25124 Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Rules and Regulations

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

Office of Assistant Secretary for

Community Planning and

Development

24 CFR Part 585

[Docket No. FR–4038–I–01]

RIN 2506–AB79

Opportunities for Youth: Youthbuild

Program

AGENCY: Office of the Assistant

Secretary for Community Planning and

Development, HUD.

ACTION: Interim rule.

SUMMARY: The Youthbuild program is

one of many HUD programs that directly

invests in distressed communities, and

opportunities to further the goals of the

program and stimulate community

investment and support for the

Youthbuild program must be

encouraged. This interim rule amends

the regulations for the Youthbuild

Program to define administrative costs

for which Youthbuild funds may be

expended.

DATES: Effective Date: June 17, 1996.

Comments Due Date: July 1, 1996.

ADDRESSES: Interested persons are

invited to submit comments regarding

this interim rule to Rules Docket Clerk,

Office of General Counsel, Room 10276,

Department of Housing and Urban

Development, 451 Seventh Street SW.,

Washington, D.C. 20410–0500.

Communications should refer to the

above docket number and title.

Facsimile (FAX) comments are not

acceptable. A copy of each

communications submitted will be

available for public inspection and

copying between 7:30 a.m. and 5:30

p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: The

Office of Economic Development,

Department of Housing and Urban

Development, Room 7136, 451 Seventh

Street SW., Washington, DC 20410.

Telephone (202) 708–2035; TYY (202)

708–1455. (These telephone numbers

are not toll-free.)

SUPPLEMENTARY INFORMATION:

Background

Section 164 of the Housing and

Community Development Act of 1992

(Pub.L. 102–550) amended title IV of the

National Affordable Housing Act (42

U.S.C. 1437aaa) to add a new subtitle D

which established the Youthbuild

program. On February 21, 1995, the

Department published a final rule at 60

FR 9734, which is codified at 24 CFR

Part 585. This interim rule is intended

to further address the use of Youthbuild

funds for administrative costs, including

overhead and salaries and wages

associated with an implementation

grant.

The Department believes that the

Youthbuild program is a valuable tool to

promote job skills, neighborhood

revitalization and economic self

sufficiency and recognizes the need to

staff these programs with competent

personnel to provide education and

training, and other support services to

an ever growing population of

disadvantaged youths. The Department

and Youthbuild grantees now have

valuable program experience in cost

efficient ways of meeting the program’s

mission, delivering quality training and

services, and serving more youth

successfully. These times of shrinking

Federal resources make it even more

imperative that Youthbuild funds

benefit the greatest number of youths.

Examples of ways Youthbuild grantees

have limited overhead expense include

eliminating some administrative

positions and assigning tasks to other

personnel, physically locating the

program in an existing facility, utilizing

the expertise and experience of other

programs and organizations, paying

administrative costs with other funds,

using existing equipment from other

programs, and securing non-federal

matching funds to cover administrative

costs. These examples demonstrate that

partnerships with other public and

private organizations in the community

can be one of the keys to an effective

program.

The Youthbuild program is one of

many HUD programs that directly

invests in distressed communities, and

opportunities to further the goals of the

program and stimulate community

investment and support for the

Youthbuild program must be

encouraged. Numerous Youthbuild

grantees have been particularly

innovative in establishing partnerships

with local organizations such as

educational institutions, training

organizations, apprenticeship programs,

social agencies, foundations and local

governments, and adopting innovative

and creative ways of delivering program

services.

This interim rule will affect only

future grant awards.

Justification for Interim Rulemaking

HUD generally publishes a rule for

public comment before issuing a rule for

effect, in accordance with HUD’s own

regulations on rulemaking in 24 CFR

part 10. However, part 10 provides for

exceptions to the general rule if 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).

HUD finds that good cause exists to

publish this rule for effect without first

soliciting public comment, in that prior

public comment is contrary to the

public interest. This rule ensures direct

program benefits for the maximum

number of disadvantaged youths.

Further, by letter dated December 6,

1995, the Department asked all

Youthbuild implementation grantees to

describe innovative ways to limit

overhead expenses as well as

suggestions for measuring success. This

rule takes into consideration those

suggestions. Therefore, the Department

believes that a 45-day public comment

period is more than adequate in light of

the compelling need to finalize the

Department’s policy for limiting

overhead expenses.

Other Matters

(a) Environmental Impact. A Finding

of No Significant Impact with respect to

the environment for this interim rule

has been made in accordance with HUD

regulations at 24 CFR part 50, which

implement section 102(2)(C) of the

National Environmental Policy Act of

1969. The Finding of No Significant

Impact is available for public inspection

between 7:30 a.m. and 5:30 p.m.

weekdays in the Office of the Rules

Docket Clerk, Office of the General

Counsel, Department of Housing and

Urban Development, Room 10276, 451

Seventh Street SW., Washington, D.C.

20410.

(b) Regulatory Flexibility Act. The

Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)), has reviewed this interim rule

before publication and by approving it

certifies that this interim rule would not

have a significant economic impact on

a substantial number of small entities

because the Youthbuild program affects

primarily economically disadvantaged

young adults by providing assistance for

a wide range of multi-disciplinary

activities to assist those young adults.

The opportunities are designed to help

disadvantaged young adults who have

dropped out of high school to obtain the

education and employment skills

necessary to achieve economic selfsufficiency and develop leadership

skills and a commitment to community

development in low-income

communities. It is anticipated that this

interim rule will increase the number of

young adults receiving assistance under

federally-funded Youthbuild programs.
Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Rules and Regulations 25125

(c) Executive Order 12612,

Federalism. The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that this interim rule does

not have ‘‘federalism implications’’

because it does not have substantial

direct effects on the States (including

their political subdivisions), or on the

distribution of power and

responsibilities among the various

levels of government.

(d) Executive Order 12606, The

Family. The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has

determined that some of the policies of

this interim rule would have a potential

significant impact on family formation,

maintenance, and general well-being.

The expected expansion of

opportunities to economically

disadvantaged young adults to enhance

their education and employment skills

will provide a positive impact on the

family maintenance and general wellbeing. However since the impact on the

family is beneficial and the interim rule

involves very little HUD discretion, no

further review is necessary.

(e) Catalog of Federal Domestic

Assistance. The Catalog of Federal

Domestic Assistance Program number

assigned to this program is 14.243.

List of Subjects in 24 CFR Part 585

Grant programs—housing and

community development, Homeless,

Low- and very low-income families,

Reporting and recordkeeping

requirements.

Accordingly, for the reasons set forth

in the preamble, part 585 of title 24 of

the Code of Federal Regulations is

amended as follows:

PART 585—YOUTHBUILD PROGRAM

1. The authority citation for part 585

continues to read as follows:

Authority: 42 U.S.C. 3535(d) and 8011.

2. In § 585.305, paragraph (m) is

amended to add new paragraphs (m)(1)

and (m)(2), to read as follows:

§ 585.305 Eligible activities.

* * * * *

(m) * * *

(1) Administrative costs. The amount

of Youthbuild funds used to pay the

following costs, in whole or in part,

must be charged as administrative costs:

(i) Salaries, wages and related costs of

the grantee’s staff or other staff who are

primarily engaged in general program

administration and oversight.

Youthbuild funded staff presumed to be

primarily engaged in general program

administration and oversight include

the executive director, the program

manager, the fiscal officer, the secretary

and the administrative or program

assistant. However, a grantee may

provide evidence to rebut this

presumption for an individual case.

(ii) Other costs for goods and services

required for the program, such as rental

or purchase of vehicles, office supplies

and equipment, utilities, insurance,

legal, staff training, rental and

maintenance of office space, mailing,

advertising, technical assistance and

fund raising.

(2) Further restrictions on the use of

Youthbuild funds. (i) Further

restrictions may be imposed if the

Department determines, based on

information readily available that:

(A) Costs are not sufficiently itemized;

(B) The amount of program funds for

trainee wages and benefits, including

need-based stipends, benefits,

incentives, tools and work clothes and/

or the number of Youthbuild

participants served are low in

comparison to other comparable

programs;

(C) The participant training period is

shorter than that in other comparable

programs;

(D) Alternative use of funds for

eligible activities would be in the

overall interest of the Youthbuild

program.

(ii) Restrictions include, but are not

limited to, limitations on the use and

availability of grant funds, reallocation

of Youthbuild program budget, or

cancellation of grant.

Dated: April 24, 1996.

Andrew M. Cuomo,

Assistant Secretary for Community Planning

and Development.

[FR Doc. 96–12425 Filed 5–16–96; 8:45 am]

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