31868 Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR–4324–F–01]

RIN 2528–AA08

Community Development Work Study

Program; Repayment Requirements

AGENCY: Office of the Assistant

Secretary for Policy Development and

Research, HUD.

ACTION: Final rule.

SUMMARY: On July 10, 1996, HUD

published a Final Rule making various

amendments to the Community

Development Work Study Program

(CDWSP), including the removal of

requirements that students who are

terminated from the CDWSP repay the

tuition and additional assistance to the

grant recipient, and that the grant

recipient repay those funds to HUD.

HUD has determined to extend this

relief to all open grants, including those

entered into before the effective date of

the July 10 final rule.

DATES: Effective date: July 10, 1998.

FOR FURTHER INFORMATION CONTACT: John

M. Hartung, Office of University

Partnerships, Department of Housing

and Urban Development, Room 8130,

451 Seventh Street, SW, Washington,

D.C. 20410, telephone (202) 708–1537.

Hearing or speech-impaired individuals

may call HUD’s TTY number (202) 708–

0770, or 1–800–877–8399 (Federal

Information Relay Service TTY). (Other

than the ‘‘800’’ number, these are not

toll-free numbers.)

SUPPLEMENTARY INFORMATION:

I. Background

Section 501(b)(2) of the Housing and

Community Development Act of 1987

(Pub. L. 100–242, approved February 5,

1988), added a new section 107(c) to the

Housing and Community Development

Act of 1974 (42 U.S.C. 5301 et seq.),

authorizing the Community

Development Work Study Program

(CDWSP). Under the CDWSP, HUD is

authorized to award grants to

institutions of higher education, either

directly or through areawide planning

organizations (APOs) or States, for the

purpose of providing assistance to

economically disadvantaged and

minority students who participate in a

community development work study

program while enrolled in a full-time

graduate or undergraduate Community

Development Academic Program.

On June 27, 1989, HUD published a

final rule (45 FR 27128) implementing

section 107(c) at 24 CFR 570.415. Based

on its experience in administering the

CDWSP over many years, HUD made

several amendments to 24 CFR 570.415

on July 10, 1996 (61 FR 36456) so that

the CDWSP could more effectively and

efficiently meet its program objectives.

Among other revisions, the July 10,

1996 final rule: (1) Limited the number

of students assisted under the CDWSP

to five students per participating

institution of higher education; (2)

limited the CDWSP to graduate level

programs; (3) permitted institutions of

higher education to apply individually

or through APOs; (4) streamlined the

selection factors used to select grantees;

and (5) eliminated the requirement that

students who are terminated from the

CDWSP repay tuition and additional

assistance and that the grant recipient

repay those funds to HUD.

In eliminating the repayment

requirement, the Department found,

among other considerations, that the

requirement was both a disincentive to

prospective students and imposed

substantial administrative burdens on

institutions of higher education. Public

comment submitted in response to the

proposed rule for removing the

repayment requirement strongly favored

removal. In addition, HUD is not aware

of any adverse consequences following

the removal of the repayment

requirement. HUD has therefore

determined to eliminate the repayment

requirement entirely with respect to all

open CDWSP grants, including those

executed before the effective date of the

June 10, 1996 final rule, to the extent

that HUD has not received repayment.

This rule amends 24 CFR

570.415(k)(3)(ii) to provide that there is

no requirement, with respect to any

grant and regardless of date of grant

award, for students who are terminated

from the CDWSP to repay tuition and

additional assistance or for the grant

recipient to repay such funds to HUD.

Of course, the funds must still be

otherwise expended consistent with

CDWSP regulations and the grant

agreement, or repayment may be

required under § 570.415(k)(3)(iii).

II. Findings and Certifications

Justification for Final Rulemaking

In general, the Department 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. However, part 10 does

provide for exceptions from that general

rule where 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. Prior public

procedure is unnecessary because

public comment on the very issue

addressed by this rule, removal of

repayment requirements, was solicited

in a previous, directly related

rulemaking (which resulted in the July

10, 1996 final rule), and was

unanimously favorable. This rule only

expands the scope of that previous

rulemaking to cover any remaining open

grants executed before its August 9,

1996 effective date.

Paperwork Reduction Act Statement

The information collection

requirements for the Community

Development Work Study Program have

been approved by the Office of

Management and Budget in accordance

with the Paperwork Reduction Act of

1995 (44 U.S.C. 3501–3520), and

assigned OMB control number 2528–

0175. This rule does not contain

additional information collection

requirements. 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.

Unfunded Mandates Reform Act

The Secretary has reviewed this rule

before publication and by approving it

certifies, in accordance with the

Unfunded Mandates Reform Act of 1995

(2 U.S.C. 1532), that this rule does not

impose a Federal mandate that will

result in the expenditure by State, local,

and tribal governments, in the aggregate,

or by the private sector, of $100 million

or more in any one year.

Regulatory Flexibility Act

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)), has reviewed and approved this

rule, and in so doing certifies that this

final rule will not have a significant

economic impact on a substantial

number of small entities. This rule only

affects applicants and participants in

HUD’s Community Development Work

Study Program, and will not have any

meaningful economic impact on any

entity.

Environmental Impact

In accordance with 40 CFR 1508.4 of

the regulations of the Council on

Environmental Quality and 24 CFR

50.19(c)(2) of the HUD regulations, the

policies and procedures in this

document are not subject to the

individual compliance requirements of
Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 /Rules and Regulations 31869

the authorities cited in 24 CFR 50.4,

and, therefore, are categorically

excluded from the requirements of the

National Environmental Policy Act of

1969, although this document amends a

previous document which as a whole

does not fall within the exemption.

Accordingly, a Finding of No Significant

Impact is not required.

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. Specifically, the

requirements of this final rule are

directed toward applicants and

participants in HUD’s Community

Development Work Study Program

(CDWSP). It effects no changes in the

current relationships between the

Federal government, the States and their

political subdivisions in connection

with CDWSP.

Executive Order 13045, Protection of

Children from Environmental Health

Risks and Safety Risks

This rule will not pose an

environmental health risk or safety risk

to children.

Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic

Assistance program number is 14.234.

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, 24 CFR part 570 is

amended as follows:

PART 570—COMMUNITY

DEVELOPMENT BLOCK GRANTS

1. The authority citation for part 570

continues to read as follows:

Authority: 42 U.S.C. 3535(d) and 5300–

5320.

2. Section 570.415 is amended by

revising paragraph (k)(3)(ii) to read as

follows:

§ 570.415 Community Development Work

Study Program.

* * * * *

(k) * * *

(3) * * *

(ii) If a student’s participation in

CDWSP is terminated before the

completion of the two-year term of the

student’s program, the recipient may

substitute another student to complete

the two-year term of a student whose

participation has terminated. The

substituted student must have a

sufficient number of academic credits to

complete the degree program within the

remaining portion of the terminated

student’s two-year term. With respect to

any CDWSP grant, there is no

requirement, regardless of the date of

grant award, for students who are

terminated from the CDWSP to repay

tuition and additional assistance or for

the grant recipient to repay such funds

to HUD. Funds must still be otherwise

expended consistent with CDWSP

regulations and the grant agreement, or

repayment may be required under

paragraph (k)(3)(iii) of this section.

* * * * *

Dated: June 4, 1998.

Paul A. Leonard,

Deputy Assistant, Secretary for Policy

Development and Research.

[FR Doc. 98–15477 Filed 6–9–98; 8:45 am]

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