[Federal Register Volume 59, Number 125 (Thursday, June 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15949]


[[Page Unknown]]

[Federal Register: June 30, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary

24 CFR Subtitle A and Parts 92, 219, 280, 570, 572, 574, 576, 583, 
882, 889, 890, 905, 961, and 963

[Docket No. R-94-1678; FR-3536-F-01]
RIN 2501-AB64

 

Economic Opportunities for Low- and Very Low-Income Persons--
Conforming Amendments

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: Section 3 of the Housing and Urban Development Act of 1968 
(section 3), as amended by the Housing and Community Development Act of 
1992, requires that economic opportunities generated by HUD financial 
assistance for housing (including public and Indian housing) and 
community development programs shall, to the greatest extent feasible, 
be given to low- and very low-income persons, particularly those who 
are recipients of government assistance for housing, and to businesses 
that provide economic opportunities for these persons. Elsewhere in 
today's edition of the Federal Register, the Department has published 
an interim rule that makes comprehensive amendments to HUD's section 3 
regulations at 24 CFR part 135 to bring these regulations into 
conformity with the changes made to section 3 by the Housing and 
Community Development Act of 1992. The section 3 (part 135) interim 
rule is based on the proposed rule published on October 8, 1993, and 
takes into consideration public comment received on the proposed rule.
    This final rule makes conforming amendments to several parts in 
title 24 of the Code of Federal Regulations that include reference, or 
should include reference, to the part 135 regulations.

EFFECTIVE DATE: August 1, 1994.

FOR FURTHER INFORMATION CONTACT: Maxine B. Cunningham, Director, Office 
of Economic Opportunity, Room 5232, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410, telephone 
(202) 708-2251 (voice/TDD). (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION:

I. Background--Conforming Amendments Proposed Rule

    Since its enactment, section 3 of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701u) has been a statutory basis for promoting 
the award of jobs and contracts, generated from projects receiving HUD 
financial assistance, to, respectively, low-income residents and 
businesses of the areas where the projects to be assisted are located. 
Section 3 was recently amended, in its entirety, by section 915 of the 
Housing and Community Development Act of 1992 (Pub.L. 102-550, approved 
October 28, 1992) (the 1992 Act). Although the 1992 Act significantly 
revised section 3, it did not alter the objective of section 3--to 
provide economic opportunities to low-income persons. The 1992 Act, in 
fact, strengthens the section 3 mandate by: clarifying the types of HUD 
financial assistance, activities, and recipients subject to the 
requirements of section 3; identifying the specific individuals and 
businesses who are the intended beneficiaries of the economic 
opportunities generated from HUD-assisted activities; and establishing 
the order of priority in which these individuals and businesses should 
be recruited and solicited for the employment and other economic 
opportunities generated from HUD-assisted activities.
    Elsewhere in today's edition of the Federal Register, the 
Department has published an interim rule which makes comprehensive 
amendments to HUD's section 3 regulations at 24 CFR part 135 to bring 
these regulations into conformity with the changes made to section 3 by 
the Housing and Community Development Act of 1992. The section 3 (part 
135) interim rule is based on the proposed rule published on October 8, 
1993, and takes into consideration public comment received on the 
proposed rule.
    This rule makes final a conforming amendments proposed rule 
published on October 8, 1993, and which was a companion rule to the 
section 3 (part 135) proposed rule also published on October 8, 1993. 
The October 8, 1993 ``conforming amendments rule'' proposed to make 
conforming amendments to several parts in title 24 of the Code of 
Regulations to include reference to the applicability of the part 135 
regulations to the HUD program addressed by these parts.
    Several HUD programs, particularly new HUD programs, include in 
their program requirements the applicability of section 3 to the 
program, but do not require compliance with the part 135 regulations. 
(See, for example, 24 CFR parts 576, 583, 700.) Compliance with the 
part 135 regulations was not included because the part 135 regulations 
had not been updated to reflect statutory amendments. (The part 135 
regulations have not been amended substantively since their original 
adoption in 1973, although statutory amendments were made to section 3 
in 1974 and 1980.) Additionally, several parts in 24 CFR currently 
refer to the part 135 regulations, but include reference to the former 
statutory language of section 3 (i.e., before its amendment by section 
915 of the 1992 Act, the title of section 3 was ``Employment 
Opportunities for Businesses and Lower Income Persons in Connection 
with Assisted Projects''). The Department notes, however, that not all 
parts in 24 CFR which reference section 3 and the part 135 regulations 
require conforming amendments. (For example, see 24 CFR 941.208(a).)
    The October 8, 1993 conforming amendments rule also proposed to 
amend 24 CFR part 963--Contracting with Resident-Owned Businesses--to 
raise the dollar contract limit from $500,000 to $1,000,000. The 
purpose of the alternative procurement process provided by part 963 is 
to encourage PHAs to contract with resident-owned businesses for public 
housing services, supplies, or construction. The increase in the dollar 
contract limit is directed to encouraging additional contract 
opportunities for resident-owned businesses, which is consistent with 
the objectives of section 3.

II. Conforming Amendments Final Rule

    No public comments were received on the October 8, 1993 conforming 
amendments proposed rule. Accordingly, the Department, through this 
rule, adopts, as final, the conforming amendments set forth in the 
October 8, 1993 proposed rule, with some additional changes as 
described in this section.

Revision to Conforming Amendment to Part 219

    The October 8, 1993 conforming amendments proposed rule included a 
conforming amendment to 24 CFR part 219 which contains the regulations 
for the Flexible Subsidy Program. However, the October 8, 1993 
conforming amendment made reference to the $7,500 threshold which is no 
longer applicable, because it has been removed by the section 3 (part 
135) interim rule, published elsewhere in today's edition of the 
Federal Register. The section 3 interim rule provides one set of 
thresholds applicable to all HUD housing and community development 
programs.
    Additionally, on December 6, 1993, the Department published a final 
rule that amended 24 CFR part 219 to implement the changes made to the 
Flexible Subsidy Program by the 1992 Act (58 FR 64138). This December 
6, 1993 final rule included references to the applicability of section 
3 and the regulations of part 135 to the Flexible Subsidy Program.
    This conforming amendments final rule makes two changes to the 
amendments made by the December 6, 1939 final rule. The December 6, 
1993 final rule included a reference to section 3 and the regulations 
in part 135 under the requirements applicable to Flexible Subsidy 
operating assistance. However, section 3, as amended by the 1992 Act, 
is no longer applicable to Flexible Subsidy operating assistance. 
Therefore this conforming amendments rule removes this reference. In 
addition, this conforming amendments rule makes a minor change to the 
reference to section 3 and the regulations in part 135 under the 
capital improvement requirements. Section 3 and the regulations in part 
135 are applicable to capital improvement assistance, but as the 
section 3 (part 135) rule provides, this applicability is limited to 
housing rehabilitation, housing construction and other public 
construction projects as provided in part 135, and subject to the 
thresholds provided in part 135. This conforming amendments final rule 
clarifies the limited applicability of section 3.

Addition of Conforming Amendment to Part 280

    The October 8, 1993 conforming amendment proposed rule 
inadvertently omitted a conforming amendment to 24 CFR part 280 
(Nehemiah Housing Opportunity Grants). Section 280.207 of this part 
currently contains a reference to section 3 and the part 135 
regulations. However, the reference section 3 includes statutory 
language that has been removed from the 1992 Act amendment to section 
3. The conforming amendment made to part 280 by this final rule removes 
the outdated statutory language.

Removal of Conforming Amendment to Part 700

    The October 8, 1993 conforming amendment proposed rule included a 
conforming amendment for 24 CFR part 700 (Congregate Housing Services 
Program). This program currently does not provide assistance for 
housing rehabilitation, housing construction or other public 
construction projects, which would be extent of coverage by section 3 
and the regulations in part 135 for this Housing program. Accordingly, 
the conforming amendment to part 700 is removed by this final rule. If 
and when the Congregate Housing Services Program provides assistance 
for these three types of section 3 covered projects, the regulations in 
part 700 will be amended to include reference to the applicability of 
section 3 and the regulations in part 135.

Addition of Conforming Amendment to Part 882, Subpart G

    This final rule also includes a conforming amendment to 24 CFR part 
882, subpart G. As discussed in the section 3 (part 135) interim rule, 
the Department has determined that section 3 and the regulations in 
part 135 are applicable to section 8 project-based assistance that is 
expended for housing rehabilitation, housing construction, or other 
public construction project.

Addition of Section Conforming Amendment to Part 905

    The October 8, 1993 proposed rule included a conforming amendment 
to 24 CFR part 905 (Indian Housing Programs), but only in the section 
of the rule (Sec. 905.165) which addresses the subject of Indian 
preference in employment and contracting. The October 8, 1993 
inadvertently failed to include a reference to section 3 and the 
regulations of part 135 in Sec. 905.120, which lists other applicable 
Federal requirements. This conforming amendments final rule corrects 
this error.

Section 3 (Part 135) Interim Rule

    The Department again points out that the section 3 (part 135) rule 
published elsewhere in today's edition of the Federal Register is being 
published as an interim rule. The Department received substantial 
comment on the October 8, 1993 section 3 proposed rule, has made a 
number of changes to the section 3 regulations as a result of public 
comment, and seeks additional public comment on the section 3 rule.

III. Other Matters

Impact on Small Entities

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this rule, and, in so doing, 
certifies that the rule would not have a significant economic impact on 
a substantial number of small entities. This final rule makes 
conforming amendments to various parts in title 24 of the Code of 
Federal Regulations that include reference (and thus update this 
reference), or that should include reference to the part 135 
regulations.

Environmental Impact

    In connection with the development of the section 3 (part 135) 
proposed rule, a Finding of No Significant Impact with respect to the 
environment was made in accordance with HUD regulations in 24 CFR part 
50 that implement section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332). That Finding of No Significant 
Impact was applicable to the October 8, 1993 conforming amendments 
proposed rule, and remains applicable to the section 3 (part 135) 
interim rule and this conforming amendments final rule. The Finding 
remains available for public inspection during regular business hours 
in the Office of the General Counsel, Rules Docket Clerk, Room 10276, 
451 Seventh Street, SW, Washington, DC 20410.

Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order No. 12611, Federalism, has determined that this rule 
would not have a substantial, direct effect on the States or on the 
relationship between the Federal government and the States, or on the 
distribution of power or responsibilities among the various levels of 
government. The rule simply makes conforming amendments to various 
parts in 24 CFR that include reference (and thus update this 
reference), or that should include reference to the part 135 
regulations. The part 135 interim rule, published elsewhere in today's 
Federal Register provides, consistent with the section 915 of the 1992 
Act, that the preference requirements of section 3 are to be carried 
out consistent with existing Federal, State, and local laws and 
regulations.

Impact on the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this final rule does not 
have the potential to promote family formation, maintenance, and 
general well-being, and thus is not subject to review under the order. 
This final rule simply makes conforming amendments to several parts in 
24 CFR to update reference, or include reference to the part 135 
regulations. No change in existing HUD policies or programs will result 
from promulgation of this proposed rule, as those policies and programs 
relate to family concerns.

Regulatory Agenda

    This rule was listed as sequence number 1542 in the Department's 
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR 
20424, 20438) under Executive Order 12866 and the Regulatory 
Flexibility Act.

List of Subjects

24 CFR Part 92

    Administrative practice and procedure, Grant programs--housing and 
community development, Grant programs--Indians, Low and moderate income 
housing, Manufactured homes, Rent subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 219

    Loan programs--housing and community development, Low and moderate 
income housing, Reporting and recordkeeping requirements.

24 CFR Part 280

    Community development, Grant programs--housing and community 
development, Loan programs--housing and community development, Low and 
moderate income housing, Nonprofit organizations, Reporting and 
recordkeeping requirements.

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.

24 CFR Part 572

    Condominiums, Cooperatives, Fair housing, Government property, 
Grant programs--housing and community development, Low and moderate 
income housing, Nonprofit organizations, Reporting and recordkeeping 
requirements.

24 CFR Part 574

    Community facilities, Disabled, Emergency shelter, Grant programs--
health programs, Grant programs--housing and community development, 
Grant programs--social programs, HIV/AIDS, Homeless, Housing, Low and 
moderate income housing, Nonprofit organizations, Rent subsidies, 
Reporting and recordkeeping requirements, Technical assistance.

24 CFR Part 576

    Community facilities, Emergency shelter grants, Grant programs--
housing and community development, Grant programs--social programs, 
Homeless, Reporting and recordkeeping requirements.

24 CFR Part 583

    Community facilities, Employment, Grant programs--housing and 
community development, Grant programs--social programs, Handicapped, 
Homeless, Indians, Mental health programs, Nonprofit organizations, 
Reporting and recordkeeping requirements, Technical assistance.

24 CFR Part 882

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

24 CFR Part 889

    Aged, Capital advance programs, Grant programs--housing and 
community development, Loan programs--housing and community 
development, Low and moderate income housing, Rent subsidies, Reporting 
and recordkeeping requirements.

24 CFR Part 890

    Civil rights, Grant programs--housing and community development, 
Individuals with disabilities, Loan programs--housing and community 
development, Low and moderate income housing, Mental health programs, 
Reporting and recordkeeping requirements.

24 CFR Part 905

    Aged, Energy conservation, Grant programs--housing and community 
development, Grant programs--Indians, Individuals with disabilities, 
Lead poisoning, Loan programs--housing and community development, Loan 
programs--Indians, Low and moderate income housing, Public housing, 
Reporting and recordkeeping requirements.

24 CFR Part 961

    Drug abuse, Drug traffic control, Grant programs--housing and 
community development, Grant programs--Indians, Grant programs--low and 
moderate income housing, Indians, Public housing, Reporting and 
recordkeeping requirements.

24 CFR Part 963

    Grant programs--housing and community development, Public housing, 
Reporting and recordkeeping requirements.

    Accordingly, and under the authority of 42 U.S.C. 3535(d), subtitle 
A and parts 92, 219, 280, 570, 572, 574, 576, 583, 882, 889, 890, 905, 
961, and 963 of title 24 of the Code of Federal Regulations, are 
amended as follows:

PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM

    1. The authority citation for part 92 continues to read as follows:

    Authority: 42 U.S.C. 3535(d) and 12701-12839.

    2. In Sec. 92.350, paragraph (a)(4) introductory text is revised to 
read as follows:


Sec. 92.350  Equal opportunity and fair housing.

    (a) * * *
    (4) The requirements of section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the regulations in 24 CFR 
part 135;
* * * * *
    3. In Sec. 92.631, a new paragraph (c)(5) is added to read as 
follows:


Sec. 92.631  Indian preference.

* * * * *
    (c) * * *
    (5) Local area residents. In accordance with section 3 of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and the 
implementing regulations in 24 CFR part 135, tribes, their contractors 
and subcontractors, shall make best efforts, consistent with existing 
Federal, State, and local laws and regulations (including section 7(b) 
of the Indian Self-Determination and Education Assistance Act), to give 
low- and very low-income persons the training and employment 
opportunities generated by section 3 covered assistance (as this term 
is defined in 24 CFR 135.7), and to give section 3 business concerns 
the contracting opportunities generated by section 3 covered 
assistance.
* * * * *
    4. Appendix A to subtitle A, is amended by revising the first 
sentence of paragraph (c)(1) in section 505, to read as follows:

Appendix A to Subtitle A--Hope for Public and Indian Housing 
Homeownership Program

* * * * *

V. Other Requirements.

* * * * *

Section 505. Nondiscrimination and equal opportunity.

* * * * *
    (c) Employment opportunities. (1) The requirements of section 3 
of the Housing and Urban Development Act of 1968 (12 U.S.C 1701u), 
and the implementing regulations in 24 CFR part 135 shall apply. * * 
*
* * * * *
    5. Appendix B. to subtitle A is amended by revising the first 
sentence of paragraph (c)(1) in section 505 to read as follows:

Appendix B to Subtitle A--Hope for Homeownership of Multifamily Units 
Program

* * * * *

V. Other Requirements.

* * * * *

Section 505. Nondiscrimination and equal opportunity.

* * * * *
    (c) Employment opportunities. (1) The requirements of section 3 
of the Housing and Urban Development Act of 1968 (12 U.S.C 1701u), 
and the implementing regulations in 24 CFR part 135 shall apply as 
provided in part 135. * * *
* * * * *

PART 219--FLEXIBLE SUBSIDY PROGRAM FOR TROUBLED PROJECTS

    6. The authority citation for part 219 continues to read as 
follows:

    Authority: 12 U.S.C. 1715z-1a; 42 U.S.C. 3535(d).

    7. In Sec. 219.210, paragraph (c)(3) is revised to read as follows:


Sec. 219.210  Application.

* * * * *
    (c) * * *
    (3) Certification that the applicant will comply with the 
provisions of the Fair Housing Act (42 U.S.C. 3601-3619), Title VI of 
the Civil Rights Act of 1964 (42 U.S.C. 2000d), Executive Orders 11063 
(3 CFR, 1958-1963 Comp., p. 652, and 3 CFR, 1980 Comp., p. 307) and 
11246 (3 CFR, 1964-1965 Comp., p. 339), section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794), the Age Discrimination Act 
of 1975 (42 U.S.C. 6101-6107), and all regulations issued in accordance 
with these authorities;
* * * * *
    8. In Sec. 219.310, paragraph (c)(3) is revised to read as follows:


Sec. 219.310  Application.

* * * * *
    (c) * * *
    (3) Certification that the applicant will comply with the 
provisions of the Fair Housing Act (42 U.S.C. 3601-3619), Title VI of 
the Civil Rights Act of 1964 (42 U.S.C. 2000d), Executive Orders 11063 
(3 CFR, 1958-1963 Comp., p. 652, and 3 CFR, 1980 Comp., p. 307) and 
11246 (3 CFR, 1964-1965 Comp., p. 339), section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794), the Age Discrimination Act 
of 1975 (42 U.S.C. 6101-6107), and all regulations issued in accordance 
with these authorities; and also with section 3 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701u) and the implementing 
regulations in 24 CFR part 135, as provided in part 135.
* * * * *

PART 280--NEHEMIAH HOUSING OPPORTUNITY GRANTS PROGRAM

    9. The authority citation for part 280 continues to read as 
follows:

    Authority: 12 U.S.C. 1715l note; 42 U.S.C. 3535(d).

    10. In Sec. 280.207, paragraph (a)(4) is revised to read as 
follows:


Sec. 280.207  Other Federal requirements.

    (a) * * *
    (4) The requirements of section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701) and the implementing 
regulations in 24 CFR part 135 shall apply as provided in part 135;
* * * * *

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

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

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

    12. In Sec. 570.487, a new paragraph (d) is added to read as 
follows:


Sec. 570.487  Other applicable laws and related program requirements.

* * * * *
    (d) States shall comply with section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the implementing 
regulations in 24 CFR part 135. Section 3 requires that employment and 
other economic opportunities arising in connection with housing 
rehabilitation, housing construction, or other public construction 
projects shall, to the greatest extent feasible, and consistent with 
existing Federal, State, and local laws and regulations, be given to 
low- and very low-income persons.
    13. In Sec. 570.607, paragraph (b) is revised to read as follows:


Sec. 570.607  Employment and contracting opportunities.

* * * * *
    (b) Grantees shall comply with section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the implementing 
regulations in 24 CFR part 135. Section 3 requires that employment and 
other economic opportunities arising in connection with housing 
rehabilitation, housing construction, or other public construction 
projects shall, to the greatest extent feasible, and consistent with 
existing Federal, State, and local laws and regulations, be given to 
low- and very low-income persons.

PART 572--HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM 
(HOPE 3)

    14. The authority citation for part 572 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 12891.

    15. In Sec. 572.405, paragraph (c)(1) is revised to read as 
follows:


Sec. 572.405  Nondiscrimination and equal opportunity requirements.

* * * * *
    (c) Employment opportunities. (1) The requirements of section 3 of 
the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and the 
implementing regulations in 24 CFR part 135 shall apply as provided in 
part 135; and Executive Order 11246 (3 CFR, 1964--1965 Comp., p. 339) 
(Equal Employment Opportunity) and implementing regulations at 41 CFR 
part 60.
* * * * *

PART 574--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

    16. The authority citation for part 574 is revised to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 12901-12912.

    17. In Sec. 574.600, paragraph (c) is revised to read as follows:


Sec. 574.600  Nondiscrimination and equal opportunity.

* * * * *
    (c) Employment opportunities. Grantees and project sponsors shall 
comply with section 3 of the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701u) and the implementing regulations in 24 CFR part 135. 
Section 3 requires that employment and other economic opportunities 
arising in connection with housing rehabilitation, housing 
construction, or other public construction projects shall, to the 
greatest extent feasible, and consistent with existing Federal, State, 
and local laws and regulations, be given to low- and very low-income 
persons.
* * * * *

PART 576--EMERGENCY SHELTER GRANTS PROGRAM: STEWART B. MCKINNEY 
HOMELESS ASSISTANCE ACT

    18. The authority citation for part 576 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 11376.
    19. In Sec. 576.79, paragraph (a)(4) is revised to read as follows:


Sec. 576.79  Other Federal requirements.

    (a) * * *
    (4) The requirements of section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the regulations in 24 CFR 
part 135.
* * * * *

PART 583--SUPPORTIVE HOUSING PROGRAM

    20. The authority citation for part 583 is revised to read as 
follows:

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

    21. In Sec. 583.325, paragraph (b)(4) is revised to read as 
follows:


Sec. 583.325  Nondiscrimination and equal opportunity requirements.

* * * * *
    (b) * * *
    (4) The requirements of section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the regulations in 24 CFR 
part 135.
* * * * *

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

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

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d). Subpart H 
is also issued under 42 U.S.C. 11361 and 11401.

    23. In Sec. 882.713, a new paragraph (c)(11) is added to read as 
follows:


Sec. 882.713  Other Federal requirements.

* * * * *
    (c) * * *
    (11) Section 3 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u) and the regulations in 24 CFR part 135.
* * * * *

PART 889--SUPPORTIVE HOUSING FOR THE ELDERLY

    24. The authority citation for part 889 continues to read as 
follows:

    Authority: 12 U.S.C. 1701q; 42 U.S.C. 3535(d).

    25. In Sec. 889.265, paragraph (a)(4) is revised to read as 
follows:


Sec. 889.265  Other Federal requirements.

    (a) * * *
    (4) The requirements of section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the regulations in 24 CFR 
part 135 shall apply as provided in part 135.
* * * * *

PART 890--SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES

    26. The authority citation for part 890 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 8013.

    27. In Sec. 890.260, paragraph (a)(4) is revised to read as 
follows:


Sec. 890.260  Other Federal requirements.

    (a) * * *
    (4) The requirements of section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the regulations in 24 CFR 
part 135 shall apply as provided in part 135.
* * * * *

PART 905--INDIAN HOUSING PROGRAMS

    28. The authority citation for part 905 is revised to read as 
follows:

    Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437a, 1437aa, 1437bb, 
1437cc, 1437ee, and 3535(d).

    29. In Sec. 905.120, a new paragraph (j) is added to read as 
follows:


Sec. 905.120  Compliance with other Federal requirements.

* * * * *
    (j) Economic opportunities for low- and very low-income persons. 
IHAs shall comply with section 3 of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701u) and the regulations in part 135, as 
provided in part 135, to the maximum extent consistent with, but not in 
derogation of, compliance with section 7(b) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450e(b)). (See 
also 24 CFR 905.165(c)(5).)
    30. In Sec. 905.165, paragraph (c)(5) is revised to read as 
follows:


Sec. 905.165  Indian preference.

* * * * *
    (c) * * *
    (5) Local area residents. In accordance with section 3 of the 
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and the 
implementing regulations in 24 CFR part 135, IHAs, their contractors 
and subcontractors, shall make best efforts, consistent with existing 
Federal, State, and local laws and regulations (including section 7(b) 
of the Indian Self-Determination and Education Assistance Act), to give 
low- and very low-income persons the training and employment 
opportunities generated by section 3 covered assistance (as this term 
is defined in 24 CFR 135.7) and to give section 3 business concerns the 
contracting opportunities generated by section 3 covered assistance.
* * * * *

PART 961--PUBLIC HOUSING DRUG ELIMINATION PROGRAM

    31. The authority citation for part 961 is revised to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 11901 et seq.

    32. In Sec. 961.29, paragraph (b)(4) is revised to read as follows:


Sec. 961.29  Other Federal requirements.

* * * * *
    (b) * * *
    (4) The requirements of section 3 of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701u) and the implementing 
regulations in 24 CFR part 135; and
* * * * *

PART 963--PUBLIC HOUSING--CONTRACTING WITH RESIDENT-OWNED 
BUSINESSES

    33. The authority citation for part 963 is revised to read as 
follows:

    Authority: 42 U.S.C. 1437 and 3535(d).

    34. In Sec. 963.3, the second sentence is revised to read as 
follows:


Sec. 963.3  Applicability.

    * * * Public housing contracts eligible to be awarded under the 
alternative procurement process provided by this part are limited to 
individual contracts that do not exceed $1,000,000. * * *
    35. In Sec. 963.10, paragraph (d) is revised to read as follows:


Sec. 963.10  Eligible resident-owned businesses.

* * * * *
    (d) Limitation on alternative procurement contract awards. The 
business shall submit a certification as to the number of contracts 
awarded, and the dollar amount of each contract award received, under 
the alternative procurement process provided by this part. A resident-
owned business is not eligible to participate in the alternative 
procurement process provided by this part if the resident-owned 
business has received under this process one or more contracts with a 
total combined dollar value of $1,000,000.

    Dated: June 27, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-15949 Filed 6-29-94; 8:45 am]
BILLING CODE 4210-32-P