[Federal Register Volume 60, Number 185 (Monday, September 25, 1995)]
[Proposed Rules]
[Pages 49466-49478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23645]




[[Page 49465]]

_______________________________________________________________________

Part V





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 58



Environmental Review Procedures for Entities Assuming HUD Environmental 
Responsibilities; Proposed Rule

  Federal Register / Vol. 60, No. 185 / Monday, September 25, 1995 / 
Proposed Rules   

[[Page 49466]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Part 58

[Docket No. FR-3514-P-01]
RIN 2501-AB67


Environmental Review Procedures for Entities Assuming HUD 
Environmental Responsibilities

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would amend the existing environmental 
regulations governing entities that assume HUD responsibilities by 
making the environmental review procedures consistent under the various 
programs to which these regulations apply. This proposed rule would 
also make clarifying and editorial changes to the existing 
environmental regulations governing entities that assume HUD 
responsibilities.

DATES: Comment Due Date: November 24, 1995.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Rules Docket Clerk, Office of General 
Counsel, Room 10276, Department of Housing and Urban Development, 451 
Seventh Street, SW, Washington, DC 20410-0500. Communications should 
refer to the above docket number and title. Facsimile (FAX) comments 
are not acceptable. A copy of each communication submitted will be 
available for public inspection and copying between 7:30 a.m. and 5:30 
p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Richard H. Broun, Director, Office of 
Environment and Energy, Room 7240, Department of Housing and Urban 
Development, 451 Seventh Street, S.W., Washington, DC 20410, telephone 
(202) 708-2894. For telephone communication, contact Fred Regetz, 
Environmental Review Division at (202) 708-1201. Hearing or speech-
impaired individuals may call the Federal Information Relay Service 
number at 1-800-877-TDDY (1-800-877-8339) and refer to (202) 708-4346.

SUPPLEMENTARY INFORMATION:

I. Background

    This proposed rule would revise and restate the procedures for 
recipients of HUD assistance and other responsible entities in 
applicable HUD programs to carry out environmental reviews in 
accordance with the National Environmental Policy Act of 1969 (42 
U.S.C. 4321-4347) (``NEPA''), the NEPA implementing regulations of the 
Council on Environmental Quality (CEQ), and other NEPA related federal 
laws. Applicable HUD programs include any program in which specific 
statutory authority allows the environmental review responsibilities to 
be assumed by responsible entities. Currently, applicable HUD programs, 
and therefore those covered by part 58 only include: (1) Title I 
Community Development Block Grant Programs, (2) the Rental 
Rehabilitation Program and the Housing Development Grant Program (3) 
the HOME programs under the Cranston-Gonzalez National Affordable 
Housing Act (NAHA), (4) the homeless programs authorized by Title IV of 
the Stewart B. McKinney Homeless Assistance Act, (5) Grants to States 
and units of general local government for abatement of lead-based 
paint, (6) Public and Indian Housing and most Section 8 programs under 
Title I of the United States Housing Act for 1937, (7) Special projects 
appropriated under an appropriation Act of HUD, and (8) The FHA Multi-
Family Housing Finance Agency Pilot Program under section 542(c) of the 
Housing and Community Development Act of 1992.

A. Historical Perspective

    On April 12, 1982, the Department published an interim rule in the 
Federal Register at 47 FR 15750, revising part 58. It set forth the 
environmental requirements for the Title I Community Development Block 
Grant programs of the Department, as authorized by section 104(g) of 
the Housing and Community Development Act of 1974 (HCD Act of 1974). 
Under section 104(g), block grant recipients may assume the 
environmental review responsibilities of the Secretary.
    On June 7, 1984, the Department published another interim rule in 
the Federal Register at 49 FR 23610. It amended part 58 to implement 
section 17 of the United States Housing Act, as added by section 301 of 
the Housing and Urban Rural Recovery Act of 1983. Section 17 
established two new housing programs--the Rental Rehabilitation Program 
(24 CFR part 511) and the Housing Development Grant Program (24 CFR 
part 850) and made these programs subject to section 104(g) of the HCD 
Act of 1974. In addition, the rule added Sec. 58.17. Section 58.17 
implemented section 17(i)(1) of the 1937 Act by establishing conditions 
under which assistance may be provided when the rehabilitation or 
development would affect a property on or eligible for inclusion on the 
National Register of Historic Places.
    On August 10, 1988 (53 FR 30186), the Department amended part 58 by 
adding paragraph (a)(6) to Sec. 58.35 to categorically exclude 
maintenance and administrative activities which are undertaken to 
support housing and shelter programs for the homeless including those 
authorized by the Stewart B. McKinney Homeless Assistance Act (McKinney 
Act). The McKinney Act was amended in 1988 by adding section 443 which 
authorized the use of the environmental review provisions of section 
104(g) of the HCD Act of 1974 for HUD's homeless assistance programs.
    An interim rule published on June 23, 1993 (58 FR 34130) amended 
part 58 to expand its applicability to the HOME program and the 
homeless assistance programs under title IV of the McKinney Act. The 
1993 interim rule also broadened, where appropriate, program-specific 
references to various activities, responsibilities and categorical 
exclusions so that they apply to activities and participants under 
these two programs.
    The 1993 interim rule also amended part 58 to relocate three 
statutory and regulatory provisions from the list of laws and 
authorities in Sec. 58.5 for which recipients must assume environmental 
responsibilities. The three authorities--the Flood Disaster Protection 
Act of 1973 (FDPA), the Coastal Barrier Resources Act (CBRA), and the 
notice to purchasers of property in runway clear zones of a civil 
airport and clear zones of a military airfield--were relocated from 
Sec. 58.5 to a new Sec. 58.6. (HUD determined that, intrinsically, 
these three authorities are not like the other authorities listed in 
Sec. 58.5 that trigger the environmental certification, public notice 
and release of funds procedures. FDPA pertains to mandatory purchase of 
flood insurance protection; CBRA pertains to the direct prohibition 
against use of any funds in designated coastal barriers; and the notice 
to purchasers of property in runway clear zones is a disclosure 
requirement.)
    In this change, the Department also amended part 58 further to 
incorporate categorical exclusions from NEPA review and statements 
regarding the inapplicability of other environmental laws with respect 
to certain activities for which comparable provisions were already made 
in 24 CFR part 50. Part 50 applies to programs under which HUD itself 
is responsible for performing environmental reviews, and it would be 
anomalous to require a different standard of review for recipients 
where similar activities are carried out under 

[[Page 49467]]
programs covered by part 58. The interim rule also provided an 
additional categorical exclusion and statement regarding 
inapplicability of related laws for activities to assist homeownership 
of existing dwelling units. (This is an important activity under the 
HOME program.) This provision derived from the current categorical 
exclusion from NEPA review for individual actions on one- to four-
family properties in cases under part 50, and from HUD's determination 
that related laws and authorities requiring environmental reviews do 
not apply to such homeownership assistance.
    The provision in part 58 regarding limitations on actions pending 
environmental clearance was also revised to more closely reflect (1) 
the already applicable statutory prohibition against premature 
commitment of HUD funds, and (2) the already applicable provision in 
regulations of the Council on Environmental Quality (CEQ) (40 CFR 
1506.1) prohibiting premature undertaking of activities that have 
adverse environmental impact or limit the choice of reasonable 
alternatives. Finally, the Department made other clarifying and 
editorial revisions to part 58 in the interim rule.
    On April 21, 1994, HUD published in the Federal Register (59 FR 
19100) a final rule that amended 24 CFR part 585(b) to refer to HUD's 
Floodplain management regulations in 24 CFR part 55.
    On August 26, 1994, under the Multifamily Housing Property 
Disposition Reform Act of 1994 (MHPDRA) the Department published an 
interim rule in the Federal Register (59 FR 44258) that revised the 
sections in 24 CFR part 58 which govern the assumption if environmental 
responsibilities by recipients under the HOME Investment Partnership 
Program and the Lead-based Paint Hazard Reduction and Abatement 
Program.
    On March 13, 1995 an interim rule was published in the Federal 
Register (60 FR 13518) which provided that the part 58 procedures for 
the assumption and carrying out of responsibilities for environmental 
review, decisionmaking and action apply to public and Indian housing 
programs, the Section 8 program other than Section 8 assistance under 
24 CFR part 866 to projects with HUD-insured or HUD-held mortgages and 
in connection with the disposition of HUD-owned projects special 
projects, and the FHA Multifamily Housing Finance Agency Risk Sharing 
Pilot Program covered by the MHPDRA amendments.

II. Discussion of Public Comments From 1993 Interim Rule

    The Department received 6 public comments concerning part 58 in 
response to the interim rule published on June 23, 1993 (58 FR 34130): 
4 comments from local governments and 2 comments from private housing 
associations. As a result of these comments, the Department proposes to 
make certain revisions to the June 23, 1993 interim rule which are 
incorporated into today's proposed rule. The following discussion 
summarizes the comments and provides HUD's responses to those comments. 
Every comment was reviewed and considered, although it may not be 
specifically addressed in this preamble.
    Two commenters suggested that the Department exempt recipients from 
complying with Sec. 58.5 unless the activity actually has a physical 
impact on the land. One commenter cited down payment and closing cost 
assistance with HOME funds as an activity with no physical impact on 
land, and one which should therefore not be subject to Sec. 58.5. The 
Department agrees with this suggestion, and proposes to add more 
specific language to Sec. 58.35(b) to restrict the applicability of 
Sec. 58.5 in the case of activities which do not have any physical 
impact or result in any physical change to land.
    Two commenters recommended that the final rule modify part 58 to 
allow recipients to enter into option agreements for property 
acquisition or to commit non-federal money prior to the completion of 
the environmental assessment. These commenters argued that this 
restriction prevents recipients from pursuing many viable projects. An 
option obtained by a recipient is allowable prior to the completion of 
an environmental review and the approval of the RROF when the recipient 
can cancel the option if the recipient determines that the property is 
undesirable as a result of the environmental review required by 24 CFR 
part 58 and the recipient has alternative sites under consideration or 
option. There is no constraint on the purchase of options or properties 
by third parties that have not been selected for HUD funding, have no 
responsibility for the environmental review and have no say in the 
approval or disapproval of the project.
    Two commenters suggested that the Department exempt rehabilitation 
projects of one to four units and owner-occupied rental and 
homeownership projects from the environmental requirements of part 58. 
This Department has provided some relief in this area in 
Secs. 58.35(a)(4) and 58.35(b). A new category of activities (actions 
on one to four family structures) was identified (Sec. 58.35(a)(7)) in 
the interim rule published on June 23, 1993 as being Categorically 
Excluded from the National Environmental Policy Act (NEPA). The 
proposed rule proposes to change this section to Sec. 58.35(a)(4). 
Categorically excluded activities must still comply with 24 CFR 58.5 
unless, on a case-by-case basis, the recipient determines the proposed 
action will not alter any conditions that would require compliance with 
any of the related laws in Sec. 58.5. In such case, no compliance or 
environmental review procedure is necessary. An activity that has the 
potential to trigger one or more of the related laws in Sec. 58.5 
cannot be exempt.
    One commenter suggested that the Department exclude all 
rehabilitation projects from the thresholds of Sec. 58.35(a)(4)(i), 
arguing that these thresholds are not statutorily based and not 
relevant to rehabilitation projects, and constitute an excessive 
regulatory burden. The Department does not agree. The Department 
believes that maintaining the thresholds identified in 
Sec. 58.35(a)(4)(i) is necessary to determine whether NEPA applies.

B. Proposed Rule

    This proposed rule would make further changes to part 58 to ensure 
that the environmental review procedures are consistent for entities 
assuming HUD environmental responsibilities regardless of the program 
under which the activity is funded. In addition, it would make 
clarifying and editorial revisions to part 58.
    In Subpart A, terms, abbreviations and definitions would be 
expanded to include acronyms of recently authorized programs, and would 
more precisely define terms such as ``unit density,'' ``vacant 
building'' and when extraordinary circumstances would warrant a higher 
level review of an activity that is normally categorically excluded.
    Subpart B would be changed to clarify and emphasize the role that 
the responsible entity and the certifying officer play in the 
assumption of the responsibilities of the Secretary.
    The Department has also proposed to make changes to encourage early 
program planning as required by the regulations implementing the 
procedural provisions of NEPA (40 CFR 1501.2). Changes in subpart B 
would emphasize (a) the need to centralize expertise in preparing 
reviews, (b) the development of an environmental data base, (c) 
balancing development and economic needs with environmental 

[[Page 49468]]
concerns, and (d) the use of a ``tiering'' concept so that 
environmental reviews or assessments can consider issues ripe for 
review at various points in the development process. The main objective 
of the revisions to this subpart would be to eliminate repetitive 
discussions of the same issues, to allow a single review to be prepared 
and adopted by multiple users, and to increase the credibility of the 
environmental process.
    The Department has proposed in subpart D to change the focus of 
decision-making away from the project-by-project approach to encourage 
communities to take environmental factors into account prior to program 
and site selection. This new approach would provide for the 
identification of areas which may be less suitable for development or 
which would require additional costs to develop so that these factors 
can be taken into consideration in making site selection decisions. It 
also would allow a grantee to determine in advance of the environmental 
review, those factors that are most relevant to each area and those 
that are minor or of no concern. This data would be of value to all 
parties proposing development in the community including private 
persons, non-profits and Federal, State and local governments.
    A second objective of the revision of subpart D would be to 
identify programs and projects that are exempt by statute, 
categorically excluded from NEPA, or determined not subject to the 
related Federal authorities described in Sec. 58.5, except under 
extraordinary circumstances. The list of activities that are normally 
considered categorically excluded would also be expanded to reflect the 
new programs and activities funded by the Department.
    In this proposed rule, former subparts C, G and J would be 
incorporated into subpart A. Former subpart H would appear as subpart 
F, and former subpart I would appear as subpart G.
    Finally, the Department has consulted with the Council on 
Environmental Quality and the Environmental Protection Agency by 
providing them with advance copies of this proposed rule. When a final 
rule is issued, it will take into consideration the comments and 
recommendations of those agencies along with the other comments 
submitted.

III. Other Matters

A. Environmental Impact

    A Finding of No Significant Impact (FONSI) with respect to the 
environment has been made in accordance with HUD regulations at 24 CFR 
part 50, which implement section 102(2)(C) of the National 
Environmental Policy Act (NEPA) of 1969. The FONSI is available for 
public inspection during regular business hours in the Office of 
General Counsel, the Rules Docket Clerk, room 10276, 451 Seventh 
Street, SW., Washington, DC 20410.

B. Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive order 12612, Federalism, has determined that the policies 
contained in this proposed rule will not have substantial direct 
effects on states or their political subdivisions, or the relationship 
between the Federal government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
As a result, the proposed rule is not subject to review under the 
order. Specifically, this proposed rule modifies environmental 
requirements for recipients of HUD assistance and other entities that 
assume environmental review responsibilities for activities and 
projects in which specific statutory authority exists to assign the 
environmental review responsibilities to the recipients or to allow 
States and local governments to assume those responsibilities on behalf 
of certain recipients.

C. Executive Order 12606, the Family

    The General Counsel, as the Designated Official under Executive 
Order, The Family, has determined that this proposed rule does not have 
potential for significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
order. No significant change in existing HUD policies or programs will 
result from promulgation of this proposed rule, as those policies and 
programs relate to family concerns.

D. Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)) has reviewed and approved this proposed rule, and in so 
doing certifies that this proposed rule will not have a significant 
economic impact on a substantial number of small entities. This 
proposed rule would streamline part 58 and carry out the statutory 
mandate of providing for the assumption of environmental review 
responsibilities by certain recipients of HUD assistance or other 
entities in accordance with section 104(g) of the Housing and Community 
Development Act of 1974 and similar statutory provisions.

List of Subjects in 24 CFR Part 58

    Community development block grants, Environmental impact 
statements, Environmental protection, Grant programs--housing and 
community development, Reporting and recordkeeping requirements.

    Accordingly, 24 CFR part 58 is proposed to be revised to read as 
follows:

PART 58--ENVIRONMENTAL REVIEW PROCEDURES FOR ENTITIES ASSUMING HUD 
ENVIRONMENTAL RESPONSIBILITIES

Subpart A--Purpose, Legal Authority, Federal Laws and Authorities

Sec.
58.1 Purpose, scope and applicability.
58.2  Terms, abbreviations and definitions.
58.3  [Reserved].
58.4  Assumption authority.
58.5  Related Federal laws and authorities.
58.6  Other requirements.
58.7-58.9  [Reserved].

Subpart B--General Policy: Responsibilities of Responsible Entities

58.10  Basic environmental responsibility.
58.11  Legal capacity and performance.
58.12  Technical and administrative capacity.
58.13  Responsibilities of the certifying officer.
58.14  Interaction with State, Federal and non-Federal entities.
58.15  Tiering.
58.16  [Reserved].
58.17  Historic Preservation requirements for prior Section 17 
grants.
58.18  Responsibilities of States Assuming HUD Responsibilities.
58.19-58.20  [Reserved].

Subpart C--General Policy: Environmental Review Procedures

58.20  Incorporation of NEPA regulations by reference.
58.21  Time periods.
58.22  Limitations on activities pending clearance.
58.23  Financial assistance for environmental review.
58.24-58.29  [Reserved].
Subpart D--Environmental Review Process: Documentation, Range of 
Activities, Project Aggregation and Classification
58.30  Environmental Review Process.
58.31  [Reserved].
58.32  Project aggregation.
58.33  Emergencies.
58.34  Exempt activities.
58.35  Categorical exclusions.
58.36  Environmental assessments.
58.37  Environmental impact statement determinations.
58.38  Environmental review record.
58.39  [Reserved]. 

[[Page 49469]]


Subpart E--Environmental Review Process: Environmental Assessments 
(EA's)

58.40  Preparing the environmental assessment.
58.41-58.42  [Reserved].
58.43  Dissemination and/or publication of the findings of no 
significant impact.
58.44  [Reserved].
58.45  Public comment periods.
58.46  Time delays for exceptional circumstances.
58.47  Re-evaluation of assessment findings.
58.48-58.51  [Reserved].
Subpart F--Environmental Review Process: Environmental Impact Statement 
Determinations
58.52  Adoption of other agencies' EISs.
58.53  Use of prior environmental impact statements.
58.54  [Reserved].
Subpart G--Environmental Review Process: Procedures for Draft, Final 
and Supplemental Environmental Impact Statements
58.55  Notice of intent to prepare an EIS.
58.56  Scoping process.
58.57  Lead agency designation.
58.58  [Reserved].
58.59  Public hearings and meetings.
58.60  Preparation and filing of environmental impact statements.
58.61-58.69  [Reserved].

Subpart H--Release of Funds for Particular Projects

58.70  Notice of intent to request release of funds.
58.71  Request for release of funds and certification.
58.72  HUD or State actions on RROFs and certifications.
58.73  Objections to release of funds.
58.74  Time for objecting.
58.75  Permissible bases for objections.
58.76  Procedure for objections.
58.77  Effect of approval of certification.
58.78-58.79  [Reserved].

    Authority: 12 U.S.C. 1707 note; 42 U.S.C. 1437o(i) (1) and (2), 
1437x, 3535(d), 3547, 4332, 4852, 5304(g), 11402, and 12838; E.O. 
11514, 35 FR 4247, 3 CFR, 1966-1970, Comp., p. 902, as amended by 
E.O. 11991, 42 FR 26967, 3 CFR, 1977 Comp., p.123.

Subpart A--Purpose, Legal Authority, Federal Laws and Authorities


Sec. 58.1  Purpose, scope and applicability.

    (a) Purpose. This part provides instructions and guidance to 
recipients of HUD assistance and other responsible entities for 
conducting an environmental review for a particular project or activity 
and for obtaining approval of a Request for Release of Funds.
    (b) Applicability. This part applies to activities and projects 
where specific statutory authority exists for recipients or other 
responsible entities to assume environmental responsibilities. Programs 
and activities subject to this part include:
    (1) Community Development Block Grant programs authorized by title 
I of the Housing and Community Development Act of 1974, in accordance 
with section 104(g) (42 U.S.C. 5304(g));
    (2) The Rental Rehabilitation program and Housing Development Grant 
program authorized by section 17 of the United States Housing Act of 
1937, in accordance with sections 17(i)(1) and 17(i)(2) with respect to 
projects and programs for which binding commitments have been entered 
into prior to October 1, 1991, since section 17 was repealed by the 
Cranston-Gonzalez National Affordable Housing Act enacted November 28, 
1990 (42 U.S.C. 1437o(i) (1) and (2).
    (3) The Emergency Shelter Grant Program, Supportive Housing program 
(and its predecessors, the Supportive Housing Demonstration program 
(both Transitional Housing and Permanent Housing for Homeless Persons 
with Disabilities) and Supplemental Assistance for Facilities to Assist 
the Homeless), Shelter Plus Care program, Safe Havens for Homeless 
Individuals Demonstration Program, and Rural Homeless Housing 
Assistance, authorized by title IV of the Stewart B. McKinney Homeless 
Assistance Act, in accordance with section 443 (42 U.S.C. 11402);
    (4) The HOME Investment Partnerships Program authorized by title II 
of the Cranston-Gonzalez National Affordable Housing Act (NAHA), in 
accordance with section 288 (42 U.S.C. 12838);
    (5) Grants to States and units of general local government for 
abatement of lead-based paint and lead dust hazards pursuant to title 
II of the Departments of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriations Act, 1992, and 
grants for lead-based paint hazard reduction under section 1011 of the 
Housing and Community Development Act of 1992, in accordance with 
section 1011(o) (42 U.S.C. 4852(o));
    (6)(i) Public Housing Programs under Title I of the United States 
Housing Act of 1937, in accordance with section 26 (42 U.S.C. 1437x);
    (ii) Indian Housing Programs under Title I of the United States 
Housing Act of 1937, including the Mutual Help Program, in accordance 
with section 26 (42 U.S.C. 1437x); and
    (iii) Assistance administered by a public housing agency or Indian 
housing authority under section 8 of the United States Housing Act of 
1937, except for assistance provided under 24 CFR part 886, in 
accordance with section 26 (42 U.S.C. 1437x).
    (7) Special Projects appropriated under an appropriation act for 
HUD, such as special projects under the head ``Annual Contributions for 
Assisted Housing'' in Title II of various Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Acts, in accordance with section 305(c) of the 
Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 
3547); and
    (8) The FHA Multifamily Housing Finance Agency Pilot Program under 
section 542(c) of the Housing and Community Development Act of 1992, in 
accordance with section 542(c)(9)(12 U.S.C. 1707 note).


Sec. 58.2  Terms, abbreviations and definitions.

    (a) For the purposes of this part, the following definitions 
supplement the uniform terminology provided in 40 CFR part 1508:
    (1) Activity means an action that a grantee or recipient puts forth 
as part of an assisted project, regardless of whether its cost is to be 
borne by the HUD assistance or is an eligible expense under the HUD 
assistance program.
    (2) Certifying officer means the official who is authorized to 
execute the Request for Release of Funds and Certification and has the 
legal capacity to carry out the responsibilities of Sec. 58.13.
    (3) Extraordinary circumstances means a situation in which an 
environmental assessment (EA) or environmental impact statement (EIS) 
is not normally required, but due to unusual conditions, an EA or EIS 
is appropriate. Indicators of unusual conditions are:
    (i) Actions that are unique or without precedent;
    (ii) Actions that are substantially similar to those that normally 
require an EIS;
    (iii) Actions that are likely to alter existing HUD policy or HUD 
mandates; or
    (iv) Actions that, due to unusual physical conditions on the site 
or in the vicinity, have the potential for a significant impact on the 
environment or in which the environment could have a significant impact 
on users of the facility.
    (4) Project means an activity, or a group of integrally related 
activities, designed by the recipient to accomplish, in whole or in 
part, a specific objective.
    (5) Recipient means any of the following entities, when they are 
eligible recipients or grantees under a program listed in Sec. 58.1(b): 


[[Page 49470]]

    (i) A State that does not distribute HUD assistance under the 
program to a unit of general local government;
    (ii) Guam, the Northern Mariana Islands, the Virgin Islands, 
American Samoa, and Palau;
    (iii) A unit of general local government;
    (iv) An Indian tribe.
    (v)(A) With respect to Public Housing Programs under 
Sec. 58.1(b)(6)(i), a public housing agency;
    (B) With respect to Indian Housing Programs under 
Sec. 58.1(b)(6)(ii), an Indian housing authority;
    (C) With respect to section 8 assistance under 
Sec. 58.1(b)(6)(iii), a public housing agency or Indian housing 
authority;
    (vi) Any direct grantee of HUD for a special project under 
Sec. 58.1(b)(7); and
    (vii) With respect to the FHA Multifamily Housing Finance Agency 
Pilot Program under Sec. 58.1(b)(8), a qualified housing finance 
agency.
    (6) Release of funds. In the case of The FHA Multifamily Housing 
Finance Agency Pilot Program under Sec. 58.1(b)(8), Release of Funds, 
as used in this part, refers to HUD issuance of a firm approval letter, 
and Request for Release of Funds refers to a recipient's request for a 
firm approval letter.
    (7) Responsible entity means:
    (i) With respect to environmental responsibilities under programs 
listed in Sec. 58.1(b) (1) through (5), a recipient under the program.
    (ii) With respect to environmental responsibilities under the 
programs listed in Sec. 58.1(b) (6) through (8), a State, unit of 
general local government, Indian tribe or Alaska native village, when 
it is the recipient under the program. Non-recipient responsible 
entities are designated as follows:
    (A) For qualified housing finance agencies, the State or a unit of 
general local government, Indian tribe or Alaska native village whose 
jurisdiction contains the project site;
    (B) For public housing agencies, the unit of general local 
government within which the project is located that exercises land use 
responsibility, or if HUD determines this infeasible, the county, or if 
HUD determines this infeasible, the State;
    (C) For non-profit organizations and other entities, the unit of 
general local government, Indian tribe or Alaska native village within 
which the project is located that exercises land use responsibility, or 
if HUD determines this infeasible, the county, or if HUD determines 
this infeasible, the State;
    (D) For Indian housing authorities (outside of Alaska), the Indian 
tribe in whose jurisdiction the project is located, or if the project 
is located outside of a reservation, the Indian tribe that established 
the authority; and
    (E) For Indian housing authorities in Alaska, the Alaska native 
village in whose community the project is located, or if HUD determines 
this infeasible, a unit of general local government or the State, as 
designated by HUD.
    (8) Unit density refers to a change in the number of dwelling 
units. Where a threshold is identified as a percentage change in 
density that triggers review requirements, no distinction is made 
between an increase or a decrease in density.
    (9) Tiering means the evaluation of an action or an activity at 
various points in the development process as a proposal or event 
becomes ripe for an Environment Assessment or Review.
    (10) Vacant building means a habitable structure that has been 
vacant for more than one year.
    (b) The following abbreviations are used throughout this part:

CDBG--Community Development Block Grant
CEQ--Council on Environmental Quality
EA--Environmental Assessment
EIS--Environmental Impact Statement
EPA--Environmental Protection Agency
ERR--Environmental Review Record
FONSI--Finding of No Significant Impact
HUD--Department of Housing and Urban Development
NAHA--Cranston-Gonzalez National Affordable Housing Act of 1990
NEPA--National Environmental Policy Act of 1969, as amended
NOI/EIS--Notice of Intent to Prepare an EIS
NOI/RROF--Notice of Intent to Request Release of Funds
ROD--Record of Decision
ROF--Release of Funds
RROF--Request for Release of Funds


Sec. 58.3  [Reserved].


Sec. 58.4  Assumption authority.

    (a) Assumption authority for responsible entities: General. 
Responsible entities shall assume the responsibility for environmental 
review, decision-making, and action that would otherwise apply to HUD 
under NEPA and other provisions of law that further the purposes of 
NEPA, as specified in Sec. 58.5. Responsible entities that receive 
assistance directly from HUD assume these responsibilities by execution 
of a grant agreement with HUD and/or a legally binding document such as 
the certification contained on HUD Form 7015.15, certifying to the 
assumption of environmental responsibilities. When a State distributes 
funds to a responsible entity, the State must provide for appropriate 
procedures by which these responsible entities will evidence their 
assumption of environmental responsibilities.
    (b) Particular responsibilities of the States. (1) States are 
recipients for purposes of directly undertaking a State project and 
must assume the environmental review responsibilities for the State's 
activities and those of any non-governmental entity that may 
participate in the project. In this case, the State must submit the 
certification and RROF to HUD for approval.
    (2) In accordance with Sec. 58.18, State program agencies are 
authorized to exercise HUD's responsibilities with respect to approval 
of a unit of local government's environmental certification and RROF 
for a HUD assisted project funded through the State, except for 
projects assisted by Section 17 Rental Rehabilitation assistance and 
Housing Development Grants. Approval by the State of a unit of local 
government's certification and RROF satisfies the Secretary's 
responsibilities under NEPA and the related laws cited in Sec. 58.5.
    (3) For section 17 Rental Rehabilitation projects and Housing 
Development Grants, the State program agency shall meet the 
responsibilities set forth in Sec. 58.18. However, for section 17 
projects, the State lacks authority to approve RROFs and therefore must 
forward to the responsible HUD Field Office the local recipient's 
certification and RROF, any objections to the release of funds 
submitted by another party, and the State's recommendation as to 
whether HUD should approve the certification and the RROF.


Sec. 58.5  Related Federal laws and authorities.

    In accordance with the provisions of law cited in Sec. 58.1(b), the 
responsible entity must assume responsibilities for environmental 
review, decision-making and action that would apply to HUD under the 
following specified laws and authorities. The responsible entity must 
certify that it has complied with the requirements that would apply to 
HUD under these laws and authorities and must consider the criteria, 
standards, policies and regulations of these laws and authorities.
    (a) Historic properties. (1) The National Historic Preservation Act 
of 1966 as amended (16 U.S.C. 470 et seq.), particularly sections 106 
and 110 (16 U.S.C. 470 and 4-70h-2), except as provided in Sec. 58.17 
for Section 17 projects. 

[[Page 49471]]

    (2) Executive Order 11593, Protection and Enhancement of the 
Cultural Environment, May 13, 1971 (36 FR 8921) particularly section 
2(c).
    (3) Federal historic preservation regulations as follows:
    (i) 36 CFR part 800 with respect to HUD programs other than Urban 
Development Action Grants (UDAG); and
    (ii) 36 CFR part 801 with respect to UDAG.
    (4) The Reservoir Salvage Act of 1960 (16 U.S.C. 469 et seq); 
particularly section 3 (16 U.S.C. 469a-1); as amended by the 
Archeological and Historic Preservation Act of 1974.
    (b) Floodplain management and wetland protection. (1) Executive 
Order 11988, Floodplain Management, May 24, 1977 (42 FR 26951), as 
interpreted in HUD regulations at 24 CFR part 55, particularly section 
2 (a) of the order (For an explanation of relationship between the 
decision-making process in 24 CFR part 55 and this part, see Sec. 55.10 
of this subtitle.)
    (2) Executive Order 11990, Protection of Wetlands, May 24, 1977 (42 
FR 26961) particularly sections 2 and 5.
    (c) Coastal Zone Management. The Coastal Zone Management Act of 
1972 (16 U.S.C. 1451 et seq.), as amended particularly section 307 (c) 
and (d) (16 U.S.C. 1456 (c) and (d)).
    (d) Sole source aquifers. (1) The Safe Drinking Water Act of 1974 
(42 U.S.C. 201, 300(f) et seq., and 21 U.S.C. 349) as amended; 
particularly section 1424(e) (42 U.S.C. 300h-3(e)).
    (2) Sole Source Aquifers (Environmental Protection Agency)-- 40 CFR 
part 149.
    (e) Endangered species. The Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq) as amended particularly section 7 (16 U.S.C. 
1536)).
    (f) Wild and scenic rivers. The Wild and Scenic Rivers Act of 1968 
(16 U.S.C. 1271 et seq) as amended particularly section 7 (b) and (c) 
(16 U.S.C. 1278 (b) and (c)).
    (g) Air quality. (1) The Clean Air Act (42 U.S.C. 7401 et. seq.) as 
amended; particularly section 176 (c) and (d) (42 U.S.C. 7506 (c) and 
(d)).
    (2) Determining Conformity of Federal Actions to State or Federal 
Implementation Plans (Environmental Protection Agency)--40 CFR parts 6, 
51, and 93.
    (h) Farmlands protection. (1) Farmland Protection Policy Act of 
1981 (7 U.S.C. 4201 et seq.) particularly sections 1540(b) and 1541 (7 
U.S.C. 4201(b) and 4202).
    (2) Farmland Protection Policy (Department of Agriculture)--(7 CFR 
part 658).
    (i) HUD environmental standards. Applicable criteria and standards 
specified in HUD environmental regulations (24 CFR part 51) (other than 
the runway clear zone and clear zone notification requirement in 24 CFR 
51.303 (a)(3)) and HUD Notice 79-33, Policy Guidance to Address the 
Problems Posed by Toxic Chemicals and Radioactive Materials, September 
10, 1979).
    (j) Environmental justice. Executive Order 12898--Federal Actions 
to Address Environmental Justice in Minority Populations and Low-Income 
Populations, February 11, 1994 (59 FR 7629.)


Sec. 58.6  Other requirements.

    In addition to the duties under the laws and authorities specified 
in Sec. 58.5 for assumption by the responsible entity under the laws 
cited in Sec. 58.1(b), the responsible entity must comply with the 
following requirements. Applicability of the following requirements 
does not trigger the certification and release of funds procedure under 
this part or preclude exemption of an activity under Sec. 58.34(a)(11) 
and/or the applicability of Sec. 58.35(b). However, the responsible 
entity remains responsible for addressing the following requirements in 
its ERR and meeting these requirements, where applicable, regardless of 
whether the activity is exempt under Sec. 58.34 or categorically 
excluded under Sec. 58.35 (a) or (b).
    (a)(1) Under the Flood Disaster Protection Act of 1973, as amended 
(42 U.S.C. 4001-4128), Federal financial assistance for acquisition and 
construction purposes (including rehabilitation) may not be used in an 
area identified by the Federal Emergency Management Agency (FEMA) as 
having special flood hazards, unless:
    (i) The community in which the area is situated is participating in 
the National Flood Insurance Program (see 44 CFR parts 59 through 79), 
or less than one year has passed since the FEMA notification regarding 
such hazards; and
    (ii) Flood insurance protection is to be obtained as a condition of 
the approval of financial assistance to the property owner.
    (2) Where a recipient provides financial assistance for acquisition 
or construction purposes (including rehabilitation) for property 
located in an area identified by FEMA as having special flood hazards, 
the responsible entity is responsible for assuring that flood insurance 
under the National Flood Insurance Program is obtained and maintained.
    (3) Paragraph (a) of this section does not apply to Federal formula 
grants made to a State.
    (b) Pursuant to the Coastal Barrier Resources Act, as amended by 
the Coastal Barrier Improvement Act of 1990 (16 U.S.C. 3501), HUD 
assistance may not be used for most activities proposed in the Coastal 
Barrier Resources System.
    (c) In all cases involving HUD assistance, subsidy, or insurance 
for the purchase or sale of an existing property in a Runway Clear Zone 
or Clear Zone, as defined in 24 CFR part 51, the responsible entity 
shall advise the buyer that the property is in a runway clear zone or 
clear zone, what the implications of such a location are, and that 
there is a possibility that the property may, at a later date, be 
acquired by the airport operator. The buyer must sign a statement 
acknowledging receipt of this information.


Secs. 58.7-58.9  [Reserved]

Subpart B--General Policy: Responsibilities of Responsible Entities


Sec. 58.10  Basic environmental responsibility.

    In accordance with the provisions of law cited in Sec. 58.1(b), the 
responsible entity must assume the environmental responsibilities for 
projects under programs cited in Sec. 58.1(b), and in doing so must 
comply with the provisions of NEPA and the CEQ regulations contained in 
40 CFR parts 1500 through 1508, including the procedures set forth in 
this part. This includes responsibility for compliance with the 
applicable provisions and requirements of the Federal laws and 
authorities specified in Sec. 58.5. The provisions of the CEQ 
regulations in 40 CFR parts 1500 through 1508 are incorporated by 
reference into this part.


Sec. 58.11  Legal capacity and performance.

    (a) A responsible entity which believes that it does not have the 
legal capacity to carry out the environmental responsibilities required 
by this part should contact the appropriate local HUD Office or the 
State for further instructions. Determinations of legal capacity will 
be made on a case-by-case basis.
    (b) If a public housing, Indian housing, or special project 
recipient objects to the non-recipient responsible entity conducting 
the environmental review on the basis of performance, timing, or 
compatibility of objectives, HUD will review the facts to determine 

[[Page 49472]]
who will perform the environmental review.
    (c) At any time, HUD may reject the use of a responsible entity to 
conduct the environmental review in a particular case on the basis of 
performance, timing or compatibility of objectives, or in accordance 
with Sec. 58.77(d)(1).
    (d) If a responsible entity, other than a recipient, objects to 
performing an environmental review, or if HUD determines that the 
responsible entity should not perform the environmental review, HUD may 
designate another responsible entity to conduct the review in 
accordance with this part or may itself conduct the environmental 
review in accordance with the provisions of 24 CFR part 50.


Sec. 58.12  Technical and administrative capacity.

    The responsible entity must develop the technical and 
administrative capability necessary to comply with 40 CFR parts 1500 
through 1508 and the procedures of this part.


Sec. 58.13  Responsibilities of the certifying officer.

    Under the terms of the certification required by Sec. 58.71, a 
responsible entity's certifying officer is the ``responsible Federal 
official'' as that term is used in section 102 of NEPA and in statutory 
provisions cited in Sec. 58.1(b). The Certifying Officer is therefore 
responsible for all the requirements of section 102 of NEPA and the 
related provisions in 40 CFR parts 1500 through 1508, and 24 CFR part 
58, including the related Federal authorities listed in Sec. 58.5 of 
this part. The Certifying Officer must also:
    (a) Represent the responsible entity and be subject to the 
jurisdiction of the Federal courts. The Certifying Officer will not be 
represented by the Department of Justice in court; and
    (b) Ensure that the responsible entity reviews and comments on all 
EISs prepared for Federal projects that may have an impact on the 
recipient's program.


Sec. 58.14  Interaction with State, Federal and non-Federal entities.

    A responsible entity shall consult, as appropriate, environmental 
agencies, State, Federal and non-Federal entities and the public in the 
preparation of an EIS, EA or other environmental reviews undertaken 
under the related laws and authorities cited in Sec. 58.5 and 
Sec. 58.6. The responsible entity must also cooperate with other 
agencies to reduce duplication between NEPA and comparable 
environmental review requirements of the State (see 40 CFR 1506.2 (b) 
and (c)). The responsible entity must prepare its EAs and EISs so that 
they comply with the environmental review requirements of both Federal 
and State laws unless otherwise specified or provided by law. State, 
Federal and local agencies may participate or act in a joint lead or 
cooperating agency capacity in the preparation of joint EISs (see 40 
CFR 1501.5(b) and 1501.6). A single EIS may be prepared and adopted by 
multiple users to the extent that the review addresses the relevant 
environmental issues and there is a written agreement between the 
cooperating agencies which sets forth the coordinated and overall 
responsibilities.


Sec. 58.15  Tiering.

    Responsible entities may tier their environmental reviews and 
assessments to eliminate repetitive discussions of the same issues at 
subsequent levels of review. Tiering is appropriate when there is a 
requirement to evaluate a policy or proposal in the early stages of 
development or when site-specific analysis or mitigation is not 
currently feasible and a more narrow or focused analysis is better at a 
later date. The site specific review need only reference or summarize 
the issues addressed in the broader review. The broader review should 
identify and evaluate those issues ripe for decision and exclude those 
issues not relevant to the policy, program or project under 
consideration. The broader review should also establish the policy, 
standard or process to be followed in the site specific review. The 
Finding of No Significant Impact (FONSI) with respect to the broader 
assessment shall include a summary of the assessment and identify the 
significant issues to be considered in site specific reviews. 
Subsequent site-specific reviews will not require notices or a Request 
for Release of Funds unless the Certifying Officer determines that 
there are unanticipated impacts or impacts not adequately addressed in 
the prior review. A tiering approach can be used for meeting 
environmental review requirements in areas designated for special focus 
in local Consolidated Plans. Local and State Governments are encouraged 
to use the Consolidated Plan process to facilitate environmental 
reviews.


Sec. 58.16  [Reserved].


Sec. 58.17  Historic Preservation requirements for prior Section 17 
grants.

    A recipient of a section 17 grant shall comply with the historic 
preservation requirements of this part and existing grant agreements.


Sec. 58.18  Responsibilities of States Assuming HUD Responsibilities.

    (a) States that elect to administer a HUD program shall ensure that 
the program complies with the provisions of this part. The State must:
    (1) Designate the State agency or agencies which will be 
responsible for carrying out the requirements and administrative 
responsibilities set forth in subpart H and which will:
    (i) Develop a monitoring and enforcement program for post-review 
actions on environmental reviews and monitor compliance with any 
environmental conditions included in the award.
    (ii) Receive public notices, RROFs and certifications from 
recipients pursuant to Secs. 58.70 and 58.71; accept objections from 
the public and from other agencies (Sec. 58.73); and perform other 
related responsibilities regarding releases of funds.
    (2) Fulfill the State role in Subpart H relative to the time period 
set for the receipt and disposition of comments, objections and appeals 
(if any) on particular projects.
    (b) States administering section 17 Programs shall assume the 
responsibilities set forth in this section for overseeing the State 
recipient's performance and compliance with NEPA and related Federal 
authorities as set forth in this part, including receiving RROFs and 
environmental certifications for particular projects from State 
recipients and objections from government agencies and the public in 
accordance with the procedures contained in subpart H of this part. The 
State shall forward to the responsible HUD Field Office the 
environmental certification, the RROF and any objections received, and 
shall recommend whether to approve or disapprove the certification and 
RROF.


Secs. 58.19-58.20  [Reserved].

Subpart C--General Policy: Environmental Review Procedures


Sec. 58.21  Time periods.

    All time periods in this part shall be counted in calendar days. 
The first day of a time period begins at 12:01 a.m. local time on the 
day following the publication date of the notice which initiates the 
time period.


Sec. 58.22  Limitations on activities pending clearance.

    (a) A recipient may not commit HUD assistance funds under a program 
listed in Sec. 58.1(b) on an activity or project until HUD or the State 
has approved the recipient's RROF and the related certification of the 
responsible entity. In 

[[Page 49473]]
addition, until the RROF and related certification has been approved, 
the recipient may not commit local (non-HUD) funds on an activity or 
project under a program listed in Sec. 58.1(b) if the activity or 
project would have an adverse environmental impact or limit the choice 
of reasonable alternatives. If an activity is exempt under Sec. 58.34, 
or not subject to Sec. 58.5 under Sec. 58.35(b), no RROF is required 
and a recipient may undertake the activity immediately after the award 
of the assistance.
    (b) An option agreement on a proposed site or property is allowable 
prior to the completion of the environmental review if the option 
agreement is subject to a determination by the recipient on the 
desirability of the property for the project as a result of the 
completion of the environmental review in accordance with 24 CFR part 
58 and its cost is fully refundable. There is no constraint on the 
purchase of an option by third parties that have not been selected for 
HUD funding, have no responsibility for the environmental review and 
have no say in the approval or disapproval of the project.
    (c) Relocation Costs. Relocation costs may be incurred before the 
approval of the RROF and related certification for the project provided 
that they are required by 24 CFR part 42.


Sec. 58.23  Financial assistance for environmental review.

    The costs of environmental reviews, including costs incurred in 
complying with any of the related laws and authorities cited in 
Sec. 58.5 and Sec. 58.6, are eligible project costs to the extent 
allowable under the HUD assistance program regulations.


Secs. 58.24-58.29  [Reserved]

Subpart D--Environmental Review Process: Documentation, Range of 
Activities, Project Aggregation and Classification


Sec. 58.30  Environmental Review Process.

    The environmental review process consists of all the actions that a 
responsible entity must take to determine compliance with NEPA and 
related provisions of law and this part. The environmental review 
process includes all the compliance actions needed for other activities 
and projects that are not assisted by HUD but are aggregated by the 
responsible entity in accordance with Sec. 58.32.


Sec. 58.31  [Reserved]


Sec. 58.32  Project aggregation.

    (a) A responsible entity must group together and evaluate as a 
single project all individual activities which are related either on a 
geographical or functional basis, or are logical parts of a composite 
of contemplated actions.
    (b) In deciding the most appropriate basis for aggregation when 
evaluating activities under more than one program, the responsible 
entity may choose: Functional aggregation when a specific type of 
activity (e.g., water improvements) is to take place in several 
separate locales or jurisdictions; geographic aggregation when a mix of 
dissimilar but related activities is to be concentrated in a fairly 
specific project area (e.g., a combination of water, sewer and street 
improvements and economic development activities); or a combination of 
aggregation approaches, which, for various project locations, considers 
the impacts arising from each functional activity and its 
interrelationship with other activities.
    (c) The purpose of project aggregation is to group together related 
activities so that the responsible entity can:
    (1) Address adequately and analyze, in a single environmental 
review, the separate and combined impacts of activities that are 
similar, connected and closely related, or that are dependent upon 
other activities and actions. (See 40 CFR 1508.25(a)).
    (2) Consider reasonable alternative courses of action.
    (3) Schedule the activities to resolve conflicts or mitigate the 
individual, combined and/or cumulative effects.
    (4) Prescribe mitigation measures and safeguards including project 
alternatives and modifications to individual activities.
    (d) Multi-year project aggregation.
    (1) Release of funds. When a recipient's planning and program 
development provide for activities to be implemented over two or more 
years, the responsible entity's environmental review should consider 
the relationship among all component activities of the multi-year 
project regardless of the source of funds and address and evaluate 
their cumulative environmental effects. The full schedule of all the 
aggregated activities and the estimated cost of the total project must 
be listed and described by the responsible entity in the environmental 
review and included in the RROF. The release of funds will cover the 
entire project period.
    (2) When one or more of the conditions described in Sec. 58.47 
exists, the recipient or other responsible entity must re-evaluate the 
environmental review.


Sec. 58.33  Emergencies.

    (a) In the cases of emergency, disaster or imminent threat to 
health and safety which warrant the taking of an action with 
significant environmental impact, the provisions of 40 CFR 1506.11 
shall apply.
    (b) If funds are needed on an emergency basis and when adherence to 
separate comment periods would prevent the giving of assistance, the 
combined Notice of FONSI and the Notice of the Intent to Request 
Release of Funds may be disseminated and/or published simultaneously 
with the submission of the Request for Release of Funds (RROF). The 
combined Notice of FONSI and NOI/ROF shall state that the funds are 
needed on an immediate emergency basis due to a Presidentially declared 
disaster and that the comment periods have been combined. The Notice 
shall also invite commenters to submit their comments to both HUD and 
the responsible entity issuing the notice to assure that these comments 
will receive full consideration.


Sec. 58.34  Exempt activities.

    (a) A responsible entity does not have to comply with the 
environmental requirements of this part or undertake any environmental 
review, consultation or other action under NEPA and the other 
provisions of law or authorities cited in Sec. 58.5 for the activities 
exempt by this section or projects consisting solely of the following 
exempt activities:
    (1) Environmental and other studies, resource identification and 
the development of plans and strategies;
    (2) Information and financial services;
    (3) Administrative and management activities;
    (4) Public services that will not have a physical impact or result 
in any physical changes, including but not limited to services 
concerned with employment, crime prevention, child care, health, drug 
abuse, education, counseling, energy conservation and welfare or 
recreational needs;
    (5) Inspections and testing of properties for hazards or defects;
    (6) Purchase of insurance;
    (7) Purchase of tools;
    (8) Engineering or design costs;
    (9) Technical assistance and training;
    (10) Assistance for any temporary improvements or for permanent 
improvements that do not alter environmental conditions and are limited 
to protection, repair or restoration activities necessary only to 
control or arrest the effects from disasters, imminent threats or 
physical deterioration;
    (11) Any of the categorical exclusions listed in Sec. 58.35(a) 
provided that there 

[[Page 49474]]
are no circumstances which require compliance with any other Federal 
laws and authorities cited in Sec. 58.5.
    (b) A recipient does not have to submit an RROF and certification, 
and no further approval from HUD or the State will be needed by the 
recipient for the drawdown of funds to carry out exempt activities and 
projects. However, the responsible entity must document in writing its 
determination that each activity or project is exempt and meets the 
conditions specified for such exemption under this section.


Sec. 58.35  Categorical exclusions.

    Categorical exclusion refers to a category of activities for which 
no environmental impact statement or environmental assessment and 
finding of no significant impact under NEPA is required, except in 
extraordinary circumstances (see Sec. 58.2(a)(3)) in which a normally 
excluded activity may have a significant impact. Compliance with the 
other applicable Federal environmental laws and authorities listed in 
Sec. 58.5 is required for any categorical exclusion listed in paragraph 
(a) of this section.
    (a) Categorical exclusions subject to Sec. 58.5. The following 
activities are categorically excluded under NEPA, but may be subject to 
review under authorities listed in Sec. 58.5:
    (1) Acquisition, repair, reconstruction, or rehabilitation of 
public facilities and improvements (other than buildings) when the 
facilities and improvements are in place and will be retained in the 
same use without change in size or capacity of more than 20 percent 
(e.g., replacement of water or sewer lines, reconstruction of curbs and 
sidewalks, repaving of streets).
    (2) Special projects directed to the removal of material and 
architectural barriers that restrict the mobility of and accessibility 
to elderly and handicapped persons.
    (3) Rehabilitation of buildings and improvements when the following 
conditions are met;
    (i) In the case of multifamily residential buildings:
    (A) Unit density is not changed more than 20 percent;
    (B) The project does not involve changes in land use (from 
residential to non-residential); and
    (C) The estimated cost of rehabilitation is less than 75 percent of 
the total estimated cost of replacement after rehabilitation.
    (ii) In the case of non-residential structures, including 
commercial, industrial, and public buildings:
    (A) The facilities and improvements are in place and will not be 
changed in size or capacity by more than 20 percent; and
    (B) The activity does not involve a change in land use, such as 
from non-residential to residential, commercial to industrial, or from 
one industrial use to another.
    (4) An individual action on a one - to four-family dwelling or an 
individual action on a project of five or more units developed on 
scattered sites when the sites are more than 2,000 feet apart and there 
are not more than four units on any one site.
    (5) Acquisition or disposition of an existing structure or 
acquisition of vacant land provided that the structure or land acquired 
or disposed of will be retained for the same use.
    (b) Categorical exclusions not subject to Sec. 58.5. The Department 
has determined that the following categorically excluded activities 
would not alter any conditions that would require a review or 
compliance determination under the Federal laws and authorities cited 
in Sec. 58.5. When the following kinds of activities are undertaken, 
the responsible entity does not have to publish a NOI/RROF or execute a 
certification and the recipient does not have to submit a RROF to HUD 
(or the State) except in the circumstances described in paragraph (c) 
of this section. Following the award of the assistance, no further 
approval from HUD or the State will be needed with respect to 
environmental requirements, except where paragraph (c) of this section 
applies. The recipient remains responsible for carrying out any 
applicable requirements under Sec. 58.6.
    (1) Tenant-based rental assistance;
    (2) Supportive services including, but not limited to, health care, 
housing services, permanent housing placement, day care, nutritional 
services, short-term payments for rent/mortgage/utility costs, and 
assistance in gaining access to local, State, and Federal government 
benefits and services;
    (3) Operating costs including maintenance, security, operation, 
utilities, furnishings, equipment, supplies, staff training and 
recruitment and other incidental costs;
    (4) Economic development activities, including but not limited to, 
equipment purchase, inventory financing, interest subsidy, operating 
expenses and similar costs not associated with construction or 
expansion of existing operations;
    (5) Activities to assist homeownership of existing dwelling units, 
including closing costs and down payment assistance to home buyers, 
interest buydowns and similar activities that result in the transfer of 
title to a property;
    (6) Affordable housing pre-development costs including legal, 
consulting, developer and other costs related to obtaining site 
control, project financing, loan commitments, zoning approvals, and 
other related activities which do not have a physical impact.
    (c) Circumstances requiring NEPA review. If a responsible entity 
determines that an activity or project identified in paragraph (a) or 
(b) of this section, because of extraordinary circumstances and 
conditions at or affecting the location of the activity or project, may 
have a significant environmental effect, it shall comply with all the 
requirements of this part.
    (d) The Environmental Review Record (ERR) must contain a well 
organized written record of the process and determinations made under 
this section.


Sec. 58.36  Environmental assessments.

    If a project is not exempt or categorically excluded under 
Secs. 58.34 and 58.35, the responsible entity must prepare an EA in 
accordance with subpart E of this part. If it is evident without 
preparing an EA that an EIS is required under Sec. 58.37, the 
responsible entity should proceed directly to an EIS.


Sec. 58.37  Environmental impact statement determinations.

    (a) An EIS is required when the project is determined to have a 
potentially significant impact on the human environment.
    (b) An EIS is required under any of the following circumstances, 
except as provided in paragraph (c) of this section:
    (1) The project would provide a site or sites for, or result in the 
construction of, hospitals or nursing homes containing a total of 2,500 
or more beds.
    (2) The project would remove, demolish, convert or substantially 
rehabilitate 2,500 or more existing housing units (but not including 
rehabilitation projects categorically excluded under Sec. 58.35), or 
would result in the construction or installation of 2,500 or more 
housing units, or would provide sites for 2,500 or more housing units.
    (3) The project would provide enough additional water and sewer 
capacity to support 2,500 or more additional housing units. The project 
does not have to be specifically intended for residential use nor does 
it have to be totally new construction. If the project is designed to 
provide upgraded service to existing development as well as to serve 
new development, only that portion of the increased capacity which is 
intended to serve new development should be counted. 

[[Page 49475]]

    (c) If, on the basis of an EA, a responsible entity determines that 
the thresholds in paragraph (b) of this section are the sole reason for 
the EIS, the responsible entity may prepare a FONSI pursuant to 40 CFR 
1501.4. In such cases, the FONSI must be made available for public 
review for at least 30 days before the responsible entity makes the 
final determination whether to prepare an EIS.
    (d) Notwithstanding paragraphs (a) through (c) of this section, an 
EIS is not required where Sec. 58.53 is applicable.
    (e) Recommended EIS Format. The responsible entity must use the EIS 
format recommended by the CEQ regulations (40 CFR 1502.10) unless a 
determination is made on a particular project that there is a 
compelling reason to do otherwise. In such a case, the EIS format must 
meet the minimum requirements prescribed in 40 CFR 1502.10.


Sec. 58.38  Environmental review record.

    The responsible entity must maintain a written record of the 
environmental review undertaken under this part for each project. This 
document will be designated the ``Environmental Review Record'' (ERR), 
and shall be available for public review. The responsible entity must 
use the current HUD-recommended formats or develop equivalent formats.
    (a) ERR Documents. The ERR shall contain all the environmental 
review documents, public notices and written determinations or 
environmental findings required by this part as evidence of review, 
decisionmaking and actions pertaining to a particular project of a 
recipient. The document shall:
    (1) Describe the project and the activities that the recipient has 
determined to be part of the project;
    (2) Evaluate the effects of the project or the activities on the 
human environment;
    (3) Document compliance with applicable statutes and authorities, 
in particular those cited in Sec. 58.5 and 58.6; and
    (4) Record the written determinations and other review findings 
required by this part (e.g., exempt and categorically excluded projects 
determinations, findings of no significant impact).
    (b) Other documents and information. The ERR shall also contain 
verifiable source documents and relevant base data used or cited in 
EAs, EISs or other project review documents. These documents may be 
incorporated by reference into the ERR provided that each source 
document is identified and available for inspection by interested 
parties. Proprietary material and special studies prepared for the 
recipient that are not otherwise generally available for public review 
shall not be incorporated by reference but shall be included in the 
ERR.


Sec. 58.39  [Reserved].

Subpart E--Environmental Review Process: Environmental Assessments 
(EA's)


Sec. 58.40  Preparing the environmental assessment.

    The responsible entity may prepare the EA using the HUD recommended 
format. In preparing an EA for a particular project, the responsible 
entity must:
    (a) Determine existing conditions and describe the character, 
features and resources of the project area and its surroundings; 
identify the trends that are likely to continue in the absence of the 
project.
    (b) Identify all potential environmental impacts, whether 
beneficial or adverse, and the conditions that would change as a result 
of the project.
    (c) Identify, analyze and evaluate all impacts to determine the 
significance of their effects on the human environment and whether the 
project will require further compliance under related laws and 
authorities cited in Sec. 58.5 and Sec. 58.6.
    (d) Examine and recommend feasible ways in which the project or 
external factors relating to the project could be modified in order to 
eliminate or minimize adverse environmental impacts.
    (e) Examine alternatives to the project itself, if appropriate, 
including the alternative of no action.
    (f) Complete all environmental review requirements necessary for 
the project's compliance with applicable authorities cited in 
Secs. 58.5 and 58.6.
    (g) Based on steps set forth in paragraph (a) through (f) of this 
section, make one of the following findings:
    (1) A Finding of No Significant Impact (FONSI), in which the 
responsible entity determines that the project is not an action that 
will result in a significant impact on the quality of the human 
environment. The responsible entity may then proceed to Sec. 58.43.
    (2) A finding of significant impact, in which the project is deemed 
to be an action which may significantly affect the quality of the human 
environment. The responsible entity must then proceed with its 
environmental review under subparts F or G of this part.


Sec. 58.41-58.42  [Reserved].


Sec. 58.43  Dissemination and/or publication of the findings of no 
significant impact.

    (a) If the responsible entity makes a finding of no significant 
impact, it must prepare a FONSI notice, using the current HUD-
recommended format or an equivalent format. As a minimum, the 
responsible entity must send the FONSI notice to individuals and groups 
known to be interested in the activities, to the local news media, to 
appropriate tribal, local, State and Federal agencies; to the Regional 
Offices of the Environmental Protection Agency having jurisdiction and 
to the HUD Field Offices. The responsible entity may also publish the 
FONSI notice in a newspaper of general circulation in the affected 
community. If the notice is not published, it must also be prominently 
displayed in public buildings, such as the local Post Office and within 
the project area or in accordance with procedures established as part 
of the affected community's citizen participation process.
    (b) The responsible entity may disseminate or publish a FONSI 
notice at the same time it disseminates or publishes the NOI/RROF 
required by Sec. 58.70. If the notices are released as a combined 
notice, the combined notice shall:
    (1) Clearly indicate that it is intended to meet two separate 
procedural requirements; and
    (2) Advise the public to specify in their comments which ``notice'' 
their comments address.
    (c) The responsible entity must consider the comments and make 
modifications, if appropriate, in response to the comments, before it 
completes its environmental certification and before the recipient 
submits its RROF. In Presidentially declared disaster areas, 
modifications resulting from public comment, if appropriate, must be 
made before proceeding with the expenditure of funds.


Sec. 58.44  [Reserved].


Sec. 58.45  Public comment periods.

    (a) Notice of finding of no significant impact: 15 days from date 
of publication or if no publication, 18 days from the date of mailing 
and posting.
    (b) Notice of intent to request release of funds: 7 days from date 
of publication or if no publication, 10 days from date of mailing and 
posting.
    (c) Concurrent or Combined notices: Same as FONSI notice. 

[[Page 49476]]



Sec. 58.46  Time delays for exceptional circumstances.

    The responsible entity must make the FONSI available for public 
comments for 30 days before the recipient files the RROF when:
    (a) There is a considerable interest or controversy concerning the 
project;
    (b) The proposed project is similar to other projects that normally 
require the preparation of an EIS; or
    (c) The project is unique and without precedent.


Sec. 58.47  Re-evaluation of assessment findings.

    (a) A responsible entity must re-evaluate the EA findings when:
    (1) The recipient proposes substantial changes in the nature, 
magnitude or extent of the project, including adding new activities not 
anticipated in the original scope of the project and its cost estimate;
    (2) There are new circumstances and environmental conditions which 
may affect the project or have a bearing on its impact, such as 
concealed or unexpected conditions discovered during the implementation 
of the project or activity which is proposed to be continued; or
    (3) The recipient proposes the selection of an alternative not 
considered in the original EA.
    (b) The purpose of the responsible entity's re-evaluation of the EA 
is to determine if the FONSI is still valid. If the FONSI is still 
valid but the data or conditions upon which it was based have changed, 
the responsible entity must amend the original assessment and update 
its ERR by including this re-evaluation and its determination based on 
its findings. If the responsible entity determines that the FONSI is no 
longer valid, it must prepare an EA or an EIS if its evaluation 
indicates potentially significant impacts. Where the recipient is not 
the responsible entity, the recipient must inform the responsible 
entity promptly of any proposed substantial changes under paragraph 
(a)(1) of this section, new circumstances or environmental conditions 
under paragraph (a)(2) of this section, or any proposals to select a 
different alternative under paragraph (a)(3) of this section, and must 
then permit the responsible entity to re-evaluate the EA before 
proceeding.


Secs. 58.48-58.51  [Reserved].

Subpart F--Environmental Review Process: Environmental Impact 
Statement Determinations


Sec. 58.52  Adoption of other agencies' EISs.

    The responsible entity may adopt a draft or final EIS prepared by 
another agency provided that the EIS was prepared in accordance with 40 
CFR parts 1500 through 1508. If the responsible entity adopts an EIS 
prepared by another agency, the procedure in 40 CFR 1506.3 shall be 
followed. An adopted EIS may have to be revised and modified to adapt 
it to the particular environmental conditions and circumstances of the 
project if these are different from the project reviewed in the EIS. In 
such cases the responsible entity must prepare, circulate, and file a 
supplemental draft EIS in the manner prescribed in Sec. 58.64 and 
otherwise comply with the clearance and time requirements of the EIS 
process, except that scoping requirements under 40 CFR 1501.7 shall not 
apply. The agency that prepared the original EIS should be informed 
that the responsible entity intends to amend and adopt the EIS. The 
responsible entity may adopt an EIS when it acts as a cooperating 
agency in its preparation under 40 CFR 1506.3. The responsible entity 
is not required to re-circulate or file the EIS, but must complete the 
clearance process for the RROF. The decision to adopt an EIS shall be 
made a part of the project ERR.


Sec. 58.53  Use of prior environmental impact statements.

    Where any final EIS has been listed in the Federal Register for a 
project pursuant to this part, or where an areawide or similar broad 
scale final EIS has been issued and the EIS anticipated a subsequent 
project requiring an environmental clearance, then no new EIS is 
required for the subsequent project if all the following conditions are 
met:
    (a) The ERR contains a decision based on a finding pursuant to 
Sec. 58.40 that the proposed project is not a new major Federal action 
significantly affecting the quality of the human environment. The 
decision shall include:
    (1) References to the prior EIS and its evaluation of the 
environmental factors affecting the proposed subsequent action subject 
to NEPA;
    (2) An evaluation of any environmental factors which may not have 
been previously assessed, or which may have significantly changed;
    (3) An analysis showing that the proposed project is consistent 
with the location, use, and density assumptions for the site and with 
the timing and capacity of the circulation, utility, and other 
supporting infrastructure assumptions in the prior EIS;
    (4) Documentation showing that where the previous EIS called for 
mitigating measures or other corrective action, these are completed to 
the extent reasonable given the current state of development.
    (b) The prior final EIS has been filed within five (5) years, and 
updated as follows:
    (1) The EIS has been updated to reflect any significant revisions 
made to the assumptions under which the original EIS was prepared;
    (2) The EIS has been updated to reflect new environmental issues 
and data or legislation and implementing regulations which may have 
significant environmental impact on the project area covered by the 
prior EIS.
    (c) There is no litigation pending in connection with the prior 
EIS, and no final judicial finding of inadequacy of the prior EIS has 
been made.


Sec. 58.54  [Reserved]

Subpart G--Environmental Review Process: Procedures for Draft, 
Final and Supplemental Environmental Impact Statements


Sec. 58.55  Notice of intent to prepare an EIS.

    As soon as practicable after the responsible entity decides to 
prepare an EIS, it must publish a NOI/EIS, using the HUD recommended 
format and disseminate it in the same manner as required by 40 CFR 
parts 1500 through 1508.


Sec. 58.56  Scoping process.

    The determination on whether or not to hold a scoping meeting will 
depend on the same circumstances and factors as for the holding of 
public hearings under Sec. 58.59. The responsible entity must wait at 
least 15 days after publishing the NOI/EIS before holding a scoping 
meeting.


Sec. 58.57  Lead agency designation.

    If there are several agencies ready to assume the lead role, the 
responsible entity must make its decision based on the criteria in 40 
CFR 1501.5(c). If the responsible entity and a Federal agency are 
unable to reach agreement, then the responsible entity must notify HUD 
(or the State, where applicable). HUD (or the State) will assist in 
obtaining a determination based on the procedure set forth in 40 CFR 
1501.5(e). 

[[Page 49477]]



Sec. 58.58  [Reserved]


Sec. 58.59  Public hearings and meetings.

    (a) Factors to consider. In determining whether or not to hold 
public hearings in accordance with 40 CFR 1506.6, the responsible 
entity must consider the following factors:
    (1) The magnitude of the project in terms of economic costs, the 
geographic area involved, and the uniqueness or size of commitment of 
resources involved.
    (2) The degree of interest in or controversy concerning the 
project.
    (3) The complexity of the issues and the likelihood that 
information will be presented at the hearing which will be of 
assistance to the responsible entity.
    (4) The extent to which public involvement has been achieved 
through other means.
    (b) Procedure. All public hearings must be preceded by a notice of 
public hearing, which must be published and disseminated in the same 
manner as the FONSI Notice (See Sec. 58.43). The public hearing notice 
must be published at least 15 days before the hearing date. The Notice 
must:
    (1) State the date, time, place, and purpose of the hearing or 
meeting.
    (2) Describe the project, its estimated costs, and the project 
area.
    (3) State that persons desiring to be heard on environmental issues 
will be afforded the opportunity to be heard.
    (4) State the responsible entity's name and address and the name 
and address of its Certifying Officer.
    (5) State what documents are available, where they can be obtained, 
and any charges that may apply.


Sec. 58.60  Preparation and filing of environmental impact statements.

    (a) The responsible entity must prepare the draft environmental 
impact statement (DEIS) and the final environmental impact statements 
(FEIS) using the current HUD recommended format or its equivalent.
    (b) The responsible entity must file and distribute the (DEIS) and 
the (FEIS) in the following manner:
    (1) Five copies to EPA Headquarters;
    (2) Five copies to EPA Regional Office;
    (3) Copies made available in the responsible entity's and the 
recipient's office;
    (4) Copies or summaries made available to persons who request them; 
and
    (5) FEIS only--one copy to State, HUD Field Office, and HUD 
Headquarters library.


Secs. 58.61-58.69  [Reserved]

Subpart H--Release of Funds for Particular Projects


Sec. 58.70  Notice of intent to request release of funds.

    The NOI/RROF must be disseminated and/or published in the manner 
prescribed by Sec. 58.43 and Sec. 58.45 before the certification is 
signed by the responsible entity.


Sec. 58.71  Request for release of funds and certification.

    (a) The RROF and certification shall be sent to the appropriate HUD 
Field Office (or the State, if applicable), except as provided in 
paragraph (b) of this section. This request shall be executed by the 
Certifying Officer. The request shall describe the specific project and 
activities covered by the request and contain the certification 
required under the applicable statute cited in Sec. 58.1(b). The RROF 
and certification must be in a form specified by HUD.
    (b) When the responsible entity is conducting an environmental 
review on behalf of a recipient, as provided for in Sec. 58.10, the 
recipient must provide the responsible entity with all available 
project and environmental information and refrain from undertaking any 
physical activities or choice limiting actions until HUD (or the State, 
if applicable), has approved its request for release of funds. The 
certification form executed by the responsible entity's certifying 
officer shall be sent to the recipient that is to receive the 
assistance along with a description of any special environmental 
conditions that must be adhered to in carrying out the project. The 
recipient is to submit the RROF and the certification of the 
responsible entity to HUD (or the State, if applicable) requesting the 
release of funds. The recipient must agree to abide by the special 
conditions, procedures and requirements of the environmental review, 
and to advise the responsible entity of any proposed change in the 
scope of the project or any change in environmental conditions.
    (c) If the responsible entity determines that some of the 
activities are exempt under applicable provisions of this part, the 
responsible entity shall advise the recipient that it may incur costs 
on these activities as soon as programmatic authorization is received. 
This finding shall be documented in the ERR maintained by the 
responsible entity and in the recipient's project files.


Sec. 58.72  HUD or State Actions on RROFs and Certifications.

    The actions which HUD (or a State) may take with respect to a 
recipient's environmental certification and RROF are as follows:
    (a) In the absence of any receipt of objection to the contrary, 
except as provided in paragraph (b) of this section, HUD (or the State) 
will assume the validity of the certification and RROF and will approve 
these documents after expiration of the 15-day period prescribed by 
statute.
    (b) HUD (or the State) may disapprove a certification and RROF if 
it has knowledge that the responsible entity has not complied with the 
items in Sec. 58.75, or that the RROF and certification are inaccurate.
    (c) In cases in which HUD has approved a certification and RROF but 
subsequently learns (e.g., through monitoring) that the recipient 
violated Sec. 58.22 or the recipient or responsible entity otherwise 
failed to comply with a clearly applicable environmental authority, HUD 
shall impose appropriate remedies and sanctions in accord with the law 
and regulations for the program under which the violation was found.


Sec. 58.73  Objections to release of funds.

    HUD (or the State) will not approve the ROF for any project before 
15 calendar days have elapsed from the time of receipt of the RROF and 
the certification or from the time specified in the notice published 
pursuant to Sec. 58.70, whichever is later. Any person or agency may 
object to a recipient's RROF and the related certification. However, 
the objections must meet the conditions and procedures set forth in 
this subpart H. HUD (or the State) can refuse the RROF and 
certification on any grounds set forth in Sec. 58.75. All decisions by 
HUD (or the State) regarding the RROF and the certification shall be 
final.


Sec. 58.74  Time for objecting.

    All objections must be received by HUD (or the State) within 15 
days from the time HUD (or the State) receives the recipient's RROF and 
the related certification, or within the time period specified in the 
notice, whichever is later.


Sec. 58.75  Permissible bases for objections.

    HUD (or the State), will consider objections claiming a responsible 
entity's noncompliance with this part based only on any of the 
following grounds:
    (a) The certification was not in fact executed by the responsible 
entity's Certifying Officer. 

[[Page 49478]]

    (b) The responsible entity has failed to make one of the two 
findings pursuant to Sec. 58.40 or to make the written determination 
required by Secs. 58.35, 58.47 or 58.53 for the project, as applicable.
    (c) The responsible entity has omitted one or more of the steps set 
forth at subpart E for the preparation, publication and completion of 
an EA.
    (d) The responsible entity has omitted one or more of the steps set 
forth at subparts F and G of this part for the conduct, preparation, 
publication and completion of an EIS.
    (e) The recipient has committed funds or incurred costs not 
authorized by this part before release of funds and approval of the 
environmental certification by HUD or the State.
    (f) Another Federal agency acting pursuant to 40 CFR part 1504 has 
submitted a written finding that the project is unsatisfactory from the 
standpoint of environmental quality.


Sec. 58.76  Procedure for objections.

    A person or agency objecting to a responsible entity's RROF and 
certification shall submit objections in writing to HUD (or the State). 
The objections shall:
    (a) Include the name, address and telephone number of the persons 
or agency submitting the objection, and be signed by the person or 
authorized official of an agency.
    (b) Be dated when signed.
    (c) Describe the basis for objection and the facts or legal 
authority supporting the objection.
    (d) State when a copy of the objection was mailed or delivered to 
the responsible entity's Certifying Officer.


Sec. 58.77  Effect of approval of certification.

    (a) Responsibilities of HUD and States. HUD's (or, where 
applicable, the State's) approval of the certification shall be deemed 
to satisfy the responsibilities of the Secretary under NEPA and related 
provisions of law cited at Sec. 58.5 insofar as those responsibilities 
relate to the release of funds as authorized by the applicable 
provisions of law cited in Sec. 58.1(b).
    (b) Public and agency redress. Persons and agencies seeking redress 
in relation to environmental reviews covered by an approved 
certification shall deal with the responsible entity and not with HUD. 
It shall be HUD's policy to refer all inquiries and complaints to the 
responsible entity and its Certifying Officer. Similarly, the State 
(where applicable) may direct persons and agencies seeking redress in 
relation to environmental reviews covered by an approved certification 
to deal with the responsible entity, and not the State, and may refer 
inquiries and complaints to the responsible entity and its Certifying 
Officer. Remedies for noncompliance are set forth in program 
regulations.
    (c) Implementation of environmental review decisions. Projects of a 
recipient will require post-review monitoring and other inspection and 
enforcement actions by the recipient and the State or HUD (using 
procedures provided for in program regulations) to assure that 
decisions adopted through the environmental review process are carried 
out during project development and implementation.
    (d) Responsibility for monitoring and training. (1) At least once 
every three years, HUD Field Office intends to conduct in-depth 
monitoring and exercise quality control (through training and 
consultation) over the environmental activities performed by 
responsible entities under this part. Limited monitoring of these 
environmental activities will be conducted during each program 
monitoring site visit. If through limited or in-depth monitoring of 
these environmental activities or by other means, HUD becomes aware of 
any environmental deficiencies, HUD may take one or more of the 
following actions:
    (i) In the case of problems found during limited monitoring, HUD 
may schedule in-depth monitoring at an earlier date or may schedule in-
depth monitoring more frequently;
    (ii) HUD may require attendance by staff of the responsible entity 
at HUD-sponsored or approved training, which will be provided 
periodically at various locations around the country;
    (iii) HUD may refuse to accept the certifications of environmental 
compliance on subsequent grants;
    (iv) HUD may suspend or terminate the responsible entity's 
assumption of the environmental review responsibility;
    (v) HUD may initiate sanctions, corrective actions, or other 
remedies specified in program regulations or agreements or contracts 
with the recipient.
    (2) HUD's responsibilities and action under paragraph (d)(1) of 
this section shall not be construed to limit or reduce any 
responsibility assumed by a responsible entity with respect to any 
particular release of funds under this part. Whether or not HUD takes 
action under paragraph (d)(1) of this section, the Certifying Officer 
remains the responsible Federal official under Sec. 58.13 with respect 
to projects and activities for which the Certifying Officer has 
submitted a certification under this part.


Secs. 58.78-58.79  [Reserved].

    Dated: August 30, 1995.
Henry G. Cisneros,
Secretary.
[FR Doc. 95-23645 Filed 9-22-95; 8:45 am]
BILLING CODE 4210-32-P