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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4367 <br /> wide variety of affordable housing maturities beyond the period of assistance to households and continue <br /> interventions,including production, performance or revolving loan funds to be so under the final rule, as outlined <br /> rehabilitation,and preservation of that revolve beyond the period of below. <br /> affordable rental housing and,in some performance be eligible uses of SLFRF 11.Paid sick,medical, or family <br /> cases, affordable homeownership units. funds if used for affordable housing. leave. <br /> These programs allow the financing of Some commenters pointed out that for- Public Comment:Some commenters <br /> a wide range of affordable housing profit developers of low-income housing argued that the pandemic increased the <br /> activities and set clear eligibility criteria through the Low-Income Housing Tax need for paid sick or medical leave,as <br /> that many recipients are already familiar Credit(LIHTC)may be deterred from staying home when ill is recommended <br /> with. accepting grants to bridge funding gaps by the CDC to prevent spread of the <br /> Finally,to further support sustainable in current LIHTC deals by the treatment virus but lack of access to paid sick <br /> and durable homeownership,recipients of grants to for-profit entities in the leave often prevents workers from <br /> may consider offering down payment calculation of eligible basis for the staying home. Other commenters <br /> assistance, such as through LIHTC. recommended paid family leave as an <br /> contributions to a homeowner's equity Treasury Response:The final rule eligible use,arguing that shortages in <br /> at origination or that establish a post- does not change the treatment of loans access to childcare or home health <br /> closing,mortgage reserve account on from the interim final rule. For more assistance, as well as school closures, <br /> behalf of the borrower that may be details see section Treatment of Loans may increase the need for family <br /> utilized to make a missed or partial in Program Administration Provisions. members to serve as caretakers. <br /> mortgage payment at any point during Similarly,the final rule does not change Background:The COVID-19 <br /> the life of the loan(e.g.,if the borrower the treatment of grants to support pandemic highlighted the importance of <br /> faces financial stress).Homeownership affordable housing development, paid leave as well as the number of <br /> assistance that would be eligible under including developments supported by workers who do not have access to paid <br /> the Community Development Block the LIHTC: such grants are an eligible sick and/or family leave.When workers <br /> Grant(at 24 CFR 507.201(n))is also an use of funds. <br /> eligible use of SLFRF funds. Additional enumerated eligible uses have access to paid leave,they are less <br /> Public Comment:Permanent for assistance to impacted households. likely to report to work sick,and <br /> Supportive Housing:Treasury has As noted above,the interim final rule therefore less likely to spread illnesses <br /> received comments encouraging the use posed a question on what other types of in the workplace:One study <br /> of SLFRF funds for permanent services or costs Treasury should demonstrates that the emergency sick <br /> supportive housing. This is an eligible consider as eligible uses to respond to leave provision of the Families First <br /> use under the interim final rule:Both the negative economic impacts of Coronavirus Response Act(FFCRA) <br /> the development of affordable housing COVID-19.In response, commenters reduced the spread of COVID-19,155 <br /> (including operating subsidies) and proposed a wide variety of additional The lack of paid leave exacerbates <br /> wraparound services such as behavioral recommended enumerated eligible uses financial hardships experienced as a <br /> health services, employment services, to assist households,ranging from result of the public health emergency.A <br /> and other supportive services,are general categories of services (e.g.,legal 2018 survey by the Department of Labor <br /> eligible responses to the public health and social services)to services that found that two-thirds of employees that <br /> crisis or its negative economic impacts. respond to needs widely experienced took unpaid or partial-paid leave <br /> Treasury Response:The final rule across the country(e.g.,access to and experienced financial hardship.156 <br /> maintains the eligibility of permanent affordability of health insurance)to Furthermore,because the Family and <br /> supportive housing as an enumerated services that are most applicable to the Medical Leave Act(FMLA)excludes <br /> use.Treasury is also clarifying that particularized needs of certain small employers,part-time workers, and <br /> other affordable housing developments populations or geographic areas of the workers who have been with their <br /> targeted to specialized populations are United States (e.g., senior citizens, employer for less than a year,44 percent <br /> also eligible,for example recovery SNAP recipients,immigrants, formerly- of workers do not have access to even <br /> housing for individuals in recovery from incarcerated individuals,responding to unpaid leave.157 Workers of color and <br /> substance use. environmental issues in certain workers with lower incomes are less <br /> Public Comment:Operating Expenses: geographic regions). Other commenters likely to have access to paid leave.158 159 <br /> Commenters specifically asked that generally requested a high degree of <br /> Treasury allow the use of SLFRF funds flexibility to respond to the particular 155 Stefan Pichler,Katherine Wen,and Nicolas R. <br /> for operating expenses of affordable needs of their communities. Ziebarth,COVID-19 Emergency Sick Leave Has <br /> Treasury Response:Given the large Helped Flatten The Curve In The United States: <br /> housing units,as operating subsidies are .� l� g Study examines the impact of emergency sick leave <br /> typically required to reach extremely number and diversity of SLFRF on the spread of COVID-19,Health Affairs 39,no. <br /> low-income households,whose recipients,Treasury's approach to 12(2020):2197-2204,https://www.health <br /> affordable rents may be lower than the assistance to households in the final affairs.org/doi/10.1377/hlthaff.2020.00863. <br /> ongoing cost of operating their unit. rule aims to clarify additional 156 Scott Brown et al.,Employee and Worksite <br /> Perspectives of the Family and Medical Leave Act: <br /> enumerated eligible uses that respond to <br /> Treasury Response:Operating g p Results from the 2018 Surveys,Abt Associates(July <br /> expenses for eligible affordable housing negative economic impacts of the 2020),https://www.dol.gov/sitesldolgov/files/ <br /> were an eligible use of funds under the pandemic experienced widely in many OASP/evaluation/pdf/WHD_FMLA2018Survey <br /> interim final rule and the final rule jurisdictions across the country,making Results_Fina]Report Aug202O.pdf. <br /> maintains this treatment. This may it clear and simple for recipients to 157Id. <br /> pursue these enumerated eligible uses 158 Ann P.Bartel et al.,Racial and ethnic <br /> include capitalized operating reserves. p g disparities in access to and use of paid family and <br /> Rehabilitation and repair of public under the final rule.In the final rule, medical leave:evidence from four nationally <br /> housing will also be considered an Treasury is clarifying several additional representative datasets,U.S.Bureau of Labor <br /> eligible use of SLFRF funds. uses,which generally respond to Statistics(BLS)(January 2019),https://www.bls.govl <br /> Public Comment:Affordable Housing pandemic impacts experienced broadly opub/lnlr/2019/article/racial-and-ethnic- <br /> disparities-in-access-to-and-use-of-paid family- <br /> Loans and Revolving Loan Funds:Some across jurisdictions and populations,are andmedical-leave.htm. <br /> commenters requested that loans with eligible under the interim final rule as Continued <br />