[Federal Register Volume 59, Number 42 (Thursday, March 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4824]


[[Page Unknown]]

[Federal Register: March 3, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Community Planning and Development
[Docket No. N-94-3724]

 

Submission of Proposed Information Collection to OMB

AGENCY: Office of Community Planning and Development, HUD.

ACTION: Notice; Request for public comments.

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

SUMMARY: The proposed information collection requirement for a survey 
on the use of Community Development Block Grant (CDBG) funds in 
promoting the development of microenterprises, has been submitted to 
the Office of Management and Budget (OMB) for review as required by the 
Paperwork Reduction Act. This survey is to be used to prepare a report 
directed by Congress for HUD to complete in the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, section 807(C)(4)).
    The Department is soliciting public comments on the subject 
proposal for a period of seven (7) days. An expedited comment period is 
necessary to permit the collection of information needed for the report 
to Congress which is due by the end of April, 1994.

DATES: Comment due date: March 10, 1994.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal by March 10, 1994. Comments should refer to this proposal 
by name and should be sent to: Joseph F. Lackey, Jr., OMB Desk Officer, 
Office of Management and Budget, New Executive Office Building, 
Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT:
Kay Weaver, Reports Management Officer, Department of Housing and Urban 
Development, 451 7th Street, Southwest, Washington, DC 20410. 
Telephone: (202) 708-0050 (this is not a toll-free number). Copies of 
the proposed forms and other available documentation submitted to OMB 
may be obtained from Mrs. Weaver.

SUPPLEMENTARY INFORMATION: The Department has submitted the proposal 
for the collection of information, as described below, to OMB for 
review, as required by the Paperwork Reduction Act (44 U.S.C. Chapter 
350). It is also requested that OMB complete its review within 30 days.
    The notice lists the following information: (1) The Title of the 
information collection proposal; (2) the office of the agency to 
collect the information; (3) the description of the need for the 
information and its proposed use; (4) the agency form numbers, if 
applicable; (5) what members of the public will be affected by the 
proposal; (6) how frequently information submissions will be required; 
(7) an estimate of the total number of hours needed to prepare the 
information collection, including respondents, frequency of response, 
and hours of response; (8) whether the proposal is new or an extension, 
reinstatement or revision of an information collection requirement; and 
(9) the name and telephone number of an agency official familiar with 
the proposal and of the OMB Desk Officer for the Department.


    Authority: Section 3507 of the Paperwork Reduction Act, 44 
U.S.C. 3507, Section 7(d) of the Department of Housing and Urban 
Development Act, 42 U.S.C. 35359d.

    Dated: February 17, 1994.
Kenneth C. Williams,
Deputy Assistant Secretary for Grant Programs.

Submission of Proposed Information Collection to OMB

    Proposal: Request for expedited approval of a survey needed to 
complete a report to Congress on the use of Community Development Block 
Grant (CDBG) Funds in promoting the development of microenterprises.
    Office: Office of the Assistant Secretary for Community Planning 
and Development.
    Description of the Need for the Information and Its Proposed Use: 
In the Housing and Community Development Act of 1992 (Pub. L. 102-550), 
Congress directed that HUD report on the effectiveness of CDBG funds in 
promoting the development of microenterprises [Section 807(C)(4)]. This 
report is due to Congress the end of April, 1994 (within eighteen 
months after date of enactment of the Act). The report is to contain 
not only an analysis of the effectiveness of the use of CDBG funds in 
promoting the development of microenterprises, but a review of any 
statutory or regulatory provisions that impede such development.
    A review of information available with the Department of Housing 
and Urban Development indicates that insufficient information is 
available to effectively respond to Congress' request. Two survey 
instruments have been prepared to be administered via telephone to the 
entire universe of CDBG grantees (both entitlements and states) and to 
a purposive sample of microenterprise intermediary organizations. This 
survey approach is expected to provide useful and usable data regarding 
both entities that fund microenterprises and those that do not as well 
as provide greater insights into an existing statutory and/or 
regulatory impediments.
    Respondents: Units of general local governments and states 
receiving CDBG funds in Fiscal Year 1993 and a selected sample of 20 
microenterprise intermediary organizations (taken from the 1992 
Membership Directory for the Association for Enterprise Opportunity).
    Frequency of Response: This is a one-time information collection 
effort.
    Reporting Burden:

------------------------------------------------------------------------
                                          Estimated                     
                                            No. of    Estimated   Total 
                Survey                   respondents    time      burden
                                                                  hours 
------------------------------------------------------------------------
Grantees...............................        897       \1/2\          
                                                          hour     448.5
Microenterprise Intermediary                                            
 Organizations.........................         20       \1/2\          
                                                          hour      10.0
                                                                        
    Total respondent burden............        917       \1/2\          
                                                          hour     458.5
------------------------------------------------------------------------

    Status: This is a one-time collection effort for a report to 
Congress.
    Contact: Barbara Neal, HUD (202) 708-1577.

    Dated: February 17, 1994.

Supporting Statement for Collection of Information Community 
Development Block Grant (CDBG) Microenterprise Report

Part A. Justification

1. Circumstances That Make the Collection of Information Necessary
    Section 807(c)(4) of the Housing and Community Development Act of 
1992 requires the Department of Housing and Urban Development (HUD) to 
submit to Congress a report on the effectiveness of the use of CDBG 
funds in promoting development of microenterprises, including a review 
of any statutory or regulatory provision that impedes their 
development. A microenterprise is defined by the 1992 Act to be a 
commercial enterprise that has five or fewer employees, one or more of 
whom owns the enterprise. HUD does not require grantees to report on 
the size of the businesses receiving CDBG assistance and thus has only 
very limited information currently available on this issue.
2. Purpose and Use of the Information
    This survey is being undertaken in an effort to provide HUD with 
current, relevant information regarding the actual experiences of 
community and economic development practitioners in this area for the 
Department's consideration in the preparation of the required report to 
Congress. Such information will contribute to a more accurate appraisal 
of microenterprise activities. If the survey is not conducted, the 
report to Congress will clearly fail to fully address all relevant 
statutory or regulatory provisions that serve to impede the effective 
use of CDBG funds for microenterprise activities.
3. Use of Information Technology to Reduce Burden
    HUD computerized files of Grantee Performance Report (GPR) data had 
been used to determine a potential sampling frame of grantees for the 
survey. However, the information provided only limited facts that 
indicated a sampling frame of grantees would not provide adequate 
information for the report to Congress. In order to respond most 
effectively to the intent of the report, HUD needs information on 
grantees that fund microenterprises, those which do not and what, if 
any, impediments exist. The GPR data is not a reliable basis for 
providing this data.
4. Efforts to Identify Duplication
    Efforts have been made to identify possible duplication and avoid 
it by reviewing GPR data files and information available in reports by 
interest groups.
5. Availability of Similar Information
    There is no systematic and uniform source of information about the 
effectiveness of CDBG assistance in promoting the development of 
microenterprises, nor about any existing statutory or regulatory 
impediments. Information on type of grantee (state, urban county, unit 
of general local government) and size of 1993 entitlement grant can be 
obtained through HUD's existing data base. Other than that, however, 
and as stated above, GPR data files provide limited information. They 
are most useful in identifying grantees that are making small dollar-
value CDBG loans or grants to for-profit businesses. Such information 
suggests that these activities are to assist microenterprises. The GPR 
files do not, however, provide much qualitative information regarding 
the nature of the activities or any statutory or regulatory impediments 
that the respective grantees had to overcome in designing such 
activities. Reports prepared by microenterprise interest groups provide 
some information of this type, but it is limited. Perceived statutory 
or regulatory impediments identified by some of these entities need to 
be corroborated by obtaining information from actual practitioners.
6. Effort To Minimize the Burden for Small Entities
    Most of the information collection does not involve small entities. 
Some of the nonprofit intermediary organizations responding to the 
survey, however, may have small staffs. Efforts have been made to 
minimize the burden for such entities in the following ways:
    a. By making this a one-time information-collection effort;
    b. By collecting the data through telephone interviews, rather than 
self-administered questionnaires. The survey is expected to take less 
than 30 minutes;
    c. By designing the survey in a manner that will not require 
retrieving detailed activity information from case files or performing 
extensive calculations or analysis of data.
    The overall purpose of the survey is to provide HUD with the most 
current, relevant information so that its required report to Congress 
may best address any impediments to using CDBG funds for the 
development of microenterprises. The input of small entities should 
serve to provide invaluable input as to any existing statutory and/or 
regulatory barriers that would serve to benefit all microenterprises.
7. Consequence of Less Frequent Information Collection
    This is a one-time collection of information. Therefore, less 
frequent collection of data is not an issue.
8. Inconsistency With 5 CFR 1320.6
    The proposed data collection plan is consistent with the guidelines 
set forth in 5 CFR 1320.6 (Controlling Paperwork Burdens on the 
Public--General Information Collection Guidelines). There are no 
circumstances that require deviation from these guidelines.
9. Consultation Outside of the Agency
    HUD has discussed the type of information to be obtained through 
the survey with the National Community Development Association at the 
NCDA Legislative Conference on January 18, 1993. NCDA represents CDBG 
entitlement grantees.
10. Assurances of Confidentiality
    The data requested is not considered to be of a confidential 
nature. No data on individual CDBG grantees or intermediary 
organizations will be made available outside the agency without the 
prior written consent of the appropriate party. The report to Congress 
will analyze and aggregate the data received and will not include 
identifiers linking back to individuals.
11. Questions of Sensitive Nature
    There are no questions of a sensitive nature in this survey.
12. Estimated Cost to the Federal Government and to Respondents

----------------------------------------------------------------------------------------------------------------
                                                                                     Average                    
                                               Number of     x    Estimated    x      hourly     =   Total costs
                                              respondents           hours             rates                     
----------------------------------------------------------------------------------------------------------------
Grantees (States and Local Governments)...             897        \1/2\ hour            $15.00         $6,727.50
Microenterprise Intermediary Organizations              20        \1/2\ hour             10.00            100.00
Federal Government:                                                                                             
    Operational expenses (staff)..........  ..............                20             15.00            300.00
        Printing..........................  ..............       ...........       ...........            100.00
        Postage...........................  ..............       ...........       ...........            265.00
                                                                                                          665.00
    Survey completion and analysis........  ..............               575             15.00          8,625.00
                                                                                                        9,290.00
----------------------------------------------------------------------------------------------------------------

13. Respondent Burden
    There will be two categories of respondents: CDBG grantees (states 
and entitlement) and microenterprise intermediary organizations. Two 
separate survey forms, one tailored for each group, have been designed. 
Telephone surveys will be administered to all 897 CDBG entitlement and 
state grantees and a selected sample of 20 respondents in the 
microenterprise intermediary organization category. Most of the survey 
questions are straight-forward and will not require much research or 
analysis by the respondents. Those questions dealing directly with 
perceived impediments to assisting microenterprises with CDBG funds 
will require the most time on the part of respondents. Still, the 
majority of respondents should be able to answer these questions with 
minimal research and preparation. Thus, it is anticipated that the 
phone survey will take each respondent approximately less than one-half 
hour to answer. The surveys will be mailed to the respondents in 
advance to familiarize them with the type of information being sought 
to complete the report to Congress.
      

------------------------------------------------------------------------
                                    Estimated                           
                                      No. of     Estimated      Total   
              Survey               respondents      time        burden  
                                                                hours   
------------------------------------------------------------------------
Grantees.........................          897   \1/2\ hour        448.5
Microenterprise Intermediary,                                           
 Organizations...................           20   \1/2\ hour         10.0
                                                                        
      Total respondent burden....          917   \1/2\ hour        458.5
------------------------------------------------------------------------

14. Reasons for Changes in Burden
    This is a new information collection effort; therefore, this 
section is not applicable.
15. Publication for Statistical Use
    HUD will analyze the information obtained through the surveys to 
determine common issues and problems encountered by community and 
economic development practitioners in undertaking microenterprise 
activities with CDBG funds. Data will be analyzed by grantee type, 
regional identity and size of grant in determining if common issues and 
problems exist. HUD will rely on the evaluation of the survey data in 
preparing its required report to Congress.
    Assuming approval from OMB is received no later than March 15, 
1994, the surveys would be mailed no later than March 18, 1994. The 
follow-up telephone survey is expected to begin March 24 and be 
completed no later than April 6, 1994. Analysis of the data and 
preparation of the report, pursuant to Section 807(c)(4) of the 1992 
Act, would be completed by April 29, 1994 and forwarded to Congress 
thereafter.

Part B. Collections of Information Employing Statistical Methods

1. Potential Respondent Universe
    Two target populations are of interest to this survey: CDBG 
grantees and microenterprise intermediary organizations. The data 
collection approach employs two, statistical methods: A universe of 897 
CDBG grantees (states and entitlements) and a purposive sample of 20 
microenterprise intermediary organizations. Telephone interviews for 
this group of 917 will be attempted and it is expected that 807 grantee 
and 18 intermediary organization interviews will be completed for a 90% 
response rate. 

------------------------------------------------------------------------
                                                    Expected            
                               Target    Expected   response   Completed
     Target population       population   sample      rate     telephone
                                size       size    (percent)  interviews
------------------------------------------------------------------------
Grantees...................     \1\897        897        90         807 
Microenterprise                                                         
 Intermediary Organizations     \1\183         20        90          18 
------------------------------------------------------------------------
\1\Based on 1993 CDBG funding allocations.                              
\2\Based on 1992 Membership Directory for the Association for Enterprise
  Opportunity.                                                          

2. Procedures for Collection of Information
    a. Universe/Sample Stratification and Selection. HUD intends to 
survey all CDBG grantees because of the need to have information on 
grantees that fund microenterprise organizations and those that do not; 
there is no sampling frame that provides this information prior to 
conducting the survey. For instance, if a sample of CDBG grantees was 
drawn and the survey indicated that few of these grantees funded 
microenterprises, it would provide little information to permit an 
analysis of the effectiveness of the use of CDBG funds in promoting the 
development of microenterprises.
    A purposive sample of 20 intermediary organizations will be 
selected from those listed in the 1992 Association for Enterprise 
Opportunity Membership Directory. The sample will be selected on the 
basis of type of intermediary organization (cooperatives/non-profit 
enterprises, enterprise development organizations, financial 
intermediaries, and technical assistance providers/consultants) and 
geographic region to help ensure that the selected sample offers 
representation and variability on these characteristics.
    b. Estimation Procedure. Not applicable.
    c. Degree of Accuracy. Assuming a 90% response rate from grantees 
and that nonresponse is random, the grantee survey will yield very good 
estimates even if the proportion of grantees who fund microenterprises 
is small. The sample of intermediary organizations is not a statistical 
sample.
    d. Unusual Problems Requiring Specialized Sampling Procedures. No 
specialized sampling procedures are required.
    e. Use of Periodic Data Collection Cycles to Reduce Burden. This is 
a one-time data collection effort.
3. Methods to Maximize Response Rates
    In an effort to maximize response rates, a copy of the survey 
instrument will be mailed to all respondents prior to the telephone 
survey in order to familiarize them with its content.
4. Tests of Procedures to be Undertaken
    Input has been received from HUD's Office of Policy Development and 
Research (PD & R) in order to fine-tune the survey instrument and 
permit the collection of information needed for the report to Congress.
5. Persons Involved in the Survey
    Individual consulted on the statistical aspect of the survey 
instrument: Kevin Neary, HUD's PD & R Program Evaluation Division (202-
708-0574).
    Individual responsible for completion of report: Barbara Neal, 
HUD's Office of Community Planning and Development, Entitlement 
Communities Division (202-708-1577).

Grantee Survey for HUD Microenterprise Report

    Section 807(c)(4) of the Housing and Community Development Act of 
1992 (``1992 Act'') requires the Department of Housing and Urban 
Development (HUD) to submit to Congress a report on the effectiveness 
of the use of Community Development Block Grant (CDBG) funds in 
promoting development of microenterprises, including a review of any 
statutory or regulatory provision that impedes their development. This 
survey is being undertaken in an effort to provide HUD with current, 
relevant information regarding the actual experiences of community and 
economic development practitioners in this area for the Department's 
consideration in the preparation of the required report to Congress. 
Your participation is voluntary, but failure to respond will hurt HUD's 
ability to report accurately to Congress on the nature and extent of 
microenterprise activity in the CDBG program. Therefore, your 
participation is greatly appreciated.
    This survey seeks to obtain information regarding any 
microenterprise assistance activities you may be undertaking with CDBG 
funds.
     A ``microenterprise'' is defined by the 1992 Act to be a 
commercial enterprise that has five or fewer employees, one or more of 
whom owns the enterprise.
     For the purposes of this survey, ``microenterprise 
assistance activities'' are those that are designed to promote the 
establishment and expansion of microenterprises, as such entities are 
defined above. Examples of such activities include:

     Provision of training for persons interested in 
starting microenterprises.
     Provision of technical assistance and training to 
existing microenterprises.
     Provision of financial assistance to new and existing 
microenterprises.

Name of Grantee (Optional):--------------------------------------------

Type of Grantee (State, Urban County, Unit of Local Government):-------

Address, City, State, HUD Region:--------------------------------------

Name of Contact Person & Phone Number (Optional)-----------------------

    1. Does your community use Community Development Block Grant (CDBG) 
funds for microenterprise assistance activities?

    Yes ______ No ______ (If No, go to Q.8)
    2. What national objective(s) is/are your CDBG-funded 
microenterprise assistance activities designed to meet? (Check all that 
apply.)

    ______Low/mod Area Benefit
    ______Low/mod Jobs
    ______Slum/Blight
    ______Urgent Need
    3. a. Are your CDBG-assisted microenterprise activities run 
directly by the grantee or through a subrecipient or some other entity? 
(Check all that apply.)

    ______Grantee
    ______Subrecipient
    ______Other (Describe)

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

  b. If the activities are run through a subrecipient, please identify 
the nature of that entity (e.g., public non-profit agency, Community 
Development Corporation (CDC), Small Business Investment Company 
(SBIC), etc.). (Check all that apply.)

    ______Public non-profit agency
    ______CDC
    ______SBIC
    ______Other (Describe)

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----------------------------------------------------------------------

    4. What amount of CDBG funds has been budgeted in your most recent 
final statement for microenterprise assistance activities? ____________
    5. What percentage of your annual grant does the above amount 
represent? ____________
    6. Would you say the level of CDBG assistance you provide to 
microenterprises is

    ______ To much (End of survey)
    ______ About right (End of survey)
    ______ Too little (Go to Q.7)
    7. Is there anything about the CDBG statute or regulations that 
prevents you from assisting as many microenterprises as you would like?

    ______ No
    ______ Yes (Please describe)

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

(End of Survey)
    For respondents that answered ``No'' to Q.1, please answer Q.8 and 
Q.9.
    8. Would you like to see your community use CDBG to support 
microenterprise development?

    ______ No (End of survey)
    ______ Yes
    9. If ``Yes'' to Q.8, is there anything about the CDBG statute or 
regulations that prevents you from assisting microenterprises with CDBG 
funds?

    ______ No
    ______ Yes (Please describe)

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

    This mailing has been sent to familiarize you with the survey 
questions. An interviewer will contact you by telephone in the near 
future to obtain you responses. If you have any questions concerning 
this survey, please contact: Ms. Barbara Neal, Entitlement Communities 
Division, U.S. Department of Housing & Urban Development, room 7282, 
451-7th Street, SW., Washington, DC 20410. Telephone Number: (202) 708-
1577.

Survey of Intermediary Organizations HUD Microenterprise Report

    Section 807(c)(4) of the Housing and Community Development Act of 
1992 (``1992 Act'') requires the Department of Housing and Urban 
Development (HUD) to submit to Congress a report on the effectiveness 
of the use of Community Development Block Grant (CDBG) funds in 
promoting development of microenterprises, including a review of any 
statutory or regulatory provision that impedes their development. This 
survey is being undertaken in an effort to provide HUD with current, 
relevant information regarding the actual experiences of community and 
economic development practitioners in this area for the Department's 
consideration in the preparation of the required report to Congress. 
Your participation is voluntary, but failure to respond will hurt HUD's 
ability to report accurately to Congress on the nature and extent of 
microenterprise activity in the CDBG program. Therefore, your 
participation is greatly appreciated.
    This survey seeks to obtain information regarding any 
microenterprise assistance activities you may be undertaking with CDBG 
funds.
     A ``microenterprise'' is defined by the 1992 Act to be a 
commercial enterprise that has five or fewer employees, one or more of 
whom owns the enterprise.
     For the purposes of this survey, ``microenterprise 
assistance activities'' are those that are designed to promote the 
establishment and expansion of microenterprises, as such entities are 
defined above. Examples of such activities include:

     Provision of training for persons interested in 
starting microenterprises.
     Provision of technical assistance and training to 
existing microenterprises.
     Provision of financial assistance to new and existing 
microenterprises.

Name of Organization (Optional):---------------------------------------

Address, City; State/HUD Region:---------------------------------------

Name & Phone Number of Contact Person (Optional):----------------------

    1. Does your organization use Community Development Block Grant 
(CDBG) funds for microenterprise assistance activities?

    Yes ______ No ______ (If No, please go to Q.6)
    2. What national objective(s) is/are your CDBG-funded 
microenterprise assistance activities designed to meet? (Check all that 
apply.)

    ______ Low/mod Area Benefit
    ______ Low/mod Jobs
    ______ Slum/Blight
    ______ Urgent Need

    3. Please identify the nature of your entity (e.g., public non-
profit agency, Community Development Corporation (CDC), Small Business 
Investment Company (SBIC), etc.). (Check all that apply.)

    ______ Public non-profit agency
    ______ CDC
    ______ SBIC
    ______ Other Please describe)

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

    4. Would you say that the level of CDBG assistance you provide to 
microenterprises is

    ______ Too much (End of survey)
    ______ About right (End of survey)
    ______ Too little (Please go to Q.5)

    5. Is there anything about the CDBG statute or regulations that 
prevents you from assisting as many microenterprises as you would like?

    ______ No
    ______ Yes (Please describe)

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

(End of Survey)
    For respondents that answered ``No'' to Q.1, please answer Q.6 and 
Q.7.
    6. Would you like to see your organization use CDBG to support 
microenterprise development?

    ______ No
    ______ Yes
    7. If ``Yes'' to Q.6, is there anything about the CDBG statute or 
regulations that prevents you from assisting microenterprises with CDBG 
funds?

    ______ No
    ______ Yes (Please describe)

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

    This mailing has been sent to familiarize you with the survey 
questions. An interviewer will contact you by telephone in the near 
future to obtain your responses. If you have any questions concerning 
this survey, please contact: Ms. Barbara Neal, Entitlement Communities 
Division, U.S. Department of Housing & Urban Development, room 7282, 
451-7th Street, SW., Washington, D.C. 20410. Telephone Number: (202) 
708-1577.

[FR Doc. 94-4824 Filed 3-2-94; 8:45 am]
BILLING CODE 4210-29-M