[Federal Register Volume 59, Number 93 (Monday, May 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11837]


[[Page Unknown]]

[Federal Register: May 16, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. N-94-3768]

 

Submission of Proposed Information Collection to OMB

AGENCY: Office of Administration, HUD.

ACTION: Notice.

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SUMMARY: The proposed information collection requirement described 
below has been submitted to the Office of Management and Budget (OMB) 
as required by the Paperwork Reduction Act for expedited review. The 
Department is soliciting public comments on the subject proposal.

DATES: Comments due date: May 26, 1994.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Comments must be received within ten (10) days from the 
date of this Notice. Comments should refer to the 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 F. Weaver, Reports Management Officer, Department of Housing and 
Urban Development, 451 7th Street, Southwest, Washington, DC 20410. 
Copies of the proposed forms and other available documents submitted to 
OMB may be obtained from Ms. Weaver.

SUPPLEMENTARY INFORMATION: This Notice informs the public that the 
Department of Housing and Urban Development has submitted to OMB, for 
expedited processing, a form to be used to report annual 
accomplishments regarding employment, training, and contracting 
opportunities under Section 3, and a (complaint) form for filing with 
the Department allegations of non-compliance with section 3. HUD is 
requesting a 10-day OMB review of the documents.
    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 35):
    (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 number, if applicable;
    (5) What members of the public will be affected by the proposal;
    (6) How often information submission will be required;
    (7) An estimate of the total number of hours needed to prepare the 
information submission including number of respondents, frequency of 
response, and hours for preparing the response;
    (8) Whether the proposal is new or an extension, reinstatement, or 
revision of an information collection requirement; and
    (9) The name and telephone numbers 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 of, 44 
U.S.C. 3507; Section 7(d) of the Department of Housing and Urban 
Development Act, 42 U.S.C. 3535(d).

    Dated: May 2, 1994.
Roberta Achtenberg,
Assistant Secretary for Fair Housing and Equal Opportunity.

Notice of Submission of Proposed Information Collection to OMB

Proposal: Information Collection for Part 135--Employment Opportunities 
for Low and Very Low-Income Persons
Office: Office of Economic Opportunity, EPE Assistant Secretary for 
Fair Housing and Equal Opportunity
Description of the Need for the Information and its Proposed Use: This 
information collection will facilitate the collection of Section 3 
information to assess the impact of HUD-assisted activities on 
enhancing the employment opportunities for lower income persons and the 
use of businesses that provide economic opportunities to them.
Form Number: Form HUD 958 and Form HUD 60002
Respondents: HUD recipients and their contractors and subcontractors
Frequency of Submission: Annually
Reporting Burden: Form Hud-60002

------------------------------------------------------------------------
                                            Number     Hours            
          Number of respondents               of        per      Total  
                                            reports   report     hours  
------------------------------------------------------------------------
58,403 (recipients)......................         1         2    116,806
75,000 (contractors and subcontractors)..         1         2    150,000
------------------------------------------------------------------------

Form HUD-958

------------------------------------------------------------------------
                                                        Hours           
          Number of respondents            Number of     per      Total 
                                           responses  response    hours 
------------------------------------------------------------------------
100 complainants.........................        100         1       100
100 respondents..........................         90         4       360
------------------------------------------------------------------------

Total Estimated Burden Hours: 534,072
Status: Revision of a currently approved collection
Contact: Maxine B. Cunningham, HUD (202) 708-2251, Joseph F. Lackey, 
Jr., OMB (202) 395-6880
Date: May 2, 1994

Supporting Statement

1. Need for Information and Legal Requirements

Section 3 Reporting Form

    Section 3 of the Housing and Urban Development Act of 1968 
(Section 3) mandates that the Department ensure that employment and 
other economic opportunities generated by its housing and community 
development assistance programs are, to the greatest extent 
feasible, directed toward low- and very low-income persons, 
particularly those who are recipients of government assistance for 
housing.
    The Housing and Community Development Act (HCDA) of 1992 
requires the Secretary of Housing and Urban Development (HUD) to 
submit to the Congress, not later than one year after the date of 
enactment, a report describing (1) the Secretary's efforts to 
enforce Section 3; (2) barriers to full implementation of Section 3; 
(3) the anticipated costs and benefits of full implementation of 
Section 3; and (4) recommendations for legislative changes to 
enhance the effectiveness of Section 3.
    Congressional actions support the need for a data collection 
instrument to assess Section 3's impact. Responding to a directive 
in the Conference Report on the Housing and Community Development 
Act of 1987, the Department in FY 1991 issued a report to Congress. 
This report assessed the impact of HUD-assisted activities on 
enhancing the employment opportunities for lower income persons and 
the use of businesses located in the area of assisted projects. 
Further, the Fair Housing Act, as amended in 1988, at Section 
808(e)(6) requires the Secretary of HUD to report annually to 
Congress, and make available to the public, data on beneficiaries of 
HUD-assisted programs pursuant to Section 3. In addition, Section 
562 paragraph (a) of the Housing and Community Development Act of 
1987 requires HUD to collect data and report annually to Congress on 
the racial and ethnic characteristics of persons eligible for, 
assisted by or otherwise benefiting from each community development 
and housing assistance program administered by HUD. Since the 
provisions of Section 3 apply to community development and housing 
assistance programs, Section 562 authorizes the Secretary to collect 
information determined to be necessary and appropriate in order to 
complete this report. In spite of these numerous reporting 
requirements, no data is collected on Section 3 which allows the 
Department to determine the potential or to evaluate the impact of 
the statute in meeting its objectives.
    Congress, as well as the Department's Office of Inspector 
General, have admonished the Department in failing to systematically 
implement Section 3. The primary impediment is the absence of a 
regulation which conforms to the statute and applies to all Section 
3 covered assistance.
    The regulations governing Section 3 at 24 CFR Part 135 have been 
revised to incorporate the statutory amendments in the Housing and 
Community Development Act of 1992; reflect certain changes in the 
Department's programs that are subject to the Section 3 regulations; 
clarify the obligations of individuals and entities subject to the 
requirements of Section 3; and simplify the Department's 
administration of Section 3 requirements. The revised regulations 
include recordkeeping and reporting requirements.
    The section 3 proposed rule was published on October 8, 1993 for 
public comment. As a result of comments received, the Department 
made a number of changes to the rule. Accordingly, the previously 
approved section 3 reporting form, OMB No. 2529-0043, was revised to 
reflect the changes made in the rule.
    Changes in the rule affecting the recordkeeping and reporting 
requirements are the establishment of numerical goals to be reported 
in staff hours for training and employment and numerical goals to be 
reported in percentages for contracting opportunities. The section 3 
reporting form, OMB No. 2529-0043, requested that data be reported 
on the number of section 3 residents hired in available positions 
and the total dollar amount of contracts awarded to section 3 
business concerns. Based on revisions to the rule, the data 
collection will reflect staff hours for new hires and section 3 
positions, and a percentage of the total dollar amount of contracts 
awarded to section 3 business concerns. These are elements needed 
for an effective program performance measurement system as required 
under the Government Performance and Results Act of 1993.
    In addition, we are adding a Complaint Register which will be 
used to file section 3 complaints for your approval. Although the 
regulations implementing section 3, since 1973 have provided for HUD 
processing of allegations of non-compliance, this is the first 
request for OMB approval of a formal complaint form for this 
requirement.
    The Department is seeking a three year approval of the revised 
section 3 reporting form, OMB No. 2529-0043; and the section 3 
complaint form.

Complaint Register

    The Complaint Register for section 3 of the Housing and Urban 
Development Act of 1968 (Section 3 Compliant Form) is necessary for 
the collection of information relative to the investigation of 
allegations of noncompliance pursuant to Section 3 of the Housing 
and Urban Development Act of 1968, as amended (Section 3). Section 3 
requires that the Department, to the greatest extent feasible, 
provide: (1) job and training opportunities for lower income persons 
within that unit of local government or the metropolitan area (or 
nonmetropolitan county) where the project is located; and (2) 
business opportunities for firms located or owned in substantial 
part by persons in the same metropolitan area (or nonmetropolitan 
county) as the project. The regulation at 24 CFR part 135 provides 
that Section 3 residents and business concerns may file a complaint 
alleging noncompliance with Section 3 by a recipient, contractor or 
subcontractor. The complaint must be filed within 180 days of the 
alleged violation.
    It is anticipated that the Section 3 Complaint Form will help to 
expedite the acceptance of complaints because the form guides the 
complainants to include all necessary components of the complaint, 
thereby saving costs associated with staff time that would otherwise 
be spent securing additional information that would be necessary to 
complete a complaint.

Statutory Authority

    The authorization for the information collection on the Section 
3 Reporting Form is Section 3 of the Housing and Urban Development 
Act of 1968, as amended, 12 U.S.C. 1701u. The implementing 
regulations are found at 24 CFR Part 135 Subpart F--Recordkeeping 
and Reporting.
    The authorization for Section 3 Complaint Form is Section 3 of 
the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 
1701u. The implementing regulations are found at 24 CFR Part 135 
Subpart D--Complaint and Compliance Review. The Section 3 Complaint 
Form was developed to provide for uniformity in the information 
that, by regulation, must be included in a complaint and for the 
convenience of the public. The Section 3 regulation (24 CFR Part 
135) states what each complaint should contain. For purposes of 
meeting the time requirement for filing complaints (180 days), 
initially these complaints do not have to be submitted on the form 
that HUD provides.

2. Use of Information

    The Section 3 Reporting Form will be used by the Department to 
monitor program recipients' compliance with Section 3. HUD 
Headquarters will use the information to assess the results of the 
Department's efforts to meet the statutory objectives of Section 3. 
Also, the data collected will be used by recipients as a self-
monitoring tool. If the information is not collected, HUD will be 
unable to prepare the mandatory reports to Congress or to assess the 
effectiveness of Section 3.
    The Section 3 Complaint Form will be used by a complainant to 
provide the necessary information to file a complaint. A complaint 
may be filed by mail, in person or by telephone with the Office of 
Fair Housing And Equal Opportunity (FHEO), Department of Housing and 
Urban Development. FHEO staff will use the information provided by 
this form as the basis for the Department's determination of 
jurisdiction over a complainants' allegations.

3. Improved Technology To Reduce Burden

    This issue is not applicable to the Section 3 Reporting Form.
    The collection of data on the Section 3 Complaint Form is 
consistent with the use of improved technology as the Department 
prepares to convert their form to a direct electronic input source. 
This electronic input source will reduce the burden of completing 
the form manually before the information is stored on to an 
electronic media for use in the Department's automated tracking 
system.

4. Duplication

    The Section 3 Reporting Form does not duplicate any other 
reporting requirement in the Department.
    The Section 3 Complaint Form does not duplicate any other 
information collection process. HUD is the only Federal agency with 
responsibility for administration of Section 3. This form is unique 
to the processing of a allegation of noncompliance with the Section 
3 statute or implementing regulations.

5. No Similar Information

    No similar information is available to HUD with respect to the 
Section 3 Reporting Form.

6. Small Business Burden

    The collection of information by the Section 3 Reporting Form 
involves recipients, contractors, and subcontractors receiving 
Federal financial assistance for housing and community development 
programs covered by Section 3. To minimize the burden, the 
Department has attempted to provide clear guidance on the required 
information collection. This guidance will prevent the recipient 
from collecting and submitting unnecessary or duplicative 
information. The Section 3 regulations apply to any Public and 
Indian Housing programs that receive: (1) Development assistance 
pursuant to Section 5 of the U.S. Housing Act of 1937; (2) operating 
assistance pursuant to Section 9 of the U.S. Housing Act of 1937; or 
(3) modernization grants pursuant to Section 14 of the U.S. Housing 
Act of 1937. The regulations also apply to other housing and 
community development assistance expended for: (1) housing 
rehabilitation (including reduction and abatement of lead-based 
paint hazards); (2) housing construction; (3) other public 
construction projects; and (4) housing and community development 
assistance for which the HUD share of the project cost (as defined 
in Sec. 135.5) for such activity exceeds $100,000, or the amount of 
any subcontract awarded in connection with the covered activity 
exceeds $50,000.
    Recipients and contractors subject to Section 3 requirements 
must maintain appropriate documentation to establish that, at a 
minimum, a good faith effort was made to provide economic 
opportunities resulting from financial assistance for housing and 
community development programs to low- and very low-income 
residents. Each recipient who receives Section 3 covered assistance 
from HUD shall submit to the Assistant Secretary for Fair Housing 
and Equal Opportunity an annual report in such form and with such 
information as the Assistant Secretary may request, for the purpose 
of determining the results of Section 3 activities.
    These results are used to assess the impact of the law, to 
target monitoring and compliance reviews, and to prepare reports to 
Congress.
    A Section 3 complaint may be filed by an individual representing 
the interests of a small business. The information required on the 
Section 3 Complaint Form, is the same type of information 
voluntarily provided by a person representing an individual. 
Complainants are individuals or businesses who chose to submit this 
form to HUD, and by electing to do so, are required to only submit 
it once. No reporting of any kind is required, nor are respondents 
remunerated by HUD for this effort.

7. Reporting Cycle

    Section 3 Reporting Form information will be collected annually. 
The report may be submitted on the same cycle as the performance 
report required by the program under which Section 3 covered 
assistance is provided. Where a performance report is not required, 
the Section 3 report is due to the local HUD (Category A) Office 
within ten (10) days after the end of the reporting period indicated 
in Block 8 of form HUD-60002 or at the completion of the project if 
sooner. Also, an annual reporting cycle will assist HUD in meeting 
its reporting requirements under Section 808(e)(6) of the Fair 
Housing Act, Section 561 of the HCDA of 1987 and Section 916 of the 
HCDA of 1992. This report also will assist the Department in 
evaluating and managing program performance.
    The Section 3 Complaint Form mandates no specific requirements 
with respect to the frequency of collection of information. The 
Section 3 Compliant Form is made available to the public for use by 
individuals or businesses who wish to file a Section 3 compliant 
with HUD. Complaints are individuals who chose to submit this form 
to HUD, and by electing to do so, are required to only submit it 
once. No remunerated by HUD for this effort.

8. Consistency With 5 CFR 1320.6

    Use of the Section 3 Reporting Form is consistent with 24 CFR 
part 1320.6.
    Use of the Section 3 Complaint Form is consistent with 24 CFR 
part 1320.6.

9. Outside Consultation

    Pursuant to statutory requirements, staff from the Departments 
of Labor and Commerce, and the Small Business Administration have 
been contacted regarding the Section 3 Reporting Form. The attached 
Section 3 Reporting Form--Economic Opportunities for Low- and Very 
Low-Income Persons, Housing and Urban Development Act of 1968, has 
been developed by the Section 3 Compliance Division for collecting 
Section 3 data. Form HUD-2516 is modified to collect Section 3 
contracting data from public and Indian housing programs and all 
community development programs except those administered by States. 
Form HUD-60002 is designed to collect Section 3 contracting data 
from all other Section 3 covered programs and to collect training 
and employment data on all Section 3 covered programs. These data 
collection forms are the only instruments that collect Section 3 
employment, training and contracting information.
    No one was consulted outside the Department with respect to the 
Section 3 Complaint Form. The instructions are specific, and the 
information provided by the complainant is unique on each form.

10. Confidentiality

    An assurance of confidentiality is not applicable to the Section 
3 Reporting Form. The form will be filed with HUD's Office of Fair 
Housing and Equal Opportunity. The Privacy Act of 1974 and OMB 
Circular A-108 are not applicable.
    All information collected by the Section 3 Complaint Form 
complies with the Privacy Act of 1974 and OMB Circular A-108, 
``Responsibilities for Maintenance of Records About Individuals by 
Federal Agencies''. Each respondent is apprised of the filing of a 
Section 3 Complaint against them. However, information obtained 
during the investigation is held in confidence and may not be 
divulged while the investigation is in progress.

11. Sensitive Questions

    The Section 3 Reporting Form reporting requirements do not 
contain sensitive questions. The information requested deals with 
the results of the recipient's good faith efforts to provide 
opportunities for lower income residents to receive job training and 
employment and for local businesses to receive contracts in 
connection with HUD assisted programs. Data is cumulative and 
personal identifying information is not included.
    The Section 3 Complaint Form does not request information of a 
sensitive nature such as sexual behavior and attitudes, religious 
beliefs and other matters that are commonly considered private. 
Section 3 is racially neutral and as such the complaint form does 
not request information regarding the complainants' race, color, 
sex, or national origin because these areas are not protected 
classes or issues which determine beneficiaries of Section 3. The 
information provided on this complaint form is given voluntarily and 
provides the basis for HUD's investigation of the complaint to 
determine if the allegations of noncompliance are valid.

12. Estimate of Costs

   For HUD Section 3 Reporting Form--Preparing the Report               
                                                                        
FHEO:                                                                   
  GS-13 to compile and analyze the information at $25.18 per            
   hour for approximately 8 hours...........................     $201.44
  GS-15 to review and approve at $35 per hour for                       
   approximately 3 hours....................................      105.00
  GS-7 to type, copy, and prepare report for mailing at                 
   $11.94 per hour for approximately 8 hours................       95.52
  Mailing costs for first class for 58,403 packages per                 
   recipient @ $1 per report. (33,000 PHI recipients, 403               
   Housing recipients, & 25,000 CPD recipients).............   58,403.00
                                                             -----------
      Total.................................................   58.804.96
                                                                        
   For Respondents--Recordkeeping and Reporting Recipients              
                                                                        
One professional staff at $25 per hour for approximately 3              
 hours......................................................       75.00
One secretary to type, copy, and prepare report for mailing             
 at $11 per hour for approximately 12 hours.................      132.00
Mailing costs for first class for 1 package @ $1 per report.        1.00
                                                             -----------
      Total.................................................      208.00
                                                                        
                         Contractors                                    
                                                                        
One professional staff at $25 per hour for approximately 1\1/           
 2\ hours...................................................       37.50
One secretary to type, copy, and prepare report for mailing             
 at $11 per hour for approximately 4 hours..................       44.00
Mailing costs for first class for one package @ $1 per                  
 report.....................................................        1.00
                                                             -----------
      Total.................................................       82.50
                                                                        
       For HUD--Reviewing the Section 3 Complaint Form                  
                                                                        
FHEO:                                                                   
  GS-12 to review each Section 3 Complaint Form at $19 per              
   hour for \1/3\hour.......................................            
  HUD anticipates a receipt of 100 complaints annually. 100             
   complaints x .33 minutes = 33 hrs........................            
  33 hrs x $19 per hour.....................................      627.00
  10 % overhead.............................................       62.70
                                                             -----------
      Total.................................................      689.70
                                                                        
  For Complainants--Completion of Section 3 Complaint Form              
                                                                        
This form is voluntarily filled out by a Section 3                      
 Complainant in one hour. There is no financial investment              
 required or expected                                                   
                                                                        
   For Respondents--Completion of Section 3 Complaint Form              
                                                                        
A Respondent does not complete the Section 3 Complaint Form.            
 However, the respondent is required to respond and/or                  
 resolve the allegations identified on the Section 3                    
 Complaint Form. The estimated time for response is four (4)            
 hours. The estimated cost for this response time is as                 
 follows:                                                               
  One professional staff (attorney) at $75 per hour for                 
   approximately 3 hours....................................      225.00
  One secretary to type, copy, and prepare response for                 
   mailing at $11 per hour for approximately 1 hour.........       11.00
  Mailing costs for first class for one package @ $1 per                
   response.................................................        1.00
                                                             -----------
      Total.................................................      237.00
                                                                        

13. Estimate of Collection Burden

    For the Section 3 Reporting Form the total universe of potential 
respondents, including recipients, prime contractors and 
subcontractors, is approximately 133,403. We anticipate that about 
58,403 respondents (HUD recipients) will submit summary reports to 
HUD. Prime contractors and subcontractors will submit reports, as 
requested, to the recipients. The required summary report from the 
recipients is submitted to HUD annually, 10 days after the end of 
the designated reporting period. The information is generated by the 
recipient through maintaining documentation that summarizes efforts 
made, and the results of those efforts, to provide opportunities for 
training and employment arising from HUD assistance to low- and very 
low-income residents. The data will be recorded on the Section 3 
reporting form (form HUD-60002, Economic Opportunities for Low- and 
Very Low-Income Persons). It is estimated that two hours per 
reporting period will be required of the recipients, contractors and 
subcontractors to prepare the Section 3 report. We estimate that the 
burden will not vary significantly among the respondents.

Form HUD-60002

------------------------------------------------------------------------
                                             Number     Hours           
          Number of respondents                of        per      Total 
                                            reports    report     hours 
------------------------------------------------------------------------
58,403 (recipients).......................         1         2   116,806
75,000 (contractors and subcontractors)...         1         2   150,000
------------------------------------------------------------------------

    For the Section 3 Complaint Form, the Department estimates that 
during the course of a year approximately 100 Section 3 complaints 
will be filed. It is anticipated that it will take the complainant 
approximately one (1) hour to complete the complaint form. It is 
anticipated that it will take the respondent approximately four 
hours to respond to the allegations of the complaint. Of the 100 
complaints anticipated for receipt, HUD does not expect to require 
or receive a response from each respondent. About 10% of the 
complaints received will be administratively closed for lack of 
jurisdiction prior to the notification of the respondent. Therefore, 
the number of responses by the respondent has been lessened by 10% 
(to 90 responses) resulting in 360 total response hours for a 
respondent.
    The total number of burden hours for the Section 3 Complaint 
Form is 460 hours calculated as follows:

Section 3 Complaint Form

------------------------------------------------------------------------
                                                        Hours           
                                           Number of     per      Total 
          Number of respondents            responses  response    hours 
                                                                        
------------------------------------------------------------------------
100 complainants.........................        100         1       100
100 respondents..........................         90         4       360
Recordkeeping:                                                          
  133,403 recipients, contractors &                                     
   subcontractors........................          1         4   266,806
------------------------------------------------------------------------

14. Change in Burden

    The Section 3 Reporting Form is revised to reflect public 
comments to the proposed rule.
    This is the first time that the Section 3 Complaint Form 
information has been requested.

15. Publication of Data

    There are no existing plans for the tabulation and publication 
of Section 3 Reporting Form data.
    There are no existing plans for the tabulation and publication of 
Section 3 Complaint Form data.

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[FR Doc. 94-11837 Filed 5-13-94; 8:45 am]
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