[Federal Register Volume 59, Number 89 (Tuesday, May 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11213]


[[Page Unknown]]

[Federal Register: May 10, 1994]


_______________________________________________________________________

Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



Office of the Assistant Secretary for Community Planning and 
Development



_______________________________________________________________________



24 CFR Parts 582 et al.



Single Room Occupancy Program for Homeless Individuals; Final Rule



Homeless Assistance; Notice of Funding Availability
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 582, 583, and 882

[Docket No. R-94-1722; FR-3691-I-01]
RIN 2501 AB75

 

Supportive Housing Program, Shelter Plus Care, and Section 8 
Moderate Rehabilitation; Single Room Occupancy Program for Homeless 
Individuals

AGENCY: Office of the Secretary.

ACTION: Interim rule.

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SUMMARY: This interim rule for the Supportive Housing Program, Shelter 
Plus Care, and section 8 Moderate Rehabilitation Single Room Occupancy 
Program for Homeless Individuals amends the programs' regulations to 
remove the detail in those regulations regarding the application and 
grant award processes and indicates that a full description of the 
application and grant award processes will be published in the Federal 
Register in a notice of fund availability. It also amends these 
regulations to clarify when Comprehensive Housing Affordability 
Strategy (CHAS) certifications must be made under those programs.

DATES: Effective Date: June 9, 1994. Comments due date: July 11, 1994.

ADDRESSES: Interested persons are invited to submit comments regarding 
this interim rule to the Office of General Counsel, Rules Docket Clerk, 
room 10276, Department of Housing and Urban Development, Washington, DC 
20410-0500. Communications should refer to the above docket number and 
title. A copy of each communication submitted will be available for 
public inspection and copying on weekdays between 7:30 a.m. and 5:30 
p.m. at the above address. Comments sent by FAX are not acceptable.

FOR FURTHER INFORMATION CONTACT: Office of Special Needs Assistance 
Programs; Department of Housing and Urban Development, room 7262, 451 
Seventh Street, SW., Washington, DC 20410; (202) 708-1234; TDD for the 
hearing and speech-impaired, (202) 708-2565. (Telephone numbers are not 
toll-free.)

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act Statement

    The information collection requirements contained in this interim 
rule have been approved by the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act of 1980 and were assigned OMB control 
numbers 2506-0112, 2506-0118, 2506-0131.

II. Background

    This interim rule makes the following revisions to the Shelter Plus 
Care Program, Supportive Housing Program, and section 8 Moderate 
Rehabilitation Single Room Occupancy Program for Homeless Individuals:
    Sections 582.200 and 583.200, both entitled ``notice of fund 
availability'', are revised as described below. Sections 582.205 and 
583.205, Grant award process, Secs. 582.210 and 583.210, Application 
requirements, Secs. 582.215 and 583.215, Rating criteria for 
applications, Secs. 582.220 and 583.220, Selecting applications, and 
Secs. 582.225 and 583.225, Obtaining additional information and 
awarding grants, are all deleted. In Sec. 882.805, paragraphs (a), (b), 
(c), and (d) are revised. The current Sec. 882.805(b)(2), Comprehensive 
housing affordability strategy (CHAS), becomes Sec. 882.805(c). A 
conforming change is made in Sec. 882.805 to paragraph (f)(10).
    The revisions to sections 582.200, 583.200 and 882.805 (a) and (b), 
indicate that all information previously contained in these sections 
will now be described in detail in the notice of fund availability 
published in the Federal Register for each program funding round. The 
rating criteria which are required by statute are also listed in the 
new sections. The Shelter Plus Care statute allows additional criteria 
as determined appropriate by HUD, but states that these additional 
criteria must be listed in the interim rule. Accordingly, they are 
included in Sec. 582.200. Although the non-statutory criteria that were 
previously listed in the Supportive Housing Program rule in 
Sec. 583.215(b)(7) and (8) and in the section 8 Moderate Rehabilitation 
Single Room Occupancy Program for Homeless Individuals in 
Sec. 882.805(b)(3)(ii)(C) to (G) are removed, these criteria are 
included in the notice of fund availability published elsewhere in 
today's Federal Register.
    One of the selection criteria in the Shelter Plus Care statute is 
geographic diversity. Section 582.220(b), which is now being deleted, 
indicated that HUD will determine geographic diversity based on whether 
each of the four Census Regions contains at least three fundable 
applications. In practice, this definition of geographic diversity was 
so broad that it had little effect. Considering that the universe of 
applications can vary dramatically from one competition to another, the 
application of geographic diversity will be determined for each 
competition.
    Two types of need are included in the Shelter Plus Care selection 
criteria in new Sec. 582.200. The jurisdiction's need for homeless 
assistance will be calculated by HUD from generally available data to 
help ensure that Shelter Plus Care funds are used in areas with 
significant homeless needs. The need within a jurisdiction for the 
particular project will also be considered in the selection process.
    The interim rule also amends Secs. 582.120 and 583.155 on the 
Comprehensive Housing Affordability Strategy, or CHAS, and moves 
Sec. 882.805(b)(2) on the same subject to become Sec. 882.805(c) and 
amends that section. The language now makes clear that a funded 
jurisdiction must certify that it is following the HUD-approved CHAS by 
the time of grant execution, rather than by the application submission 
deadline, as is now implied. Also, applicants that are not states or 
units of general local government must only submit a certification by 
the jurisdiction that the application is consistent with the 
jurisdiction's HUD-approved CHAS.

III. Other Matters

Environmental Impact

    In accordance with 40 CFR 1508.4 of the regulations of the Council 
on Environmental Quality and 24 CFR 50.20 (k) and (l) of the HUD 
regulations, the policies and procedures proposed in this document are 
determined not to have the potential of having a significant impact on 
the quality of the human environment and, therefore, are exempt from 
further environmental reviews under the National Environmental Policy 
Act of 1969.

Regulatory Planning and Review

    This interim rule has been reviewed and approved in accordance with 
Executive Order 12866, issued by the President on September 30, 1993 
(58 FR 51735, October 4, 1993). Any changes to the interim rule 
resulting from this review are available for public inspection between 
7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket 
Clerk.

Impact on Small Entities

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 
605(b)), the undersigned hereby certifies that this interim rule does 
not have a significant economic impact on a substantial number of small 
entities, because this interim rule only addresses the procedures of 
the Department regarding the issuance of notices of funding 
availability.

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 interim rule do not have federalism implications and, 
thus, are not subject to review under the Order. This interim rule 
addresses the procedures of the Department regarding the issuance of 
notices of funding availability. It will not have substantial, direct 
effects on States, on their political subdivisions, or on their 
relationships with the Federal government, or on the distribution of 
power and responsibilities between them and other levels of government.

Family Impact

    The General Counsel, as the Designated Official under Executive 
Order 12606, the Family, has determined that this interim rule will 
have only an indirect, though beneficial, impact on family formation, 
maintenance, and general well-being, since it should simplify the 
procedure for the development of notices of funding availability, and 
thus, is not subject to review under the Order.

Justification for Interim Rulemaking

    Section 102 of the Department of Housing and Urban Development 
Reform Act of 1989, 42 U.S.C. 3545, requires the Secretary to publish 
in the Federal Register a notice of funding availability as well as a 
description of application procedures and the selection criteria for 
each program administered by the Secretary. Section 102 further 
specifies that the selection criteria are to be published in the 
Federal Register not less than 30 days before the application deadline. 
HUD has elected pursuant to this authority to publish the description 
of application procedures and the selection criteria in the notice of 
fund availability. The Department has determined that the changes made 
by this interim rule should be adopted without the delay occasioned by 
requiring prior notice and comment. These changes simply constitute a 
statutorily permissible change in the Department's solicitation 
procedures. As such, prior notice and comment are unnecessary under 24 
CFR part 10.

List of Subjects

24 CFR Part 582

    Homeless, Rent subsidies, Reporting and recordkeeping requirements, 
Supportive housing programs--housing and community development, 
Supportive services.

24 CFR Part 583

    Homeless, Rent subsidies, Reporting and recordkeeping requirements, 
Supportive housing programs--housing and community development, 
Supportive services.

24 CFR Part 882

    Grant programs--housing and community development, Homeless, Lead 
poisoning, Manufactured homes, Rent subsidies, Reporting and 
recordkeeping requirements.

    This interim rule was not listed in the Department's Semiannual 
Agenda of Regulations published on April 25, 1994 (59 FR 20424) under 
Executive Order 12866 and the Regulatory Flexibility Act.
    Accordingly, for the reasons stated in the preamble, parts 582, 
583, and 882 of title 24 of the Code of Federal Regulations are amended 
as follows:

PART 582--SHELTER PLUS CARE

    1. The authority citation for part 582 continues to read as 
follows:

    Authority: 42 U.S.C. 11403 note; 42 U.S.C. 3535(d).

    2. Section 582.120 is amended by revising paragraphs (a), (b), and 
(d) to read as follows:


Sec. 582.120  Comprehensive housing affordability strategy (CHAS).

    (a) Applicants that are States or units of general local 
government. The applicant must have a HUD-approved complete or 
abbreviated CHAS pursuant to the requirements of the CHAS regulations 
(24 CFR part 91), and must submit a certification that the application 
for funding is consistent with the HUD-approved CHAS. If the applicant 
is a State, and the project will be located in a unit of general local 
government that is required to have, or has, a complete CHAS, or that 
is applying for Shelter Plus Care assistance under the same notice of 
fund availability (NOFA) and will have an abbreviated CHAS with respect 
to that application, the State must also submit a certification by the 
unit of general local government that the State's application is 
consistent with the unit of general local government's HUD-approved 
CHAS. Funded applicants must certify in a grant agreement that they are 
following the HUD-approved CHAS.
    (b) Applicants that are public housing agencies. The applicant must 
submit a certification by the jurisdiction in which the proposed 
project will be located that the applicant's application for funding is 
consistent with the jurisdiction's HUD-approved CHAS. The certification 
must be made by the unit of general local government or the State, 
pursuant to the CHAS regulations at 24 CFR 91.1(b)(1)(ii).
* * * * *
    (d) Timing of CHAS certification submissions. Unless otherwise set 
forth in the NOFA, the required certification that the application for 
funding is consistent with the HUD-approved CHAS must be submitted by 
the funding application deadline announced in the NOFA.
    3. Section 582.200 is revised to read as follows:


Sec. 582.200  Application and grant award.

    (a) Review. When funds are made available for assistance, HUD will 
publish a notice of fund availability in the Federal Register in 
accordance with the requirements of 24 CFR part 12. Applications will 
be reviewed and screened in accordance with the guidelines, rating 
criteria and procedures published in the notice.
    (b) Rating criteria. HUD will award funds based on the following 
criteria:
    (1) Ability of the applicant to develop and operate the proposed 
assisted housing and supportive services program, taking into account 
the quality of any ongoing program of the applicant;
    (2) Geographic diversity among the projects to be assisted;
    (3) The need for a program providing housing assistance and 
supportive services for eligible persons in the area to be served;
    (4) The quality of the proposed program for providing supportive 
services and housing assistance;
    (5) The extent to which the proposed funding for the supportive 
services is or will be available;
    (6) The extent to which the project would meet the needs of the 
homeless persons proposed to be served by the program;
    (7) The extent to which the program integrates program recipients 
into the community served by the program;
    (8) The cost-effectiveness of the proposed program;
    (9) The extent to which the applicant has demonstrated coordination 
with other Federal, State, local, private and other entities serving 
homeless persons in the planning and operation of the project, to the 
extent practicable;
    (10) Extent to which the project targets homeless persons living in 
emergency shelters, supportive housing for homeless persons, or in 
places not designed for, or ordinarily used as, a regular sleeping 
accommodation for human beings;
    (11) Quality of the project; and
    (12) Extent to which the program will serve homeless persons who 
are seriously mentally ill, have chronic alcohol and/or drug abuse 
problems, or have AIDS and related diseases.

(Approved by the Office of Management and Budget under control 
number 2506-0118)


Secs. 582.205, 582.210, 582.215, 582.220, and 582.225  [Removed]

    4. Sections 582.205, 582.210, 582.215, 582.220, and 582.225 are 
removed.

PART 583--SUPPORTIVE HOUSING PROGRAM

    5. The authority citation for part 583 continues to read as 
follows:

    Authority: 42 U.S.C. 11389; 42 U.S.C. 3535(d).

    6. Section 583.155 is amended by revising paragraphs (a), (b), and 
(d) to read as follows:


Sec. 583.155  Comprehensive housing affordability strategy (CHAS).

    (a) Applicants that are States or units of general local 
government. The applicant must have a HUD-approved complete or 
abbreviated CHAS pursuant to the requirements of the CHAS regulations 
(24 CFR part 91), and must submit a certification that the application 
for funding is consistent with the HUD-approved CHAS. Funded applicants 
must certify in a grant agreement that they are following the HUD-
approved CHAS.
    (b) Applicants that are not States or units of general local 
government. The applicant must submit a certification by the 
jurisdiction in which the proposed project will be located that the 
applicant's application for funding is consistent with the 
jurisdiction's HUD-approved CHAS. The certification must be made by the 
unit of general local government or the State, pursuant to the CHAS 
regulations at 24 CFR 91.1(b)(1)(ii).
* * * * *
    (d) Timing of CHAS certification submissions. Unless otherwise set 
forth in the NOFA, the required certification that the application for 
funding is consistent with the HUD-approved CHAS must be submitted by 
the funding application deadline announced in the NOFA.
    7. Section 583.200 is revised to read as follows:


Sec. 583.200  Application and grant award.

    (a) Review. When funds are made available for assistance, HUD will 
publish a notice of fund availability in the Federal Register in 
accordance with the requirements of 24 CFR part 12. Applications will 
be reviewed and screened in accordance with the guidelines, rating 
criteria and procedures published in the notice.
    (b) Rating criteria. HUD will award funds based on the following 
criteria:
    (1) The ability of the applicant to develop and operate a project;
    (2) The innovative quality of the proposal in providing a project;
    (3) The need for the type of project proposed by the applicant in 
the area to be served;
    (4) The extent to which the amount of assistance to be provided 
under this part will be supplemented with resources from other public 
and private sources;
    (5) The cost effectiveness of the proposed project;
    (6) The extent to which the applicant has demonstrated coordination 
with other Federal, state, local, private and other entities serving 
homeless persons in the planning and operation of the project, to the 
extent practicable; and
    (7) Such other factors as the Secretary determines to be 
appropriate to carry out this part in an effective and efficient 
manner.

(Approved by the Office of Management and Budget under control 
number 2506-0112)


Sec. Sec. 583.205, 583.210, 583.215, 583.220, and 583.225  [Removed]

    8. Sections 583.205, 583.210, 583.215, 583.220, and 583.225 are 
removed.

PART 882--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--EXISTING 
HOUSING

    9. The authority citation for part 882 is revised to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d). In 
addition, subpart H is issued under the authority of 42 U.S.C. 
11401.

    10. Section 882.805 is amended by revising paragraphs (a), (b), 
(c), (d), and (f)(10) to read as follows:


Sec. 882.805  Application and grant award.

    (a) Review. When funds are made available for assistance, HUD will 
publish a notice of fund availability in the Federal Register in 
accordance with the requirements of 24 CFR part 12. Applications will 
be reviewed and screened in accordance with the guidelines, rating 
criteria and procedures published in the notice.
    (b) Rating criteria. HUD will award funds based on the following 
criteria:
    (1) Ability of the applicant to develop and operate a project;
    (2) Need for assistance; and
    (3) Other criteria as determined appropriate by the Secretary.
    (c) Comprehensive housing affordability strategy (CHAS)--
    (1) Certifications of consistency. Except as provided in paragraph 
(c)(2) of this section, the applicant must submit a certification by 
the jurisdiction in which the proposed project will be located that the 
applicant's application for funding is consistent with the 
jurisdiction's HUD-approved CHAS. The certification must be made by the 
unit of general local government or the State, pursuant to the CHAS 
regulations at 24 CFR 91.1(b)(1)(ii).
    (2) Exception. The CHAS certification is not required where the 
proposed project will be located on a reservation of an Indian tribe or 
the Insular Area of Guam, the U.S. Virgin Islands, American Samoa or 
the Northern Mariana Islands.
    (3) Timing of CHAS certification submissions. Unless otherwise set 
forth in the NOFA, the required certification that the application for 
funding is consistent with the HUD-approved CHAS must be submitted by 
the funding application submission deadline announced in the NOFA.
    (d) Receipt of information for environmental review. Information 
must be submitted to allow completion of environmental reviews required 
under 24 CFR Part 50. HUD may eliminate an application from 
consideration where the application would require an Environmental 
Impact Statement.
* * * * *
    (f) * * *
    (10) In the event that the PHA determines that any structure 
proposed in its application is infeasible, or the PHA proposes to 
select a different structure for any other reason, the PHA must submit 
information for the proposed alternative structure to HUD for review 
and approval. HUD will rate the proposed structure in accordance with 
procedures in the applicable notice of fund availability. The PHA may 
not proceed with processing for the proposed structure or execute an 
Agreement until HUD notifies the PHA that HUD has approved the proposed 
alternative structure and that all requirements have been met.
* * * * *
    Dated: May 5, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-11213 Filed 5-5-94; 4:16 pm]
BILLING CODE 4210-32-P