[Federal Register Volume 61, Number 121 (Friday, June 21, 1996)]
[Rules and Regulations]
[Pages 32268-32269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15736]
[[Page 32267]]
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Part VI
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 570
Community Development Block Grant (CDBG) Program: Small Cities and
Insular Areas; Final Rule
Federal Register / Vol. 61, No. 121 / Friday, June 21, 1996 / Rules
and Regulations
[[Page 32268]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 570
[Docket No. FR-4048-F-01]
RIN 2506-AB81
Office of the Assistant Secretary for Community Planning and
Development, Community Development Block Grant (CDBG) Program: Small
Cities and Insular Areas
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Final rule.
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SUMMARY: This final rule amends the Department's regulations for the
Community Development Block Grant (CDBG) Program for Small Cities and
Insular Areas. This rule will streamline the reporting requirements for
Insular Area grant recipients and will clarify the requirements for
Small Cities grantees in Hawaii to amend their programs with regard to
grants received prior to Fiscal Year 1995.
EFFECTIVE DATE: These regulations take effect on July 22, 1996.
However, the information collection requirements in Sec. 570.405(e)(4)
of this rule will not be effective until the Office of Management and
Budget (OMB) has approved them under the Paperwork Reduction Act of
1995 and assigned them a control number. Publication of the control
numbers notifies the public that OMB has approved these information
collection requirements.
FOR FURTHER INFORMATION CONTACT: Stephen M. Rhodeside, State and Small
Cities Division, Office of Community Planning and Development,
Department of Housing and Urban Development, Room 7184, 451 Seventh
Street, SW, Washington, DC 20410; telephone (202) 708-1322. (This is
not a toll-free number.) Hearing- or speech-impaired persons may access
this number via TTY by calling the Federal Information Relay Service at
1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Paperwork Reduction Act
The information collection requirements in Sec. 570.430(f) of this
rule have been approved by the Office of Management and Budget (OMB) in
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2506-0020. The Department has
begun the process of seeking OMB approval for the information
collection requirements referred to in Sec. 570.405(e)(4) of this rule;
the Department published a notice requesting comments on these
requirements on June 3, 1996 (61 FR 27926). These requirements will not
be effective until OMB has approved them and assigned them a control
number. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection displays a valid control number.
II. Background
A. Insular Areas Program--Annual Performance Reports
This final rule amends the Department's regulations on performance
reports for grant recipients under the Insular Areas program. The
purpose of the Insular Areas program is to provide funds according to
HUD-established criteria to Guam, the Virgin Islands, American Samoa,
the Trust Territory of the Pacific Islands, and the Commonwealth of the
Northern Mariana Islands. The reporting requirement that was effective
prior to this final rule has been in effect for the Insular Areas
program since 1985, and it is extremely prescriptive. In order to
increase reporting flexibility and to reduce unnecessary paperwork,
this final rule eliminates the specific reporting requirements from the
regulations. However, to ensure that citizens are involved in the
process, Sec. 570.405(e)(4) will provide that Sec. 570.405(h)(1)(iv)
continues to apply to performance reports submitted by Insular Area
grant recipients.
The modification to the reporting requirement in this final rule
will permit the Department to eliminate the unnecessary environmental
status report, and will enable the Department to streamline reporting
requirements as necessary without amending the regulations. This will
help make the Department more responsive to the Insular Area grantees.
B. Small Cities Program
1. Program Amendments (Hawaii)
On December 27, 1994 (59 FR 66594), the Department published a
final rule revising its regulations in 24 CFR part 570, subpart F for
the Community Development Block Grant (CDBG) Small Cities Program. The
purpose of the program is to provide discretionary CDBG funds to units
of general local government in those States that have not elected to
assume administration of the CDBG formula allocations. The December 27,
1994 final rule amended the regulations to recognize several statutory
amendments and to reflect more accurately the nature of the program.
Specifically, the rule addressed the Department's administration of the
Small Cities Program in Hawaii and New York.
On January 5, 1995 (60 FR 1878), the Department published a final
rule for the Consolidated Submission for Community Planning and
Development Programs (the Consolidated Plan rule). The Consolidated
Plan rule replaced the Comprehensive Housing Affordability Strategies
(CHAS) provisions with a consolidated submission of the planning and
application aspects of several of the Department's Community Planning
and Development programs, including the CDBG program. This rule
provided that Hawaii grantees must submit consolidated plans for grants
beginning in Fiscal Year (FY) 1995 (see Sec. 570.429(f)). However, the
Department inadvertently failed to provide requirements for program
amendments with regard to grants received prior to FY 1995. Therefore,
this final rule amends Sec. 570.430 by adding a new paragraph (f),
which provides that Hawaii grantees must follow the consolidated plan
requirements in Sec. 91.505 when amending their programs for pre-FY
1995 grants, as well as for grants beginning in FY 1995.
Since HUD did not require grantees to submit consolidated plans
prior to FY 1995, they would be unable to apply criteria for
substantial amendment and citizen participation requirements from their
consolidated plans for the pre-1995 funding. Therefore, the new
paragraph (f) provides that the grantees must use their current citizen
participation plan for these purposes.
2. Technical Amendment
This final rule also makes a technical amendment to the reporting
regulations for the Small Cities program. Section 570.507(a)(2)
provides the requirements for performance and evaluation reports for
HUD-administered Small Cities recipients in New York. In the December
27, 1994 final rule (59 FR 66594), HUD decided to treat the Hawaii
recipients under the Small Cities program very much like entitlement
recipients, starting in FY 1995. However, Hawaii recipients must submit
a performance and evaluation report for pre-FY 1995 grants, as required
by Sec. 570.507(a)(2)(ii)(B). Therefore, this document amends the
heading of paragraph (a)(2) to reflect that its requirements apply both
to New York recipients and to Hawaii recipients in certain
circumstances.
[[Page 32269]]
III. Justification for Final Rulemaking
The Department generally publishes a rule for public comment before
issuing a rule for effect, in accordance with its own regulations on
rulemaking in 24 CFR part 10. However, part 10 provides for exceptions
to the general rule if the agency finds good cause to omit advance
notice and public participation. The good cause requirement is
satisfied when 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 rule for effect without
first soliciting public comment. This rule merely clarifies the
amendment procedures for Hawaii grantees and streamlines the reporting
requirements for Insular Area grantees. Therefore, prior public comment
is unnecessary.
IV. Other Matters
Environmental Impact
A Finding of No Significant Impact with respect to the environment
was made in accordance with HUD regulations in 24 CFR part 50
implementing section 102(2)(C) of the National Environmental Policy Act
of 1969 (42 U.S.C. 4332). The finding is available for public
inspection between 7:30 a.m. and 5:30 p.m. weekdays in the Office of
the Rules Docket Clerk, Office of General Counsel, Room 10276,
Department of Housing and Urban Development, 451 Seventh Street, SW,
Washington, DC.
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 doing
so certifies that this rule will not have a significant economic impact
on a substantial number of small entities. This rule merely clarifies
the program amendment procedures for Hawaii grantees and streamlines
the reporting requirements for Insular Area grantees. The rule will
have no adverse or disproportionate economic impact on small
businesses.
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 substantially affect the
relationship between the Federal Government and State and local
governments.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule will not have
the potential for significant impact on family formation, maintenance,
or general well-being, and thus is not subject to review under the
Order. No significant change in existing HUD policies or programs will
result from promulgation of this rule.
List of Subjects in 24 CFR Part 570
Administrative practice and procedure, American Samoa, Community
development block grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Lead poisoning, Loan
programs--housing and community development, Low and moderate income
housing, New communities, Northern Mariana Islands, Pacific Islands
Trust Territory, Pockets of poverty, Puerto Rico, Reporting and
recordkeeping requirements, Small cities, Student aid, Virgin Islands.
Accordingly, for the reasons stated in the preamble, 24 CFR part
570 is amended as follows:
PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS
1. The authority citation for 24 CFR part 570 continues to read as
follows:
Authority: 42 U.S.C. 3535(d) and 5300-5320.
2. In subpart E, Sec. 570.405 is amended by revising paragraph
(e)(4), to read as follows:
Sec. 570.405 The insular areas.
* * * * *
(e) * * *
(4) Grant recipients must submit to HUD an annual performance
report on progress achieved on previously funded grants. Grant
recipients must submit the report at a time and in a format determined
by HUD. The report should be made available to citizens in accordance
with the requirements of paragraph (h)(1)(iv) of this section.
* * * * *
3. In subpart F, Sec. 570.430 is amended by adding a new paragraph
(f), to read as follows:
Sec. 570.430 Hawaii program operation requirements.
* * * * *
(f) Program amendments for grants received prior to FY 1995.
Grantees must follow the requirements of Sec. 91.505 of this title when
amending their program with regard to grants received prior to FY 1995.
For purposes of this paragraph (f), the term ``consolidated plan'' as
used in Sec. 91.505 of this title means an application submitted under
the Hawaii program for pre-FY 1995 funds. Also for purposes of this
paragraph (f), to comply with the requirements of Sec. 91.505 of this
title, grantees must refer to their current citizen participation plans
(adopted in accordance with Sec. 91.505 of this title) to determine the
criteria for substantial amendment and the citizen participation
process to be followed.
(Approved by the Office of Management and Budget under control
number 2506-0020.)
4. Section 570.507 is amended by revising the heading of paragraph
(a)(2), to read as follows:
Sec. 570.507 Reports.
(a) * * *
(2) HUD-administered Small Cities recipients in New York, and
Hawaii recipients for pre-FY 1995 grants.
* * * * *
Dated: May 10, 1996.
Andrew Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-15736 Filed 6-20-96; 8:45 am]
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