[Federal Register Volume 59, Number 61 (Wednesday, March 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7504]


[[Page Unknown]]

[Federal Register: March 30, 1994]


_______________________________________________________________________

Part VII





Department of Housing and Urban Development





_______________________________________________________________________



Office of Assistant Secretary for Community Planning and Development



_______________________________________________________________________



24 CFR Part 570




Community Adjustment and Economic Diversification Planning Program; 
Special Purpose Grants; Final Rule
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Assistant Secretary for Community Planning and Development

24 CFR Part 570

[Docket No. R-94-1625; FR-3404-F-02]
RIN 2506-AB61

 
Community Adjustment and Economic Diversification Planning 
Program; Special Purpose Grants

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

ACTION: Final rule.

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SUMMARY: This rule implements a new program of planning grants for 
community adjustment and economic diversification activities needed as 
the result of the effects on localities of certain Department of 
Defense (DoD) related actions, such as base closings or contract 
cancellations. Section 801(c)(2) of the Housing and Community 
Development Act of 1992 added a new Section 107(b)(6) to the Housing 
and Community Development Act of 1974 to authorize these special 
purpose planning grants to units of general government in 
nonentitlement areas.

EFFECTIVE DATE: April 29, 1994.

FOR FURTHER INFORMATION CONTACT: James Selvaggi, Deputy Director, 
Office of Technical Assistance, room 7168, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410; 
telephone: (202) 708-2090 or (TDD) (202) 708-4594. (These are not toll 
free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this rule have 
been approved under the Paperwork Reduction Act of 1980 (44 U.S.C. 
3501-3520) by the Office of Management and Budget (OMB) and have been 
assigned OMB control number 2535-0084.

Background

Congressional Initiative

    On October 28, 1992, the President signed into law the Housing and 
Community Development Act of 1992 (Pub. L. 102-550) (HCD Act of 1992). 
In section 801(c)(2) of this law, Congress added a section 107(b)(6) to 
the Housing and Community Development Act of 1974 (42 U.S.C. 
5307(b)(6)) (HCD Act of 1974) to authorize grants for planning 
community adjustments and economic diversification activities under any 
of four criteria: (1) The proposed or actual establishment, realignment 
or closing of a military installation, (2) the cancellation or 
termination of a Department of Defense (DoD) contract or the failure to 
proceed with an approved major weapon system program, (3) a publicly 
announced planned major reduction in DoD spending that would directly 
and adversely affect a unit of general government, and will result in 
the loss of 1,000 or more full-time DoD and contractor employee 
positions over a five-year period in the unit of general government and 
the surrounding area, or (4) the Secretary (in consultation with the 
Secretary of Defense) determines that an action described in 1, 2, or 3 
is likely to have a direct and significant adverse consequence on the 
unit of general local government.
    The statutory features of this program are: (1) The provision of 
assistance for planning, but not for implementation, of community 
adjustments and economic diversification activities, (2) limitation of 
assistance to units of general government in nonentitlement areas; 
i.e., in an area which is not a metropolitan city or part of an urban 
county and does not include Indian Tribes, under Title I of the Housing 
and Community Development Act of 1974, as amended, and (3) the four 
defined criteria that trigger eligibility for assistance. These 
criteria closely parallel the criteria in 10 U.S.C. 2391, Military Base 
Reuse Studies and Community Planning Assistance, which trigger 
assistance available from the DoD for both advance adjustment planning 
and implementation of adjustment and economic diversification 
activities.
    With respect to funding for this program, HUD anticipates 
allocation of up to about two million dollars for FY 1994 from funds 
available under section 107 of the HCD Act of 1974.

Replication With DoD Adjustment Planning Assistance

    After consultation with DoD's Office of Economic Adjustment, HUD 
confirmed that its new planning grant program, although limited to 
assisting nonentitlement communities, closely replicates the community 
adjustment planning assistance available from DoD under 10 U.S.C. 
2391(b). (Section 2391(b)). Under that program, DoD may award grants to 
States and local governments to plan community adjustments and economic 
diversification activities.
    Section 2391(b) was amended by section 4301 of the National Defense 
Authorization Act for Fiscal Year 1993 (Pub. L. 102-484, approved 
October 10, 1992) to add a fifth criterion to four others, any of which 
trigger eligibility to apply for adjustment planning grants: (1) The 
proposed or actual establishment, realignment, or closure of a military 
installation; (2) cancellation or termination of a DoD contract, (3) a 
publicly announced planned major reduction in DoD spending that would 
directly and adversely affect a community, (4) encroachment by a 
civilian community on a military installation, or (5) closure or 
significantly reduced operations of a defense facility as the result of 
the merger, acquisition, or consolidation of the defense contractor 
operating the defense facility. DoD criteria 1, 2, and 3 are identical 
to HUD's criteria 1, 2, and 3.
    With respect to funding for the DoD section 2391(b) adjustment 
planning program, HUD understands that extensive DoD funding is 
currently available. DoD also indicates: (1) That it awards planning 
adjustment grants within the context of extensive on-site visitation; 
extensive community, State, and private sector consultation; and 
thorough DoD review and analysis, and (2) that this process may extend 
over several years, depending on the complexity of the DoD-generated 
impacts and the community's ability to develop capacity to plan for, as 
distinguished from adjusting to, these impacts.

Federal Interagency Coordination

    HUD will administer the section 107(b)(6) planning grant program in 
coordination with long-standing and extensive Federal agency programs 
and arrangements in support of DoD-impacted communities.
    The President's Economic Adjustment Committee (EAC), established in 
1970 and amended most recently by Executive Order 12788 of January 15, 
1992, is composed of 23 Federal agencies, including HUD, and is chaired 
by the Secretary of Defense. The EAC coordinates Federal interagency 
policy with respect to assisting communities to develop strategies and 
take actions to adjust to DoD-generated impacts and to diversify local 
economies.
    The EAC has focused on coordinating Federal assistance to the 
communities affected by the 1993, 1991, and 1989 base closures and 
adjustments.
    Under the aegis of the EAC, the DoD's Office of Economic Adjustment 
(DoD-OEA) administers numerous assistance programs: Military Base Reuse 
Studies (Section 2391(a)); Community Adjustment Planning (Section 
2391(b)); Adjustment for Employees (Section 4201); Defense Conversion 
Adjustment (Section 4203); and Export Financing for Firms Formerly 
Engaged in Defense Production (Section 4303).
    DoD coordinates closely with the Department of Commerce's Economic 
Development Administration (DoC-EDA). DoD appropriations Acts often 
provide for the transfer of funds to DoC-EDA to implement adjustment 
projects and economic diversification activities, after they have been 
planned. Pursuant to the January 27, 1992, Memorandum of Understanding 
between DoD-OEA and DoC-EDA, DoD is responsible for providing 
adjustment planning assistance and DoC-EDA is responsible for funding 
projects that implement community adjustment and economic 
diversification. The agencies coordinate fully in reviewing 
applications for planning and implementation assistance.
    DoD and the Small Business Administration also coordinate on the 
provision of small business loans and export financing in support of 
community adjustment and economic diversification.

HUD Administrative Policy for Section 107(b)(6) Planning Assistance

    In order to provide clear guidance to eligible nonentitlement area 
applicants, to distinguish the type of planning assistance available 
from HUD and from DoD, and to minimize waste of public funds through 
duplicative projects, HUD will award section 107(b)(6) planning 
assistance according to the following policies:
    1. Recognizing the extensive, multi-year process used by DoD to 
develop local capacity to plan before it makes grants for full-scale 
planning, HUD will give priority to applicants seeking to undertake 
start-up or ``initial'' planning activities that will enable the 
applicants to qualify more speedily for DoD full-scale planning 
assistance.
    2. HUD will fund site planning, architectural and engineering 
studies, feasibility and cost analyses and similar planning for 
specific projects, but only as a last resort, because assistance for 
such project planning is normally available from EDA pursuant to its 
memo of understanding with DoD dated January 27, 1992.
    3. HUD will encourage applicants for its planning grants to give 
appropriate local priority to planning for housing, including shelter 
for the homeless, and for adjusting to economic or fiscal impacts on 
the community. These types of planning will often complement, or fill 
in, the full range of planning topics usually funded by DoD.
    4. HUD will encourage applicants to coordinate fully any planning 
assisted under this program with the strategies and activities of 
relevant State designated enterprise zones, and of Federal empowerment 
zones and enterprise communities, when selected and announced.
    5. HUD will not fund Base Re-use Studies or demonstration planning 
activities intended to evolve new planning techniques for impacted 
communities because assistance is available from DoD for these 
purposes.
    6. Consistent with Executive Order 12788 of January 15, 1992 
governing the President's Economic Adjustment Committee, HUD will 
secure advisory reviews of all section 107(b)(6) applications by DoD's 
Office of Economic Assistance.
    7. In view of the high dollar-volume of prior planning assistance 
awarded by DoD to impacted communities, the current availability of DoD 
planning assistance, and the statutory limitation to assist only 
nonentitlement areas, HUD plans to allocate initially up to $2 million 
for section 107(b)(6) grants. Assuming a grant range of $75,000 to 
$100,000 for start-up planning, an estimated 20-30 awards would be 
made. HUD will issue future notices annually announcing the amount of 
funding available for this program.
    8. Since these grants are to provide initial planning assistance to 
address promptly the circumstances facing affected localities but 
beyond their control, HUD will award section 107(b)(6) assistance on a 
noncompetitive basis. This rule (a) provides for open submission of 
applications, or referrals from DoD, throughout the fiscal year; and 
(b) specifies the submission requirements and the factors HUD will use 
to qualify applicants for funding.
    HUD considered, but discarded, two other administrative approaches. 
First, operating a routine competitive program yearly, or even 
quarterly, would impose unnecessary delay on communities needing to 
respond quickly to suddenly announced DoD or defense facility actions, 
such as contract cancellations or plant closings. Second, transferring 
program responsibility and/or funds to DoD from HUD would not be 
responsive to congressional intent. HUD therefore will administer the 
program, on a noncompetitive basis, but closely coordinated with DoD, 
in order to be fully responsive to potential applicants.
    HUD will assess the initial year of program experience and 
applicant demand, and then determine whether to continue this approach, 
including the level of funding, or to develop other approaches more 
beneficial to potential applicants.

Public Comments Received on Proposed Rule

    On August 17, 1993, at 58 FR 43764, the Department published a 
proposed rule for public comment. The comment period, which was 30 
days, ended on September 16, 1993. Two late comments were received from 
two local government agencies. These comments are summarized below, 
along with the Department's responses.
    One county community development agency requested that the proposed 
community planning adjustment assistance be made available to 
communities within urban counties, instead of being limited to non-
entitlement communities only. The Congress, however, authorized this 
program solely for non-entitlement communities, i.e., for units of 
general local government, excluding units of general local government 
that are entitlement cities or are included in an urban county.
    The other commenter, a county housing authority, requested that 
assistance under this program should be available for these types of 
planning: Planning for housing of the homeless component of the 
community adjustment effort; economic development activities to assist 
the homeless to become self-sufficient; economic development activities 
such as small business incubators, which would tie into any Federal 
enterprise zone; modifying current plans for shelter for the homeless, 
for transportation or other physical infrastructure; and identification 
of and coordination with Federal, State, and local entities and 
establishment of appropriate local committees concerned with community 
adjustment. All of these types of planning were eligible under the 
proposed rule and remain eligible in the final rule.
    This commenter also recommended that eligible activities should 
include project-specific planning, such as site planning, architectural 
and engineering studies, feasibility studies and cost analyses. The 
proposed rule indicated that such planning would not be eligible, 
because assistance for such projects is available from the Economic 
Development Administration and the Department of Defense. Recognizing 
that there may be rare circumstances wherein no planning assistance is 
available from other Federal sources, HUD has modified the final rule 
to indicate that Community Adjustment Planning Assistance may be 
awarded, as a last resort of funding, for project-specific planning 
activities.
    Finally, this commenter recommended that environmental studies 
related to base-reuse be considered an eligible activity. In order to 
avoid duplication of effort with environmental studies funded by the 
Department of Defense, as well as to conserve the limited HUD funds 
available under this program, neither the proposed rule nor the final 
rule provides for funding environmental studies.

Other Matters

 Executive Order 12606, The Family

    The General Counsel, as the Designated Officer under Executive 
Order 12606, The Family, has determined that this rule does not have 
potential for significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
Order. The rule involves assistance for units of general local 
government in nonentitlement areas for planning community adjustments 
and economic diversification as a result of DoD-generated impacts, and 
should have no direct effect on family-related issues and concerns.

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this rule will not have substantial direct effects on 
States or their political subdivisions, or the relationships between 
the federal government and the States, or on the distribution of power 
and responsibilities among the various levels of government. While this 
rule provides funding directly to units of general local government in 
nonentitlement areas, the Department believes that there exists ample 
access by State and local governments to make their views known to the 
Department in a timely and effective manner. The rule provides for 
State coordination by units of general local government in 
nonentitlement areas on eligible community adjustment and economic 
diversification activities planning.

Environmental and Intergovernmental Review

    A Finding of No Significant Impact with regard to the environment 
has been made in accordance with HUD regulations in 24 CFR part 50, 
which implement section 102(2)(C) of the National Environment Policy 
Act of 1969, 42 U.S.C. 4321. 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, room 10276, 451 
Seventh Street, SW., Washington, DC 20510.
    The intergovernmental review set forth in Executive Order 12372 
shall be accomplished by the units of general local government in 
nonentitlement areas through State coordination of each proposed 
activity.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this rule before publication and by 
approving it certifies that this rule will not have a significant 
economic impact on a substantial number of small entities. The planning 
assistance awards that will be based on this rule will be used by units 
of general local government in nonentitlement areas for community 
adjustment and economic diversification activities planning as a result 
of military base closures, or contract cancellations.

Semiannual Agenda

    This rule was listed as item 1591 in the Department's Semiannual 
Agenda of Regulations published on October 25, 1993 (58 FR 56402, 
56440) pursuant to Executive Order 12291 and the Regulatory Flexibility 
Act.

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.

    For the reasons set out in the preamble, the Department amends 24 
CFR part 570 as follows:

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

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

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

    2. Section 570.401 is added to subpart E, to read as follows:


Sec. 570.401  Community adjustment and economic diversification 
planning assistance.

    (a) General--(1) Purpose. The purpose of this program is to assist 
units of general local government in nonentitlement areas to undertake 
the planning of community adjustments and economic diversification 
activities, in response to physical, social, economic or governmental 
impacts on the communities generated by the actions of the Department 
of Defense (DoD) defined in paragraph (a)(2) of this section.
    (2) Impacts. Funding under this section is available only to 
communities affected by one or more of the following DoD-related 
impacts:
    (i) The proposed or actual establishment, realignment, or closure 
of a military installation;
    (ii) The cancellation or termination of a DoD contract or the 
failure to proceed with an approved major weapon system program;
    (iii) A publicly announced planned major reduction in DoD spending 
that would directly and adversely affect a unit of general local 
government and result in the loss of 1,000 or more full-time DoD and 
contractor employee positions over a five-year period in the unit of 
general local government and the surrounding area; or
    (iv) The Secretary of HUD (in consultation with the Secretary of 
DoD) determines that an action described in paragraphs (a)(2)(i-iii) of 
this section is likely to have a direct and significant adverse 
consequence on the unit of general local government.
    (3) Form of awards. Planning assistance will be awarded in the form 
of grants.
    (4) Program administration. HUD will publish in the Federal 
Register early in each fiscal year the amount of funds to be available 
for that fiscal year for awards under this section. HUD will accept 
applications throughout the fiscal year, and will review and consider 
for funding each application according to the threshold and qualifying 
factors in paragraphs (f) and (g) of this section.
    (b) Definitions. In addition to the definitions in Section 570.3 of 
this part, the following definitions apply to this section: (1) 
Adjustment planning. Generally, developing plans and proposals in 
direct response to contraction or expansion of the local economy, or 
changes in the physical development or the social conditions of the 
community, resulting from a DoD-generated impact. Typically, this 
planning includes one or more of the following tasks: Collecting, 
updating, and analyzing data; identifying problems; formulating 
solutions; proposing long- and short-term policies; recommending 
public- and private-sector actions to implement community adjustments 
and economic diversification activities; securing citizen involvement; 
and coordinating with Federal, State, and local entities with respect 
to the DoD-related impacts.
    (2) Community adjustment. Any proposed action to change the 
physical, economic, or social infrastructure within the jurisdiction or 
surrounding area, directly and appropriately in response to the DoD-
generated impact.
    (3) Contract. (i) Any defense contract in an amount not less than 
$5 million (without regard to the date on which the contract was 
awarded); and
    (ii) Any subcontract that is entered into in connection with a 
contract (without regard to the effective date of the subcontract) and 
involves not less than $500,000.
    (4) Defense facility. Any private facility producing goods or 
services pursuant to a defense contract.
    (5) DoD. The Department of Defense.
    (6) Economic diversification activities. Any public or private 
sector actions to change the local mix of industrial, commercial, and 
service sectors, or the mix of business ventures within a sector, that 
are intended to mitigate decline in the local economy resulting from 
DoD-generated impacts or, in the case of expansion of a military 
installation or a defense facility, that are intended to respond to new 
economic growth spawned by that expansion.
    (7) Military installation. Any camp, post, station, base, yard, or 
other jurisdiction of a military department that is located within any 
of the several States, the District of Columbia, the Commonwealth of 
Puerto Rico, or Guam.
    (8) Realignment. Any action that both reduces and relocates 
functions and civilian personnel positions, but does not include a 
reduction in force resulting from workload adjustments, reduced 
personnel or funding levels, or skill imbalances.
    (9) Section 107 means section 107 of the Housing and Community 
Development Act of 1974, 42 U.S.C. 5307. Section 107(b)(6) was added by 
section 801 of the Housing and Community Development Act of 1992 (Pub. 
L. 102-550, approved October 28, 1992).
    (10) Section 2391(b). The Department of Defense adjustment planning 
program as set out in 10 U.S.D. 2391(b).
    (11) Small Cities CDBG Program. The Community Development Block 
Grant program for nonentitlement areas in which the States have elected 
not to administer available program funds. The regulations governing 
this program are set out in subpart F of this part.
    (12) Surrounding area. The labor market area as defined by the 
Bureau of Labor Statistics that: (i) Includes all or part of the 
applicant's jurisdictions; and
    (ii) Includes additional areas outside the jurisdiction.
    (c) Eligible applicants. Any unit of general local government, 
excluding units of general government that are entitlement cities or 
are included in an urban county, and which does not include Indian 
Tribes.
    (d) Eligible activities. Activities eligible for adjustment 
planning assistance include, generally: (1) Initial assessments and 
quick studies of physical, social, economic, and fiscal impacts on the 
community;
    (2) Preliminary identification of potential public and private 
sector actions needed for the community to initiate its response;
    (3) If timely, modification of the applicant's current 
comprehensive plan or any functional plan, such as for housing, 
including shelter for the homeless, or for transportation or other 
physical infrastructure;
    (4) If timely, modification of the applicant's current economic 
plans and programs, such as for business development, job training, or 
industrial or commercial development;
    (5) Preparation for and conduct of initial community outreach 
activities to begin involving local citizens and the private sector in 
planning for adjustment and diversification;
    (6) Environmental reviews related to DoD-related impacts;
    (7) Initial identification of and coordination with Federal, State 
and local entities that may be expected to assist in the community's 
adjustment and economic development; and with State-designated 
enterprise zones, and Federal empowerment zones and enterprise 
communities when selected and announced.
    (8) Any other planning activity that may enable the community to 
organize itself, establish a start-up capacity to plan, propose 
specific plans and programs, coordinate with appropriate public or 
private entities, or qualify more quickly for the more substantial 
planning assistance available from DoD.
    (e) Ineligible activities. Activities ineligible for adjustment 
planning assistance are: (1) Base re-use planning.
    (2) Site planning, architectural and engineering studies, 
feasibility and cost analyses and similar planning for specific 
projects to implement community adjustment or economic diversification, 
unless as last resort funding for those applicants which are unable to 
obtain planning assistance from other sources.
    (3) Planning by communities which are encroaching on military 
installations.
    (4) Demonstration planning activities intended to evolve new 
planning techniques for impacted communities.
    (5) Any planning activity proposed to supplement or replace 
planning that has been or is being assisted by the DoD Sec. 2391(b) 
adjustment planning program.
    (6) Any other planning activity the purpose of which is not 
demonstrably in direct response to a DOD-related impact triggered by 
one or more of the four criteria specified in paragraph (a)(2) of this 
section.
    (f) Threshold requirements. No application will qualify for funding 
unless it meets the following requirements: (1) Verification by HUD 
that the applicant is a unit of general government in a nonentitlement 
area.
    (2) Verification by HUD and DoD that a triggering event described 
in paragraph (a)(2) of this section has occurred or will occur.
    (3) With respect to communities affected by the 49 base closings 
and 28 realignments listed by the 1991 Base Closure and Realignment 
Commission, verification by DoD that it has provided no prior funding 
and that the applicant may benefit from start-up planning assistance 
from HUD.
    (4) Determination by HUD that the proposed planning activities are 
eligible.
    (5) Determination by HUD that the submission requirements in 
paragraph (h) of this section have been satisfied.
    (g) Qualifying factors. HUD will make funding decisions on 
qualified applications on the basis of the factors listed below, in the 
order of such applications received, while program funds remain 
available. HUD will also request and consider advise from DoD's Office 
of Economic Assistance concerning the relative merits of each 
application.
    (1) The adequacy of the applicant's initial assessment of actual or 
probable impacts on the community and the surrounding area;
    (2) The adequacy and appropriateness of the start-up planning 
envisioned by the applicant in response to the impacts;
    (3) The type, extent, and adequacy of coordination that the 
applicant has achieved, or plans to achieve, in order to undertake 
planning for community adjustment and economic diversification.
    (4) The cost-effectiveness of the proposed budget to carry out the 
planning work envisioned by the applicant; (5) The capability of the 
organization the applicant proposes to do the planning;
    (6) The credentials and experience of the key staff the applicant 
proposes to do the planning;
    (7) The presence of significant private sector impact, as measured 
by the extent to which the DoD-generated impact is projected to 
decrease or increase the employment base by 10% or more;
    (8) The presence of significant public sector impact, as measured 
by the extent to which the DoD-generated impact is projected to 
decrease or increase the applicant's capital and operating budgets for 
the next fiscal year by 10% or more;
    (9) The degree of urgency, to the extent that a suddenly announced 
action, e.g. a plant closing, is officially scheduled to occur within a 
year of the date of application.
    (h) Submission requirements. Applicants may submit applications at 
any time to: Director, Office of Technical Assistance, room 7214, 451 
Seventh Street, SW., Washington, DC 20410. Each application (an 
original and three copies) shall include the following: (1) The 
Standard Form SF-424 as a face sheet, signed and dated by a person 
authorized to represent and contractually or otherwise commit the 
applicant;
    (2) A concise title and brief abstract of the proposed planning 
work, including the total cost;
    (3) A narrative that: (i) Documents one or more of the triggering 
events described in paragraph (a)(2) of this section that qualifies the 
applicant to apply for planning assistance for community adjustments 
and economic diversification;
    (ii) Provides an initial assessment of actual or probable impacts 
on the applicant community and the surrounding area;
    (iii) Provides an initial assessment of the type and extent of 
start-up planning envisioned by the applicant in response to the DoD-
generated impact; and
    (iv) Describes the measures by which the applicant has already 
coordinated, or plans to coordinate, with the DoD Office of Economic 
Assistance, the Economic Development Administration of the Department 
of Commerce, the Department of Labor, any military department, or any 
other appropriate Federal agency; appropriate State agencies, 
specifically including the agency administering the Small Cities CDBG 
Program; appropriate State-designated enterprise zones; appropriate 
Federal empowerment zones and enterprise communities, when selected and 
announced; appropriate other units of general local government in the 
nonentitlement area; appropriate businesses, corporations, and defense 
facilities concerned with impacts on the applicant community; and 
homeless nonprofit organizations, with respect to title V of the 
Stewart B. McKinney Act (42 U.S.C. 11411-11412), requiring the Federal 
property be considered for use in assisting the homeless.
    (4) A Statement of Work describing the specific project tasks 
proposed to be undertaken in order to plan for community adjustment and 
economic diversification activities;
    (5) A proposed budget showing the estimated costs and person-days 
of effort for each task, by cost categories, with supporting 
documentation of costs and a justification of the person-days of 
effort;
    (6) A description of the qualifications of the proposed technical 
staff, including their names and resumes;
    (7) A work plan that describes the schedule for accomplishing the 
tasks described in the Statement of Work, the time needed to do each 
task, and the elapsed time needed for all the tasks; and
    (8) Other materials, as prescribed in the application kit; these 
materials will include required certifications dealing with: Drug-Free 
Workplace Requirements; Disclosure Regarding Payments to Influence 
Certain Federal Transactions; and Prohibition Regarding Excessive 
Force.
    (i) Approval procedures--(1) Acceptance. HUD's acceptance of an 
application meeting the threshold requirements of paragraph (f) does 
not assure a commitment to provide funding or to provide the full 
amount requested. HUD may elect to negotiate both proposed tasks and 
budgets in order to promote more cost-effective planning.
    (2) Notification. HUD will provide notification about whether a 
project will be funded, rejected, or held for further consideration by 
HUD and DoD.
    (3) Form of award. HUD will award funds in the form of grants.
    (4) Administration. Project administration will be governed by the 
terms of individual awards and by the following provisions of this 
part: (i) Subpart A, sec. 570.5;
    (ii) Subpart E, secs. 570.400(d), (e), (f), and (g);
    (iii) Subpart J, secs. 570.500(c), 570.501, 570.502, 570.503, and 
570.509;
    (iv) Subpart K, secs. 570.601, 570.602, 570.609, 570.610, and 
570.611

The environmental review requirements of 24 CFR part 58 do not apply.

(Approved by the Office of Management and Budget under control 
number 2535-0084)

    Dated: March 14, 1994.
Andrew Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 94-7504 Filed 3-29-94; 8:45 am]
BILLING CODE 4210-29-P