[Federal Register Volume 69, Number 225 (Tuesday, November 23, 2004)]
[Proposed Rules]
[Pages 68218-68219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25893]



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Part II





Department of Housing and Urban Development





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24 CFR Part 5



Electronic Submission of Applications for Grants and Other HUD 
Financial Assistance; Proposed Rule

Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / 
Proposed Rules

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 5

[Docket No. FR-4875-P-01]
RIN 2501-AD02


Electronic Submission of Applications for Grants and Other HUD 
Financial Assistance

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule establishes the requirement for applicants 
for HUD grants or certain other financial assistance to submit their 
applications to HUD electronically through the federal government grant 
portal, Grants.gov, in response to a HUD announcement of funding 
availability that is placed on Grants.gov/Apply or its successor Web 
site.

DATES: Comments Due Date: December 23, 2004.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410-0500. Interested persons may also submit 
comments electronically through either:
    <bullet> The federal electronic rulemaking portal at: 
www.regulations.gov; or
    <bullet> The HUD electronic Web site at: www.epa.gov/feddocket. 
Follow the link entitled ``View Open HUD Dockets.'' Commenters should 
follow the instructions provided on that site to submit comments 
electronically.
    Facsimile (FAX) comments are not acceptable. In all cases, 
communications must refer to the docket number and title. All comments 
and communications submitted will be available, without revision, for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Copies are also available for inspection and downloading 
at www.epa.gov/feddocket.

FOR FURTHER INFORMATION CONTACT: Barbara Dorf, Director, Office of 
Departmental Grants Management and Oversight, Room 3156, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410-3000, telephone (202) 708-0667 (this is not a toll-free number). 
Hearing-or speech-impaired individuals may access this number through 
TTY by calling the toll-free Federal Information Relay Service at (800) 
877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    The President's Management Agenda for Fiscal Year 2002 sets forth 
the President's goals for electronic government (e-government), which 
include a requirement for federal agencies to allow applicants for 
federal grants and other federal financial assistance to find, apply 
for, and ultimately manage grant funds online through a common 
government-wide portal. The President's Management Agenda furthers the 
objectives of the Federal Financial Assistance Management Improvement 
Act of 1999 (31 U.S.C. 6101), which seeks to unify and simplify 
application submission and reporting requirements for potential 
applicants and grantees of federal financial assistance. This policy is 
also consistent with the objectives of the Government Paperwork 
Elimination Act (GPEA) (44 U.S.C. 3504), which seeks to reduce or 
eliminate application submission and reporting burdens on program 
participants.
    On October 8, 2003 (68 FR 58146), the Office of Management and 
Budget (OMB) published in the Federal Register, a notice of issuance of 
a final policy directive requiring federal agencies to use the Web 
site, Grants.gov, to electronically post synopses of funding 
opportunities under federal financial assistance programs that award 
discretionary grants and cooperative agreements. Grants.gov allows 
applicants, to find, apply for, and manage federal grants through a 
single web portal. The governmentwide use of Grants.gov will simplify 
the grant management process and create a centralized, online process 
to find and apply for over 600 grant programs from the 26 federal 
grant-making agencies. Grants.gov will streamline the process of 
awarding over $360 billion annually to state and local governments, 
academia, and not-for-profit and other organizations. This initiative 
is one of the 24 federal cross-agency e-government initiatives focused 
on improving access to services via the Internet. Additionally, the 
Grants.gov initiative will facilitate efficient operations for federal 
grant agencies and the grant community.

II. This Proposed Rule

    Based on OMB's directive, this proposed rule would require all 
applicants for HUD grants and other financial assistance to submit 
applications electronically through the Grants.gov Web site. HUD 
believes that electronic grant application submission will standardize, 
simplify, and improve the integrity of HUD's grant making process.
    For the purpose of this policy, applications subject to this 
requirement would include submissions from applicants for HUD grants, 
cooperative agreements, capital fund or operating fund subsidies, 
capital advances, vouchers, and other financial assistance awards, 
including programs that are classified by OMB as mandatory, as well as 
formula grant programs or activities for which HUD has placed an 
electronic application on Grants.gov/Apply. Electronic submissions may 
also include plans, updates to plans, and funding requests submitted to 
HUD to fulfill requirements to receive new or funding renewals or other 
federal financial assistance. The requirement for electronic 
application to be established through this rulemaking does not extend 
to Federal Housing Administration (FHA) insurance or loan guarantee 
transactions that are not associated with the grants and financial 
assistance previously described. The FHA is covering its e-government 
transactions through separate rulemaking.
    Electronic application submission means applicants will not waste 
time and resources on preparing, mailing, and hand delivering paper 
copies of their applications to HUD Headquarters, field offices, or 
multiple locations. To participate in electronic grant submission on 
Grants.gov, applicants need only a computer with access to the 
Internet. To make it easier for applicants to use the Grants.gov 
electronic portal, applicants can download the application instructions 
and forms, complete the application off-line and share with others via 
e-mail, and later upload and submit the completed application to 
Grants.gov.
    The requirement for electronic submission would apply to all 
program application or plan submissions placed by HUD at 
www.Grants.gov/Apply for electronic submission via the Grants.gov 
portal. The requirement would not take effect for individual program 
applications until HUD makes available the electronic application on 
the www.grants.gov/Apply Web site. Placing an application on the 
www.grants.gov/Find Web site with a link to find forms and other 
application materials would not trigger the requirement for mandatory, 
electronic application submission. The HUD assistant secretary with 
authority over the program may waive the electronic submission 
requirement, as provided for in 24 CFR part 5.

[[Page 68219]]

III. Findings and Certifications

Justification for 30-Day Public Comment Period

    In accordance with HUD's regulations concerning rulemaking at 24 
CFR part 10 (entitled, ``Rulemaking Policy and Procedures''), it is 
HUD's policy that the public comment period for notice of proposed 
rulemaking should be 60 days. In the case of this proposed rule 
however, HUD has determined that there is good cause to reduce the 
public comment period to 30 days. As discussed in more detail earlier 
in this preamble, this proposed rule would simply require applicants to 
submit applications electronically rather than paper copy. Electronic 
submission of grants and other funding applications requires only a 
computer with access to the Internet and poses no substantial burden on 
applicants, and in fact may actually reduce the paperwork burden for 
timely application submission.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) establishes requirements for federal agencies to assess the 
effects of their regulatory actions on state, local, and tribal 
governments and the private sector. This proposed rule does not impose 
any federal mandate on any state, local, or tribal government or the 
private sector within the meaning of the Unfunded Mandates Reform Act 
of 1995.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications, if the rule 
imposes either substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of Section 6 of the order. This proposed rule does not have federalism 
implications and does not impose substantial direct compliance costs on 
state and local governments or preempt state law within the meaning of 
the order.

Impact on Small Entities

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this proposed rule and in so 
doing, certifies that this rule will not have a significant economic 
impact on a substantial number of small entities. Providing for 
electronic submission of grant applications will simplify and lessen 
the burden on applicants' resources because they will no longer need to 
duplicate and submit paper applications. Although HUD has determined 
that this proposed rule does not have a significant economic impact on 
a substantial number of small entities, HUD invites comments regarding 
any less burdensome alternatives to this rule that will meet HUD's 
objectives as described in this preamble.

Environmental Impact

    In accordance with 24 CFR 50.19(c)(1), this proposed rule does not 
direct, provide for assistance or loan and mortgage insurance for, or 
otherwise govern or regulate, real property acquisition, disposition, 
leasing, rehabilitation, alteration, demolition, or new construction, 
or establish, revise, or provide for standards for construction or 
construction materials, manufactured housing, or occupancy. Therefore, 
this proposed rule is categorically excluded from the requirements of 
the National Environmental Policy Act (42 U.S.C. 4321 et seq.).
    For the reasons described in the preamble, HUD proposes to amend 24 
CFR part 5 as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

    1. The authority citation for 24 CFR part 5 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d).

    2. Add Sec.  5.1005 to Subpart K to read as follows:


Sec.  5.1005  Electronic submission of applications for grants and 
other financial assistance.

    Applicants described under 24 CFR 5.1001 are required to submit 
electronic applications or plans for grants and other financial 
assistance in response to any application that HUD has placed on the 
www.grants.gov/Apply Web site or its successor. The HUD Assistant 
Secretary or equivalent HUD official with authority over a program may 
waive the electronic submission requirement for an applicant on the 
basis of good cause in accordance with 24 CFR 5.110.

    Dated: October 25, 2004.
Alphonso Jackson,
Secretary.
[FR Doc. 04-25893 Filed 11-22-04; 8:45 am]
BILLING CODE 4210-32-P