[Federal Register Volume 61, Number 121 (Friday, June 21, 1996)]
[Rules and Regulations]
[Pages 32268-32269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15736]




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Part VI





Department of Housing and Urban Development





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24 CFR Part 570



Community Development Block Grant (CDBG) Program: Small Cities and 
Insular Areas; Final Rule

Federal Register / Vol. 61, No. 121 / Friday, June 21, 1996 / Rules 
and Regulations

[[Page 32268]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR-4048-F-01]
RIN 2506-AB81


Office of the Assistant Secretary for Community Planning and 
Development, Community Development Block Grant (CDBG) Program: Small 
Cities and Insular Areas

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Final rule.

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SUMMARY: This final rule amends the Department's regulations for the 
Community Development Block Grant (CDBG) Program for Small Cities and 
Insular Areas. This rule will streamline the reporting requirements for 
Insular Area grant recipients and will clarify the requirements for 
Small Cities grantees in Hawaii to amend their programs with regard to 
grants received prior to Fiscal Year 1995.

EFFECTIVE DATE: These regulations take effect on July 22, 1996. 
However, the information collection requirements in Sec. 570.405(e)(4) 
of this rule will not be effective until the Office of Management and 
Budget (OMB) has approved them under the Paperwork Reduction Act of 
1995 and assigned them a control number. Publication of the control 
numbers notifies the public that OMB has approved these information 
collection requirements.

FOR FURTHER INFORMATION CONTACT: Stephen M. Rhodeside, State and Small 
Cities Division, Office of Community Planning and Development, 
Department of Housing and Urban Development, Room 7184, 451 Seventh 
Street, SW, Washington, DC 20410; telephone (202) 708-1322. (This is 
not a toll-free number.) Hearing- or speech-impaired persons may access 
this number via TTY by calling the Federal Information Relay Service at 
1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act

    The information collection requirements in Sec. 570.430(f) of this 
rule have been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2506-0020. The Department has 
begun the process of seeking OMB approval for the information 
collection requirements referred to in Sec. 570.405(e)(4) of this rule; 
the Department published a notice requesting comments on these 
requirements on June 3, 1996 (61 FR 27926). These requirements will not 
be effective until OMB has approved them and assigned them a control 
number. 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.

II. Background

A. Insular Areas Program--Annual Performance Reports

    This final rule amends the Department's regulations on performance 
reports for grant recipients under the Insular Areas program. The 
purpose of the Insular Areas program is to provide funds according to 
HUD-established criteria to Guam, the Virgin Islands, American Samoa, 
the Trust Territory of the Pacific Islands, and the Commonwealth of the 
Northern Mariana Islands. The reporting requirement that was effective 
prior to this final rule has been in effect for the Insular Areas 
program since 1985, and it is extremely prescriptive. In order to 
increase reporting flexibility and to reduce unnecessary paperwork, 
this final rule eliminates the specific reporting requirements from the 
regulations. However, to ensure that citizens are involved in the 
process, Sec. 570.405(e)(4) will provide that Sec. 570.405(h)(1)(iv) 
continues to apply to performance reports submitted by Insular Area 
grant recipients.
    The modification to the reporting requirement in this final rule 
will permit the Department to eliminate the unnecessary environmental 
status report, and will enable the Department to streamline reporting 
requirements as necessary without amending the regulations. This will 
help make the Department more responsive to the Insular Area grantees.

B. Small Cities Program

1. Program Amendments (Hawaii)
    On December 27, 1994 (59 FR 66594), the Department published a 
final rule revising its regulations in 24 CFR part 570, subpart F for 
the Community Development Block Grant (CDBG) Small Cities Program. The 
purpose of the program is to provide discretionary CDBG funds to units 
of general local government in those States that have not elected to 
assume administration of the CDBG formula allocations. The December 27, 
1994 final rule amended the regulations to recognize several statutory 
amendments and to reflect more accurately the nature of the program. 
Specifically, the rule addressed the Department's administration of the 
Small Cities Program in Hawaii and New York.
    On January 5, 1995 (60 FR 1878), the Department published a final 
rule for the Consolidated Submission for Community Planning and 
Development Programs (the Consolidated Plan rule). The Consolidated 
Plan rule replaced the Comprehensive Housing Affordability Strategies 
(CHAS) provisions with a consolidated submission of the planning and 
application aspects of several of the Department's Community Planning 
and Development programs, including the CDBG program. This rule 
provided that Hawaii grantees must submit consolidated plans for grants 
beginning in Fiscal Year (FY) 1995 (see Sec. 570.429(f)). However, the 
Department inadvertently failed to provide requirements for program 
amendments with regard to grants received prior to FY 1995. Therefore, 
this final rule amends Sec. 570.430 by adding a new paragraph (f), 
which provides that Hawaii grantees must follow the consolidated plan 
requirements in Sec. 91.505 when amending their programs for pre-FY 
1995 grants, as well as for grants beginning in FY 1995.
    Since HUD did not require grantees to submit consolidated plans 
prior to FY 1995, they would be unable to apply criteria for 
substantial amendment and citizen participation requirements from their 
consolidated plans for the pre-1995 funding. Therefore, the new 
paragraph (f) provides that the grantees must use their current citizen 
participation plan for these purposes.
2. Technical Amendment
    This final rule also makes a technical amendment to the reporting 
regulations for the Small Cities program. Section 570.507(a)(2) 
provides the requirements for performance and evaluation reports for 
HUD-administered Small Cities recipients in New York. In the December 
27, 1994 final rule (59 FR 66594), HUD decided to treat the Hawaii 
recipients under the Small Cities program very much like entitlement 
recipients, starting in FY 1995. However, Hawaii recipients must submit 
a performance and evaluation report for pre-FY 1995 grants, as required 
by Sec. 570.507(a)(2)(ii)(B). Therefore, this document amends the 
heading of paragraph (a)(2) to reflect that its requirements apply both 
to New York recipients and to Hawaii recipients in certain 
circumstances.

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III. Justification for Final Rulemaking

    The Department generally publishes a rule for public comment before 
issuing a rule for effect, in accordance with its 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). The Department 
finds that good cause exists to publish this rule for effect without 
first soliciting public comment. This rule merely clarifies the 
amendment procedures for Hawaii grantees and streamlines the reporting 
requirements for Insular Area grantees. Therefore, prior public comment 
is unnecessary.

IV. Other Matters

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
was made in accordance with HUD regulations in 24 CFR part 50 
implementing section 102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332). The finding 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 General Counsel, Room 10276, 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Washington, DC.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this final rule, and in doing 
so certifies that this rule will not have a significant economic impact 
on a substantial number of small entities. This rule merely clarifies 
the program amendment procedures for Hawaii grantees and streamlines 
the reporting requirements for Insular Area grantees. The rule will 
have no adverse or disproportionate economic impact on small 
businesses.

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. No programmatic or policy changes 
will result from this rule that would substantially affect the 
relationship between the Federal Government and State and local 
governments.

Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule will not have 
the potential for significant impact on family formation, maintenance, 
or general well-being, and thus is not subject to review under the 
Order. No significant change in existing HUD policies or programs will 
result from promulgation of this rule.

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, for the reasons stated in the preamble, 24 CFR part 
570 is amended as follows:

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

    1. The authority citation for 24 CFR part 570 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 5300-5320.

    2. In subpart E, Sec. 570.405 is amended by revising paragraph 
(e)(4), to read as follows:


Sec. 570.405  The insular areas.

* * * * *
    (e) * * *
    (4) Grant recipients must submit to HUD an annual performance 
report on progress achieved on previously funded grants. Grant 
recipients must submit the report at a time and in a format determined 
by HUD. The report should be made available to citizens in accordance 
with the requirements of paragraph (h)(1)(iv) of this section.
* * * * *
    3. In subpart F, Sec. 570.430 is amended by adding a new paragraph 
(f), to read as follows:


Sec. 570.430  Hawaii program operation requirements.

* * * * *
    (f) Program amendments for grants received prior to FY 1995. 
Grantees must follow the requirements of Sec. 91.505 of this title when 
amending their program with regard to grants received prior to FY 1995. 
For purposes of this paragraph (f), the term ``consolidated plan'' as 
used in Sec. 91.505 of this title means an application submitted under 
the Hawaii program for pre-FY 1995 funds. Also for purposes of this 
paragraph (f), to comply with the requirements of Sec. 91.505 of this 
title, grantees must refer to their current citizen participation plans 
(adopted in accordance with Sec. 91.505 of this title) to determine the 
criteria for substantial amendment and the citizen participation 
process to be followed.

(Approved by the Office of Management and Budget under control 
number 2506-0020.)

    4. Section 570.507 is amended by revising the heading of paragraph 
(a)(2), to read as follows:


Sec. 570.507  Reports.

    (a) * * *
    (2) HUD-administered Small Cities recipients in New York, and 
Hawaii recipients for pre-FY 1995 grants.
* * * * *
    Dated: May 10, 1996.
Andrew Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-15736 Filed 6-20-96; 8:45 am]
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