[Federal Register Volume 65, Number 85 (Tuesday, May 2, 2000)]
[Rules and Regulations]
[Pages 25445-25446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10798]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 905

[Docket No. FR-4423-C-08]
RIN 2577-AB87


Allocation of Funds Under the Capital Fund; Capital Fund Formula; 
Amendment

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Final rule; amendment.

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SUMMARY: On March 16, 2000, HUD published its final rule to implement 
the new formula system for allocation of funds to public housing 
agencies for their capital needs. This rule makes one amendment to the 
March 16, 2000 final rule to correct the regulatory provision 
concerning performance awards for high performing PHAs.

DATES: Effective Date. June 1, 2000.

FOR FURTHER INFORMATION CONTACT: William Flood, Director, Office of 
Capital Improvements, Public and Indian Housing, Room 4134, Department 
of Housing and Urban Development, 451 Seventh Street, SW, Washington, 
DC 20410-0500; telephone (202) 708-1640 ext. 4185 (this telephone 
number is not toll-free). Hearing or speech-impaired individuals may 
access this number via TTY by calling the toll-free federal Information 
Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    On March 16, 2000 (65 FR 14422), HUD issued its final rule to 
implement the new formula system for allocation of funds to public 
housing agencies for their capital needs, as required by statute. The 
March 16, 2000 final rule followed publication of a September 14, 1999 
proposed rule which was developed through the negotiated rulemaking 
process, and which took into consideration public comment received on 
the proposed rule. This rule amends the March 16, 2000 final rule to 
correct an error concerning performance awards for high performing 
PHAs.
    In the preamble to the final rule, HUD stated that Sec. 905.10(j) 
of the proposed rule, which addresses the performance reward factor, 
was revised at the final rule stage to reflect the status of 
implementation of the Public Housing Assessment System (PHAS). (See 65 
FR 14423, first column.)
    Section 905.10(j)(3) of the rule text provided as follows:

    The first performance awards will be given based upon PHAS 
scores for PHA fiscal years ending December 31, 2000, March 31, 
2001, June 30, 2001, and September 30, 2001, with PHAs typically 
having received those PHAS scores within approximately 3 months 
after the end of those fiscal years. (See 65 FR 14429, third column)

    The regulatory text, however, did not accurately reflect the status 
of implementation of PHAS. The final rule that made amendments to the 
PHAS was published on January 11, 2000 (65 FR 1712), and took effect on 
February 10, 2000. The PHAS final rule provides that the first PHAS 
scores will be issued for PHAs with fiscal years ending on or after 
March 31, 2000, and therefore these PHAs will be the first to be 
eligible for a performance award. Given the January 11, 2000 PHAS final 
rule, Sec. 905.10(j)(3) of the Capital Fund final rule did not reflect 
the status of implementation of PHAS, as the preamble to the Capital 
Fund rule advised that this section would.\1\
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    \1\ The PHAS Transition Notice issued by HUD on October 21, 1999 
(64 FR 56677) advised that PHAs with fiscal years ending September 
30, 1999, or December 31, 1999, would receive PHAS advisory scores. 
The January 11, 2000 PHAS final rule is consistent with the 
transition notice in providing that the first PHAS scores will be 
issued for PHAs with fiscal years ending on or after March 31, 2000.
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    To correct the inconsistency between the preamble and the 
regulatory text in the March 16, 2000 final rule, HUD is amending the 
March 16, 2000 final rule to remove paragraph (3) of Sec. 902.10(j). On 
further consideration, HUD determined that there is no need for the 
rule to list the dates when PHAs will be eligible for performance 
awards under the Capital Fund Formula based on PHAS scores. As noted in 
the preamble, PHAs are eligible for a performance award upon receipt of 
their PHAS scores (whenever the PHAS scores are issued) and if they are 
designated high performers under PHAS.

II. Justification for Final Rulemaking

    In general, HUD publishes a rule for public comment before issuing 
a rule for effect, in accordance with its own regulations on rulemaking 
at 24 CFR part 10. Part 10, however, provides for exceptions from that 
general rule where HUD finds good cause to omit advance notice and 
public participation. The good cause requirement is satisfied when the 
prior public procedure is ``impracticable, unnecessary, or contrary to 
the public interest'' (24 CFR 10.1). HUD finds that good cause exists 
to publish this rule for effect without first soliciting public 
comment, in that prior public procedure is unnecessary. The purpose of 
this rule is limited to amending an error in the March 16,

[[Page 25446]]

2000 Capital Fund final rule. The preamble explained how the rule would 
address implementation of the performance award factor of the Capital 
Fund Formula. As explained in the preamble, implementation of the 
performance award factor would coincide with implementation of PHAS. 
The regulatory text of the Capital Fund final rule, however, 
inadvertently failed to accurately reflect implementation of PHAS, as 
provided in the January 11, 2000 PHAS final rule. This rule therefore 
amends the March 16, 2000 final rule to correct this inconsistency.

III. Findings and Certifications

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
was prepared in connection with the September 14, 1999 proposed rule in 
accordance with the HUD regulations at 24 CFR part 50, which implement 
section 102(2)(C) of the National Environmental Policy Act (42 U.S.C. 
4223). That Finding is applicable to this final rule, and is available 
for public inspection between the hours of 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

    This rule will not have a significant impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act (5 U.S.C. 605(b)). The final rule is limited to 
amending the March 16, 2000 Capital Fund final rule to correct an error 
in the rule concerning implementation of the performance award factor. 
The regulatory flexibility analysis provided in the March 16, 2000 
final rule is applicable to this rule.

Federalism Impact

    This final rule does not have federalism implications. The rule 
does not impose substantial direct compliance costs on State and local 
governments or preempt State law within the meaning of Executive Order 
13132 (entitled ``Federalism'').

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) requires Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and on 
the private sector. This final rule does not impose, within the meaning 
of the UMRA, any Federal mandates on any State, local, or tribal 
governments or on the private sector.

Catalog

    The Catalog of Federal Domestic Assistance number for the program 
affected by this rule is 14.850

List of Subjects in 24 CFR Part 905

    Grant programs--housing and community development, Modernization, 
Public housing, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, part 905 of title 24 of 
the Code of Federal Regulations is amended as follows:

PART 905--THE PUBLIC HOUSING CAPITAL FUND PROGRAM

    1. The authority citation for part 905 continues to read as 
follows:

    Authority: 42 U.S.C. 1437g and 3535(d).


Sec. 905.10  [Amended]

    2. Section 905.10 is amended by removing paragraph (j)(3).

    Dated: April 21, 2000.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 00-10798 Filed 5-1-00; 8:45 am]
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