68218 Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Proposed Rules 

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.

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:

• The federal electronic rulemaking 

portal at: www.regulations.gov; or 

• 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). Hearingor 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 egovernment 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. 

Federal Register / Vol. 69, No. 225 / Tuesday, November 23, 2004 / Proposed Rules 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 § 5.1005 to Subpart K to read 

as follows:

§ 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