[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Rules and Regulations]
[Pages 42972-42980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20372]




[[Page 42971]]

_______________________________________________________________________

Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Community Planning and 
Development



_______________________________________________________________________



24 CFR Part 586



Base Closure Community Redevelopment and Homeless Assistance; Interim 
Rule

  Federal Register / Vol. 60, No. 159 / Thursday, August 17, 1995 / 
Rules and Regulations   

[[Page 42972]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Community Planning and 
Development

24 CFR Part 586

[Docket No. FR-3820-I-01]
RIN 2506-AB72


Base Closure Community Redevelopment and Homeless Assistance

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

ACTION: Interim rule.

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

SUMMARY: This interim rule promulgates policy and procedures for 
implementing the Base Closure Community Redevelopment and Homeless 
Assistance Act of 1994.

DATES: Effective Date: September 18, 1995.
    Sunset Provision: Sections 586.1, 586.5, 586.10, 586.15, 586.20, 
586.25, 586.30, 586.35, 586.40 and 586.45 shall expire and shall not be 
in effect after September 17, 1996, unless prior to September 17, 1996, 
the Department publishes a final rule adopting the interim rule with or 
without changes, or publishes a notice in the Federal Register to 
extend the effective date of the interim rule.
    Comments due date: October 16, 1995.

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, 451 Seventh 
Street, SW, Washington, DC 20410. Facsimile (FAX) comments are not 
acceptable. 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. This interim rule was written jointly 
by the Department of Defense and the Department of Housing and Urban 
Development. All public comments will be reviewed by both departments 
and subsequent amendments will be drafted together.

FOR FURTHER INFORMATION CONTACT: Rob Hertzfeld, Office of Assistant 
Secretary of Defense (Economic Security), Department of Defense, 3300 
Defense Pentagon, room No. 1D-760, Washington, DC 20301-3300, (703) 
695-1470; or Thelma Moore, Deputy Assistant Secretary for Planning/
Community Viability, Office of Community Planning and Development, Room 
7204, Department of Housing and Urban Development, 451 7th Street, SW, 
Washington, DC 20410, (202) 708-2484 or, TDD number for hearing and 
speech-impaired, (202) 708-0738 (these telephone numbers are not toll-
free).

SUPPLEMENTARY INFORMATION:

I. Information Collection

    The information collection requirements contained in this interim 
rule have been submitted to the Office of Management and Budget (OMB) 
for review under the Paperwork Reduction Act of 1980 (44 U.S.C 3501-
3520). No person may be subjected to a penalty for failure to comply 
with these information collection requirements until they have been 
approved and assigned an OMB control number. The OMB control number, 
when assigned, will be announced by separate notice in the Federal 
Register.
    Public reporting burden for the collection of information 
requirements contained in this interim rule is estimated to include the 
time for reviewing the instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information. Information on the estimated public 
reporting burden is provided under the Preamble heading, Other Matters. 
Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing this 
burden, to the Department of Housing and Urban Development, Rules 
Docket Clerk, 451 Seventh Street, SW, Room 10276, Washington, DC 20410-
0500; and to the Office of Information and Regulatory Affairs, Office 
of Management and Budget, Attention: Desk Officer for HUD, Washington, 
DC 20503.
II. Background

A. Legislative Summary

    This interim rule promulgates policy and procedures for 
implementing the Base Closure Community Redevelopment and Homeless 
Assistance Act of 1994 (``Redevelopment Act'') (Pub. L. 103-421). The 
Redevelopment Act amends the Defense Authorization Amendments and Base 
Closure and Realignment Act of 1988 (Pub. L. 100-526) and the National 
Defense Authorization Act of Fiscal Year 1991 (Pub. L. 101-510) (both 
at 10 U.S.C. 2687, note), both as amended by the National Defense 
Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).

B. Circumstances That Led to This New Law

    Title V of the Stewart B. McKinney Homeless Assistance Act of 1987, 
as amended, 42 U.S.C. 11411 (``Title V''), granted first priority on 
use of all surplus federally owned real and personal property, 
including former military installations, to the homeless. The Title V 
provisions have worked reasonably well for small parcels, however, in 
the base closure and realignment environment the processes for reuse 
planning and homeless use were independent and the timing incompatible. 
On October 25, 1994, the President signed the Redevelopment Act, which 
exempts base closure and realignment property from Title V and 
substitutes a new community-based process wherein representatives of 
the homeless will work directly with Local Redevelopment Authorities 
(LRAs) on the reuse of former military installations.
    The Redevelopment Act provides a process which aims to balance the 
needs of the homeless with other development interests in the community 
in the vicinity of the installation. Congress recognized that in order 
to achieve this balance, all interests must be ``put on the table'' at 
the same time. Accordingly, the Redevelopment Act requires the LRA to 
accept notices of interest simultaneously from state and local 
governments and other interests that include development and public 
purpose uses, including public benefit uses pursuant to the federal 
surplus property disposal authorities.
C. Applicability

    The Redevelopment Act applies to all bases that are approved for 
closure/realignment under Pub. L. 101-510 after October 25, 1994 as 
well as those installations approved for closure/realignment prior to 
October 25, 1994 under either Pub. L. 100-526 or Pub. L. 101-510 that 
have elected to come under the new process prior to December 24, 1994. 
All other installations approved for closure/realignment prior to 
October 25, 1994 that have not elected to come under the new process 
are covered by the Title V process as amended by Pub. L. 103-160. The 
Title V process continues to apply to all other unutilized, 
underutilized, excess, or surplus property owned by the federal 
government, including military properties that are not part of a base 
closure or realignment.
    LRAs which have elected to come under the Redevelopment Act should 
pay particular attention to Sec. 586.20(c)(1) which extends the 
permissible time 

[[Page 42973]]
period within which an LRA can set its date for receipt of notices of 
interest. For LRAs which have adequately complied with the statutory 
time limitation prior to publication of this interim rule, HUD will not 
expect them to reopen their notice period; however, those which have 
not yet so complied will be expected to follow this requirement. For 
all installations selected for closure or realignment prior to 1995 
that have elected this process, the LRA must complete the period for 
receiving notices of interest no later than 90 days from the 
publication of this interim rule.
    The Redevelopment Act recognizes that installations approved for 
closure or realignment before enactment of this law are well into the 
planning process and should therefore be treated differently than 
installations approved for closure/realignment subsequent to enactment. 
As a result, Sec. 586.20(c) allows for greater flexibility concerning 
the commencement and requirements of the outreach efforts to 
representatives of the homeless, state and local governments, and other 
interested parties in those communities.
    The Redevelopment Act includes special considerations for providers 
who had applications pending on closure or realignment and disposal 
properties under Title V at the time of enactment of the Redevelopment 
Act. LRAs must consider and specifically address any applications that 
were pending as of the date of enactment. In the case of providers 
whose applications have been approved (but the property applied for has 
not been transferred or leased), the LRA must accommodate the provider 
with substantially equivalent property on or off the installation, 
sufficient funding to acquire such equivalent property, services and 
activities that meet the needs identified in the application, or a 
combination of such property, funding, services, and activities.

D. Roles of DoD and HUD

    DoD is responsible, through the Military Departments, for closing 
and disposing of the installations approved for closure or realignment. 
On July 20, 1995, DoD published a final rule implementing other 
activities associated with the closure, realignment and disposal of 
military installations including the process whereby properties at an 
installation are screened for reuse by the Federal government. The 
actions undertaken by the Military Departments under that regulation 
precede the actions to be taken under this regulation. Interested 
parties should obtain copies of both.
    DoD, through the Office of Economic Adjustment, is responsible for 
recognizing the LRA. The LRA must, in accordance with Sec. 586.30, 
submit to both HUD and DoD an application, which includes the 
redevelopment plan and the homeless assistance submission. HUD will 
review the application and notify DoD and the LRA of its findings. 
HUD's standards of review are described at Sec. 586.35(b). Throughout 
its review, HUD will be in contact with the LRA for any clarifications 
or additional information it needs to complete the review.
    Pursuant to Sec. 586.25, representatives of HUD will be available 
to provide assistance to LRAs throughout the planning process. LRAs are 
encouraged to contact their HUD field office for technical assistance 
including lists of homeless providers operating in the vicinity of the 
installation. Representatives of HUD will be available to attend 
workshops held under Sec. 586.20(c)(3)(ii) and other meetings as 
requested by the LRA. The planning process created by The Redevelopment 
Act is community-based. HUD neither anticipates nor desires to mandate 
results, but will seek to expedite and assist all parties in arriving 
at an equitable balance between economic redevelopment and homeless 
needs. DoD and HUD anticipate that the reuse plans will be general land 
use plans for which HUD will be reviewing the balance made between 
homeless assistance and economic development needs rather than the 
suitability of a specific site for use by the homeless.
    Although certain sites may be identified for use for the homeless, 
DoD and HUD recognize that the environmental review process may show 
that certain properties are not suitable for the designated use. If 
such a finding is made, the LRA and the representative of the homeless 
should negotiate for alternate arrangements that would enable the same 
balance of interests that was made originally. If, because of the 
environmental condition, less property is available for reuse, it is 
possible that less property would be made available for homeless use. 
The frequency of this problem should be limited because of the 
extensive environmental review throughout the process, and with 
dialogue between the LRA and the Military Department and the Base 
Realignment and Closure Environmental Coordinator.

E. HUD's Approach

1. Need: Continuum of Care
    In its review, HUD will consider whether the redevelopment plan 
promotes projects and activities that address the expressed needs 
within the current homeless service system. The homeless assistance 
submission should assess the current homeless service system in the 
vicinity of the installation and the extent to which the redevelopment 
plan may support those notices of interest that propose to address the 
critical gaps in the system.
    A comprehensive homeless service system is called a continuum of 
care. The continuum of care model is predicated on the understanding 
that homelessness is not caused merely by a lack of shelter, but 
involves a variety of underlying, unmet needs--physical, economic, and 
social. Dealing effectively with the problems of homelessness requires 
a comprehensive system of housing and necessary services for each 
stage--from emergency shelter to housing with no established limitation 
on the amount of time of residence, as well as a strong prevention 
strategy.
    A continuum of care system includes:
    (a) A system of outreach and assessment for determining the needs 
and condition of an individual or family who is homeless, or whether 
assistance is necessary to prevent an individual or family from 
becoming homeless;
    (b) Emergency shelters with appropriate supportive services to help 
ensure that homeless individuals and families receive adequate 
emergency shelter and referral to necessary service providers or 
housing finders;
    (c) Transitional housing with appropriate supportive services to 
help those homeless individuals and families that are not prepared to 
make the transition to independent living;
    (d) Housing with or without supportive services that has no 
established limitation on the amount of time of residence to help meet 
long-term needs of homeless individuals and families; and
    (e) Any other activity which clearly meets an identified need of 
the homeless and fills a gap in the continuum of care.
    Supportive services are critical to all components of the continuum 
of care. These services include, but are not limited to case 
management, housing counseling, job training and placement, primary 
health care, mental health services, substance abuse treatment, child 
care, transportation, emergency food and clothing, family violence 
services, education services, moving services, assistance in obtaining 
entitlements and referral to veterans services and legal services. 
These services enable homeless persons and 

[[Page 42974]]
families to move through the continuum of care toward independent 
living.
2. Impact: Consolidated Plan and Other Local Plans
    HUD will consider whether the homeless assistance submission is 
consistent with the Consolidated Plan or with any other existing 
economic, community and housing plans adopted by the jurisdictions in 
the vicinity of the installation and whether it furthers the overall 
goals and objectives of these plans.
    The Consolidated Plan encompasses the planning, application, and 
reporting requirements of four formula grant programs administered by 
HUD's Office of Community Planning and Development: Community 
Development Block Grant, HOME Investment Partnerships, Housing 
Opportunities for Persons with AIDS, and Emergency Shelter Grants. The 
requirements of the Consolidated Plan can be found in the final rule 
published in the Federal Register on January 5, 1995 at 60 FR 1878 and 
codified at 24 CFR part 91. Some communities in the vicinity of an 
installation are eligible for some or all of these programs, and if 
eligible, are required to submit to HUD a Consolidated Plan. LRAs that 
encompass non-entitlement areas, or those without a Consolidated Plan, 
should refer to other long-range plans or alternative resources that 
exist and have been developed within the jurisdiction(s) they 
represent. LRAs should use the information in these plans in evaluating 
the notices of interest received from representatives of the homeless.
3. Balance in the Community Between the Need for Homeless Housing and 
Services, Economic Redevelopment and Other Development
    HUD will consider how the LRA balances the community's homeless 
needs with the need for economic and other development. LRAs are 
encouraged to propose activities that advance economic and other 
development objectives which also address the needs of homeless persons 
and families.
    For example, an LRA may propose that a large warehouse facility be 
targeted for use as a light manufacturing facility. The LRA estimates 
that this facility will employ many semi-skilled employees. In its 
redevelopment plan, the LRA proposes that prospective users of this 
property will be asked to notify the homeless job search agency, an 
organization being supported with property in the LRA's homeless 
assistance submission, of any available positions at the facility. The 
prospective users of the facility will be asked by the LRA to interview 
applicants referred by the agency and use its best efforts to hire 
qualified persons. Under this scenario, addressing the economic 
development needs of a community also addresses some of the needs of 
persons that are homeless. Solutions to diverse community problems need 
not be mutually exclusive.
4. Outreach to Representatives of the Homeless
    HUD will examine efforts made by the LRA to both advertise the 
availability of property to representatives of the homeless and to help 
representatives of the homeless find a match between their needs and 
local resources, including the facilities at the installation. HUD will 
consider whether the advertisement requirements of Sec. 586.20(c) were 
met, but more importantly, HUD will focus on the quality of the 
contact. LRAs should design their outreach efforts to encourage 
providers to submit notices of interest and to be creative in their 
submissions. While LRAs can emphasize particular needs, outreach 
efforts should not limit the possible range of expressions of interest.
5. Properties: Uniqueness of Each Installation
    The application requirements described at Sec. 586.30 apply to 
installations of any size, type or configuration. Although the 
regulation makes no distinction between small and large installations, 
HUD will work closely with the LRA for each installation to help it 
develop an application that makes sense for that particular 
installation. All LRAs must submit a complete application. HUD will 
then judge the application on its individual merits.
    HUD recognizes that redevelopment plans and homeless assistance 
submissions developed by LRAs for major installations, which may 
encompass thousands of acres, will be more lengthy and complicated than 
those of 3 and 4 acre reserve facilities that contain few buildings. 
Moreover, an installation located in a small rural community with a 
small homeless population will not be held to the same level of detail 
as will a large metropolitan area with a large homeless population.

F. Eligible Activities

    The intent of this law is to focus on a community-based process to 
address local homeless needs within the context of the base reuse and 
other community and economic needs. LRAs and representatives of the 
homeless are encouraged to be creative. Eligible activities may 
include:
    1. Outreach services and assessment services;
    2. Emergency shelter;
    3. Transitional housing, social services tied to transitional 
housing or services located apart from housing units;
    4. Housing that has no established limitation on the amount of time 
of residence; and
    5. Any other activity that clearly meets an identified need of the 
homeless and fills a gap in the continuum of care.
    LRAs and representatives of the homeless are cautioned, however, 
that under the Redevelopment Act, no-cost transfers of former military 
properties are limited to transfers to representatives of the homeless. 
Redevelopment plans proposing transfers of property from the Military 
Department to homeless individuals or families for free will not be 
accepted.
III. Other Matters

A. Justification for Interim Rulemaking

    Although rulemaking procedures generally require the publication of 
a proposed rule before regulations are made final and effective, there 
exists good cause to publish this interim rule for effect without first 
soliciting public comment. Forty-five military installations from the 
1988, 1991 or 1993 base closure/realignment rounds have elected to be 
included under this new process. HUD anticipates the receipt of 
applications in the very near future from the LRAs representing these 
closure/realignment sites. Moreover, a fourth round of military base 
closures and realignments was initiated with the Secretary of Defense 
submitting a list of proposed closures/realignments to the Defense Base 
Closure and Realignment Commission on February 28, 1995. The Commission 
submitted its recommendations to the President on June 30, 1995. Upon 
approval of the list by the President and Congress, this interim rule 
will apply immediately to the installations on this 1995 closure/
realignment list.
    To delay the implementation of this law until publication of a 
final rule would mean that base reuse would be delayed until a final 
rule is published. LRAs are awaiting the guidance contained in this 
rule, necessitating implementation through this interim rule.
    DoD and HUD invite public comment on this interim rule within the 
60-day comment period. All comments will be 

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considered during the development of the final rule.

B. Impact on the Environment

    HUD has made a Finding of No Significant Impact with respect to the 
environment in accordance with HUD regulations in 24 CFR part 50, which 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969, 42 U.S.C. 4332. The Finding of No Significant Impact is available 
for public inspection and copying 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 20410.

C. Regulatory Flexibility Act

    The Secretary of HUD, in accordance with the Regulatory Flexibility 
Act (5 U.S.C. 605(b)), has reviewed this interim rule before 
publication and by approving it certifies that this interim rule would 
not have a significant economic impact on a substantial number of small 
entities. This interim rule only states the Department's criteria and 
procedures for reviewing applications submitted by the LRA.

D. Federalism Impact

    The General Counsel of HUD, as the Designated Official under 
Executive Order 12612, Federalism, has determined that the policies 
contained in this interim rule would not have any impact under the 
Order. The interim rule states HUD's review criteria and procedures for 
reviewing applications submitted by the LRA for balancing homeless, 
community and economic redevelopment and other development needs of the 
communities in the vicinity of the installation.

E. Impact on the Family

    The General Counsel of HUD, as the Designated Official under 
Executive Order 12606, The Family, has determined that this interim 
rule would have only an indirect, though beneficial, impact on family 
formation, maintenance, and general well-being, and, thus, is not 
subject to review under the Order.

F. Public Reporting Burden

    The information collection requirements contained in this interim 
rule have been submitted by HUD to the Office of Management and Budget 
for review under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520). HUD has determined that the following provisions contain 
information collection requirements:

----------------------------------------------------------------------------------------------------------------
                                                                                   Est. avg.        Estimated   
                   Section                       Number of         Freq. of      response time    annual burden 
                                                respondents       responses        (in hours)       (in hours)  
----------------------------------------------------------------------------------------------------------------
586.20(c)(2)................................              225                1               16            3,600
586.20(c)(5)................................               45                1              360           16,200
586.35(d)(1)................................                1                1               60               60
----------------------------------------------------------------------------------------------------------------

Executive Order 12866

    The Office of Management and Budget reviewed this interim rule 
under Executive Order 12866, Regulatory Planning and Review. Any 
changes made to the rule as a result of that review are clearly 
identified in the docket file, which is available for public inspection 
at the Office of General Counsel, room 10276, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410-0500.

Semiannual Agenda

    This interim rule was listed as item 1482 in HUD's Semiannual 
Agenda of Regulations published on May 8, 1995 (60 FR 23372, 23394) 
under Executive Order 12866 and the Regulatory Flexibility Act.
    Accordingly, a new part 586 is added to title 24 of the Code of 
Federal Regulations as follows:

PART 586--BASE CLOSURE COMMUNITY REDEVELOPMENT AND HOMELESS 
ASSISTANCE

Sec.
586.1  Purpose.
586.5  Definitions.
586.10  Applicability.
586.15  Waivers and extensions of deadlines.
586.20  Overview of the process.
586.25  HUD's negotiations and consultations with the LRA.
586.30  LRA application.
586.35  HUD's review of the application.
586.40  Adverse determinations.
586.45  Disposal of buildings and property.
586.50  Effective date.

    Authority: Base Closure Community Redevelopment and Homeless 
Assistance Act of 1994 Pub. L. 103-421; 42 U.S.C. 3535(d).


Sec. 586.1  Purpose.

    This part implements the Base Closure Community Redevelopment and 
Homeless Assistance Act (Pub. L. 103-421, approved October 25, 1994). 
It describes the roles and responsibilities of the Department of 
Defense (DoD), the Department of Housing and Urban Development (HUD), 
Local Redevelopment Authorities (LRAs), and representatives of the 
homeless in planning and implementing the reuse of domestic military 
installations that are approved for closure or realignment. 
Specifically, this part describes the guidance DoD and HUD provide to 
the LRA, the planning documents the LRA develops and submits to DoD and 
HUD in planning the reuse of these installations, and the standards of 
review that HUD observes when reviewing the documents submitted by the 
LRA. Pub L. 103-421 authorizes HUD to determine whether the plan for 
the reuse of the installation proposed by LRA balances the community 
development, economic redevelopment and other development needs of the 
communities in the vicinity of the installation with the needs of the 
homeless in those communities.


Sec. 586.5  Definitions.

    As used in this part:
    CERCLA means the Comprehensive Environmental Response, 
Compensation, and Liability Act (42 U.S.C. 9601 et seq).
    Communities in the vicinity of the installation means the 
communities that constitute the political jurisdictions (other than the 
State in which the installation is located) that comprise the LRA for 
the installation.
    Continuum of care system means:
    (1) A comprehensive homeless assistance system that includes:
    (i) A system of outreach and assessment for determining the needs 
and condition of an individual or family who is homeless, or whether 
assistance is necessary to prevent an individual or family from 
becoming homeless;
    (ii) Emergency shelters with appropriate supportive services to 
help ensure that homeless individuals and families receive adequate 
emergency shelter and referral to necessary service providers or 
housing finders;
    (iii) Transitional housing with appropriate supportive services to 
help those homeless individuals and families that are not prepared to 
make the transition to independent living;

[[Page 42976]]

    (iv) Housing with or without supportive services that has no 
established limitation on the amount of time of residence to help meet 
long-term needs of homeless individuals and families; and
    (v) Any other activity which clearly meets an identified need of 
the homeless and fills a gap in the continuum of care.
    (2) Supportive services enable homeless persons and families to 
move through the continuum of care toward independent living. These 
services include, but are not limited to case management, housing 
counseling, job training and placement, primary health care, mental 
health services, substance abuse treatment, child care, transportation, 
emergency food and clothing, family violence services, education 
services, moving services, assistance in obtaining entitlements, and 
referral to veterans services and legal services.
    Consolidated Plan is the plan prepared in accordance with the 
requirements of 24 CFR part 91.
    Day means one calendar day including weekends and holidays.
    DoD means the Department of Defense.
    HHS means the Department of Health and Human Services.
    Homeless person means:
    (1) An individual or family who lacks a fixed, regular, and 
adequate nighttime residence; and
    (2) An individual or family who has a primary nighttime residence 
that is:
    (i) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters and transitional housing for the mentally ill);
    (ii) An institution that provides a temporary residence for 
individuals intended to be institutionalized; or
    (iii) A public or private place not designed for, or ordinarily 
used as, a regular sleeping accommodation for human beings.
    (3) This term does not include any individual imprisoned or 
otherwise detained under an Act of the Congress or a State law.
    HUD means the Department of Housing and Urban Development.
    Installation means a base, camp, post, station, yard, center, 
homeport facility for any ship or other activity under the jurisdiction 
of DoD which is approved for closure or realignment under the Base 
Closure and Realignment Act of 1988 (Pub. L. 100-526) and the National 
Defense Authorization Act of Fiscal Year 1991 (Pub. L. 101-510) (both 
at 10 U.S.C. 2687, note), both as amended by the National Defense Act 
for Fiscal Year 1994, (Pub. L. 103-160).
    Local redevelopment authority, or LRA, any authority or 
instrumentality established by state or local government and recognized 
by the Secretary of Defense, through the Office of Economic Adjustment, 
as the entity responsible for developing the redevelopment plan with 
respect to the installation or for directing implementation of the 
plan.
    NEPA means the National Environmental Policy Act of 1969 (42 U.S.C. 
4320).
    OEA means the Office of Economic Adjustment, U.S. Department of 
Defense.
    Private nonprofit organization means an organization no part of the 
net earnings of which inures to the benefit of any member, founder, 
contributor, or individual; that has a voluntary board; that has an 
accounting system or has designated an entity that will maintain a 
functioning accounting system for the organization in accordance with 
generally accepted accounting procedures; and that practices 
nondiscrimination in the provision of assistance.
    Redevelopment plan means a conceptual land use plan prepared by the 
recognized LRA to guide local reuse of the former military 
installation.
    Representative(s) of the homeless means a State or local government 
agency or private nonprofit organization, including a homeless 
assistance planning board, that provides or proposes to provide 
services to the homeless.
    Substantially equivalent means property that is functionally 
suitable for the approved Title V application. For example, if the 
representative of the homeless had an approved Title V application for 
a building that would accommodate 100 homeless persons in an emergency 
shelter, the replacement facility would also have to accommodate 100 at 
a comparable cost for renovation.
    Substantially equivalent funding means sufficient funding to 
acquire a substantially equivalent facility.
    Surplus property means any property not required for the needs and 
the discharge of the responsibilities of any Federal land holding 
agency as determined by the Secretary of Defense.
    Title V means Title V of the Stewart B. McKinney Homeless 
Assistance Act of 1987 (42 U.S.C 11411) as amended by the National 
Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).
    Urban county means a county within a metropolitan area as defined 
at 24 CFR 570.3.


Sec. 586.10  Applicability.

    (a) General. This part applies to all installations that are 
approved for closure/realignment by the President and Congress under 
Pub. L. 101-510 after October 25, 1994.
    (b) Request for inclusion under this process. This part also 
applies to installations that were approved for closure/realignment 
under either Pub. L. 100-526 or Pub. L. 101-510 prior to October 25, 
1994 and for which an LRA submitted a request for inclusion under this 
part to DoD by December 24, 1994. A list of such requests was published 
in the Federal Register on May 30, 1995 (60 FR 28089).
    (1) Installations with pending but not approved Title V 
applications as of October 25, 1994. The LRA shall consider and 
specifically address any application for use of buildings and property 
to assist the homeless that were received by HHS prior to October 25, 
1994 and were pending with the Secretary of HHS on that date. These 
pending requests shall be addressed in the LRA's homeless assistance 
submission.
    (2) Installations with approved Title V applications. Where 
property has an approved Title V application, yet has not been assigned 
or otherwise disposed of by the Military Department, the LRA must 
insure that its homeless assistance submission provides the Title V 
applicant with:
    (i) The property requested;
    (ii) With properties, on or off the installation, that are 
substantially equivalent to those requested;
    (iii) Sufficient funding to acquire such substantially equivalent 
properties;
    (iv) Services and activities that meet the needs identified in the 
application; or
    (v) A combination of the properties, funding and services and 
activities described above.
    (c) Revised Title V process. All other installations approved for 
closure or realignment under either Pub. L. 100-526 or Pub. L. 101-510 
prior to October 25, 1994 for which there has been no request for 
consideration under this part, are covered by the process stipulated 
under Title V. Buildings or property that were transferred or leased 
for homeless use under Title V prior to October 25, 1994 may not be 
reconsidered under this part.


Sec. 586.15  Waivers and extensions of deadlines.

    (a) After consultation with the LRA and HUD, DoD, through the 
Assistant Secretary of Defense (Economic Security), upon a finding that 
it is in the interest of the communities affected by 

[[Page 42977]]
the closure/realignment of the installation, may extend or postpone any 
deadline contained in this part.
    (b) Upon completion of a determination and finding of good cause, 
and except for deadlines and actions required on the part of DoD, HUD 
may waive any provision of Sec. 586.20 through Sec. 586.45 in any 
particular case, subject only to statutory limitations.


Sec. 586.20  Overview of the process.

    (a) Responsibilities of the Military Department. The Military 
Department shall make installation properties available to other DoD 
components and Federal agencies pursuant to 32 CFR part 91. The 
Military Department will keep the LRA informed of other Federal 
interest in the property during this process. Upon completion of this 
process the Military Department will notify HUD and will notify either 
the LRA, or the Chief Executive Officer of the state, as appropriate, 
and publish a list of surplus property on the installation that will be 
available for reuse in the Federal Register and a newspaper of general 
circulation in the communities in the vicinity of the installation.
    (b) Recognition of the LRA. As soon as practicable after the list 
of installations recommended for closure or realignment is approved, 
DoD, through OEA, will recognize an LRA for the installation. Upon 
recognition, DoD shall publish the name, address, and point of contact 
for the LRA in the Federal Register and in a newspaper of general 
circulation in the communities in the vicinity of the installation.
    (c) Responsibilities of the LRA. The LRA should begin to conduct 
outreach efforts with respect to the installation as soon as is 
practicable after the date of approval of closure/realignment of the 
installation. Although the process may begin at any time after this 
date of approval, the local reuse planning process must begin no later 
than the completion of Federal screening procedures which is deemed to 
be the date of the DoD Federal Register publication of available 
property described at Sec. 586.20(a). For those installations that have 
begun the process described below prior to publication of this part, 
HUD will, on a case by case basis, determine whether the statutory 
requirements have been fulfilled and whether any additional 
requirements listed below should be required. Upon the Federal Register 
publication under Sec. 586.20(a), the LRA shall:
    (1) Publish, within 30 days, in a newspaper of general circulation 
in the communities in the vicinity of the installation, the time period 
during which the LRA will receive notices of interest from state and 
local governments, representatives of the homeless, and other 
interested parties. This publication shall include the name, address, 
telephone numbers and the point of contact for the LRA and information 
on the prescribed form and contents of the notice of interest. The LRA 
shall notify DoD of the deadline specified for receipt of notices of 
interest.
    (i) For all installations selected for closure or realignment prior 
to 1995 that have elected to proceed under Pub. L. 103-421 and which 
have begun receiving notices of interest prior to publication of this 
part, the LRA shall have accepted notices of interest for not less than 
30 days and not more than 180 days from the date the LRA submitted a 
request for inclusion under this process as described at 
Sec. 586.10(b). For installations selected for closure or realignment 
prior to 1995 for which the LRA has not begun or has not completed the 
acceptance of notices of interest prior to publication of this part, 
the LRA shall accept notices of interest for not less than 30 days and 
not more than 90 days from the date of publication of this part.
    (ii) For installations selected for closure or realignment in 1995 
or thereafter, notices of interest shall be accepted for a minimum of 
90 days and not more than 180 days.
    (2) Prescribe the form and contents of notices of interest. (i) The 
LRA may not release to the public any information submitted under this 
subsection without the consent of the representative of the homeless 
concerned unless such release is authorized under Federal law and under 
the law of the state and communities in which the installation 
concerned is located.
    (ii) The notices of interest from representatives of the homeless 
must include:
    (A) A description of the homeless assistance program proposed, 
including the purposes to which the property or facility will be put, 
which may include uses such as supportive services, job and skills 
training, employment programs, shelters, transitional housing or 
housing with no established limitation on the amount of time of 
residence, food and clothing banks, treatment facilities, or any other 
activity which clearly meets an identified need of the homeless and 
fills a gap in the continuum of care;
    (B) A description of the need for the program;
    (C) A description of the extent to which the program is or will be 
coordinated with other homeless assistance programs in the communities 
in the vicinity of the installation;
    (D) Information about the physical requirements necessary to carry 
out the program including a description of the buildings and property 
at the installation that are necessary to carry out the program;
    (E) A description of the representative of the homeless which is 
submitting the notice, its capacity to carry out the program and its 
financial plan for implementing the program; and
    (F) An assessment of the time required in order to commence 
carrying out the program.
    (iii) The notices of interest from entities other than 
representatives of the homeless should specify the name of the entity 
and specific interest in property or facilities, along with a 
description of the planned use.
    (3) Undertake outreach efforts to representatives of the homeless 
by contacting local government officials and other persons or entities 
that may be interested in assisting the homeless within the vicinity of 
the installation.
    (i) The LRA may invite persons and organizations identified on the 
HUD list of representatives of the homeless and any other 
representatives of the homeless with which the LRA is familiar, 
operating in the vicinity of the installation, to the workshop 
described below at Sec. 586.20(c)(3)(ii).
    (ii) The LRA in coordination with the Military Department and HUD 
shall conduct at least one workshop where representatives of the 
homeless have an opportunity to:
    (A) Learn about the closure/realignment and disposal process;
    (B) Tour the buildings and properties available either on or off 
the installation;
    (C) Learn about the LRA's process and schedule for receiving 
notices of interest as guided by Sec. 586.20(c)(2); and
    (D) Learn about any known land use constraints affecting the 
available property and buildings.
    (iii) The LRA should meet with representatives of the homeless that 
express interest in discussing possible uses for these properties to 
alleviate gaps in the continuum of care.
    (4) Consider various properties in response to the notices of 
interest. The LRA may consider property that is located off the 
installation.
    (5) Develop an application, which includes the redevelopment plan 
and the homeless assistance submission. This application shall consider 
the notices of interest received from state and local governments, 
representatives of the homeless, and other interested 

[[Page 42978]]
parties. This shall include, but not be limited to, entities eligible 
for public benefit transfers under the Federal Property and 
Administrative Services Act of 1949; representatives of the homeless; 
commercial, industrial, and residential development interests; and, 
other interests. From the deadline date for receipt of notices of 
interest described at Sec. 586.20(c)(1), the LRA shall have 270 days to 
complete and submit the LRA application to DoD and HUD. The application 
requirements are described at Sec. 586.30.
    (6) Make the draft application available to the public for review 
and comment throughout the process of developing the application. The 
LRA must conduct at least one public hearing on the application prior 
to its submittal to HUD and DoD, and a summary of these public comments 
shall be included in the application when it is submitted.
    (d) State, local, and public benefit screening. The LRA should, 
while conducting its outreach efforts, work with the federal agencies 
that sponsor public benefit transfers under the Federal Property and 
Administrative Services Act of 1949. Those agencies can provide a list 
of parties in the vicinity of the installation that might be interested 
in and eligible for public benefit transfers. The LRA should make a 
reasonable effort to inform such parties of the availability of the 
property and incorporate their interests within the planning process. 
These requests are not required to be met, but must be considered.


Sec. 586.25  HUD's negotiations and consultations with the LRA.

    HUD may negotiate and consult with the LRA before or during the 
course of preparation of the LRA application and during HUD's review 
thereof with a view toward avoiding any preliminary determination that 
the application does not meet any requirement of this part. HUD will 
provide the LRA with a list of persons and organizations that are 
representatives of the homeless operating in the vicinity of the 
installation.


Sec. 586.30  LRA application.

    (a) Redevelopment plan. A copy of the redevelopment plan shall be 
part of the application.
    (b) Homeless assistance submission. This component of the 
application shall include the following:
    (1) Information about homelessness in the communities in the 
vicinity of the installation. (i) A list of all the jurisdictions which 
comprise the LRA.
    (ii) A description of the unmet need in the continuum of care 
system within each jurisdiction, which should include information about 
any gaps that exist in the continuum of care for particular homeless 
subpopulations. The source for this information shall depend upon the 
size and nature of the jurisdictions(s) that comprise the LRA. LRAs 
representing:
    (A) Jurisdictions that are required to submit a Consolidated Plan 
shall include a copy of their Homeless and Special Needs Population 
Table (Table 1), Priority Homeless Needs Assessment Table (Table 2), 
and narrative description thereof from that Consolidated Plan including 
the inventory of facilities and services that assist the homeless in 
the jurisdiction.
    (B) Jurisdictions that are part of an urban county that is required 
to submit a Consolidated Plan shall include a copy of their Homeless 
and Special Needs Population Table (Table 1), Priority Homeless Needs 
Assessment Table (Table 2), and narrative description thereof from that 
Consolidated Plan including the inventory of facilities and services 
that assist the homeless in the jurisdiction. In addition, the LRA 
shall explain what portion of the homeless population and 
subpopulations described in the Consolidated Plan are attributable to 
the jurisdiction it represents.
    (C) Jurisdictions not described by Sec. 586.30(b)(1)(ii)(A) or (B) 
shall submit a narrative description of what it perceives to be the 
homeless population within the jurisdiction(s) it represents and a 
brief inventory of the facilities and services that assist homeless 
persons and families within each jurisdiction. LRAs that represent 
these jurisdictions are not required to conduct surveys of the homeless 
population.
    (2) Proposed assistance to homeless persons and families. (i) A 
description of the proposed activities to be carried out on or off the 
installation and a discussion of how these activities meet the needs of 
the homeless by addressing the gaps in the continuum of care. The 
activities need not be limited to expressions of interest in property, 
but may also include discussions of how economic redevelopment may 
benefit the homeless;
    (ii) A copy of each notice of interest from representatives of the 
homeless for use of building and property and a description of the 
manner in which the LRA application addresses the need expressed in 
each notice of interest. If the LRA determines that a particular notice 
of interest should not be awarded property, an explanation of why the 
LRA determined not to support that notice of interest, the reasons for 
which may include the impact of the program contained in the notice of 
interest on the community as described in paragraph (b)(2)(iii) of this 
section; and
    (iii) A description of the impact that the implemented 
redevelopment plan will have on the community. This shall include 
information on how the LRA's redevelopment plan might impact the 
character of existing neighborhoods adjacent to the properties proposed 
to be used to assist the homeless and should discuss alternative plans. 
Impact on schools, social services, transportation, infrastructure, 
concentration of minorities and/or low income persons also shall be 
discussed.
    (3) Buildings and properties. (i) A copy of the legally binding 
agreements that the LRA proposes to enter into with the 
representative(s) of the homeless selected by the LRA to implement 
homeless programs that fill gaps in the existing continuum of care. The 
legally binding agreements shall provide for a process for negotiating 
alternative arrangements that would enable the same balance of 
interests made originally in the event that an environmental review 
conducted under Sec. 586.45(a) subsequent to HUD approval indicates 
that any property identified for transfer in the agreement is not 
suitable for the intended purpose. Legally binding agreements must also 
provide for the reversion or transfer, either to the LRA or to another 
entity or entities of the buildings and property in the event they 
cease to be used for the homeless;
    (ii) A description of how buildings and properties either on or off 
the installation will be used to fill some of the gaps in the current 
continuum of care system and an explanation of the suitability of the 
buildings and property for that use;
    (iii) Information on the availability of general services such as 
transportation, police, fire, and a discussion of infrastructure such 
as water, sewer, and electricity in the vicinity of the proposed 
homeless activities.
    (4) Balance with economic and other development needs. (i) An 
assessment of the manner in which the application balances the 
expressed needs of the homeless and the needs of the communities 
comprising the LRA for economic redevelopment and other development; 
and
    (ii) An explanation of how the LRA application is consistent with 
the appropriate Consolidated Plan(s) or any other existing housing, 
social service, community, economic, or other development plans adopted 
by the 

[[Page 42979]]
jurisdictions in the vicinity of the installation.
    (5) Outreach. The LRA shall explain how the outreach requirements 
described at Sec. 586.20(c)(3) have been fulfilled. This explanation 
shall include a list of the representatives of the homeless with which 
the LRA consulted in preparing the application.
    (c) Public comments. The LRA application shall include the 
materials described at Sec. 586.20(c)(6). These materials shall be 
prefaced with an overview of the citizen participation process observed 
in preparing the application.


Sec. 586.35  HUD's review of the application.

    (a) Timing. HUD shall complete a review of each application no 
later than 60 days after its receipt by HUD.
    (b) Standards of review. The purpose of the review is to determine 
whether the application is complete and, with respect to the expressed 
interest and requests of representatives of the homeless, whether the 
redevelopment plan:
    (1) Need. Takes into consideration the size and nature of the 
homeless population in the communities in the vicinity of the 
installation, the availability of existing services in such communities 
to meet the needs of the homeless in such communities, and the 
suitability of the buildings and property covered by the application 
for use and needs of the homeless in such communities.
    (2) Impact. Takes into consideration any economic impact of the 
homeless assistance under the plan on the communities in the vicinity 
of the installation, including:
    (i) Whether the plan is feasible in light of demands that would be 
placed on available social services, police and fire protection, and 
infrastructure in the community; and
    (ii) Whether the application is consistent with the Consolidated 
Plan(s) or any other existing housing, social service, community, 
economic, or other development plans adopted by the jurisdictions in 
the vicinity of the installation.
    (3) Balance. Balances in an appropriate manner the needs of the 
communities in the vicinity of the installation for economic 
redevelopment and other development with the needs of the homeless in 
such communities.
    (4) Outreach. Was developed in consultation with representatives of 
the homeless and the homeless assistance planning boards, if any, in 
the communities in the vicinity of the installation.
    (i) HUD will examine whether the outreach requirements described at 
Sec. 586.20(c)(3) have been fulfilled by the LRA. HUD will carefully 
review the outreach process to insure that the LRA advertised the 
availability of installation properties to representatives of the 
homeless.
    (ii) HUD will compare the list of homeless representatives 
contacted by the LRA against contacts maintained by the local HUD Field 
Office.
    (5) Properties. Specifies the manner in which buildings and 
property, resources, and assistance on or off the installation will be 
made available for homeless assistance purposes. HUD will be mindful of 
the uniqueness of each installation. HUD will review this process so 
that it is confident that the LRA will make these buildings and 
properties available to representatives of the homeless in a timely 
fashion.
    (c) Notice of determination. (1) HUD shall, no later than the 60th 
day after its receipt of the application, unless such deadline is 
extended pursuant to Sec. 586.15(a), send written notification both to 
DoD and the LRA of its preliminary determination that the application 
meets or fails to meet the requirements of Sec. 586.35(b). If the 
application fails to meet the requirements, HUD will send the LRA:
    (i) A summary of the deficiencies in the application;
    (ii) An explanation of the determination; and
    (iii) A statement of how the LRA must address the determinations.
    (2) In the event that no application is submitted and no extension 
is requested as of the deadline specified in Sec. 586.20(c)(5), and the 
State turns down a DoD written request to become recognized as the LRA, 
the absence of such application will trigger an adverse determination 
by HUD effective on the date of the lapsed deadline. Under these 
conditions, HUD will follow the process described at Sec. 586.40.
    (d) Opportunity to cure. (1) The LRA shall have 90 days from its 
receipt of the notice of preliminary determination under 
Sec. 586.35(c)(1) within which to submit to HUD a revised application 
which addresses the determinations listed in the notice. Failure to 
submit a revised application shall result in a final determination that 
the redevelopment plan fails to meet the requirements of 
Sec. 586.35(b).
    (2) HUD shall, within 30 days of its receipt of the LRA's 
resubmission, send written notification of its final determination to 
both DOD and the LRA.


Sec. 586.40  Adverse determinations.

    (a) Solicitation of proposals. If HUD determines that the LRA's 
resubmission fails to meet the requirements of Sec. 586.35(b) or if no 
resubmission is received, HUD:
    (1) Shall review the original application including the notices of 
interest submitted by representatives of the homeless;
    (2) Shall consult with the representatives of the homeless, if any, 
for purposes of evaluating the continuing interest of such 
representatives in the use of buildings or property at the installation 
to assist the homeless; and
    (3) May request that each homeless representative submit a proposal 
for use of buildings or property at the installation to assist the 
homeless, including:
    (i) A description of the program of such representative to assist 
the homeless;
    (ii) A description of the manner in which the buildings and 
property that the representative proposes to use for such purpose will 
assist the homeless;
    (iii) Such information as HUD requires in order to determine the 
financial capacity of the representative to carry out the program and 
to ensure that the program will be carried out in compliance with 
Federal environmental law and Federal law against discrimination; and
    (iv) A certification from the local community that police services, 
fire protection services, and water and sewer services available in the 
communities in the vicinity of the installation concerned are adequate 
for the program.
    (b) Review of proposals. HUD shall review the proposal in 
accordance with the following criteria:
    (1) The degree to which the proposal submitted by the 
representatives meets each of the four criteria listed in 
Sec. 586.40(a)(3).
    (2) The extent to which the proposal fills a gap in the community's 
continuum of care system.
    (3) The extent to which the proposal balances in an appropriate 
manner the needs for the communities in the vicinity of the 
installation for economic development and other development with the 
needs of the homeless.
    (4) How the proposal specifies the manner in which buildings and 
property and resources and assistance on and off the installation will 
be made available for the homeless.
    (c) Environmental review. HUD, in cooperation with DoD, shall 
complete an environmental review under NEPA and other applicable 
environmental 

[[Page 42980]]
laws and authorities listed in 24 CFR 50.4 before accepting a proposal 
under this section.
    (d) Notice of decision. HUD shall notify DOD and the LRA, within 90 
days of its receipt of the revised application, of its acceptance of a 
proposal and shall identify the buildings and property to be disposed 
of and the entities to which they should be transferred.


Sec. 586.45  Disposal of buildings and property.

    (a) Public benefit transfer screening. After the local 
redevelopment plan is accepted for planning purposes by the Military 
Department and accepted by HUD, the Military Department will conduct an 
official public benefit transfer screening in accordance with the 
Federal Property Management Regulations (41 CFR 101-47.303-2) based 
upon the uses identified in the redevelopment plan. Federal sponsoring 
agencies shall notify eligible applicants that any request for property 
must be consistent with the uses identified in the redevelopment plan. 
At the request of the LRA, the Military Department may conduct the 
official state and local public benefit screening before the completion 
of the redevelopment plan.
    (b) Environmental Review. The Military Department shall complete an 
environmental review of the installation in compliance with NEPA and 
CERCLA prior to disposal of the property. The Military Department may 
adopt an environmental review completed under Sec. 586.40(c).
    (c) Disposal. Upon receipt of a notice of approval of an 
application from HUD under Sec. 586.35(c) and Sec. 586.40(d) thereof, 
DOD shall, without consideration, dispose of the subject buildings and 
property in compliance with the approved application, either to the LRA 
or directly to the representative(s) of the homeless.
    (d) LRA's responsibility. The LRA shall be responsible for the 
implementation of and compliance with legally binding agreements under 
the application.
    (e) Reversions to the LRA. If a building or property reverts to the 
LRA under a legally binding agreement under the application, the LRA 
shall take appropriate actions to secure, to the maximum extent 
practicable the utilization of the building or property by other 
homeless representatives to assist the homeless. An LRA may not be 
required to utilize the building or property to assist the homeless.


Sec. 586.50  Effective date.

    Sections 586.1, 586.5, 586.10, 586.15, 586.20, 586.25, 586.30, 
586.35, 586.40 and 586.45 shall expire and shall not be in effect after 
September 17, 1996, unless prior to September 17, 1996, the Department 
publishes a final rule adopting Secs. 586.1, 586.5, 586.10, 586.15, 
586.20, 586.25, 586.30, 586.35, 586.40 and 586.45, or publishes a 
notice in the Federal Register to extend the effective date of the 
interim rule.

    Dated: July 13, 1995.
Mark C. Gordon,
General Deputy Assistant Secretary for Community Planning and 
Development.
[FR Doc. 95-20372 Filed 8-16-95; 8:45 am]
BILLING CODE 4210-29-P