[Federal Register Volume 66, Number 14 (Monday, January 22, 2001)]
[Rules and Regulations]
[Pages 6964-6973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1397]



[[Page 6963]]

-----------------------------------------------------------------------

Part VII





Department of Housing and Urban Development





-----------------------------------------------------------------------



24 CFR Part 15



Revision of Freedom of Information Act Regulations; Final Rule

Federal Register / Vol. 66, No. 14 / Monday, January 22, 2001 / Rules 
and Regulations

[[Page 6964]]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 15

[Docket No. FR-4292-F-02]
RIN 2501-AC51


Revision of Freedom of Information Act Regulations

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends HUD's Freedom of Information Act (FOIA) 
regulations in their entirety. It implements the statutory requirements 
of the Electronic Freedom of Information Act (EFOIA) and makes various 
streamlining and organizational changes to improve the clarity of the 
regulatory text. Additionally, this rule incorporates a plain language 
approach to regulatory drafting by adopting a written style that 
promotes responsive, accessible and understandable written 
communication. This rule follows the publication of a July 10, 2000 
proposed rule and takes into consideration the public comments received 
on the proposed rule.

DATES: Effective Date: February 21, 2001.

FOR FURTHER INFORMATION CONTACT: Marylea W. Byrd, Assistant General 
Counsel, FOIA Division, Office of the General Counsel, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410-0500, Room 10248; telephone (202) 708-3866 (this is not a toll-
free number). 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

    HUD's regulations at 24 CFR part 15 contain the policies and 
procedures governing public access to HUD records under the Freedom of 
Information Act (FOIA) (5 U.S.C. 552). Subject to certain statutory 
exceptions, the FOIA gives persons the right to request and receive a 
wide range of information from any Federal agency. Congress has amended 
the FOIA several times since its enactment in 1982. The most recent 
amendment occurred in 1996 with the enactment of the Electronic Freedom 
of Information Act (EFOIA) (Public Law 104-231, approved October 2, 
1996).
    Pursuant to 5 U.S.C. 552(a)(3)(B), EFOIA requires that readily 
reproducible records be made available in the format requested, 
including an electronic format, where applicable. EFOIA also requires 
that agencies make certain information available over ``electronic 
reading rooms'' on the Internet (5 U.S.C. 552(a)(2)(E)). Additionally, 
EFOIA modifies the deadlines and procedures for processing FOIA 
requests to provide faster processing for some requests and to assist 
agencies in reducing backlogs and delays. For example, EFOIA permits 
agencies to implement multitrack FOIA processing systems based on the 
estimated amount of work or time (or both) involved in processing 
individual FOIA requests (5 U.S.C. 552(a)(6)(D)).
    On July 10, 2000 (65 FR 42578), HUD published a proposed rule 
implementing the statutory directives contained in the EFOIA. In 
addition to EFOIA-related changes, HUD proposed to revise 24 CFR part 
15 in its entirety to improve the clarity of its FOIA requirements and 
procedures. These proposed changes included the consolidation of HUD's 
FOIA regulations into a single subpart of 24 CFR part 15 (currently, 
the FOIA regulations are located in seven separate subparts) and the 
clarification of procedures for requesting HUD records under FOIA.
    Since it is important that the requirements governing public access 
to HUD's records be clear and readily understandable, HUD also proposed 
to rewrite its FOIA requirements using plain language. The preamble to 
the July 10, 2000 proposed rule provides additional details regarding 
the proposed amendments to 24 CFR part 15.

II. Significant Differences Between this Final Rule and the July 
10, 2000 Proposed Rule

    This final rule makes effective the policies and procedures 
contained in the July 10, 2000 proposed rule and takes into 
consideration the public comments received on the proposed rule. The 
major changes made by this final rule in response to public comment are 
described below. The rationales for these changes are discussed in 
greater detail in Section III. of this preamble.
    (1) Incorporation of statutory exemptions to FOIA requirements 
(Sec. 15.3). HUD has added a new Sec. 15.3, which contains the nine 
statutory exemptions to FOIA disclosure authorized under 5 U.S.C. 
552(b)(1).
    (2) Clarification of records that are available at HUD's electronic 
reading room (Sec. 15.102 (b)). HUD has modified this paragraph to 
clarify that, pursuant to EFOIA, only those documents created after 
November 1, 1996 are maintained on HUD's electronic reading room.
    (3) Address of HUD's electronic reading room (Sec. 15.103(c)). HUD 
has given a more detailed URL for its Internet web site in order to 
facilitate easier access to the Department's FOIA electronic reading 
room.
    (4) Estimate of time for HUD to respond under unusual circumstances 
(Sec. 15.104(c)). HUD has clarified that it will provide an estimate of 
the time needed to respond to a FOIA request in cases where unusual 
circumstances enable the Department to extend the period for providing 
a response.
    (5) Determination of effective date for multitrack assignment when 
a FOIA request is received by the wrong HUD office (Sec. 15.105 (a)). 
HUD has clarified that FOIA requests received by the wrong HUD office 
will be assigned within their respective tracks according to either the 
date on which the request was received by the appropriate office or the 
end of the ten working day period in which the request should have been 
forwarded to the proper office.
    (6) Assignment of FOIA requests for expedited processing 
(Sec. 15.105(b)). HUD has clarified that a FOIA request may be assigned 
for expedited processing at the Department's discretion in absence of 
compelling need pursuant to 5 U.S.C. 552(a)(6)(E)(i).
    (7) FOIA requests misdirected to HUD (Sec. 15.107). HUD has 
clarified that FOIA requests misdirected to HUD are subject to the 
requirements of 15.104(a).
    (8) FOIA fee schedule (Sec. 15.110(c)). HUD has added a section to 
the FOIA fee schedule to provide that duplication on electronic format 
such as CD ROM's and diskette will be charged at actual cost.
    (9) Location of FOIA reading rooms (Appendix A). This final rule 
codifies the appendix contained in the July 10, 2000 proposed rule. 
This appendix provides the addresses of FOIA Reading Rooms located in 
HUD field offices throughout the country and will assist the public in 
accessing the reading rooms.

III. Discussion of the Public Comments Received on the July 10, 
2000 Proposed Rule

    The public comment period on the July 10, 2000 proposed rule closed 
on September 8, 2000. By close of business on this date, HUD had 
received 3 public comments. Comments were submitted by a housing 
authority; a joint comment was submitted by a public interest group and 
an information clearinghouse; and another joint comment was submitted 
by various legal aid groups. This section of the

[[Page 6965]]

preamble presents a summary of the significant issues raised by the 
public comments on the July 10, 2000 proposed rule and HUD's responses 
to these comments.
    Comment: The final rule should retain FOIA statutory exemptions. 
The July 10, 2000 proposed rule would have removed regulatory language 
restating the FOIA statutory exemptions. Two commenters recommended 
that the final rule retain this language. Additionally, one of the 
commenters suggested that the exemptions, themselves, be rewritten in 
plain language.
    HUD Response. HUD agrees that, for the convenience of readers, the 
FOIA statutory exemptions listed at 5 U.S.C. 552(b)(1) should be 
included in the final rule. Accordingly, this rule states the statutory 
exemptions in a new Sec. 15.3. HUD will not, however, adopt the 
suggestion that the statutory exemptions be rewritten in plain language 
since to do so could unintentionally change their legal meaning or 
application. Thus, the regulatory exemptions language at Sec. 15.3 
continues to track the statutory exemptions set forth in FOIA.
    Comment: The rule should clarify those records that are available 
through HUD's web site. One commenter suggested that HUD's proposed 
rule implied that all hard copy records in its reading rooms are also 
available through HUD's web site and that a clarification is needed to 
distinguish which records are available only in the reading room.
    HUD Response. HUD agrees that a clarification is needed to reflect 
EFOIA's requirement that records created on or after a certain date be 
made available on the Department's website. Accordingly, HUD has 
revised Sec. 15.102 to make clear that hard copy records are available 
in HUD's designated reading rooms and records created on or after 
November 1, 1996 are also available on HUD's website pursuant to the 
requirements of FOIA at 5 U.S.C. 552(a)(2)(E).
    Comment: The rule does not adequately explain the reasons HUD may 
grant itself an extension of time to respond due to a FOIA request 
because of unusual circumstances or provide a date by which a response 
is expected. One commenter wrote that the proposed rule at 
Sec. 15.104(c) was imprecise because it did not state that HUD would 
provide the requester with the date on which a response is expected nor 
with an explanation of the reasons for the delay.
    HUD Response. The proposed rule at Sec. 15.104(c) clearly stated 
the three ``unusual circumstances'' that constitute grounds under which 
HUD may grant itself an extension of time in which to respond to a 
request. This final rule adopts these provisions of the proposed rule. 
HUD has, however, modified Sec. 15.104(c) to clarify that a specific 
estimate of time necessary to respond to the request must be provided 
to the requester.
    Comment: The standards regarding multitrack processing are too 
vague. One commenter wrote that HUD's descriptions of the factors it 
would use to determine whether to place a request in its ``simple'' or 
``complex'' track is too vague to permit requesters to know whether a 
given request would qualify for the fastest track.
    HUD response. HUD disagrees with the commenter. This final rule 
adopts the language of proposed Sec. 15.105(a) establishing the factors 
that HUD will consider in determining whether to assign a FOIA request 
to the ``simple'' or ``complex'' track. These include an overall 
assessment of the time and work associated with obtaining the documents 
requested with specific consideration given to (1) whether the request 
involves the processing of voluminous documents and (2) whether the 
request involves responsive documents from three or more organizational 
units. It is impracticable under any set of standards to determine with 
certainty the proper classification of a FOIA request until HUD has 
actually had the opportunity to evaluate the request. Persons 
submitting a request for documents should therefore, to the best of 
their ability at the time of submission, categorize their request in 
light of these factors.
    Comment: HUD should establish a third track for processing FOIA 
requests involving electronic information, particularly those requests 
involving voluminous documents maintained in an electronic format. One 
commenter wrote that FOIA requests would be more likely to be assigned 
to the complex track if the request involved voluminous documents--even 
in cases where they are maintained in electronic format. Therefore, HUD 
should establish a third track for the processing of requests for 
electronically maintained information.
    HUD response. A FOIA request will not automatically be assigned to 
the complex track merely because it involves voluminous records. 
Similarly, a FOIA request for information existing in electronic format 
does not necessarily qualify it on its face for assignment to the 
simple track. Whether a particular request involving voluminous 
documents maintained in electronic format is assigned to the simple or 
complex track will be determined according to the same standards 
applicable to all FOIA requests. For example, pursuant to the EFOIA 
amendments, reprogramming may be necessary in regard to the search and 
retrieval of electronic records. Such efforts, depending on their 
extent and complexity, may necessitate assigning a particular request 
to the complex track even though the information is maintained in an 
electronic format.
    HUD disagrees that a third processing track for requests involving 
electronically maintained records should be implemented. The 
Department's proposed two-tiered processing approach provides the best 
avenue for delineating between different levels of FOIA requests and 
further change would not promote the efficient processing of these 
requests.
    Comment: Where requests for classified records are referred to 
another agency, the processing date should be set as the date the 
request is received by HUD. One commenter suggested that the proposed 
rule at Sec. 15.107 be amended to provide that referrals be processed 
according to the date HUD received the request and that the requester 
be given notice of the referral.
    HUD response. HUD has revised Sec. 15.107 to make clear that the 
requirements of Sec. 15.104(a) regarding referral of a misdirected 
request to the appropriate office also apply to Sec. 15.107. The 
Department will not, however, assert jurisdiction over another agency's 
processing procedures by mandating that the date HUD receives the 
misdirected request constitutes the date on which the request is 
processed by the agency to which it is ultimately referred.
    This comment raised an issue concerning how the Department will 
handle, for processing purposes, the assignment of FOIA requests that 
have been directed to the wrong office within HUD. Therefore, HUD has 
revised Sec. 15.105(a) to clarify that where a request has been 
misdirected within the Department, the date for assigning the request 
for processing will be the earlier of the date on which (1) the 
appropriate office received the request or (2) the end of the 10 
working day period in which the request should have been referred to 
the appropriate office under Sec. 15.104(a).
    Comment: The rule does not address duplication charges for 
electronic media based records. HUD received a comment that the FOIA 
fee schedule did not take into account charges for reproduced 
electronically based media, such as CD ROMs and diskettes.
    HUD response. HUD has revised proposed Sec. 15.110(c) to add a 
provision specifying that the amount charged for reproduction of 
electronically based media such as CD ROMs and diskettes will be actual 
cost.

[[Page 6966]]

    Comment: HUD should increase the information accessible on its 
website. One commenter suggested that HUD should continue to build on 
its existing information systems and provided examples of additional 
information that HUD should make available on its website.
    HUD response. While this comment does not involve any suggestions 
for revisions of the Department's proposed FOIA regulation, per se, HUD 
is continuing to improve upon and expand customer access to information 
on the Department's website.
    Comment: The Internet reference to HUD's reading room is not 
sufficiently specific. One commenter wrote that the reference to HUD's 
general website address in Sec. 15.102 is not specific enough to enable 
the public to readily locate indices and frequently requested materials 
which the EFOIA requires be maintained online.
    HUD response. HUD agrees that a citation in the regulation to HUD's 
specific web address containing the Department's reading room FOIA 
bookshelf is preferable. HUD has therefore revised Sec. 15.102(b) to 
reflect the Department's web address for the online FOIA bookshelf 
contained in the Department's reading room.
    Comment: HUD should insert hypertext links as a part of indices. 
One commenter suggested that the value of on-line indices would be 
enhanced if the indices included hypertext links to information and if 
they also included detailed explanations of the specific HUD office to 
which requests for various kinds of information should be directed.
    HUD response. While this comment does not involve a suggestion for 
revision of HUD's proposed FOIA regulation, HUD will keep in mind the 
comment pertaining to the on-line treatment of indices.
    Comment: HUD should adopt an expanded definition for ``located'' in 
the context of electronic records. One commenter proposed that HUD 
adopt a definition for ``located,'' which would specify that electronic 
records should be considered ``located'' at particular HUD offices if 
the records are electronically accessible by personnel at those 
offices, regardless of where the machines on which the records are 
stored may be located.
    HUD response. HUD has determined that a definition for ``located'' 
which would define an electronic record as located anywhere that it can 
be accessed within the agency would be confusing. While electronic 
records within the agency can be accessed from more than one particular 
office, HUD still considers it important that the particular office 
that has jurisdiction of those records be held accountable for their 
accuracy and maintenance. Therefore, for purposes of the FOIA, HUD 
declines to broaden the concept that electronic records are ``located'' 
anywhere other than within the particular office which has 
responsibility for those records.
    Comment: HUD should provide an exact date for providing records in 
response to FOIA requests. One commenter advised that HUD should 
provide an exact date by which information will actually be provided 
after HUD approves a FOIA request and that records should be provided 
no later than twenty business days after HUD issues its response.
    HUD response. In the majority of FOIA requests, HUD's response 
either provides the requested records, provides appropriate exemptions 
for withholding the records, or both. In other instances, usually at 
the suggestion of the FOIA requester, the Department will offer the 
requester the opportunity to inspect the documents, as opposed to 
providing copies. In some instances, HUD will provide status letters 
which outline the Department's existing backlog and notifies the 
requester of their place in HUD's first-in, first-served queue of 
pending requests. In these instances, it is not practical to provide an 
exact date in which HUD will respond to the request.
    Comment: HUD should broaden the definition of compelling need for 
the purpose of granting expedited processing to additional types of 
FOIA requests. One commenter proposed that HUD expand the statutory 
bases of ``compelling need,'' contained in Sec. 15.105(b), to include 
circumstances involving expiring Section 8 subsidy contracts. The 
commenter also suggested that the regulation be revised to reflect that 
HUD is not limited to the statutory bases of compelling need in order 
to grant expedited processing.
    HUD response. The statutory definition of compelling need limits 
such a finding to circumstances evidencing an imminent threat to life 
or safety or, in the case of a person primarily engaged in the 
dissemination of information, a need to inform the public about actual 
or alleged federal government activity. HUD may, however, assign FOIA 
requests for expedited processing where appropriate despite the absence 
of compelling need. Accordingly, HUD has revised the rule to reflect 
this discretion pursuant to 5 U.S.C. 552(a)(6)(E)(i).
    Comment: HUD should withhold information only if there is a need in 
the public interest to withhold it. One commenter proposed that HUD 
reintroduce a provision from its present regulation at Sec. 15.21 that 
the Department would only withhold a requested record if it came within 
one of FOIA exemptions and there is a need in the public interest to 
withhold it.
    HUD response. HUD follows the FOIA policy guidance set forth by 
President Clinton and Attorney General Reno in their October 1993 
statements and has determined not to promulgate any criteria in its 
regulations concerning disclosure of information which might be at 
variance with those statements. While both statements enunciated 
standards for the treatment and disclosure of records under the FOIA, 
neither statement contained an explicit requirement that records not be 
withheld unless, in addition to applicability of FOIA's exemptions, 
there ``is a need in the public interest to withhold [the records].'' 
HUD has therefore determined that the revised rule better conforms with 
the policy statements of the President and the Attorney General.
    Comment: HUD should specifically allow disclosure of certain 
housing project financial information pursuant to the Multifamily 
Assisted Housing Reform and Affordability Act of 1997 (MAHRA). One 
commenter proposed that Sec. 15.109(a) be revised to allow release of 
information from profit and loss statements of housing projects to HUD 
residents, tenant organizations, and their representatives in the 
context of multifamily operations and restructuring activities, citing 
the Multifamily Assisted Housing Reform and Affordability Act of 1997 
(Title V of the Fiscal Year 1998 HUD Appropriations Act, Public Law 
105-65, approved October 27, 1997) (MAHRA).
    HUD response. Section 514(f) of MAHRA requires HUD to establish 
procedures to provide an opportunity for tenants of projects, residents 
of the neighborhood, the local government, and other affected parties 
to participate effectively and on a timely basis in restructuring 
activities of multifamily housing projects. To this end, HUD is working 
on a proposed rule implementing the statutory directives of MAHRA which 
will include procedures under which certain information will be made 
available to tenants and other groups pursuant to MAHRA. Accordingly, 
HUD has determined that the proposed MAHRA rule is the proper vehicle 
for dealing with the types of information to be released under MAHRA 
and the procedures for making that information available.

[[Page 6967]]

    Comment: HUD should waive fees for certain low income individuals 
and constituent groups. One commenter proposed that HUD waive fees for 
certain requesters, including low-income HUD residents and homeowners, 
tenant organizations, advocates representing low-income residents, 
homeowners or tenant organizations and HUD funded technical assistance 
grantees. In the alternative, the commenter suggested that these 
requesters be included in the existing category for news media and 
educational and scientific research.
    HUD response. HUD's determination of whether a request for a fee 
waiver or reduction is warranted is governed by whether disclosure of 
the information is in the public interest because it is (1) likely to 
contribute significantly to public understanding of the operations or 
activities of the government and (2) is not primarily in the commercial 
interest of the requester. In making this determination, HUD follows 
fee waiver guidance issued by the Department of Justice. HUD does not 
believe it prudent to provide blanket fee waivers to any particular 
individuals or groups. Instead, any requester who requests a fee waiver 
or reduction should justify in light of statutory and regulatory 
provisions why they qualify for such a waiver or reduction.
    Additionally, the FOIA prescribes certain categories of fee 
requesters and the types of fees which can be assessed to these 
requesters. The individuals and groups mentioned by the commenter 
ordinarily would not qualify for a waived or reduced fee assessment as 
news media or educational and scientific research requesters.

IV. Findings and Certifications

Environmental Impact

    This rule is categorically excluded from environmental review under 
the National Environmental Policy Act (42 U.S.C. 4321). The revision of 
the FOIA-related provisions of 24 CFR part 15 falls within the 
exclusion provided by 24 CFR 50.19(c)(1), in that it 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.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this rule before publication 
and in so doing certifies that this rule will not have a significant 
economic impact on a substantial number of small entities because the 
rule is procedural. Accordingly, the rule would not have any impact on 
the substantive rights or duties of small entities requesting HUD 
records under the Freedom of Information Act. Furthermore, the fees 
charged under this rule are limited by FOIA to direct costs of 
searching for, reviewing, and duplicating the records processed for 
requesters and are not economically significant.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes 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 Executive Order. This final 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 Executive Order.

Unfunded Mandates

    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 on the private sector. This final does not impose any 
Federal mandates on any State, local, or tribal governments, or on the 
private sector, within the meaning of the Unfunded Mandates Reform Act 
of 1995.

List of Subjects in 24 CFR Part 15

    Classified information, Courts, Freedom of information, Government 
employees, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, HUD amends 24 CFR part 15 
as follows:

PART 15--PUBLIC ACCESS TO HUD RECORDS UNDER THE FREEDOM OF 
INFORMATION ACT AND TESTIMONY AND PRODUCTION OF INFORMATION BY HUD 
EMPLOYEES

    1. Revise the heading of part 15 to read as set forth above.

    2. The authority citation for part 15 is revised to read as 
follows:

    Authority: 42 U.S.C. 3535(d).
    Subpart A also issued under 5 U.S.C. 552.
    Section 15.107 also issued under E.O. 12958, 60 FR 19825, 3 CFR 
Comp., p. 333.
    Subparts C and D also issued under 5 U.S.C. 301.

    3. Revise subpart A to read as follows:

Subpart A--Purpose and Policy

Sec.
Sec. 15.1   What is the purpose of this part?
Sec. 15.2   What definitions apply to this part?
Sec. 15.3   What exemptions are authorized by 5 U.S.C. 552?


Sec. 15.1  What is the purpose of this part?

    (a) Subpart B of this part. Subpart B of this part describes the 
procedures by which HUD makes documents available under the Freedom of 
Information Act (FOIA) (5 U.S.C. 552). Subpart A of this part applies 
to all HUD organizational units; however, applicability of subpart A to 
the Office of the Inspector General is subject to parts 2002 and 2004 
of the title.
    (b) Subpart C of this part. Subpart C of this part describes the 
procedures HUD follows in responding to subpoenas or demands of courts 
and other agencies to produce or disclose documents.
    (c) Subpart D of this part. Subpart D of this part describes the 
procedures HUD follows concerning the testimony of its employees in 
legal proceedings.
    (d) Inapplicability of subparts B and C to Office of Inspector 
General. Subparts B and C of this part do not apply to employees in the 
Office of the Inspector General. The procedures that apply to employees 
in the Office of the Inspector General are described in part 2004 of 
this title.


Sec. 15.2  What definitions apply to this part?

    The following definitions apply to this part.
    (a) Terms defined in part 5 of this title. The terms HUD, 
Secretary, and Organizational unit are defined in part 5 of this title.
    (b) Other terms used in this part. As used in this part:
    Business information means commercial or financial information 
provided to HUD by a submitter that arguably is protected from 
disclosure under Exemption 4 (42 U.S.C. 552(b)(4)) of FOIA.
    Duplication means the process of making a copy of a document 
necessary to respond to a FOIA request. Such copies can take the form 
of paper copy, microfilm, audio-visual materials, or machine readable 
documentation (e.g., magnetic tape or disk), among others.
    Educational institution means:
    (1) A preschool;
    (2) A public or private elementary or secondary school;

[[Page 6968]]

    (3) An institution of graduate higher education;
    (4) An institution of undergraduate higher education;
    (5) An institution of professional education; or
    (6) An institution of vocational education, that primarily (or 
solely) operates a program or programs of scholarly research.
    Employee of the Department means a current or former officer or 
employee of the United States appointed by or subject to the 
supervision of the Secretary, but does not include an officer or 
employee covered by part 2004 of this title.
    FOIA means the Freedom of Information Act (5 U.S.C. 552).
    Legal proceeding includes any proceeding before a court of law or 
other authority, i.e., administrative board or commission, hearing 
officer, arbitrator or other body conducting a quasi-judicial or 
legislative proceeding.
    Legal proceeding among private litigants means any legal proceeding 
in which the United States is not a party.
    Legal proceeding in which the United States is a party means any 
legal proceeding including as a named party the United States, the 
Department of Housing and Urban Development, or any other Federal 
executive or administrative agency or department, or any official 
thereof in his official capacity.
    News means information that is about current events or that would 
be of current interest to the public.
    Person means person as defined in 5 U.S.C. 551(2). It includes 
corporations and organizations as well as individuals.
    Review means the process of examining a document located in 
response to a request to determine whether any portion of it may be 
withheld, excising portions to be withheld, and otherwise preparing the 
document for release. Review time includes time HUD spends considering 
any formal objection to disclosure made by a submitter under 
Sec. 15.108. Review does not include time spent resolving general legal 
or policy issues regarding the application of exemptions.
    Search includes all time spent looking manually or by automated 
means for material that is responsive to a request, including page-by-
page or line-by-line identification of material within documents.
    Submitter means any person or entity who provides business 
information, directly or indirectly, to HUD. The term includes, but is 
not limited to, corporations, State governments, and foreign 
governments.


Sec. 15.3  What exemptions are authorized by 5 U.S.C. 552?

    (a) The classes of records authorized to be exempted from 
disclosure by 5 U.S.C. 552 are those which concern matters that are:
    (1) Specifically authorized under criteria established by an 
Executive order to be kept secret in the interest of national defense 
or foreign policy and are in fact properly classified pursuant to such 
Executive order;
    (2) Related solely to the internal personnel rules and practices of 
the Department;
    (3) Specifically exempted from disclosure by statute;
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (5) Interagency or intra-agency memorandums or letters which would 
not be available by law to a party other than an agency in litigation 
with the Department;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information 
compiled by a criminal law enforcement authority in the course of a 
criminal investigation or by an agency conducting a lawful national 
security intelligence investigation, information furnished by a 
confidential source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual;
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of the Department in 
connection with its responsibility for the regulation or supervision of 
financial institutions; or
    (9) Geological and geophysical information and data, including 
maps, concerning wells.
    (b) Any reasonably segregable portion of a record shall be provided 
to any person requesting such record after deletion of the portions 
which are exempt under this section.

    4. Revise subpart B to read as follows:

Subpart B--FOIA Disclosure of Information

Sec.
15.101   What is HUD's overall policy concerning disclosing 
identifiable records?
15.102   Where and when may I inspect and copy records that FOIA 
requires HUD to make regularly available to the public?
15.103   How can I get other records from HUD?
15.104   What are the time periods for HUD to respond to my request 
for records?
15.105   How will HUD process my request?
15.106   How will HUD respond to my request?
15.107   How does HUD handle requests that involve classified 
records?
15.108   What are HUD's policies concerning designating confidential 
commercial or financial information under Exemption 4 of the FOIA 
and responding to requests for business information?
15.109   How will HUD respond to a request for information from Form 
HUD-92410 (Statement of Profit and Loss)?
15.110   What fees will HUD charge?
15.111   How do I appeal a denial of my request for records or a fee 
determination?
15.112   How will HUD respond to my appeal?


Sec. 15.101  What is HUD's overall policy concerning disclosing 
identifiable records?

    HUD will fully and responsibly disclose its identifiable records 
and information consistent with competing public interests concerning 
the national security, personal privacy, agency deliberative process, 
and obligations of confidentiality as are recognized by FOIA. HUD will 
make a record available in the form or format requested, if the record 
is readily reproducible in that format.


Sec. 15.102  Where and when may I inspect and copy records that FOIA 
requires HUD to make regularly available to the public?

    (a) You may inspect and copy hardcopy records, including indices of 
the records, that section 552(a)(2) of FOIA requires HUD make available 
to the public at HUD's reading rooms. HUD has reading rooms in 
Headquarters in Washington, DC and in each of the Secretary's 
Representative's offices. These reading rooms are open during

[[Page 6969]]

the business hours for the HUD office in which they are located.
    (b) For records created on or after November 1, 1996, this 
information is also available to you through HUD's Internet web site at 
http://www.hud.gov/ogc/bshelf2a.html.


Sec. 15.103  How can I get other records from HUD?

    (a) Generally. You may submit a written request for copies of 
records in person or by mail.
    (b) Records located in a HUD field office. If you are submitting a 
request for records located in a HUD field office, you should deliver 
or mail your request to the FOIA Liaison in the appropriate HUD Field 
Office.
    (c) Records located in HUD headquarters. If you are submitting a 
request for records located in HUD Headquarters, you should deliver or 
mail your request to the FOIA Division, Office of the General Counsel. 
You may also use the FOIA electronic request form on HUD's Internet web 
site at http://www.hud.gov/ogc/foiafree.html.
    (d) What should I include in my FOIA request? In your FOIA request 
you should:
    (1) Clearly state that you are making a FOIA request. Although 
Federal agencies are required to process all requests for documents as 
Freedom of Information Act requests, whether or not specifically 
designated as FOIA requests, failure to clearly state that you are 
making a FOIA request could unduly delay the initial handling of your 
correspondence through HUD's FOIA processing;
    (2) Reasonably describe the records you seek. Include information 
that you may know about the documents you are requesting;
    (3) Indicate the form or format in which you would like the record 
made available;
    (4) State your agreement to pay the fee. You may specify a dollar 
amount above which you want HUD to consult with you before you will 
agree to pay the fee;
    (5) Indicate the fee category that you believe applies to you (see 
Sec. 15.110);
    (6) If you are making a request on behalf of another person for 
information about that person, include a document signed by that person 
authorizing you to request the information on his or her behalf; and
    (7) If you are requesting expedited processing, your request should 
set out the facts you believe show that there is a compelling need (see 
Sec. 15.104(d)) to expedite processing of your request.


Sec. 15.104  What are the time periods for HUD to respond to my request 
for records?

    (a) What time limits generally apply? If you have met the fee 
requirements of Sec. 15.110, HUD, in general, will respond within 20 
working days after the correct office receives your request. If you 
have sent your request to the wrong office, that office will send it to 
the correct office within 10 working days and will send you an 
acknowledgment letter.
    (b) What time limits apply to requests made on behalf of another 
person? The time limits described in paragraph (a) of this section also 
apply to requests you make on behalf of another person for information 
about that person. However, the time limits will not commence to run 
until HUD's receipt of the document signed by that person authorizing 
you to request information on his or her behalf. If you make your 
request on behalf of another person without including such signed 
authorization, HUD will inform you of the authorization needed.
    (c) What time limits apply in unusual circumstances? If you have 
requested an especially large number of records, the records are not 
located in the office handling the request, or HUD needs to consult 
with another government office, HUD will notify you that extra time is 
required and provide an estimate of that time. If the extra time needed 
is more than 10 working days beyond the general time limit set out in 
paragraph (a) of this section, HUD will offer you any opportunity to 
limit the scope of your request so that HUD may process it within the 
extra 10 working day period.
    (d) What time limits apply to my request for expedited processing? 
If you requested expedited processing, HUD will notify you within 10 
working days after it receives your request whether it will grant 
expediting processing.


Sec. 15.105  How will HUD process my request?

    (a) Multitracking. (1) HUD places each request in one of two 
tracks. HUD places requests in its simple or complex track based on the 
amount of work and time involved in processing the request. Factors HUD 
will consider in assigning a request in the simple or complex track 
will include whether the request involves the processing of voluminous 
documents and/or whether the request involves responsive documents from 
three or more organizational units. Within each track, HUD processes 
requests in the order in which they are received.
    (2) For requests that have been sent to the wrong office, HUD will 
assign the request within each track using the earlier of either:
    (i) The date on which the request was referred to the appropriate 
office; or,
    (ii) The end of the 10 working day period in which the request 
should have been referred to the appropriate office under 
Sec. 15.104(a).
    (b) Expedited processing. HUD may take your request or appeal out 
of normal order if HUD determines that you have a compelling need for 
the records or in other cases as determined by the agency. If HUD 
grants your request for expedited processing, HUD will give your 
request priority and will process it as soon as practicable. HUD will 
consider a compelling need to exist if:
    (1) Your failure to obtain the requested records on an expedited 
basis could reasonably be expected to pose an imminent threat to the 
life or physical safety of an individual or a threatened loss of 
substantial due process rights; or,
    (2) You are primarily engaged in disseminating information and 
there is an urgency to inform the public concerning actual or alleged 
Federal Government activity.


Sec. 15.106  How will HUD respond to my request?

    (a) Who will respond to my request? (1) The FOIA Division of the 
Office of General Counsel in HUD Headquarters and the FOIA liaisons in 
each HUD Field Office are authorized to release copies of any HUD 
records unless disclosure is clearly not appropriate under FOIA.
    (2) The FOIA Division in HUD Headquarters and the FOIA liaisons in 
each HUD Field Office may deny a request for a record in accordance 
with the provisions of FOIA and this part.
    (b) What type of a response will I receive? Within the time limit 
described in Sec. 15.103, HUD will either:
    (1) Agree to give you all the records you requested;
    (2) Advise you that HUD will not give you some or all of the 
records you requested. Any denial or partial denial of a requested 
record must be concurred in by the FOIA Division in Headquarters, by 
counsel in the Field Offices, or by counsel in HUD's Departmental 
Enforcement Center Satellite Offices. In this case, HUD will:
    (i) Explain why it has decided not to comply fully with your 
request, citing specific exemptions where applicable;
    (ii) Describe the records denied or, if there are fewer than 21 
records denied, list them specifically;
    (iii) Estimate the volume of the records denied unless doing so 
would harm a protected interest; and
    (iv) Explain how to appeal that decision, and provide the name and

[[Page 6970]]

address of the HUD official to whom you should submit your appeal.
    (3) Tell you that HUD's estimate of the fee is more than you have 
agreed to pay and ask to confer within 10 days to see if you can 
reformulate your request so that HUD can meet your request at a fee 
that is acceptable to you; or
    (4) Tell you that you will not receive a response until you have 
either paid your fee or committed to the amount of fee you will pay, as 
applicable, and will provide you 10 days to pay, or commit to pay, the 
fee.
    (5) If you requested expedited processing, advise you whether your 
request is granted or denied and, if your request is denied, advise you 
of your right to appeal.
    (c) What action may HUD take if I fail to respond? If you fail to 
respond within a period specified in this subpart, HUD may consider 
your request for records withdrawn and may terminate processing of your 
request.


Sec. 15.107  How does HUD handle requests that involve classified 
records?

    If your request involves the release of documents that are 
classified under Executive Order 12958, HUD will refer your request and 
the pertinent documents to the originating agency for processing 
according to the requirements of Sec. 15.104(a). HUD may refuse to 
confirm or deny the existence of the requested information if the 
originating agency determines that the fact of its existence is itself 
classified.


Sec. 15.108  What are HUD's policies concerning designating 
confidential commercial or financial information under Exemption 4 of 
the FOIA and responding to requests for business information?

    (a) HUD's general policy concerning business information which may 
be considered as confidential commercial or financial information. 
Except as provided in this section or otherwise required by law, HUD 
officers and employees may not disclose business information which is 
considered as confidential commercial or financial information to 
anyone other than to HUD officers or employees who are properly 
entitled to the information to perform their official duties.
    (b) How does a submitter make a claim that business information is 
confidential commercial or financial information? (1) If you are a 
submitter, you may request confidential treatment of business 
information at the time the information is submitted to HUD or within a 
reasonable time after it is submitted.
    (2) To obtain a designation of confidentiality, you must:
    (i) Support your request with an authorized statement or a 
certification giving the facts and the legal justification for your 
request and stating that the information has not been made public; and
    (ii) Clearly designate the information that you consider 
confidential.
    (3) Your designation of confidentiality will expire 10 years after 
the date the information was submitted to HUD, unless you have provided 
a reasonable explanation for a later expiration date.
    (c) How will HUD respond to a request for business information? If 
the information requested has been designated in good faith by the 
submitter as information to be protected under 5 U.S.C. 552(b)(4) 
(``Exemption 4'') or if HUD has reason to believe that the information 
may be protected by Exemption 4, HUD shall:
    (1) Unless an exception in paragraph (c)(2) of this section 
applies, promptly notify the submitter about the request or the 
administrative appeal and give the submitter 10 working days to submit 
a written objection to disclosure. HUD will describe the requested 
business information or will provide copies of all or a portion of the 
records;
    (2) If any of the following circumstances apply, HUD will not 
notify the submitter:
    (i) HUD determines that the information should not be disclosed;
    (ii) The information has been published lawfully or has been made 
available officially to the public;
    (3) A law other than FOIA requires HUD to disclose the information;
    (4) A HUD regulation requires HUD to disclose the information. The 
regulation must:
    (i) Have been adopted pursuant to notice and public comment; and
    (ii) Specify narrow classes of records submitted to HUD that are to 
be released under the FOIA.
    (d) Notice to requester. At the same time HUD notifies the 
submitter, HUD will also notify the requester that the request is 
subject to the provisions of this section and that the submitter is 
being afforded an opportunity to object to disclosure of the 
information.
    (e) Opportunity to object to disclosure. If the submitter timely 
objects to disclosure, HUD will consider the submitter's objections, 
but will not be bound by them. HUD generally will not consider 
conclusory statements that particular information would be useful to 
competitors or would impair sales, or other similar statements, 
sufficient to justify confidential treatment. Information provided by a 
submitter or its designee may itself be subject to disclosure under the 
FOIA.
    (f) Notice of intent to disclose. If after considering the 
submitter's objections, HUD decides to disclose business information 
over the objection of a submitter, HUD will send a written notice of 
intent to disclose to both the submitter and the requester. HUD will 
send these notices at least 10 working days before the specified 
disclosure date. The notices will include:
    (1) A statement of the reasons why HUD rejected the submitter's 
disclosure objections;
    (2) A description of the business information to be disclosed; and
    (3) A disclosure date.
    (g) What other policies apply to a submitter?
    (1) HUD notice of FOIA lawsuit. HUD will promptly notify the 
submitter of any suit to compel HUD to disclose business information.
    (2) Determination of confidentiality. HUD will not determine the 
validity of any request for confidentiality until HUD receives a 
request for disclosure of the information.
    (3) Current mailing address for the submitter. Each submitter must 
give HUD a mailing address for receipt of any notices under this 
section, and must notify HUD of any change of address.


Sec. 15.109  How will HUD respond to a request for information from 
Form HUD-92410 (Statement of Profit and Loss)?

    (a) To whom will HUD disclose the information? HUD will release 
information from Form HUD-92410 (or a HUD approved substitute form that 
the mortgagor may have submitted) only to eligible potential purchasers 
and only during the period specified by HUD for the mortgage sale.
    (b) Under what conditions will HUD release such information? HUD 
will release the information only if all of the following three 
conditions are met:
    (1) The information concerns a project that is subject to a HUD-
held mortgage which HUD is selling under the authority of sections 207 
(k) and (l) of the National Housing Act (12 U.S.C. 1713 (k) and (l)) or 
section 7(i)(3) of the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(i)(3)).
    (2) The eligible potential purchasers have agreed to:
    (i) Keep the information confidential;
    (ii) Disclose the information only to potential investors in the 
mortgage and only for the period specified by HUD for the mortgage sale 
and to notify those potential purchasers of their obligations under 
this section;
    (iii) Use the information only to evaluate the mortgage in 
connection with the mortgage sale; and

[[Page 6971]]

    (iv) To follow disclosure procedures for that sale that have been 
established by the Secretary.
    (3) The potential investors in the mortgage have agreed to keep the 
information confidential and to use the information only to evaluate 
the mortgage in connection with their investment decision.
    (c) To whom may potential investors disclose such information? 
Potential investors in the mortgage may disclose the information to 
other entities only if the disclosure is:
    (1) Necessary for the investor's evaluation of the mortgage;
    (2) Made in accordance with disclosure procedures for the specific 
sale that have been established by HUD; and
    (3) Limited to the period specified by HUD for the mortgage sale.
    (d) What sanctions are available for improper disclosure of such 
information? An eligible potential purchaser or a potential investor 
(who has received the information from a potential purchaser and has 
been notified by that entity of its obligations under paragraph (b) of 
this section), who discloses information from Form HUD-92410 in 
violation of this section, may be subject to sanctions under part 24 of 
this title.


Sec. 15.110  What fees will HUD charge?

    (a) How will HUD determine your fee? HUD will determine your fee 
based on which category of requester you are in and on the other 
provisions of this section. With your request, you should submit 
information to help HUD determine the proper category. If HUD cannot 
tell from your request, or if HUD has reason to doubt the use to which 
the records will be put, HUD will ask you to provide additional 
information before assigning the request to a specific category.
    (b) What are the categories of requesters? (1) Commercial use 
requester. You are a commercial use requester if you request 
information for a use or purpose that furthers your commercial, trade, 
or profit interests or those interests of the person on whose behalf 
you have made the request. In determining whether your request properly 
belongs in this category, HUD determines the use to which you will put 
the documents requested.
    (2) Educational requester. You are an educational requester if your 
request is on behalf of an educational institution and you do not seek 
the records for a commercial use, but to further scholarly research.
    (3) Non-commercial scientific requester. You are a non-commercial 
scientific requester if you are not a commercial use requester and your 
request is on behalf of an organization that is operated solely for the 
purpose of conducting scientific research the results of which are not 
intended to promote any particular product or industry.
    (4) Representative of the news media requester. (i) You are a 
representative of the news media requester if you actively gather news 
for an entity that is primarily organized and operated to publish or 
broadcast news to the public.
    (ii) Examples of news media entities include television or radio 
stations broadcasting to the public at large, and publishers of 
periodicals (but only in those instances when they can qualify as 
disseminators of news) who make their products available for purchase 
or subscription by the general public.
    (iii) Freelance journalists may be regarded as working for a news 
organization if they can demonstrate a solid basis for expecting 
publication through that organization, even though not actually 
employed by it. A publication contract would be the clearest proof, but 
HUD may also look to the past publication record of a requester in 
making this determination.
    (iv) If you are a representative of the news media requester, HUD 
will not consider you to be a commercial use requester.
    (5) Other requester. You are considered an ``other'' requester if 
you do not fall within the categories of requesters described in this 
paragraph (b).
    (c) FOIA Fee Schedule. The following table sets out the Fee 
Schedule that HUD uses to determine your fee. The rates for 
professional and clerical search and review includes the salary of the 
employee performing the work. The duplication cost includes the cost of 
operating duplicating machinery. The computer run time includes the 
cost of operating a central processing unit for that portion of the 
operating time attributable to searching for responsive records, as 
well as the costs of operator/programmer salary apportionable to the 
search. HUD's fee schedule does not include overhead expenses such as 
costs of space and heating or lighting the facility in which the 
records are stored.

                                                FOIA Fee Schedule
----------------------------------------------------------------------------------------------------------------
                                                                              News media,
                                                                              educational
            Activity                     Rate           Commercial use       research, or       Other requester
                                                           requester          scientific
                                                                          research requester
----------------------------------------------------------------------------------------------------------------
(1) Professional search.........  $37.00 per hour...  Applies...........  Does not apply....  Applies. No charge
                                                                                               for first two
                                                                                               hours of
                                                                                               cumulative search
                                                                                               time.
(2) Professional review.........  $37.00 per hour...  Applies...........  Does not apply....  Does not apply.
(3) Clerical search.............  $16.35 per hour...  Applies...........  Does not apply....  Applies. No charge
                                                                                               for first two
                                                                                               hours of
                                                                                               cumulative search
                                                                                               time.
(4) Clerical review.............  $16.35 per hour...  Applies...........  Does not apply....  Does not apply.
(5) Programming services........  $35.00 per hour...  Applies...........  Does not apply....  Applies.
(6) Computer run time (includes   The direct cost of  Applies...........  Does not apply....  Applies.
 only mainframe search time not    conducting the
 printing).                        search.
(7) Duplication costs...........  $0.15 per page....  Applies...........  Applies. No charge  Applies. No charge
                                                                           for first 100       for first 100
                                                                           pages.              pages.
(8) Duplication costs--tape, CD   Actual Cost.......  Applies...........  Applies...........  Applies.
 ROM or diskette.
----------------------------------------------------------------------------------------------------------------


[[Page 6972]]

    (d) How does HUD assess review charges? HUD will assess review 
charges only for the first time it analyzes the applicability of a 
specific exemption to a particular record or portion of a record. HUD 
will not charge for its review at the administrative appeal level of an 
exemption already applied. If HUD has withheld in full a record or 
portions of a record under an exemption which is subsequently 
determined not to apply, HUD will assess charges for its review to 
determine the applicability of other exemptions not previously 
considered.
    (e) How does HUD handle multiple requests? If you, or others acting 
with you, make multiple requests at or about the same time for the 
purpose of dividing one request into a series of requests for the 
purpose of evading the assessment of fees, HUD will aggregate your 
requests for records. In no case will HUD give you more than the first 
two hours of search time, or more than the first 100 pages of 
duplication without charge.
    (f) Unsuccessful searches. If HUD's search for records is 
unsuccessful, HUD will still bill you for the search.
    (g) No charge for costs under $25. HUD will not charge you a fee if 
the total amount calculated under this section is less than $25.00.
    (h) Reducing fees in the public interest. If HUD determines that 
disclosure of the information you seek is in the public interest 
because it is likely to contribute significantly to public 
understanding of the operations or activities of the government, and 
that you are not seeking the information for your own commercial 
interests, HUD may waive or reduce the fee.
    (i) When do I pay the fee? HUD will bill you when it responds to 
your request. You must pay within thirty-one calendar days. If the fee 
is more than $250.00 or you have a history of failing to pay FOIA fees 
in a timely manner, HUD will ask you to remit the estimated amount and 
any past due charges before sending you the records.
    (j) What happens if I do not pay the fees? (1) If you do not pay by 
the thirty-first day after the billing date, HUD will charge interest 
at the maximum rate allowed under 31 U.S.C. 3717.
    (2) If you do not pay the amount due within ninety calendar days of 
the due date, HUD may notify consumer credit reporting agencies of your 
delinquency.
    (3) If you owe fees for previous FOIA responses, HUD will not 
respond to further requests unless you pay the amount due.
    (k) Contract services. HUD will contract with private sector 
sources to locate, reproduce and disseminate records in response to 
FOIA requests when that is the most efficient method. When doing so HUD 
will charge the cost to the requester that the private sector source 
has charged HUD for performing these tasks. In some instances, these 
costs may be higher than the charges HUD would ordinarily charge if the 
processing tasks had been done by the agency itself. In no case will 
HUD contract out responsibilities which the FOIA provides that HUD 
alone may discharge, such as determining the applicability of an 
exemption, or determining whether to waive or reduce fees. HUD will 
ensure that, when documents that would be responsive to a request are 
maintained for distribution by agencies operating statutory-based fee 
schedule programs such as the National Technical Information Service, 
HUD will inform requesters of the steps necessary to obtain records 
from those sources. Information provided routinely in the normal course 
of business will be provided at no charge.


Sec. 15.111  How do I appeal a denial of my request for records or a 
fee determination?

    (a) To what address do I submit my appeals? You must submit your 
appeal, in writing, to the address specified in HUD's notice responding 
to your FOIA request (see Sec. 15.106(a)(2)(iv)). If you send your 
appeal to the wrong HUD office, that office will forward it to the 
correct office. That office will also notify you that it has so 
forwarded your appeal and advise you that, for processing purposes, the 
time of receipt will be when the appropriate office receives your 
appeal.
    (b) How much time do I have to submit an appeal? Your written 
appeal must be postmarked within 30 calendar days of the date of the 
HUD determination from which you are appealing. If your appeal is 
transmitted by other than the United States Postal Service (i.e., 
facsimile, messenger or delivery service) it must be received in the 
appropriate office by close of business on the 30th calendar day after 
the date of the HUD determination.
    (c) What information must I provide if I am appealing a denial of 
request for information? If you are appealing a denial of your request 
for information, the appeal must contain the following information:
    (1) A copy of your original request;
    (2) A copy of the written denial of your request; and
    (3) Your statement of the facts and legal arguments supporting 
disclosure.
    (d) What information must I provide if I am appealing a fee 
determination? If you are appealing a fee determination, including a 
denial of your request for HUD to waive the fee, the appeal must 
contain the following information:
    (1) The address of the office which made the fee determination from 
which you are appealing;
    (2) The fee that office charged;
    (3) The fee, if any, you believe should have been charged;
    (4) The reasons you believe that your fee should be lower than the 
fee which the Agency charged or should have been waived; and
    (5) A copy of the initial fee determination and copies of any 
correspondence concerning the fee.
    (e) What information must I provide if I am appealing a denial of 
expedited processing? If you are appealing a denial of your request for 
expedited processing, your appeal must contain the following 
information:
    (1) A copy of your original request;
    (2) A copy of the written denial of your request; and
    (3) Your statement of the facts and legal arguments supporting 
expedited processing.


Sec. 15.112  How will HUD respond to my appeal?

    (a) How much time does HUD have to decide my appeal? HUD will 
decide your appeal of a denial of expedited processing within 10 
working days after its receipt. For any other type of appeal, HUD will 
decide your appeal within 20 working days after its receipt. HUD may 
have an additional 10 working days if unusual circumstances require.
    (b) What action will HUD take if it grants my appeal?
    (1) Appeal of a denial of request for information. If you are 
appealing a decision to deny your request for records, HUD will either:
    (i) Give you the records you requested or advise you that the 
records will be provided by the originating office;
    (ii) Give you some of the records you requested while declining to 
give you other records you requested, tell you why HUD has concluded 
that the documents were exempt from disclosure under FOIA, and tell you 
how to obtain judicial review of HUD's decision; or
    (iii) Decline to give you the records you requested, tell you why 
HUD has concluded that the records were exempt from disclosure under 
FOIA, and tell you how to obtain judicial review of HUD's decision.
    (2) Appeal of a fee determination. If you are appealing a fee 
determination, HUD will either:
    (i) Waive the fee or charge the fee that you have requested;
    (ii) Modify the original fee charged, and explain why it has 
determined that the modified fee is appropriate; or

[[Page 6973]]

    (iii) Advise you that the original fee charged was appropriate, and 
explain why it has determined that the fee is appropriate.
    (3) Appeal of a denial of expedited processing. If you are 
appealing a denial of your request for expedited processing, HUD will 
either:
    (i) Agree to expedited processing of your request; or
    (ii) Advise you that the decision to deny expedited processing has 
been affirmed, and tell you how to obtain judicial review of HUD's 
decision.

Subparts C, D, E, F, G, and J [Removed]

    5. Remove subparts C, D, E, F, G, and J.

    6. Redesignate subpart H, consisting of Secs. 15.71 through 15.74, 
as subpart C, consisting of Secs. 15.201 through 15.204, to read as 
follows:

Subpart C--Production In Response to Subpoenas or Demands of Courts 
or Other Authorities

Sec.
15.201   Purpose and scope.
15.202   Production or disclosure prohibited unless approved by the 
Secretary.
15.203   Procedure in the event of a demand for production or 
disclosure.
15.204   Procedure in the event of an adverse ruling.

    7. In newly designated Sec. 15.201, the undesignated paragraph is 
redesignated as paragraph (a) and a new paragraph (b) is added to read 
as follows:


Sec. 15.201  Purpose and scope.

* * * * *
    (b) The term ``legal proceeding'' has the meaning given in 
Sec. 15.301(b).


Sec. 15.203  [Amended]

    8. In newly designated Sec. 15.203(a), revise the reference to 
``Sec. 15.71'' to read ``Sec. 15.201''.


Sec. 15.204  [Amended]

    9. In newly designated Sec. 15.204, revise the reference to 
``Sec. 15.73(b)'' to read ``Sec. 15.203(b)''.


Secs. 15.81 through 15.85  [Redesignated as Secs. 15.301 through 
Secs. 15.305]

    10. Redesignate subpart I, consisting of Secs. 15.81 through 15.85, 
as subpart D, consisting of Secs. 15.301 through 15.305, to read as 
follows:

Subpart D--Testimony of Employees in Legal Proceedings

Sec.
15.301   Purpose.
15.302   Testimony in proceedings in which the United States is a 
party.
15.303   Legal proceedings among private litigants; general rule.
15.304   Legal proceedings among private litigants; subpoenas.
15.305   Legal proceedings among private litigants; expert or 
opinion testimony.


Sec. 15.304    [Amended]

    11. In newly designated Sec. 15.304, revise the reference to 
``Secs. 15.71-15.74'' to read ``Secs. 15.201 through 15.204''.

    12. Add appendix A to part 15 to read as follows:

Appendix A to Part 15

HUD FOIA Reading Rooms

    The Department maintains a reading room in Headquarters, 451 
Seventh Street, SW., Washington, DC 20410 and in each of its 
Secretary's Representative's Offices as follows:
    New England, Boston Office--Room 375, Thomas P. O'Neill, Jr. 
Federal Building, 10 Causeway Street, Boston, Massachusetts 02222-
1092. The New England Office oversees jurisdiction for HUD Offices 
located in Maine, New Hampshire, Vermont, Massachusetts, 
Connecticut, and Rhode Island.
    New York/New Jersey, New York Office--26 Federal Plaza, New 
York, New York 10278-0068. The New York/New Jersey Office oversees 
jurisdiction for HUD Offices located in New York and New Jersey.
    Mid Atlantic, Philadelphia Office--Liberty Square Building, 105 
South 7th Street, Philadelphia, Pennsylvania 19106-3392. The Mid 
Atlantic Office oversees jurisdiction for HUD Offices located in 
Pennsylvania, Delaware, Maryland, Virginia, and West Virginia.
    Southeast/Caribbean, Atlanta Office--Five Points Plaza Building, 
40 Marietta St., Atlanta, Georgia 30303. The Southeast/Caribbean 
Office oversees jurisdiction for HUD Offices located in Kentucky, 
Tennessee, North Carolina, South Carolina, Georgia, Alabama, 
Mississippi, Florida, and Puerto Rico.
    Midwest, Chicago Office--Ralph Metcalfe Federal Building, 77 
West Jackson Boulevard, Chicago, Illinois 60604-3507. The Midwest 
Office oversees jurisdiction for HUD Offices located in Illinois, 
Indiana, Ohio, Michigan, Wisconsin, and Minnesota.
    Southwest, Fort Worth Office--Burnett Plaza Building, 801 Cherry 
Street, Fort Worth, Texas 76102. The Southwest Office oversees 
jurisdiction for HUD Offices located in Oklahoma, Texas, Arkansas, 
Louisiana, and New Mexico.
    Great Plains, Kansas City Office--Room 200, Gateway Tower II, 
400 State Avenue, Kansas City, Kansas 66101-2406. The Great Plains 
Office oversees jurisdiction for HUD Offices located in Missouri, 
Iowa, Kansas, and Nebraska.
    Rocky Mountain, Denver Office--633 17th Street, Denver, Colorado 
80202-3607. The Rocky Mountain Office oversees jurisdiction for HUD 
Offices located in Colorado, Utah, Wyoming, North Dakota, South 
Dakota, and Montana.
    Pacific/Hawaii, San Francisco Office--Philip Burton Federal 
Building & U.S. Courthouse, 450 Golden Gate Avenue, PO Box 36003, 
San Francisco, California 94102-3448. The Pacific/Hawaii Office 
oversees jurisdiction for HUD Offices located in California, Nevada, 
Arizona, and Hawaii.
    Northwest/Alaska, Seattle Office--Suite 200, Seattle Federal 
Office Building, 909 First Avenue, Seattle, Washington 98104-1000. 
The Northwest/Alaska Office oversees jurisdiction for HUD Offices 
located in Alaska, Washington, Oregon, and Idaho.

    Dated: January 9, 2001.
Andrew Cuomo,
Secretary.
[FR Doc. 01-1397 Filed 1-19-01; 8:45 am]
BILLING CODE 4210-33-P