547, ext. 2599 (this is not a toll-free number).

Persons with hearing or speech impairments may access that number via

TTY by calling the Federal Information Relay Service at (800) 877-8399.

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 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.)

The April 30, 1999 date with its close proximity to the Federal

income tax filing deadline makes conversion to the new reporting system

and completion of the required report by April 30, 1999 burdensome for

entities that must meet this deadline. Therefore, this final rule

amends Sec. 5.801 to change the April 30, 1999 date to June 30, 1999.

The June 30, 1999 report submission date is only for the first year of

compliance with the standards. For covered entities whose fiscal years

end December 31st, the report due for the year 2000 and the years that

follow will be due 60 days after December 31st.

[[Page 1505]]

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 change, for

certain covered entities, an April 30, 1999 annual report submission

date to June 30, 1999. The April 30, 1999 date with its proximity to

the new Federal income tax filing deadline makes conversion to the new

reporting system and completion of the required report by April 30,

1999 burdensome for entities that must submit reports by that date. 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 from April 30, 1999 to June 30, 1999. 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 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

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

this section and that have fiscal years ending December 31, 1998, the

report shall be due June 30, 1999. This extended report due date is

only for entities listed in paragraphs (a)(3) and (4) of this section,

and only for the first report due under this section.

* * * * *

Dated: December 28, 1998.

William C. Apgar,

Assistant Secretary for Housing-Federal Housing Commissioner.

[FR Doc. 99-443 Filed 1-8-99; 8:45 am]

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