Unknown. Final rule; technical revisions

6,754 words·~31 min read·/register/2022/06/01/2022-11543

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2022-06-01.xml --- 87 105 Wednesday, June 1, 2022 Contents Administrative Administrative Conference of the United States NOTICES Meetings: Assembly of the Administrative Conference of the United States, 33116 2022-11698 Agricultural Marketing Agricultural Marketing Service PROPOSED RULES U.S. Grade Standards for Pecans in the Shell and Shelled Pecans, 33064-33071 2022-10856 Agriculture Agriculture Department See Agricultural Marketing Service See National Institute of Food and Agriculture See Rural Utilities Service Centers Disease Centers for Disease Control and Prevention NOTICES Temporary Suspension of Dogs Entering the United States from High-Risk Rabies Countries, 33158-33173 2022-11752 Civil Rights Civil Rights Commission NOTICES Meetings:

Georgia Advisory Committee, 33121 2022-11696 Maine Advisory Committee, 33119-33120 2022-11692 Puerto Rico Advisory Committee, 33120 2022-11690 South Carolina Advisory Committee, 33120 2022-11693 Coast Guard Coast Guard RULES Safety Zone: Keeweenaw Waterway; Houghton, MI, 33019-33020 2022-11706 Recurring Events in Captain of the Port Duluth—City of Bayfield 4th of July Fireworks Display, 33020 2022-11714 Recurring Events in Captain of the Port Duluth—City of Superior 4th of July Fireworks, 33018-33019 2022-11713 Recurring Events in Captain of the Port Duluth—Duluth Fourth Fest Fireworks, 33020-33021 2022-11711 Special Local Regulation:

Tampa Bay, St Petersburg, FL, 33015-33018 2022-11620 Commerce Commerce Department See Foreign-Trade Zones Board See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration Comptroller Comptroller of the Currency NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: OCC Supplier Registration Form, 33304-33305 2022-11731 Consumer Product Consumer Product Safety Commission RULES Safety Standard for Hand-Held Infant Carriers;

CFR Correction, 32988 2022-11615 Copyright Royalty Board Copyright Royalty Board PROPOSED RULES Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords IV), 33093-33095 2022-11521 Defense Department Defense Department RULES TRICARE Coverage and Reimbursement of Certain Services Resulting from Temporary Program Changes in Response to the COVID-19 Pandemic, 33001-33015 2022-10545 NOTICES Meetings: Defense Health Board, 33134-33135 2022-11723 Drug Drug Enforcement Administration RULES Schedules of Controlled Substances:

Placement of Ganaxolone in Schedule V, 32991-32996 2022-11735 Placement of N-Ethylhexedrone, alpha-Pyrrolidinohexanophenone, 4-Methyl-alpha-ethylaminopentiophenone, 4′-Methyl-alpha-pyrrolidinohexiophenone, alpha-Pyrrolidinoheptaphenone, and 4′-Chloro-alpha-pyrrolidinovalerophenone in Schedule I, 32996-32999 2022-11740 Education Department Education Department NOTICES 2022-2023 Award Year Deadline Dates for Reports and Other Records: Free Application for Federal Student Aid, Federal Supplemental Educational Opportunity Grant Program Program, etc., 33135-33139 2022-11721 Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Integrated Postsecondary Education Data System 2022-23 through 2024-25, 33140-33141 2022-11712 School Pulse Panel 2022 Quarter 3 Revision, 33139-33140 2022-11707 Energy Department Energy Department See Federal Energy Regulatory Commission See Western Area Power Administration RULES Energy Conservation Program: Test Procedures for Residential and Commercial Clothes Washers, 33316-33405 2022-10715 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 33144-33145 2022-11757 Request for Information: Innovative Technologies Loan Guarantee Program, 33141-33144 2022-11734 Environmental Protection Environmental Protection Agency PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Michigan; Federal Implementation Plan for the Detroit Sulfur Dioxide Nonattainment Area, 33095-33109 2022-11269 NOTICES Meetings: Local Government Advisory Committee and Small Communities Advisory Subcommittee, 33151 2022-11705 Export Import Export-Import Bank NOTICES Meetings;

Sunshine Act: Advisory Committee, 33152 2022-11805 Sub-Saharan Africa Advisory Committee, 33152 2022-11801 Federal Aviation Federal Aviation Administration RULES Airspace Designations and Reporting Points: Limon Municipal Airport, CO, 32982-32983 2022-11586 Owatonna, MN, 32980-32981 2022-11599 Sitka Rocky Gutierrez Airport, AK, 32981-32982 2022-11591 Airworthiness Directives: Airbus Helicopters, 32969-32973 2022-11553 Bell Textron Inc. Helicopters, 32978-32980 2022-11605 Leonardo S.p.a.

Helicopters, 32973-32975 2022-11557 Viking Air Limited (Type Certificate Previously Held by Bombardier Inc. and de Havilland, Inc.) Airplanes, 32975-32978 2022-11559 PROPOSED RULES Airspace Designations and Reporting Points: Alma, GA, 33083-33084 2022-11703 Fort Pierce, FL, 33082-33083 2022-11585 Northeastern United States, 33085-33091 2022-11552 Victoria, TX, 33080-33081 2022-11561 Airworthiness Directives: Airbus SAS Airplanes, 33076-33080 2022-11550 General Electric Company Turbofan Engines, 33071-33075 2022-11354 Federal Communications Federal Communications Commission PROPOSED RULES Unlicensed Operations in the Television Bands, Repurposed 600 MHz Band, 600 MHz Guard Bands and Duplex Gap, and Channel 37;

Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions; Unlicensed White Space Device Operations in the Television Bands; Unlicensed Operation in the TV Broadcast Bands, 33109-33113 2022-11686 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33152-33157 2022-11687 2022-11689 2022-11695 2022-11738 Federal Emergency Federal Emergency Management Agency NOTICES Flood Hazard Determinations, 33180-33183, 33188 2022-11682 2022-11683 2022-11684 Flood Hazard Determinations;

Changes, 33183-33187, 33189-33192 2022-11679 2022-11680 2022-11681 Meetings: Board of Visitors for the National Fire Academy, 33189 2022-11753 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 33145-33146 2022-11724 2022-11725 Federal Financial Federal Financial Institutions Examination Council NOTICES Meetings: Appraisal Subcommittee, 33157 2022-11700 Federal Housing Finance Agency Federal Housing Finance Agency RULES Affordable Housing Program; Technical Revisions, 32965-32969 2022-11543 Fish Fish and Wildlife Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Non-Federal Oil and Gas Operations on National Wildlife Refuge System Lands, 33200-33202 2022-11726 Service Agreements with Friends Organizations, 33197-33200 2022-11727 Food and Drug Food and Drug Administration RULES Medical Devices: Cardiovascular Devices; Classification of the Coronary Artery Disease Risk Indicator Using Acoustic Heart Signals, 32988-32990 2022-11699 Tobacco Products: Required Warnings for Cigarette Packages and Advertisements;

Delayed Effective Date, 32990-32991 2022-11568 Foreign Assets Foreign Assets Control Office RULES Russian Harmful Foreign Activities Sanctions Regulations Web General Licenses 7A, 26A, 31, and 32, 32999-33001 2022-11760 NOTICES Sanctions Actions, 33305-33311 2022-11756 Foreign Trade Foreign-Trade Zones Board NOTICES Approval of Subzone Status: Coreworks Heat Exchangers, LLC, Waller, TX, 33121 2022-11765 General Services General Services Administration NOTICES Meetings: Progress in the Transition to Internet Protocol Version 6 (IPv6 Summit), 33158 2022-11641 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration NOTICES Establishment of the Office of Environmental Justice, 33174-33175 2022-11192 Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Health Center Workforce Well-Being Survey Evaluation and Technical Assistance, 33173-33174 2022-11710 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency See U.S. Customs and Border Protection NOTICES Public Listening Sessions on Advancing SBOM Technology, Processes, and Practices, 33192-33193 2022-11733 Housing Housing and Urban Development Department NOTICES Request for Information: Implementation of the Build America, Buy America Act, 33193-33196 2022-11729 Industry Industry and Security Bureau RULES Control policy:

End-user and end-use based; CFR Correction, 32987-32988 2022-11614 Export Administration Regulations: Adoption of Congressional Notification Requirement for Certain Semiautomatic Firearms Exports, 32983-32987 2022-11761 Interior Interior Department See Fish and Wildlife Service See National Indian Gaming Commission See National Park Service Internal Revenue Internal Revenue Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33311-33312 2022-11656 2022-11657 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Carbon and Alloy Steel Cut-to-Length Plate from the Republic of Korea, 33121-33123 2022-11766 Initiation of Five-Year (Sunset) Reviews, 33123-33124 2022-11764 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Certain New Pneumatic Off-the-Road Tires from India, 33209 2022-11642 Gray Portland Cement and Cement Clinker from Japan, 33210-33212 2022-11627 Steel Concrete Reinforcing Bar from Japan, Taiwan, and Turkey, 33206-33209 2022-11628 Justice Department Justice Department See Drug Enforcement Administration Labor Department Labor Department See Occupational Safety and Health Administration Library Library of Congress See Copyright Royalty Board Maritime Maritime Administration NOTICES Coastwise Endorsement Eligibility Determination for a Foreign-Built Vessel:

Blu Reverie (Sail), 33290-33291 2022-11643 Bonus Round (Motor), 33293-33294 2022-11645 Cup Dynasty (Motor), 33289-33290 2022-11651 Ebb and Flow (Sail), 33295-33296 2022-11653 For the Moment (Motor), 33291-33292 2022-11646 Hail Yeah II (Motor), 33297-33298 2022-11647 Kamakahonu (Motor), 33292-33293 2022-11650 Le Reve (Sail), 33298-33299 2022-11644 Red (Sail), 33288-33289 2022-11648 Salty K (Motor), 33296-33297 2022-11652 Sky (Motor), 33294-33295 2022-11654 National Credit National Credit Union Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Appraisals, 33212-33213 2022-11702 National Highway National Highway Traffic Safety Administration NOTICES Grant of Petitions for Temporary Exemption: Shoulder Belt Requirement for Side-Facing Seats on Motorcoaches, 33299-33302 2022-11697 National Indian National Indian Gaming Commission PROPOSED RULES Audit Standards, 33091-33093 2022-11482 National Institute Food National Institute of Food and Agriculture NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 33117-33118 2022-11747 National Institute National Institutes of Health NOTICES Meetings: Center for Scientific Review, 33175 2022-11649 Prospective Grant of an Exclusive Patent License: The Development of an Anti-Mesothelin Chimeric Antigen Receptor for the Treatment of Mesothelin-Expressing Human Cancers, 33176 2022-11666 National Oceanic National Oceanic and Atmospheric Administration RULES Atlantic Highly Migratory Species: Atlantic Bluefin Tuna and North Atlantic Albacore Quotas, 33049-33056 2022-11722 Atlantic Tunas General Category Restricted-Fishing Days, 33056-33063 2022-11730 PROPOSED RULES Taking or Importing of Marine Mammals:

U.S. Navy Training and Testing Activities in the Hawaii-Southern California Training and Testing Study Area, 33113-33115 2022-11577 NOTICES Environmental Impact Statements; Availability, etc.: Identification of Aquaculture Opportunity Areas in Federal Waters of the Gulf of Mexico; Public Scoping Meetings, 33124-33128 2022-11564 Meetings: Management Track Assessment for Atlantic Herring and Southern New England/Mid-Atlantic Winter Flounder, 33129-33130 2022-11661 Mid-Atlantic Fishery Management Council, 33128-33129 2022-11759 Permits;

Applications, Issuances, etc.: Atlantic Coastal Fisheries Cooperative Management Act Provisions; General Provisions for Domestic Fisheries, 33132-33134 2022-11600 Endangered and Threatened Species; Take of Anadromous Fish, 33128, 33130-33131 2022-11749 2022-11754 Requests for Nominations: Review Editor, Fifth National Climate Assessment, 33131-33132 2022-11719 National Park National Park Service NOTICES Establishment of a New Parking Fee Area at Pearl Harbor National Memorial, 33203 2022-11393 National Register of Historic Places:

Pending Nominations and Related Actions, 33202-33203 2022-11751 Privacy Act; Systems of Records, 33203-33206 2022-11394 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Certification of Medical Examination by Facility Licensee, 33215-33216 2022-11672 Operators' Licenses, 33214-33215 2022-11674 Personal Qualification Statement—Licensee, 33216-33217 2022-11673 Meetings; Sunshine Act, 33216 2022-11843 Occupational Safety Health Adm Occupational Safety and Health Administration RULES Occupational Safety and Health Standards;

CFR Correction, 32999 2022-11613 National Intelligence Office of the Director of National Intelligence NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Financial Disclosure Form, 33213-33214 2022-11845 Personnel Personnel Management Office NOTICES Meetings: Federal Prevailing Rate Advisory Committee, 33217-33218 2022-11671 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Pipeline Safety; Special Permit: Tennessee Gas Pipeline Co., LLC, 33302-33303 2022-11658 Postal Regulatory Postal Regulatory Commission NOTICES Inbound Parcel Post (at UPU Rates), 33218-33219 2022-11708 New Postal Products, 33218 2022-11739 Postal Service Postal Service RULES Special Handling—Fragile Discontinued, 33047-33049 2022-11573 Railroad Retirement Railroad Retirement Board NOTICES Meetings;

Sunshine Act, 33219 2022-11793 Rural Utilities Rural Utilities Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33118-33119 2022-11767 2022-11768 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33219-33220, 33222-33223 2022-11662 2022-11663 Joint Industry Plan Filing of Amendment to the National Market System Plan Governing the Consolidated Audit Trail, 33226-33250 2022-11675 Self-Regulatory Organizations;

Proposed Rule Changes: Cboe BZX Exchange, Inc., 33250-33282 2022-11676 ICE Clear Credit, LLC, 33220-33226 2022-11677 2022-11678 Small Business Small Business Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33282 2022-11755 Social Social Security Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33282-33288 2022-11685 Substance Substance Abuse and Mental Health Services Administration NOTICES Statement of Organization, Functions, and Delegations of Authority, 33176-33178 2022-11748 Transportation Department Transportation Department See Federal Aviation Administration See Maritime Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration NOTICES Meetings:

Aviation Consumer Protection Advisory Committee Matters, 33303-33304 2022-11567 Treasury Treasury Department See Comptroller of the Currency See Foreign Assets Control Office See Internal Revenue Service See United States Mint Customs U.S. Customs and Border Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Ship's Stores Declaration, 33179-33180 2022-11665 Trusted Traveler Programs and United States Asia Pacific Economic Cooperation Business Travel Card, 33178-33179 2022-11664 U.S.

Mint United States Mint NOTICES Meetings: Citizens Coinage Advisory Committee, 33312-33313 2022-11655 Veteran Affairs Veterans Affairs Department RULES Legal Services for Homeless Veterans and Veterans At-Risk for Homelessness Grant Program, 33025-33047 2022-10930 Transplant Procedures with Live Donors and Related Care and Services, 33021-33025 2022-10764 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: VBA Contractor Background Investigation Request, 33313 2022-11659 Western Western Area Power Administration NOTICES Proposed 2025 Olmsted Power Marketing Plan, 33146-33148 2022-11475 Proposed 2025 Provo River Project Marketing Plan, 33148-33151 2022-11476 Separate Parts In This Issue Part II Energy Department, 33316-33405 2022-10715 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 87 105 Wednesday, June 1, 2022 Rules and Regulations FEDERAL HOUSING FINANCE AGENCY 12 CFR Parts 1290 and 1291 RIN 2590-AB08 Affordable Housing Program—Technical Revisions AGENCY: Federal Housing Finance Agency. ACTION: Final rule; technical revisions.

SUMMARY: The Federal Housing Finance Agency

(FHFA)is making technical revisions to its regulation governing the Federal Home Loan Banks' (Banks) Affordable Housing Program

(AHP)and to related provisions in the Community Support Requirements regulation, which were both amended by a final rule published on November 28, 2018. These technical revisions are consistent with FHFA's policy intent, as reflected in the preamble discussions of the 2018 final rule, and do not involve any policy changes. DATES: This rule is effective July 1, 2022. FOR FURTHER INFORMATION CONTACT: Ted Wartell, Manager, Office of Housing and Community Investment, 202-649-3157, *ted.wartell@fhfa.gov;* Tiffani Moore, Supervisory Policy Analyst, Office of Housing and Community Investment, 202-649-3304, *tiffani.moore@fhfa.gov;* or Marshall Adam Pecsek, Assistant General Counsel, Office of General Counsel, 202-649-3380, *marshall.pecsek@fhfa.gov* (these are not toll-free numbers); Federal Housing Finance Agency, 400 7th Street SW, Washington, DC 20219. For TTY/TRS users with hearing and speech disabilities, dial 711 and ask to be connected to any of the contact numbers above. SUPPLEMENTARY INFORMATION: I. Summary of Revisions On November 28, 2018, FHFA published a final rule (2018 final rule) (83 FR 61186) that amended its regulation governing requirements for the Banks' AHP (12 CFR part 1291). Since publication of the 2018 final rule, FHFA has identified inadvertent omissions in the regulatory text, and opportunities for clarification and streamlining of the regulatory text and preamble language. This rule makes these technical revisions, which are summarized below and further described in Sections II. and III. below. • Clarifies that the equation in the 2018 final rule preamble illustrating the pro rata AHP subsidy repayment calculation more accurately describes the calculation if the word “occupied” were replaced with the word “owned”; • Clarifies in the regulatory text that amendments to Bank's annual Targeted Community Lending Plan

(TCLP)that relate to its AHP must be published no later than the publication date of its AHP Implementation Plan, regardless of whether a Bank plans to establish any Targeted Funds, which was inadvertently omitted from the regulatory text; • Reinserts the word “construction” inadvertently omitted from various places in the regulatory text related to owner-occupied units constructed with AHP subsidy, as they continue to be subject to the AHP retention agreement requirement; • Clarifies in the regulatory text that the criteria in a Bank's scoring tie-breaker methodology for its General Fund and any Targeted Funds must be selected from the applicable Fund's scoring criteria, as in identical to the scoring criteria and not modified versions of them; • Reinserts inadvertently omitted regulatory text exempting the Banks from the requirement to review annual certifications from owners or sponsors of Low-Income Housing Tax Credit (LIHTC) projects during the AHP long-term monitoring period; • Clarifies in the regulatory text that a Bank must review all annual certifications from AHP project sponsors or owners during the AHP long-term monitoring period (subject to certain exceptions), *i.e.,* a Bank may not use a risk-based sampling plan to select the certifications it will review; • Clarifies the regulatory text governing a Bank's authority to establish various maximum AHP subsidy limits for its General Fund and any Targeted Funds; and • Streamlines the regulatory text by eliminating a superfluous regulatory provision on non-delegation regarding adoption of Bank policies on re-use of repaid AHP direct subsidies. II. Clarification of Equation in 2018 Final Rule Preamble Illustrating Pro Rata AHP Subsidy Repayment Calculation—§ 1291.15(a)(7)(v)(A) Section 1291.15(a)(7)(v)(A) of the 2018 final rule revised the methodology for calculating the amount of AHP subsidy to be repaid by an AHP-assisted household in the event that the household's owner-occupied unit is sold or refinanced during the AHP five-year retention period. One component of this calculation, retained but modified from the predecessor AHP regulation, is a requirement that the amount of AHP subsidy to be repaid be “reduced on a pro rata basis per month until the unit is sold, transferred, or its title or deed transferred, or is refinanced, during the AHP five-year retention period.” Consistent with this requirement, the preamble of the 2018 final rule stated that the AHP subsidy amount is to be “reduced on a pro rata basis for the time that the household *owned* the unit until its sale or refinancing.” 83 FR 61203 (emphasis added). An equation in the preamble illustrating this pro rata calculation used the word “occupied” rather than “owned.” *Id.* While ownership and occupancy are typically coextensive for AHP-assisted households, this may not always be the case. Accordingly, the equation reads more accurately if the word “occupied” is replaced with the word “owned”, as follows: ER01JN22.045 III. Revisions to Regulatory Text A. Requirement To Publish Targeted Community Lending Plan No Later Than Publication of AHP Implementation Plan—§§ 1290.6(c), 1291.13(a)(2) The 2018 final rule requires that a Bank publish its current TCLP on its publicly available website, and publish any amendments to its TCLP on the website within 30 days after the date of their adoption by the Bank's board of directors. The final rule further states that if a Bank plans to establish any Targeted Funds under its AHP, the Bank must publish its TCLP (as amended) on its website on or before the date of publication of its annual AHP Implementation Plan, and at least 90 days before the first day that applications may be submitted to the Targeted Fund, unless the Targeted Fund is specifically targeted to address a Federal- or state-declared disaster. 12 CFR 1290.6(c), 1291.13(a)(2). The preamble to the 2018 final rule stated that “. . . the final rule requires the Banks to publish their TCLPs no later than the publication date of their AHP Implementation Plans.” 83 FR 61197. The 2018 final rule's regulatory text inadvertently omitted this TCLP publication timing requirement when a Bank does not plan to establish any Targeted Funds. Accordingly, to align the regulatory text with FHFA's stated intent, FHFA is amending § 1290.6(c) of the Community Support Requirements regulation and § 1291.13(a)(2) of the AHP regulation to require that a Bank's TCLP (as amended) must be published no later than the date of publication of the Bank's AHP Implementation Plan (as amended), regardless of whether a Bank plans to establish any Targeted Funds. Because a Bank's TCLP also addresses Bank activity and plans not related to its AHP ( *e.g.,* establishment of quantitative targeted community lending performance goals under § 1290.6(a)(5)(iv)), these amendments to the rule text specify that only those TCLP amendments related to the Bank's AHP must be published on or before publication of the annual AHP Implementation Plan. B. Retention Agreements on Owner-Occupied Units Constructed With AHP Subsidy—§§ 1291.1 (Definition of “Retention Period”), 1291.15(a)(7), 1291.23(d)(1) In several places in the 2018 final rule's regulatory text, the rule requires or references a requirement that an AHP-assisted owner-occupied unit be subject to an AHP retention agreement if the AHP subsidy is used for the purchase, or purchase in conjunction with rehabilitation, of the unit, but inadvertently omits the word “construction” in these provisions. This omission would suggest that AHP retention agreements are not required where AHP subsidy is used for construction of the unit. Omission of the word “construction” is correct with respect to households that receive AHP subsidy under the Bank's homeownership set-aside programs, as AHP subsidy may not be used for construction under those programs. However, the omission is not correct where AHP subsidy is used for construction under the Banks' competitive application programs ( *i.e.,* the General Fund and any Targeted Funds), a permissible use under those programs. As further discussed below, FHFA did not intend to eliminate this requirement for AHP retention agreements for the competitive application programs. In a July 2019 “Questions and Answers” document posted on FHFA's website and sent to the Banks, FHFA acknowledged this inadvertent omission and stated its intent to correct the error in a future rule. 1 1 *See* Questions and Answers on the November 28, 2018 Final Rule—Part I (July 2019), *available at https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf.* The predecessor AHP regulation required retention agreements for all owner-occupied units for which AHP subsidy use was authorized— *i.e.,* purchase, rehabilitation, or construction of units in projects awarded subsidies under a Bank's competitive application program, and purchase or rehabilitation of units by households funded under a Bank's homeownership set-aside program(s). 12 CFR 1291.9(a)(7) (Jan. 1, 2018 edition). In its proposed rule to amend the AHP regulation, FHFA proposed eliminating the requirement for retention agreements for all AHP-assisted owner-occupied units, regardless of how the AHP subsidy was used. 83 FR 11351. However, in the 2018 final rule, FHFA decided to eliminate the requirement for retention agreements only where the AHP subsidy is used solely for rehabilitation without an accompanying purchase. In reinserting the retention agreement language in the final rule, FHFA inadvertently omitted the existing regulatory references to “construction.” FHFA's intent in this regard is clear in the preamble discussion in the 2018 final rule. Where the preamble first summarizes the effect of the final rule, it states that the rule's effect is to “remove the requirement for retention agreements for owner-occupied units where the AHP subsidy is used solely for rehabilitation,” and includes no indication of an intent to remove the requirement under any other circumstances. *Id.* at 61186. The preamble further states that “[i]n a change from the proposed rule, the final rule eliminates the current requirement for owner-occupied retention agreements where households use the AHP subsidy solely for rehabilitation of a unit, *but retains it in other circumstances.” Id.* at 61192 (emphases added). This is further indicated by the subsequent analysis in the preamble, which acknowledges commenters' claims about the benefits of owner-occupied retention agreements, but only includes a justification for eliminating the requirement where the subsidy is used solely for rehabilitation without an accompanying purchase. *See id.* at 61193 (concluding that abuse, in the form of “flipping,” is unlikely “where the AHP subsidy is used solely for rehabilitation of homes, with no accompanying purchase.”) Had FHFA intended to eliminate the requirement for retention agreements for owner-occupied units where the AHP subsidy is used for construction, the preamble would have included an acknowledgment of this change as well as a rationale, neither of which appears in the preamble. Accordingly, to align the regulatory text with FHFA's intent, FHFA is amending § 1291.23(d)(1) to reinsert construction as a use of AHP subsidy in owner-occupied projects for which AHP retention agreements are required, and also making conforming revisions to §§ 1291.1 (definition of “retention period”) and 1291.15(a)(7) (introductory text). C. Scoring Tie-Breaker Methodology—§ 1291.25(c)(3) The 2018 final rule requires a Bank to establish and implement a scoring tie-breaker policy for selecting between or among project applications receiving identical scores under its General Fund and any Targeted Funds in the same funding round when there is insufficient AHP subsidy to approve all of the tied applications but sufficient subsidy to approve one of them. The Bank is required to meet certain requirements specified in the final rule in establishing its scoring tie-breaker policy, including that the methodology used to break a scoring tie, which may differ for each Fund, must be “drawn from” the particular Fund's scoring criteria adopted in the Bank's AHP Implementation Plan. 12 CFR 1291.25(c)(3). The preamble to the 2018 final rule states that, with one limited exception, the scoring tie-breaker requirements are “consistent with guidance FHFA has provided to the Banks and with the proposed rule.” 83 FR 61212. That guidance, Advisory Bulletin 2013-06, provided examples of permitted scoring tie-breaker methodologies that a hypothetical Bank could adopt, each of which incorporated scoring criteria identical to those included in the hypothetical Bank's AHP Implementation Plan. A question has arisen as to whether the scoring tie-breaker provision in the 2018 final rule permits a Bank to adopt a scoring tie-breaker methodology that incorporates scoring criteria similar, but not identical, to specific scoring criteria for the applicable Fund in the Bank's AHP Implementation Plan. As indicated in the preamble to the 2018 final rule, in light of the relevant guidance in Advisory Bulletin 2013-06, FHFA intended that a Bank's scoring tie-breaker methodology for a particular Fund be *identical to* one or more scoring criteria for that Fund in the Bank's AHP Implementation Plan. The phrase “drawn from” was intended to indicate that a Bank would select, from all of the existing scoring criteria in its AHP Implementation Plan, one or more of those scoring criteria to serve as the scoring tie-breaker(s). It was not intended that a Bank could use modified versions of its existing scoring criteria. Accordingly, to more closely align the regulatory text with FHFA's intent, FHFA is amending § 1291.25(c)(3) by replacing the phrase “drawn from” with the phrase “selected from.” D. Exception to Annual Certification Requirement for LIHTC Projects During Long-Term Monitoring; Clarification That a Bank May Not Conduct Risk-Based Sampling of Annual Project Sponsor or Owner Certifications During the Long-Term Monitoring Period—§ 1291.50(c)(1)(i), (c)(2)(ii); Exception to Annual Certification Requirement for LIHTC Projects Section 1291.50(c)(1) of the 2018 final rule requires generally that each Bank conduct long-term monitoring of AHP-assisted rental projects for the duration of the AHP 15-year retention period. This monitoring includes Bank review of annual certifications by project sponsors or owners of compliance with the AHP household income and rent requirements and ongoing project financial viability (paragraph (c)(1)(i)). The predecessor AHP regulation provided for an exception to this annual certification requirement where the project received LIHTCs under paragraph (a)(2), or where the project received funds from a Federal, state or local government entity under paragraph (a)(3). 12 CFR 1291.7(a)(2),

(3)(Jan. 1, 2018 edition). The 2018 final rule retained the exception for projects receiving funds from such government entities in § 1291.50(b), but in reorganizing the various monitoring provisions, inadvertently omitted the exception for LIHTC projects from § 1291.50(c)(1)(i). FHFA's intent to retain this exception for LIHTC projects is clearly indicated in the preamble of the 2018 final rule, which states that: “[c]onsistent with the current regulation and proposed rule, the final rule does not require the Banks to conduct long-term monitoring of AHP projects that received LIHTCs during the AHP 15-year retention period.” 83 FR 61201. In the above-referenced “Questions and Answers” guidance document, FHFA acknowledged this inadvertent omission and stated its intent to correct it in a future rule. 2 2 *See* Questions and Answers on the November 28, 2018 Final Rule—Part I (July 2019), *available at https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/OHCI%20-%20QA.pdf.* Accordingly, to align the regulatory text with FHFA's stated intent, FHFA is amending § 1291.50(c)(1)(i) to provide that during long-term monitoring of AHP-assisted rental projects, a Bank is not required to review annual certifications by sponsors or owners of LIHTC projects. *Scope of risk-based sampling.* Section 1291.50(c)(1)(ii) of the 2018 final rule requires that a Bank's written monitoring policies also include requirements for Bank review of back-up project documentation regarding household incomes and rents maintained by the project sponsor or owner, except for LIHTC projects and projects that received funds from a Federal, state or local government entity under § 1291.50(b)(1) and

(2)as specified in separate FHFA guidance. Section 1291.50(c)(2)(ii) provides that a Bank may use a reasonable, risk-based sampling plan to select the rental projects “to be monitored under this paragraph (c),” and to review the back-up project documentation and any other project documentation. The corresponding provision in the predecessor AHP regulation included annual project sponsor or owner certifications as eligible for risk-based sampling, but this option was removed by the 2018 final rule because, in practice, as noted in the preamble to the 2018 AHP proposed rule, the Banks review all annual project sponsor or owner certifications (subject to the exceptions discussed above), consistent with FHFA's expectation. 83 FR 11364. However, the phrase “to be monitored under this paragraph (c)” in § 1291.50(c)(2)(ii) might be misread to suggest that a Bank may use a risk-based sampling plan to select the annual project sponsor or owner certifications it will review. Accordingly, to better align the regulatory text with FHFA's intent, FHFA is amending § 1291.50(c)(1)(i) to provide that during AHP long-term monitoring, a Bank must review *all* annual project sponsor or owner certifications (subject to the exceptions discussed above), *i.e.,* a Bank may not use a risk-based sampling plan under § 1291.50(c)(2)(ii) to select the annual project sponsor or owner certifications it will review. E. Maximum Subsidy Limits—§ 1291.24(c)(1) Section 1291.24(c)(1) of the 2018 final rule authorizes a Bank to establish, in its discretion, a limit on the maximum amount of AHP subsidy available per member, per project sponsor, per project, or per project unit in a single AHP funding round under its General Fund and any Targeted Funds. The provision further states that a Bank may establish only one maximum subsidy limit per such entity for the General Fund and for each Targeted Fund, which must apply to all applicants to the specific Fund, but the maximum subsidy limit per project or per project unit may differ among the Funds. The text of § 1291.24(c)(1) accurately reflects FHFA's intent, but prompted a request for clarification of the language, specifically, how many different AHP subsidy limits may a Bank establish within each General Fund and Targeted Fund, or across multiple Funds. FHFA's intent was not to prohibit a Bank from establishing more than one type of limit per Fund, but to require that for each type established, the quantitative subsidy limit be applied uniformly across such Fund. 3 Nor did the predecessor AHP regulatory text, which was located at § 1291.5(c)(15)(i), prohibit a Bank from applying more than one type of subsidy limit to its competitive application program, and FHFA did not propose such a prohibition in the 2018 proposed rule. 3 FHFA provided clarifying guidance in an April 2020 “Questions and Answers” document posted on its website and sent to the Banks. *See* Questions and Answers on the November 28, 2018 Final Rule—Part II (April 2020), *available at https://www.fhfa.gov/PolicyProgramsResearch/Programs/AffordableHousing/Documents/AHP-FAQs-4-6-2020.pdf.* Accordingly, to provide greater clarity, FHFA is adding explanatory language in § 1291.24(c)(1) stating that each General Fund or Targeted Fund may contain up to all four of these optional AHP subsidy limits, each of which must apply to all applicants to the specific Fund. A Bank's AHP subsidy limit per member must be the same for each of its Funds and its AHP subsidy limit per project sponsor must be the same for each of its Funds, but a Bank's AHP subsidy limit per project and per project unit may differ among the Funds. F. Removal of Superfluous Provision on Non-Delegation of Authority To Adopt AHP Subsidy Re-Use Policies—§ 1291.64(b)(2) Section 1291.64(b)(2) of the 2018 final rule, which was retained from the predecessor AHP regulation (12 CFR 1291.8(f)(2)(ii) (Jan. 1, 2018 edition)), prohibits a Bank's board of directors from delegating to Bank officers or other Bank employees the responsibility to adopt any Bank policies on re-use of repaid AHP direct subsidies in the same project. Sections 1291.13(b)(12) and 1291.64(b)(1) of the 2018 final rule, also retained from the predecessor AHP regulation (12 CFR 1291.3(a)(7); 1291.8(f)(2)(i) (Jan. 1, 2018 edition)), require that these AHP subsidy re-use policies be included in the Bank's AHP Implementation Plan. Section 1291.13(b) of the 2018 final rule (introductory text) prohibits a Bank's board of directors from delegating to a committee of the board, Bank officers, or other Bank employees the responsibility for adopting or amending the Bank's AHP Implementation Plan, which, thus, includes adopting any AHP subsidy re-use policies in the Plan. The non-delegation provision for AHP subsidy re-use policies in § 1291.64(b)(2) is, therefore, superfluous. Accordingly, to streamline the regulatory text, FHFA is removing the non-delegation provision in § 1291.64(b)(2), and making technical changes to the paragraph numbering in § 1291.64(b) to reflect this removal. IV. Public Notice and Comment The Administrative Procedures Act provides that when an agency for good cause finds that public notice and comment on a rule are impracticable, unnecessary, or contrary to the public interest, the agency may publish the rule in final form without prior public notice and comment. 5 U.S.C. 553(b)(B). Because this rule makes technical revisions that do not reflect any changes in the policy intent of the 2018 final rule, publication of proposed amendments with an opportunity for public comment would serve no useful public purpose. Accordingly, FHFA finds that public notice and comment on this rule is unnecessary and is proceeding directly to a final rule. V. Consideration of Differences Between the Banks and Enterprises Section 1313(f) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 requires the FHFA Director, when promulgating regulations “of general applicability and future effect” relating to the Banks, to consider the differences between the Banks and Fannie Mae and Freddie Mac (the Enterprises) as they may relate to the Banks' cooperative ownership structure, mission of providing liquidity to members, affordable housing and community development mission, capital structure, and joint and several liability. 12 U.S.C. 4513(f). This rule applies only to the Banks. It makes technical revisions to align the 2018 final rule with FHFA's policy intent in that rule. In preparing the 2018 final rule, the Director considered the differences between the Banks and the Enterprises as they relate to the above factors, and determined that the amendments in the 2018 final rule were positive for the affordable housing mission of the Banks and neutral regarding the other statutory factors. Because this rule makes only technical revisions, none of which involves policy changes, no further analysis is needed under section 1313(f). VI. Regulatory Determinations A. Paperwork Reduction Act This rule does not contain any information collection requirement that would require the approval of the Office of Management and Budget

(OMB)under the Paperwork Reduction Act

(PRA)(44 U.S.C. 3501 *et seq.* ). Therefore, FHFA has not submitted any information to OMB for review for PRA purposes. B. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) requires that a regulation that has a significant economic impact on a substantial number of small entities, small businesses, or small organizations must include an initial regulatory flexibility analysis describing the regulation's impact on small entities. Such an analysis need not be undertaken if the agency has certified that the regulation will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). FHFA certified that the 2018 final rule was not likely to have a significant economic impact on a substantial number of small entities because it applied to the Banks, which are not small entities for purposes of the Regulatory Flexibility Act. 83 FR 61231. For these same reasons, and also because this rule makes only technical revisions to align the 2018 final rule with FHFA's policy intent in that rule, FHFA certifies that this rule is unlikely to have a significant economic impact on a substantial number of small entities. C. Congressional Review Act In accordance with the Congressional Review Act (5 U.S.C. 801 *et seq.* ), FHFA has determined that this rule is not a major rule and has verified this determination with the Office of Information and Regulatory Affairs of the OMB. List of Subjects 12 CFR Part 1290 Banks and banking, Credit, Federal home loan banks, Housing, Mortgages, Reporting and recordkeeping requirements. 12 CFR Part 1291 Community development, Credit, Federal home loan banks, Housing, Low- and moderate-income housing, Mortgages, Reporting and recordkeeping requirements. For the reasons stated in the preamble, FHFA amends parts 1290 and 1291 of title 12 of the Code of Federal Regulations as follows: PART 1290-COMMUNITY SUPPORT REQUIREMENTS 1. The authority citation for part 1290 continues to read as follows: Authority: 12 U.S.C. 1430(g). 2. Amend § 1290.6 by revising paragraph

(c)to read as follows: § 1290.6 Bank community support programs.

(c)*Public access.* A Bank shall publish its current Targeted Community Lending Plan on its publicly available website, and shall publish any amendments to its Targeted Community Lending Plan on the website within 30 days after the date of their adoption by the Bank's board of directors and no later than the date of publication on the website of its annual Affordable Housing Program Implementation Plan (as amended). If such amendments relate to the Bank's Affordable Housing Program, the Bank shall publish them no later than the date of publication on its website of its annual Affordable Housing Program Implementation Plan (as amended). If a Bank plans to establish any Targeted Funds under its Affordable Housing Program, the Bank must publish its Targeted Community Lending Plan (as amended) on the website at least 90 days before the first day that applications may be submitted to the Targeted Fund, unless the Targeted Fund is specifically targeted to address a Federal- or State-declared disaster. PART 1291—FEDERAL HOME LOAN BANKS' AFFORDABLE HOUSING PROGRAM 3. The authority citation for part 1291 continues to read as follows: Authority: 12 U.S.C. 1430(j). § 1291.1 [Amended] 4. Amend § 1291.1 in paragraph

(1)of the definition of “Retention period” by: a. Removing “unit or” and adding in its place “unit,”; and b. Adding “, or for construction of the unit” before “; and”. 5. Amend § 1291.13 by revising paragraph (a)(2) to read as follows: § 1291.13 Targeted Community Lending Plan; AHP Implementation Plan.

(a)* * *

(2)*Public access.* A Bank shall publish its current Targeted Community Lending Plan on its publicly available website, and shall publish any amendments to its Targeted Community Lending Plan on the website within 30 days after the date of their adoption by the Bank's board of directors and no later than the date of publication on the website of its annual AHP Implementation Plan (as amended). If such amendments relate to the Bank's AHP, the Bank shall publish them no later than the date of publication on its website of its annual AHP Implementation Plan (as amended). If a Bank plans to establish any Targeted Funds under its AHP, the Bank must publish its Targeted Community Lending Plan (as amended) on the website at least 90 days before the first day that applications may be submitted to the Targeted Fund, unless the Targeted Fund is specifically targeted to address a Federal- or State-declared disaster. § 1291.15 [Amended] 6. Amend § 1291.15 in paragraph (a)(7) introductory text by: a. Removing “or purchase” and adding in its place “for purchase”; and b. Adding “or for construction” after “rehabilitation,”. § 1291.23 [Amended] 7. Amend § 1291.23 in paragraph (d)(1) by: a. Removing “or for purchase” and adding in its place “for purchase”; and b. Adding “or for construction” after “rehabilitation,”. 8. Amend § 1291.24 in paragraph (c)(1) by revising the second sentence and adding a third sentence to read as follows: § 1291.24 Eligible uses.

(c)* * *

(1)* * * Each General Fund or Targeted Fund may contain up to all four of these optional AHP subsidy limits, each of which must apply to all applicants to the specific Fund. A Bank's AHP subsidy limit per member must be the same for each of its Funds and its AHP subsidy limit per project sponsor must be the same for each of its Funds, but a Bank's AHP subsidy limit per project and per project unit may differ among the Funds * * * § 1291.25 [Amended] 9. Amend § 1291.25 in paragraph (c)(3) by removing the word “drawn” and adding in its place the word “selected”. § 1291.50 [Amended] 10. Amend § 1291.50 in paragraph (c)(1)(i) by removing the words “Bank review of annual certifications by project sponsors or owners to the Bank” and adding in their place the words “Bank review of all annual certifications to the Bank by project sponsors or owners, other than sponsors or owners of projects that have been allocated LIHTCs,”. § 1291.64 [Amended] 11. Amend § 1291.64 by: a. Removing paragraph (b)(2) and the heading for paragraph (b)(1). b. Redesignating paragraphs (b)(1) introductory text and (b)(1)(i), (ii), and

(iii)as paragraphs

(b)introductory text and (b)(1), (2), and (3), respectively. Sandra L. Thompson, Acting Director, Federal Housing Finance Agency. [FR Doc. 2022-11543 Filed 5-31-22; 8:45 am]

Connections16 off-index

16 references not yet in our index

12 CFR 1291
12 CFR 1290.6(c)
12 CFR 1291.9(a)(7)
12 CFR 1291.25(c)(3)
12 CFR 1291.7(a)(2)
12 CFR 1291.8(f)(2)(ii)
12 CFR 1291.3(a)(7)
5 USC 553(b)(B)
12 USC 4513(f)
44 USC 3501
5 USC 601
5 USC 605(b)
5 USC 801
12 CFR 1290
12 USC 1430(g)
12 USC 1430(j)

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Final rule; technical revisions

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Cite12 CFR 1291.25(c)(3)

Cite12 CFR 1291.7(a)(2)

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