[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Rules and Regulations]
[Pages 7962-7964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4678]




[[Page 7961]]

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Part VIII





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Community Planning and 
Development



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24 CFR Part 574



Regulatory Reinvention: Streamlining the Housing Opportunities for 
Persons With AIDS Program; Final Rule

  Federal Register / Vol. 61, No. 41 / Thursday, February 29, 1996 / 
Rules and Regulations   

[[Page 7962]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Community Planning and 
Development

24 CFR Part 574

[Docket No. FR-4030-F-01]
RIN 2506-AB78


Regulatory Reinvention: Streamlining the Housing Opportunities 
for Persons With AIDS Program

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

ACTION: Final rule.

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SUMMARY: This final rule amends HUD's regulations for the Housing 
Opportunities for Persons With AIDS (HOPWA) program. In an effort to 
comply with the President's regulatory reform initiatives, this rule 
will streamline the HOPWA regulations by eliminating provisions that 
are duplicative of statutes or are otherwise unnecessary. This final 
rule will make the regulations more concise.

EFFECTIVE DATE: April 1, 1996.

FOR FURTHER INFORMATION CONTACT: Fred Karnas, Jr., Director, Office of 
HIV/AIDS Housing, Room 7154, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410, telephone 
number (202) 708-1934 (this is not a toll-free number). A 
telecommunications device for hearing- and speech-impaired persons 
(TDD) is available at 1-800-877-8339 (Federal Information Relay 
Service).

SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a 
memorandum to all Federal departments and agencies regarding regulatory 
reinvention. In response to this memorandum, the Department of Housing 
and Urban Development conducted a page-by-page review of its 
regulations to determine which can be eliminated, consolidated, or 
otherwise improved. HUD has determined that the regulations for the 
HOPWA Program can be improved and streamlined by eliminating 
unnecessary provisions.
    Several provisions in the regulations repeat statutory language 
from the AIDS Housing Opportunity Act (42 U.S.C. 12901). It is 
unnecessary to maintain statutory requirements in the Code of Federal 
Regulations (CFR), since those requirements are otherwise fully 
accessible and binding. Furthermore, if regulations contain statutory 
language, HUD must amend the regulations whenever Congress amends the 
statute. Therefore, this final rule removes repetitious statutory 
language and replaces it with a citation to the specific statutory 
section for easy reference.
    Similarly, the environmental review procedures section 
(Sec. 574.510) contains language that repeats requirements that are 
stated in 24 CFR 50.3. Therefore, that section is being revised to 
remove the repetitive language and substitute a cross-reference to the 
applicable provision in that existing rule. Removal of this language 
does not alter the procedures to be followed.
    In addition, some provisions in the regulations are not regulatory 
requirements. For example, several sections in the regulations contain 
nonbinding guidance or explanations. While this information is very 
helpful to recipients, HUD will more appropriately provide this 
information through handbook guidance or other materials rather than 
maintain it in the CFR.
    Lastly, two changes are being made to rectify an oversight when the 
part was recently revised as part of a larger rulemaking (see 61 FR 
5198, February 9, 1996). The waiver provision (Sec. 574.4) is removed, 
since Departmental waivers were consolidated at 24 CFR part 5. The 
section dealing with nondiscrimination (Sec. 574.603) is being revised 
to reinsert language limiting the application of the provision to 
persons who are otherwise eligible for the program, i.e., persons who 
have AIDS or related diseases and their families.

Justification for Final Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
rule for effect, in accordance with its own regulations on rulemaking 
in 24 CFR part 10. However, part 10 provides for exceptions to the 
general rule if the agency finds good cause to omit advance notice and 
public participation. The good cause requirement is satisfied when 
prior public procedure is ``impracticable, unnecessary, or contrary to 
the public interest'' (24 CFR 10.1). HUD finds that good cause exists 
to publish this rule for effect without first soliciting public 
comment. This rule merely removes unnecessary regulatory provisions and 
does not establish or affect substantive policy. Therefore, prior 
public comment is unnecessary.

Other Matters

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this final rule, and in so 
doing certifies that this rule will not have a significant economic 
impact on a substantial number of small entities. This rule merely 
streamlines regulations by removing unnecessary provisions. The rule 
will have no adverse or disproportionate economic impact on small 
businesses.

Environmental Impact

    This rulemaking does not have an environmental impact. This 
rulemaking simply amends an existing regulation by consolidating and 
streamlining provisions. It does not change the environmental review 
procedures or the physical impact of the program or the projects 
assisted under the regulations being amended. A Finding of No 
Significant Impact with respect to the environment was made in 
accordance with HUD regulations in 24 CFR part 50 that implement 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332) at the time of development of regulations implementing the 
HOPWA program. That finding remains applicable to this rule and is 
available for public inspection between 7:30 a.m. and 5:30 p.m. 
weekdays in the Office of the Rules Docket Clerk, Office of General 
Counsel, Room 10276, Department of Housing and Urban Development, 451 
Seventh Street, SW, Washington, DC.

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this 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. No programmatic or policy changes 
will result from this rule that would affect the relationship between 
the Federal Government and State and local governments.

Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule will not have 
the potential for significant impact on family formation, maintenance, 
or 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 rule.

List of Subjects in 24 CFR Part 574

    AIDS, Community facilities, Disabled, Emergency shelter, Grant 
programs--health programs, Grant programs--housing and community 
development, 

[[Page 7963]]
Grant programs--social programs, Homeless, Housing, Low and moderate 
income housing, Nonprofit organizations, Rent subsidies, Reporting and 
recordkeeping requirements, Technical assistance.
    Accordingly, part 574 of title 24 of the Code of Federal 
Regulations is amended, as follows:

PART 574--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

    1. The authority citation for part 574 continues to read as 
follows:

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


Sec. 574.1  [Removed]

    2. Section 574.1 is removed.


Sec. 574.2  [Removed]

    3. Section 574.2 is removed.
    4. In Sec. 574.3, the definitions for ``City'', ``Low-income 
individual'', ``Metropolitan statistical area'', ``Project sponsor'', 
and ``State'' are revised to read as follows:


Sec. 574.3  Definitions.

* * * * *
    City has the meaning given it in section 102(a) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5302).
* * * * *
    Low-income individual has the meaning given it in section 853(3) of 
the AIDS Housing Opportunity Act (42 U.S.C. 12902).
    Metropolitan statistical area has the meaning given it in section 
853(5) of the AIDS Housing Opportunity Act (42.U.S.C. 12902).
* * * * *
    Project sponsor means any nonprofit organization or governmental 
housing agency that receives funds under a contract with the grantee to 
carry out eligible activities under this part. The selection of project 
sponsors is not subject to the procurement requirements of 24 CFR 
85.36.
* * * * *
    State has the meaning given it in section 853(9) of the AIDS 
Housing Opportunity Act (42 U.S.C. 12902).
* * * * *


Sec. 574.4  [Removed]

    5. Section 574.4 is removed.
    6. Section 574.110 is added, to read as follows:


Sec. 574.110  Overview of formula allocations.

    The formula grants are awarded upon submission and approval of a 
consolidated plan, pursuant to 24 CFR part 91, that covers the 
assistance to be provided under this part. Certain states and cities 
that are the most populous unit of general local government in eligible 
metropolitan statistical areas will receive formula allocations based 
on their State or metropolitan population and proportionate number of 
cases of persons with AIDS. They will receive funds under this part 
(providing they comply with 24 CFR part 91) for eligible activities 
that address the housing needs of persons with AIDS or related diseases 
and their families (see Sec. 574.130(b)).


Sec. 574.150  [Removed]

    7. Section 574.150 is removed.
    8. Section 574.200 is amended by adding paragraphs (c) and (d), to 
read as follows:


Sec. 574.200  Amounts available for competitive grants.

* * * * *
    (c) The competitive grants are awarded based on applications, as 
described in subpart C of this part, submitted in response to a Notice 
of Funding Availability published in the Federal Register. All States 
and units of general local government and nonprofit organizations are 
eligible to apply for competitive grants to fund projects of national 
significance. Only those States and units of general local government 
that do not qualify for formula allocations are eligible to apply for 
competitive grants to fund other projects.
    (d) If HUD makes a procedural error in a funding competition that, 
when corrected, would warrant funding of an otherwise eligible 
application, HUD will select that application for potential funding 
when sufficient funds become available.


Sec. 574.230  [Removed]

    9. Section 574.230 is removed.
    10. Section 574.240 is revised to read as follows:


Sec. 574.240  Application requirements.

    Applications must comply with the provisions of the Department's 
Notice of Funding Availability (NOFA) for the fiscal year published in 
the Federal Register in accordance with 24 CFR part 12. The rating 
criteria, including the point value for each, are described in the 
NOFA, including criteria determined by the Secretary.


Sec. 574.250  [Removed]

    11. Section 574.250 is removed.


Sec. 574.310  [Amended]

    12. In Sec. 574.310, paragraph (d) is amended by removing from the 
introductory text the words, ``determined in accordance with section 
3(a) of the United States Housing Act of 1937 and 24 CFR 813.106. Under 
these authorities, each resident must pay as rent'', and adding in 
their place the words, ``which is''.
    13. In Sec. 574.320, paragraph (b) is revised to read as follows:


Sec. 574.320  Additional standards for rental assistance.

* * * * *
    (b) With respect to shared housing arrangements, the rent charged 
for an assisted family or individual shall be in relation to the size 
of the private space for that assisted family or individual in 
comparison to other private space in the shared unit, excluding common 
space. An assisted family or individual may be assigned a pro rata 
portion based on the ratio derived by dividing the number of bedrooms 
in their private space by the number of bedrooms in the unit. 
Participation in shared housing arrangements shall be voluntary.
    14. Section 574.510 is revised to read as follows:


Sec. 574.510  Environmental procedures and standards.

    Before any amounts under this program are used to acquire, 
rehabilitate, convert, lease, repair or construct properties to provide 
housing, HUD shall perform a review in accord with 24 CFR part 50, 
which implements the National Environmental Policy Act and the related 
Federal environmental laws and authorities listed under 24 CFR 50.4. In 
performing its environmental review, HUD may use previously issued 
environmental reviews prepared by other local, State, or federal 
agencies for the proposed property. The grantee will cooperate in 
providing these documents. HUD must, however, conduct the environmental 
analysis and prepare the environmental review and be responsible for 
the required environmental findings. An environmental assurance shall 
be provided by an applicant for formula allocations or competitive 
awards in accordance with 24 CFR 50.3(i).
    15. Section 574.540 is revised to read as follows:


Sec. 574.540  Deobligation of funds.

    HUD may deobligate all or a portion of the amounts approved for 
eligible activities if such amounts are not expended in a timely 
manner, or the proposed activity for which funding was approved is not 
provided in accordance with the approved application or action plan and 
the requirements of this regulation. HUD may deobligate any 

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amount of grant funds that have not been expended within a three-year 
period from the date of the signing of the grant agreement. The grant 
agreement may set forth other circumstances under which funds may be 
deobligated or sanctions imposed.
    16. Section 574.603 is amended by revising the introductory text, 
to read as follows:


Sec. 574.603  Nondiscrimination and equal opportunity.

    Within the population eligible for this program, the 
nondiscrimination and equal opportunity requirements set forth in 24 
CFR part 5 and the following requirements apply:
* * * * *
    Dated: February 21, 1996.
Andrew M. Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-4678 Filed 2-28-96; 8:45 am]
BILLING CODE 4210-29-P