30-Day Notification of Nonpayment of Rent in Multi-Family Housing Direct Loan Programs
| Published date | 25 March 2024 |
| Record Number | 2024-06245 |
| Citation | 89 FR 20539 |
| Court | Agriculture Department,Rural Housing Service |
| Section | Rules and Regulations |
Federal Register, Volume 89 Issue 58 (Monday, March 25, 2024)
[Federal Register Volume 89, Number 58 (Monday, March 25, 2024)]
[Rules and Regulations]
[Pages 20539-20543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06245]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 89, No. 58 / Monday, March 25, 2024 / Rules
and Regulations
[[Page 20539]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3560
[Docket No. RHS-22-MFH-0022]
RIN 0575-AD25
30-Day Notification of Nonpayment of Rent in Multi-Family Housing
Direct Loan Programs
AGENCY: Rural Housing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development
(RD) agency of the United States Department of Agriculture (USDA), is
issuing a final rule to amend its regulations for the Multi-Family
Housing Direct Loans and Grants Programs to require that Section 515,
514, and 516 Multi-Family Housing program borrowers provide tenants
with written notification a minimum of 30 days prior to a lease
termination or eviction action for nonpayment of rent, as statutorily
required by the Coronavirus Aid, Relief, and Economic Security Act,
(CARES Act). The ``30-day notice'' requirement applies regardless of
the existence of a presidentially declared national emergency or the
availability of emergency rental assistance funds. This rule will
require this notice to include instructions on how a tenant can cure
the nonpayment to avoid eviction, and how to recertify household
income. This final rule also adds that the Secretary of Agriculture
(Secretary) may require MFH Section 515 and 514 borrowers and Section
516 grantees to issue information as provided by the Secretary during a
presidential declaration of a public health emergency.
DATES:
Effective date: April 24, 2024.
Compliance dates: The requirement to provide 30 days' notice prior
to eviction for nonpayment of rent is statutory and has been in effect
since the enactment of the CARES Act on March 27, 2020. MFH Borrowers
will be regarded as out of compliance with the provision if they fail
to include the 30-day notice requirements [7 CFR 3560.156(c)(18)(xvi)]
in the lease no later than September 25, 2025.
Borrowers will be regarded as out of compliance with the remaining
provisions of this rule if they fail to provide: (1) the notice of how
to cure; (2) information on how the tenant can recertify their income;
and (3) information in a national emergency found in 7 CFR
3560.159(a)(3), after April 24, 2024.
FOR FURTHER INFORMATION CONTACT: Michael Resnik, Multi-Family Housing
Asset Management Division, Rural Housing Service, Stop 0782, 1400
Independence Avenue SW, Washington, DC 20250-0782, Telephone: (202)
720-1615, Federal Relay Service at (800) 877-8339; or Email:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
USDA's RHS offers a variety of programs to build or improve housing
and essential community facilities in rural areas. RHS offers loans,
grants, and loan guarantees for single- and multi-family housing,
childcare centers, fire and police stations, hospitals, libraries,
nursing homes, schools, first responder vehicles and equipment, housing
for farm laborers, and much more. RHS also provides technical
assistance loans and grants in partnership with non-profit
organizations, Indian tribes, State and Federal Government agencies,
and local communities.
Title V of the Housing Act of 1949 (Act), authorized USDA to make
housing loans to farmers to enable them to provide habitable dwellings
for themselves or their tenants, lessees, sharecroppers, and laborers.
While the initial intent of the Act was focused on farmers, it evolved
to authorize USDA to make housing loans and grants to rural residents
which established the Single-Family Housing (SFH) Programs and Multi-
Family Housing (MFH) Programs. The Housing Act of 1961 added Section
514 to the Act (42 U.S.C. 1484), which provided loans to farmers and
farm associations to provide housing for farm laborers. The Senior
Citizens Housing Act of 1962, amended the Act by adding Section 515 (42
U.S.C. 1485), which authorized USDA to provide loans for rural rental
housing for low- and moderate-income elderly families. Through further
amendments, in 1966 and 1977, the age restrictions were removed from
the statute to allow Section 515 loans to be used for congregate
housing for the elderly and handicapped. This allowed low- and
moderate-income families to be eligible for tenancy in Section 515
rental housing.
The RHS operates the MFH Rural Rental Housing Direct Loan Program
under Section 515 of the Act for Rural Rental Housing, and Section 514
and Section 516 of the Act for Farm Labor Housing. The MFH Direct Loan
Program employs a public-private partnership by providing subsidized
loans at an interest rate of one percent to developers to construct or
renovate affordable rental complexes in rural areas. This one-percent
loan keeps the debt service on the property sufficiently low to support
below-market rents affordable to low-income tenants. Many of these
projects also utilize low-income housing tax credit (LIHTC) proceeds.
These housing properties with subsidized low interest mortgage loans
provide affordable housing for eligible very-low and low-income
households in rural areas.
The MFH Direct Loan and Grant Programs under Sections 514 and 516
provide low interest loans and grants to provide housing for
farmworkers. These workers may work either at the borrower's farm
(``on-farm'') or at the borrower's or any other farm (``off-farm'') and
meet all program eligibility requirements.
The Coronavirus Aid, Relief, and Economic Security Act, 2020
(``CARES Act'') was signed into law on March 27, 2020, (Pub. L. 116-
136), (15 U.S.C. 9001 et seq.). Section 4024(c) of the CARES Act [15
U.S.C. 9058 SEC. 4024. TEMPORARY MORATORIUM ON EVICTION FILINGS
(a)(2)(B)] requires landlords of certain rental ``covered dwellings''
to provide tenants with at least 30 days' notice before they must
vacate the property, notwithstanding a presidentially declared national
emergency. ``Covered dwellings'' are defined as rental units in that
have a ``Federally backed multifamily mortgage loan.'' Properties
receiving assistance under Section 514, 515, or 516 are considered
``covered dwellings.''
[[Page 20540]]
II. Purpose
This final rule amends 7 CFR part 3560 to provide a 30-day
notification requirement prior to evicting a tenant for nonpayment of
rent. This is consistent with this requirement of the CARES Act, where
``The lessor of a covered dwelling unit [. . .] may not require the
tenant to vacate the covered dwelling unit before the date that is 30
days after the date on which the lessor provides the tenant with a
notice to vacate.'' (Pub. L. 116-136, 134 Stat. 281 (2020); 15 U.S.C.
9058). This final rule will also require that the 30-day notice include
instructions on how tenants can cure lease violations for nonpayment of
rent. These instructions allow tenants to clearly understand how to
avoid the commencement of a formal judicial eviction proceeding for
nonpayment of rent. In most cases, instructions on how the tenant can
cure the nonpayment of rent violation will include the alleged amount
of rent owed by the tenant, possibly including any other arrearages due
to the MFH property, and the date by which the tenant must pay the rent
and arrearages to avoid the filing of an eviction action in state court
against the tenant's household.
During a presidentially declared national emergency, this final
rule also requires that the MFH Section 515, 514, and 516 borrowers and
grantees must provide tenants with Agency-provided information. In
particular, the Secretary of Agriculture may require these MFH
borrowers to provide tenants with information on select applicable
emergency funding sources. This requirement is a direct result of the
COVID-19 pandemic where some U.S. households faced housing insecurity
due to job loss and a preexisting affordable housing crisis. During
this time, the Federal Government and State, territorial, Tribal, and
local governments began efforts to provide support for affected
families, with emergency financial assistance. MFH mailed letters in
March 2021 to all MFH Direct Loan program borrowers and tenants
regarding the Emergency Rental Assistance program through the
Department of the Treasury. This ensured that all tenants had access to
the information to apply to the program, if needed. However, the direct
mailing was costly and possibly delayed the dissemination of vital
financial assistance to some tenants facing eviction due to nonpayment
of rent during the COVID-19 pandemic. As a result of this rulemaking,
MFH borrowers will be required to provide this written notification in
accessible formats, including translations for tenants with Limited
English Proficiency, as through current MFH lease requirements. This
rule requires borrowers to provide tenants written notification of
eviction, including translations for tenants with limited English
proficiency. Section 504 of the Rehabilitation Act of 1973 also
requires recipients of Federal financial assistance to ensure that
communications with people with disabilities are as effective as
communications with others. Borrowers thus may have additional
obligations outside this rulemaking to ensure that notification of
eviction is provided to borrowers with disabilities in accessible
formats.
III. Scope
This final rule conforms the regulatory lease requirement to the
new statutory requirement in place since the CARES Act was signed into
law on March 27, 2020. This also aligns the MFH Direct Loan programs
with the Department of Housing and Urban Development's best practices
and enables the Secretary of Agriculture and MFH programs to be more
responsive to economic conditions and housing stability.
Tenants in MFH housing are primarily low income, with annual
household incomes for households in Section 515 averaging $14,941 and
in Section 514/516 Farm Labor Housing averaging $29,683 in total
adjusted income.\1\ This final rule amends Sec. 3560.158, ``Changes in
tenant eligibility,'' Sec. 3560.159, ``Termination of occupancy,'' and
Sec. 3560.160, ``Tenant grievances'' to ensure that tenants in the
Section 515, 514 and 516 MFH properties are afforded, at minimum, 30-
days' notice to have the opportunity to recertify for change in income
and clarify the total amount of rent due before an eviction for
nonpayment of rent commences.
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\1\ 2022 Multi-Family Housing Annual Fair Housing Occupancy
Report https://www.rd.usda.gov/sites/default/files/RDUL-MFH_Occupancy_Report.pdf.
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Most MFH Section 515 and 514 borrowers and Section 516 grantees,
through their corresponding property management companies, already
provide written notice of nonpayment of rent violations to tenant
households at least 30 days in advance of eviction proceedings. This
statutory requirement has been in place since the enactment of the
CARES Act in March 2020, and is not limited to periods of national
emergency. RHS allows 18 months after publication of this rule to
expressly incorporate the 30-day notice requirement into Section 515,
514 and 516 leases through a provision or addendum. This will allow
borrowers to revise all current leases as they are renewed on an annual
basis. However, in the interim, borrowers and property management
companies must continue to comply with the statutory requirement to
provide written notice at least 30 days in advance of eviction
proceedings. This required 30-day notice provides the opportunity for
eligible MFH tenants to report changes in income through income
recertification. Within 30 days of this rule's publication in the
Federal Register, all 30-day notices will be required to provide
tenants with the date and past due amount by which the tenant must pay
to avoid the filing of an eviction action in state court against the
tenant's household.
The requirement to include information from the Secretary, provided
to the borrower through RHS, during a presidentially declared national
emergency would take effect only during the associated national
emergency period. Immediate action to disseminate this information is
necessary to ensure that any funding available during national
emergencies reaches its intended beneficiaries before the initiation of
evictions for nonpayment of rent. This final rule directly aligns with
the Department of Housing and Urban Development's interim final rule,
``Extension of Time and Required Disclosures for Notification of
Nonpayment of Rent,'' published October 7, 2021 (86 FR 55693).
IV. Summary of Rule Changes
Listed below is a summary of changes to the 7 CFR part 3560,
subpart D. For compliance dates, please refer to the DATES section in
this document.
Sec. 3560.156 Lease Requirements
In this section, this final rule adds a new sentence to paragraph
(c)(18)(xvi) to specify that the procedures to be followed in giving
notices required under terms of the lease, including lease violation
notices, provide that, in cases of nonpayment of rent, the termination
notice will be effective no earlier than 30 days after the tenant's
receipt of the written termination notice.
Sec. 3560.159 Termination of Occupancy
In this section, this final rule adds new paragraph (a)(3) to
require that all notices of lease termination due to a tenant's failure
to pay rent must also include instructions on how the tenant can cure
the nonpayment of rent violation, and information on how the tenant can
recertify their income. This
[[Page 20541]]
section also adds that MFH Section 515 and 514 borrowers and Section
516 grantees may be required to issue information as provided by the
Secretary of Agriculture during a presidential declaration of a public
health emergency. This may include but not be limited to Agency-issued
information on funding available to tenants through Federal programs
aimed at preventing eviction.
Sec. 3560.160 Tenant Grievances
In this section, this final rule revises paragraph (c) to
reorganize the text, clarify the responsibilities of a borrow or
grantee with respect to tenants with limited English proficiency, and
add new language to require that, in the event of a public health
emergency, the borrower or grantee must provide tenants with the
Agency-provided information described in Sec. 3560.159.
Regulatory Information
Statutory Authority
The Rural Rental Housing program is authorized under Section 514,
515 and 516 of Title V of the Housing Act of 1949 as amended, 42 U.S.C.
1480 and implemented by 7 CFR 3560. The 30-Day Notification requirement
was imposed by the Coronavirus Aid, Relief, and Economic Security Act,
2020, Public Law 116-136, 15 U.S.C. 9001 et seq.
Administrative Procedure Act
The Agency is issuing this final rule without advance rulemaking or
public comment. RHS Multi-Family housing regulations are exempt from
the Administrative Procedure Act (APA) pursuant to 5 U.S.C. 553(a)(2).
The regulations at 7 CFR part 3560 implement the affordable housing
loan and grant program established pursuant to Title V of the Housing
Act of 1949, 42 U.S.C. 1471 et seq. Rules and regulations relating to
occupancy in RHS-funded multi-family projects, such as this 30-day
notice requirement, are necessary to support the Agency's statutory
requirement to provide affordable housing through the Section 515 and
Section 514 loan programs and the Section 516 grant program.
When implementing the Housing Act of 1949, USDA is governed by the
notice and comment requirements of Section 534 of that Act. However,
this rule implements a requirement of the CARES Act, not the Act. There
is no rulemaking provision in the CARES Act that would govern the
method of issuing or implementing a rule pursuant to that statute.
Accordingly, there is no notice and comment requirement applicable to
this rule.
Severability
It is USDA's intention that the provisions of this final rule shall
operate independently of each other. In the event that this final rule
or any portion of this final rule is ultimately declared invalid or
stayed as to a particular provision, it is USDA's intent that the rule
nonetheless be severable and remain valid with respect to those
provisions not affected by a declaration of invalidity or stayed, which
could continue to function sensibly. USDA concludes it would separately
adopt all of the provisions contained in this final rule.
Executive Order 12372--Intergovernmental Review of Federal Programs
Section 515 and Section 514 Direct Loans and Section 516 Grants are
subject to the provisions of Executive Order 12372, which require
intergovernmental consultation with State and local officials to foster
the intergovernmental partnership and strengthen federalism by relying
on State and local processes for the coordination and review of
proposed Federal financial assistance and direct Federal development.
Applicants for the Direct Multi-Family Housing Loan and Grant
program are required to contact their state's Single Point of Contact
(SPOC) to submit their Statement of Activities and find out more
information on how to comply with the state's process under Executive
Order 12372. To locate a SPOC for your state, the Office of Management
and Budget (OMB) has an official SPOC list on their website at https://www.whitehouse.gov/wp-content/uploads/2023/06/SPOC-list-as-of-2023.pdf.
For those States that have a home page for their designated SPOC, a
direct link has been provided by clicking on the State name. SPOC
information is also available in any RD Agency office or on the RD
Agency's website.
States that are not listed on the OMB website page have chosen not
to participate in the intergovernmental review process, and therefore
do not have a SPOC. If you are located within a State that does not
have a SPOC, you may send application materials directly to the Federal
RD awarding agency.
RHS conducts intergovernmental consultations for each loan in
accordance with 2 CFR part 415, subpart C.
Executive Order 12866--Regulatory Planning and Review
This final rule has been determined to be a ``significant
regulatory action'' under Executive Order 12866 and accordingly, the
rule has been reviewed by the OMB. A regulatory impact analysis (RIA)
was completed, outlining the costs and benefits of implementing this
program in rural America.
As detailed in the RIA, this final rule could mitigate eviction-
related costs by giving MFH Section 515, 514 and 516 households a
minimum of 30 days' notice with actionable information on recertifying
income changes and deadlines for property debt payments before lease
termination.
This final rule will not affect MFH borrowers directly, as the
provision for a minimum of 30 days' notice before eviction for
nonpayment of rent is already in place through CARES Act requirements
and other state and national required postponements of eviction, which
effectively negate any effects of this rule on its own mandate.
The additional requirement for MFH borrowers to disseminate
information provided by the Secretary of Agriculture will allow tenants
to apply for and possibly receive applicable Federal emergency rental
subsidy that may be available in presidentially declared national
emergencies. The cost of obtaining information to be disseminated upon
presidentially declared national emergency would be minimal since RHS
would supply the information to MFH borrowers and property management
companies. The incremental cost of adding the supplied information from
RHS is also expected to be minimal. Many MFH borrowers and associated
management agents, would provide tenants with information on seeking
additional emergency rent subsidy without being required to do so. For
those pro-active borrowers and management agents, the rule would not
impose additional administrative costs. If, however, a borrower does
not already practice this type of tenant outreach, then the added
administrative hurdle would impose a minimal burden.
All MFH borrowers are expected to incur other costs from this rule
including familiarization and miscellaneous administrative costs for
minor additional paperwork. This category of cost is expected to be
small when compared to other economic effects already in place for this
rule. This rule does not require housing providers to rewrite lease
agreements, only to amend the requirement for 30-day minimum notice for
nonpayment of
[[Page 20542]]
rent or add an addendum to current leases.
To view the complete RIA, please see the rulemaking docket at
https://www.regulations.gov using docket number RHS-23-MFH-0022.
Executive Order 12988, Civil Justice Reform
This final rule has been reviewed under Executive Order 12988.
Under this rule: (1) unless otherwise specifically provided, all State
and local laws that conflict with this rule will be preempted; (2) no
retroactive effect will be given except as specifically prescribed in
the rule; and (3) administrative proceedings of the National Appeals
Division of the Department of Agriculture (7 CFR part 11) must be
exhausted before bringing a lawsuit in Federal court that challenges
action taken under this rule.
Executive Order 13132, Federalism
The policies contained in this final rule do not have any
substantial direct effect on States, on the relationship between the
National Government and States, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
final rule impose substantial direct compliance costs on State and
local governments. Therefore, consultation with the States is not
required.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This final rule has been reviewed in accordance with the
requirements of Executive Order 13175, ``Consultation and Coordination
with Indian Tribal Governments.'' Executive Order 13175 requires
Federal agencies to consult and coordinate with Tribes on a government-
to-government basis on policies that have tribal implications,
including regulations, legislative comments or proposed legislation,
and other policy statements or actions that have substantial direct
effects on one or more Indian Tribes, on the relationship between the
Federal Government and Indian Tribes or on the distribution of power
and responsibilities between the Federal Government and Indian Tribes.
RHS has determined that this rule does not have substantial direct
effects on one or more Tribes. Should a tribe request consultation, RHS
will work with the USDA Office of Tribal Relations to ensure that
meaningful consultation occurs on provisions.
Unfunded Mandates Reform Act (UMRA)
Title II of the UMRA, Public Law 104-4, establishes requirements
for Federal agencies to assess the effects of their regulatory actions
on State, local, and tribal Governments and on the private sector.
Under section 202 of the UMRA, Federal agencies generally must prepare
a written statement, including cost-benefit analysis, for proposed and
final rules with ``Federal mandates'' that may result in expenditures
to State, local, or tribal Governments, in the aggregate, or to the
private sector, of $100 million or more in any one year. When such a
statement is needed for a rule, section 205 of the UMRA generally
requires a Federal agency to identify and consider a reasonable number
of regulatory alternatives and adopt the least costly, more cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
This final rule contains no Federal mandates (under the regulatory
provisions of title II of the UMRA) for State, local, and tribal
Governments or for the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
National Environmental Policy Act
In accordance with the National Environmental Policy Act of 1969,
Public Law 91-190, this final rule has been reviewed in accordance with
7 CFR part 1970 (``Environmental Policies and Procedures''). The Agency
has determined that: (1) this action meets the criteria established in
7 CFR 1970.53(f); (2) no extraordinary circumstances exist; and (3) the
action is not ``connected'' to other actions with potentially
significant impacts, is not considered a ``cumulative action'' and is
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined
that the action does not have a significant effect on the human
environment, and therefore neither an Environmental Assessment nor an
Environmental Impact Statement is required.
Regulatory Flexibility Act
This final rule has been reviewed with regard to the requirements
of the Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned
has determined and certified by signature on this document that this
final rule will not have a significant economic impact on a substantial
number of small entities. This final rule will not directly affect the
approximately 11,700 MFH borrowers, most of which are small entities,
as the provision for a minimum of 30 days' notice before eviction for
nonpayment of rent is already in place through CARES Act requirements
and other state and national required postponements of eviction, which
effectively negate any effects of this rule on its own mandate. Other
provisions of this final rule require minor action on the MFH
Borrowers, having costs consistent with the usual course of property
and tenant management. MFH currently requires a 30-day notification of
eviction for nonpayment of rent. This final rule could mitigate
eviction-related costs by giving MFH Section 515, 514 and 516
households a minimum of 30 days' notice with actionable information on
recertifying income changes and deadlines for property debt payments
before lease termination. To view the complete Regulatory Impact
Analysis (RIA) outlining the costs and benefits, please see the
rulemaking docket at https://www.regulations.gov using docket number
RHS-23-MFH-0022.
Assistance Listing
The program affected by this regulation is listed in the Assistance
Listing Catalog (formerly Catalog of Federal Domestic Assistance) under
numbers 10.415--Rural Rental Housing Loans and 10.405--Farm Labor
Housing Loans and Grants.
Paperwork Reduction Act
The information collection requirements contained in this
regulation have been approved by OMB and have been assigned OMB control
number 0575-0189. This final rule contains no new reporting and
recordkeeping requirements that would require approval under the
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).
E-Government Act Compliance
RHS is committed to complying with the E-Government Act by
promoting the use of the internet and other information technologies to
provide increased opportunities for citizen access to Government
information, services, and other purposes.
Non-Discrimination Statement Policy
In accordance with Federal civil rights laws and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the USDA, its
Mission Areas, agencies, staff offices, employees, and institutions
participating in, or administering USDA programs are prohibited from
discriminating based on race, color, national origin, religion, sex,
gender identity (including gender expression), sexual orientation,
disability, age,
[[Page 20543]]
marital status, family/parental status, income derived from a public
assistance program, political beliefs, or reprisal or retaliation for
prior civil rights activity, in any program or activity conducted or
funded by USDA (not all bases apply to all programs). Remedies and
complaint filing deadlines vary by program or incident.
Recipients of Federal financial assistance must take reasonable
steps to ensure meaningful access to their programs or activities to
individuals with limited English proficiency and may need to provide
program information in languages other than English.
Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language) should contact the
responsible Mission Area, agency, staff office, or the Federal Relay
Service at (800) 877-8339.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA office, by calling (866)
632-9992, or by writing a letter addressed to USDA. The letter must
contain the complainant's name, address, telephone number, and a
written description of the alleged discriminatory action in sufficient
detail to inform the Assistant Secretary for Civil Rights (ASCR) about
the nature and date of an alleged civil rights violation. The completed
AD-3027 form or letter must be submitted to USDA by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
(2) Fax: (833) 256-1665 or (202) 690-7442; or
(3) Email: [email protected].
USDA is an equal opportunity provider, employer, and lender.
List of Subjects in 7 CFR Part 3560
Accounting, Administrative practice and procedure, Aged, Conflict
of interest, Government property management, Grant programs--housing
and community development, Insurance, Loan programs--agriculture, Loan
programs--housing and community development, Low and moderate-income
housing, Migrant labor, Mortgages, Nonprofit organizations, Public
housing, Rent subsidies, Reporting and recordkeeping requirements,
Rural areas.
For the reasons set forth in the preamble, the Rural Housing
Service amends 7 CFR part 3560 as follows:
PART 3560--DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS
0
1. The authority citation for part 3560 continues to read as follows:
Authority: 42 U.S.C. 1480.
Subpart D--Multi-Family Housing Occupancy
* * * * *
0
2. Amend Sec. 3560.156 by revising paragraph (c)(18)(xvi) to read as
follows:
Sec. 3560.156 Lease requirements.
* * * * *
(c) * * *
(18) * * *
(xvi) The procedures that must be followed by the borrower and the
tenant in giving notices required under terms of the lease, including
lease violation notices. The lease will provide that, in cases of
nonpayment of rent, the termination notice will be effective no earlier
than 30 days after the tenant's receipt of the written termination
notice.
* * * * *
0
3. Amend Sec. 3560.159 by adding paragraph (a)(3) to read as follows:
Sec. 3560.159 Termination of occupancy.
* * * * *
(a) * * *
(3) In cases of nonpayment of rent, the termination notice will be
effective no earlier than 30 days after the tenant's receipt of the
written termination notice. Notice will be provided in accordance with
Sec. 3560.160(e) of this chapter. All notices of lease termination
required by this section due to a tenant's failure to pay rent must
also include the following:
(i) Instructions on how the tenant can cure the nonpayment of rent
violation;
(ii) Information on how the tenant can recertify their income
pursuant to 7 CFR 3560.152; and
(iii) In the event of a presidential declaration of a national
emergency, such information as required by the Secretary.
* * * * *
0
4. Amend Sec. 3560.160 by revising paragraph (c) to read as follows:
Sec. 3560.160 Tenant grievances.
* * * * *
(c) Borrower responsibilities.
(1) Borrowers must permanently post tenant grievance procedures
that meet the requirements of this section in a conspicuous place at
the housing project. Borrowers also must maintain copies of the tenant
grievance procedures at the housing project's management office for
inspection by the tenants and the Agency upon request.
(2) Each tenant must receive an Agency summary of tenant's rights
when a lease agreement is signed.
(3) If a tenant has limited English proficiency (LEP), the borrower
must provide grievance procedures in both English and the primary
language of the person with LEP(s). The notice must include the
telephone number and address of USDA's Office of Civil Rights and the
appropriate Regional Fair Housing and Enforcement Agency.
(4) If the Secretary determines that all tenants must be provided
with information regarding funding that is available due to a
presidential declaration of a public health emergency, the Borrower
must provide information to all tenants as stated in Sec.
3560.159(a)(3)(iii) of this chapter.
* * * * *
Joaquin Altoro,
Administrator, Rural Housing Service.
[FR Doc. 2024-06245 Filed 3-22-24; 8:45 am]
BILLING CODE 3410-XV-P
