[Federal Register Volume 61, Number 67 (Friday, April 5, 1996)]
[Proposed Rules]
[Pages 15340-15348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8379]




[[Page 15339]]

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Part II





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 50



Office of the Secretary; Protection and Enhancement of Environmental 
Quality; Proposed Rule

  Federal Register / Vol. 61, No. 67 / Friday, April 5, 1996 / Proposed 
Rules  

[[Page 15340]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 50

[Docket No. FR-2206-P-01]
RIN 2501-AA30


Office of the Secretary; Protection and Enhancement of 
Environmental Quality

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would simplify, improve, and update the 
Department's implementation of responsibilities for environmental 
review and decision making under the National Environmental Policy Act 
and the other related Federal environmental laws and authorities. The 
proposed rule would apply to all HUD activities and programs, except 
those for which specific statutory authority exists to assign the 
environmental review responsibilities to recipients and other 
responsible entities that are States, units of general local 
government, Indian Tribes or other entities subject to HUD regulations.

DATES: Comment due date: June 4, 1996.

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 
Community Viability, Room 7240, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410-7000, 
telephone (202) 708-2894. For telephone communication, contact Walter 
Prybyla, Deputy Director for Policy, Environmental Review Division at 
(202) 708-1767. 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) 708-1767.

SUPPLEMENTARY INFORMATION: The proposed rule would amend HUD's 
regulations in 24 CFR part 50 to simplify, improve, and update the 
current policy and procedures used by HUD for its environmental review 
and decision making in carrying out responsibilities in accordance with 
the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321-
4347), the NEPA implementing regulations of the Council on 
Environmental Quality, and the other Federal environmental laws and 
authorities related to NEPA as cited in Sec. 50.4 of this proposed 
rule. The proposed rule would apply to all HUD activities and programs, 
except those for which specific statutory authority exists to assign 
the environmental review responsibilities to recipients and other 
responsible entities that are States, units of general local 
government, Indian Tribes or other entities subject to 24 CFR part 58. 
When this proposed rule is issued as a final rule, it would replace the 
current interim rule originally issued on December 15, 1982 (47 FR 
56268) and amended since then. For HUD programs covered by this rule, 
see paragraph E.
    Some of the more recent action-driving developments for this 
rulemaking result from the implementation of a series of innovative 
initiatives designed to improve the way the Department delivers 
services to the public. These and other reasons for this proposed rule 
are the following:

A. HUD Regulatory Reinvention

    This proposed rule is consistent with the President's March 4, 
1995, memorandum directing Federal agencies to examine all regulations, 
to eliminate those that are obsolete and to revise other regulations to 
increase flexibility and reduce regulatory burden.

B. HUD Reorganization of Field Offices

    The Secretary of HUD directed the transformation of HUD to make it 
an activist, enabling agent for change through the recent empowering of 
HUD field staff through reorganization of HUD field offices. The 
proposed rule would remove from the current part 50 the nomenclature of 
the previous HUD field office organization and assignments of 
responsibility that no longer exist.

C. Environmental Justice

    The President issued on February 11, 1994, Executive Order 12898, 
(59 FR 7629-7633, February 16, 1994) which directed Federal agencies to 
address environmental justice issues affecting minority and low-income 
populations. HUD is awaiting additional guidance to Federal agencies 
that the Council on Environmental Quality (CEQ) is preparing on how 
agencies are to implement this Executive Order.

D. General Updating

    There is need for general updating of current part 50, based on 
program experience and changes in authorizations. The proposed rule 
would restructure part 50 to focus on the new condition that Federal 
environmental laws and authorities cited in Sec. 50.4 are now as 
prominent as NEPA itself in HUD's environmental review processing. The 
need for the preparation of environmental assessments under NEPA has 
declined and will continue to decline as the number of categorical 
exclusions increases in response to the evolving nature of HUD programs 
of assistance. In addition, the proposed rule would respond to the 
National Performance Review on government regulations in that the 
proposed rule would simplify part 50 by removing the appendices and 
other non-statutory provisions. Further information on the general 
updating is provided in the following discussion of revisions proposed 
in each subpart of the current rule:

Subpart A

     Definitions are provided for the terms: HUD approving 
official, project, and environmental review.
     Additional related Federal laws and authorities are 
referenced. Examples of new references are: Executive Order 12898 on 
Environmental Justice; the Comprehensive Environmental Response, 
Compensation, and Liability Act (CERCLA); and the National Flood 
Insurance Reform Act. Removed is the reference to HUD Notice 79-33, 
Policy Guidance to Address the Problems Posed by Toxic Chemicals and 
Radioactive Material (September 10, 1979). Issues related to toxic 
chemicals and radioactive material would be covered under a new 
Sec. 50.3(i). Removed also was the reference to the Fish and Wildlife 
Coordination Act, because HUD believes this act does not impose a duty 
on this Department in light of the nature of HUD's assistance programs 
and activities.

Subpart B

     Basic responsibility is revised to conform with the new 
HUD field office organization.
     Terminated functions. Removed from the current rule are 
the sections covering functions abolished by the field reorganization, 
for example, references to area and service office supervisors and 
regional administrators.
     Simplification. Also, removed is non-statutory and 
internal organizational material that is more suitable for inclusion in 
a HUD

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handbook, for example, the section which currently details the 
responsibilities of the Other Assistant Secretaries, Administrators, 
and the General Counsel.
     Responsibility for environmental review is specified. This 
new section makes clear that the HUD approving official is responsible 
for the environmental review and may use any information supplied by 
the applicant or contractor for the environmental review, provided that 
HUD independently evaluates the information.

Subpart C

     Terminated programs. The proposed rule would remove from 
the list of project decision points all references to liquidated 
programs such as the Urban Renewal Program, New Community Development 
Corporation, and Rehabilitation Loan Program (Sec. 312). Also, the 
proposed rule would remove project decision points for hospitals to 
remove duplication of environmental review between HUD and the 
Department of Health and Human Services (HHS). HHS is the Federal lead 
agency responsible for all aspects of hospital need, type, necessary 
services, design, capacity, location and physical/structural 
requirements as well as for environmental review and decisionmaking. 
HUD's function is confined to insuring the loan after all other 
considerations (local, State, and Federal) are met. With each 
application submitted to HUD for assistance, HHS would provide HUD with 
a certification that HHS has complied with the applicable requirements 
of NEPA and other related authorities in accordance with its 
regulations.
     Other program decision points. At Sec. 50.17(e), the 
proposed rule would replace the reference to the Community Development 
Block Grants Program (CDBG) with a general reference to ``HUD programs 
subject to 24 CFR part 58.'' This general reference now covers a 
greater number of HUD programs other than the CDBG program. Section 
50.17(g) would provide the decision points for the Stewart B. McKinney 
Homeless Assistance Act Programs where the recipients are nonprofit 
organizations or governmental entities with special or limited purpose 
powers.

Subpart D

     Categorical exclusions. Sec. 50.19 is being revised to 
cover all actions that are excluded from NEPA as well as the related 
laws and authorities in Sec. 50.4. Sec. 50.20 continues to cover 
actions that are categorically excluded from NEPA, but may be subject 
to the laws and authorities cited in Sec. 50.4.
     Sec. 50.19: The exclusions listed at Sec. 50.19--unlike 
the exclusions listed at Sec. 50.20--rarely, if ever, assist physical 
development and therefore are not generally subject to compliance with 
the related Federal laws and authorities cited at Sec. 50.4. The rule 
proposes additions to include simple transfers from the current list at 
Sec. 50.20, for example, GNMA secondary mortgage market activities and 
interstate land sales disclosure. Other additions include assistance to 
control the effects of imminent threats to health and safety, 
activities related to assistance for homeownership, and HUD's 
acceptance for insurance of loans under Title I of the National Housing 
Act. Also, in response to deregulation goals, the proposed rule at 
Sec. 50.19 would require HUD to prepare environmental assessments and 
findings of no significant impact on Departmental clearance documents 
only when they involve physical development.
     Sec. 50.20: The NEPA categorical exclusions listed at 
Sec. 50.20 do assist physical development and therefore are generally 
subject to compliance with the related Federal laws and authorities 
cited at Sec. 50.4. An example of a new addition is any assistance for 
the removal of material and architectural barriers that restrict the 
mobility of and accessibility to the elderly and persons with 
disabilities. In making its determinations that an activity is excluded 
at Sec. 50.20 and in compliance with the Federal laws and authorities 
cited at Sec. 50.4, HUD will use new form HUD-4128 to replace both the 
current form HUD-4128 (an amended version of Appendix A of the current 
rule) and the current form HUD-4128.1 (issued 07/93) (an amended 
version of Appendix B of the current rule).
     Intergovernmental Review: HUD policy is to provide notices 
to the affected public and those who have requested them. The proposed 
rule would remove references in Secs. 50.25 and 50.31 of the current 
interim rule which requires HUD to submit notices to the state process 
adopted under 24 CFR part 52, ``Intergovernmental Review of 
Departmental Programs.'' Because both part 52 and the underlying 
Executive Order 12372 are currently not in active use, HUD would 
provide notices only to state agencies requesting them. This would 
reduce unnecessary paperwork and acknowledge a decline in the state 
process, largely due to the fact that States and local governments have 
their own environmental review procedures, which regulate projects 
including those proposed by developers with HUD assistance. Also, for a 
number of years, HUD no longer is involved in programs that support 
large-scale new community and residential subdivision development 
having multi-jurisdictional impacts, which necessitated 
intergovernmental coordination and review.

Subpart E

     Compliance record for environmental assessment. To 
document the environmental assessment for projects, the proposed rule 
removes references to Appendix A of the current rule and states that 
HUD shall use form HUD-4128--Environmental Assessment and Compliance 
Findings for the Related Laws.

Subpart F

     EIS policy: Rarely do HUD approvals involve a major 
Federal action for which a detailed environmental impact statement is 
required under the National Environmental Policy Act. As a result, 
subpart F has become inactive. The proposed rule would address this 
matter by improving this subpart in the following ways. It would reduce 
duplication by eliminating the several sections of the current interim 
rule which repeat guidance found in 40 CFR part 1502. The duplicative 
guidance that is proposed for deletion includes the following sections: 
Sec. 50.44 (Notice of intent to prepare an EIS); Sec. 50.45 (Scoping, 
lead agencies and co-operating agencies); Sec. 50.46 (Tiering); 
Sec. 50.47 (Procedural requirements); Sec. 50.48 (Adoption of other 
agencies' environmental impact statements); and Sec. 50.49 (Use of 
prior environmental impact statements). The proposed change in no way 
diminishes the basic legal requirements under the removed sections, 
because Sec. 50.1 of the proposed rule continues to incorporate the CEQ 
regulations, including the requirements of part 1502 with respect to 
EISs, by reference into part 50.
     Cases when an EIS is required. Because HUD's New Community 
Program no longer exists, the proposed rule would remove the reference 
to the normal EIS requirement for an amendment to a Development Plan 
for a new community.
     Emergencies. The proposed rule would broaden the concept 
of emergencies: (i) to include those other than national emergencies 
and disasters and cases of imminent threat to health and safety; and 
(ii) to apply to applicable Sec. 50.4 authorities which provide for 
emergencies.

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Appendices to 24 CFR 50

    The proposed rule would remove dated Appendix A to Part 50 
(Environmental Assessments for Subdivision and Multifamily Projects) 
and Appendix B to Part 50 (Compliance and LAC Conditions Record). The 
current rule references Appendices A (form HUD-4128) and B (form HUD-
4128.1) for use by HUD for documenting environmental assessments and 
environmental reviews for categorical exclusions, respectively. Under 
the proposed rule, the two forms (last issued 07/93) would be 
simplified and combined into a new form HUD-4128--Environmental 
Assessment and Compliance Findings for Related Laws.

E. HUD Programs Subject to 24 CFR 50

    HUD programs that lack specific authority for assigning the Federal 
environmental review responsibilities to recipients are presented below 
by the HUD office that administers the program, the program title, the 
program regulation part number of title 24 CFR, and the program number 
used in the Catalog of Federal Programs. This list is provided for the 
reader's convenience. Generally, this list covers all HUD programs 
other than those identified at Sec. 58.1(b) of 24 CFR Part 58 (60 FR 
49469). In addition to the programs listed below, part 50 applies to 
projects and activities carried out by recipients subject to 
environmental policy and procedures of 24 CFR part 58 in specific 
circumstances discussed at Sec. 50.1(d) of this proposed rule. The 
following may not be an exhaustive list, but contains the principal HUD 
assistance programs subject to part 50.

Office of Community Planning and Development

     HOPE for Homeownership of Single Family Homes: HOPE 3 
[572] 14.240
     Housing Opportunities for Persons with AIDS [574] 14.241
     Emergency Shelter Grants Program: Stewart B. McKinney 
Homeless Assistance Act [576] [Part 50 applies only to applicants that 
are private nonprofit organizations and to governmental entities with 
special or limited purpose powers] 14.231
     Supportive Housing Program [583] [Part 50 applies only to 
applicants that are private nonprofit organizations and to governmental 
entities with special or limited purpose powers] 14.235
     Shelter Plus Care [582] [Part 50 applies only to 
conditionally selected applications received from Public Housing 
Authority applicants] 14.238
     Opportunities for Youth: Youthbuild [585] 14.243
     John Heinz Neighborhood Development Program [594] 14.242
     Special Purpose Grants for Historically-Black Colleges and 
Universities [570.404] 14.237
     Base Closure Community Redevelopment and Homeless 
Assistance [586] 14.227

Office of Housing: Single Family Housing Programs

     HUD-Owned Single Family Property Disposition [291] 14.XXX

Office of Housing: Multifamily Housing Programs

     Multifamily Rental Housing for Moderate-Income Families: 
Section 221(d) (3) and (4) [221] 14.135
     Existing Multifamily Rental Housing: Section 223(f) 
[207.32a] 14.155
     Supportive Housing for the Elderly: Section 202 [889] 
14.157
     Supportive Housing for Persons with Disabilities: Section 
811 [890] 14.181
     Mortgage Insurance for Single Room Occupancy Projects: 
Section 221(d) pursuant to Section 223(g) [221.565] 14.135
     Mortgage Insurance for Nursing Homes, Intermediate Care 
Facilities, and Board and Care Homes: Section 232 [232] 14.129
     Supplemental Loans for Multifamily Projects: Section 241 
[241] 14.151
     HOPE for Homeownership of Multifamily Units: HOPE 2 
[Appendix B to Subtitle A of 24 CFR] 14.185
     Low-Income Housing Preservation and Resident 
Homeownership: Title VI [248 A] 14.187
     Emergency Low-Income Housing Preservation: Title II [248 
B] 14.187
     Flexible Subsidy Program for Troubled Projects: Section 
201 [219] 14.164
     Manufactured Home Parks: Section 207 Land development 
[207.33] 14.127
     Management and Disposition of HUD-owned Multifamily 
Projects [290] 14.XXX
     Mortgage Insurance for Housing for the Elderly: Section 
231 [231] 14.138 [Not used. Instead Section 221(d)3 and (d)(4) are 
used.]
     Cooperative Housing: Section 213 [213] 14.126 [Authorized 
but not used. New construction and substantial rehabilitation 
cooperative projects are currently insured under Section 221(d)(3)]
     Multifamily Rental Housing: Section 207 [207] 14.134 [Not 
used. Instead Section 221(d)3 and (d)(4) are used.]
     Mortgage Insurance and Insured Improvement Loans for Urban 
Renewal and Concentrated Development Areas: Section 220 [220] 14.139 
[Not frequently used]
     Group Practice Medical Facilities: Title XI [244] 14.116 
[Not used in recent years]
     Nehemiah Housing Opportunity Grants Program [280] [No 
current funding]

Office of Public and Indian Housing

     HOPE for Public and Indian Housing Homeownership Program: 
[Appendix A to Subtitle A of 24 CFR] 14.858
     Public and Indian Housing Youth Sports Program [proposed 
961.50] 14.863
     Public and Indian Housing Drug Elimination Program [961] 
14.854
     Part 50 continues to be used, because the implementation 
of part 58 is delayed for the remaining Public housing programs until a 
Federal Register notice is published making part 58 effective or until 
October 14, 1996, whichever comes first:
     Public Housing Development [941] 14.850 and 14.851
     Public Housing Modernization [968] 14.852 and 14.859
     Demolition or Disposition of Public Housing Projects [970] 
14.850

Office of Policy Research and Development

     CDBG Joint Community Development Program [570.411] 14.XXX 
[Part 50 applies only to applicants (e.g. to universities) that are not 
a State or unit of general local government.]

Findings and Other Matters

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
implementing section 102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332). The Finding of No Significant Impact is 
available for public inspection during business hours in the Office of 
the Rules Docket Clerk, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, S.W., Washington, D.C. 20410-0500.

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 have no federalism 
implications, and that the policies are not subject to review under the 
order. This proposed rule is limited to updating the Department's

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implementation of its responsibilities for environmental review and 
decisionmaking under the National Environmental Policy Act and other 
related Federal environmental laws and authorities.

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.

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 24 CFR part 50 and carry out the 
statutory mandate of the National Environmental Policy Act and the 
other Federal environmental laws and authorities listed in Sec. 50.4.

Catalog of Federal Domestic Assistance (1994)

    The program numbers are 14.128-14.900. Also see the above paragraph 
E.

List of Subjects in 24 CFR Part 50

    Environmental quality, Environmental protection, Environmental 
review policy and procedures, Environmental assessment, Environmental 
impact statement, Compliance record.

    For the reasons set forth in the preamble, part 50 of title 24 of 
the Code of Federal Regulations is proposed to be revised to read as 
follows:

PART 50--PROTECTION AND ENHANCEMENT OF ENVIRONMENTAL QUALITY

Subpart A--General: Federal Laws and Authorities

Sec.
50.1  Purpose, authority, and applicability.
50.2  Terms and abbreviations.
50.3  Environmental policy.
50.4  Related Federal laws and authorities.
50.5--50.9  [Reserved]

Subpart B--General Policy: Responsibilities and Program Coverage

50.10  Basic environmental responsibility.
50.11  [Reserved]
50.12  Responsibility of the HUD approving official.
50.13--50.15 [Reserved]

Subpart C--General Policy: Decision Points

50.16  Decision points for policy actions.
50.17  Decision points for projects.

Subpart D--General Policy: Environmental Review Procedures

50.18  General.
50.19  Categorical exclusions not subject to the Federal laws and 
authorities cited in Sec. 50.4.
50.20  Categorical exclusions subject to the Federal laws and 
authorities cited in Sec. 50.4.
50.21  Aggregation.
50.22  Environmental management and monitoring.
50.23  Public participation.
50.24  HUD review of another agency's EIS.
50.25--50.30  [Reserved]

Subpart E--Environmental Assessments and Related Reviews

50.31  The EA.
50.32  Responsibility for environmental processing.
50.33  Action resulting from the assessment.
50.34  Time delays for exceptional circumstances.
50.35  Use of prior environmental assessments.
50.36  Updating of environmental reviews.
50.37--50.40  [Reserved]

Subpart F--Environmental Impact Statements

50.41  EIS policy.
50.42  Cases when an EIS is required.
50.43  Emergencies.
50.44--50.50  [Reserved]

    Authority: 42 U.S.C. 3535(d) and 4332; and Executive Order 
11991, 3 CFR, 1977 Comp., p. 123.

Subpart A--General: Federal Laws and Authorities


Sec. 50.1  Purpose, authority, and applicability.

    (a) This part implements the policies of the National Environmental 
Policy Act (NEPA) and other environmental requirements (as specified in 
Sec. 50.4).
    (b) NEPA, 42 U.S.C. 4321 et seq., establishes national policy, 
goals and procedures for protecting, restoring and enhancing 
environmental quality. NEPA is implemented by Executive Order 11514 of 
March 5, 1970, (3 CFR, 1966-1970 Comp., p. 902) as amended by Executive 
Order 11991 of May 24, 1977, (3 CFR, 1977 Comp., p. 123) and by the 
Council on Environmental Quality (CEQ) Regulations, 40 CFR parts 1500 
through 1508.
    (c) The regulations issued by CEQ at 40 CFR parts 1500 through 1508 
establish the basic procedural requirements for compliance with NEPA. 
These procedures are to be followed by all Federal agencies. This part, 
therefore, provides supplemental instructions to reflect the particular 
nature of HUD programs, and is to be used in tandem with 40 CFR parts 
1500 through 1508 and regulations that implement authorities cited at 
Sec. 50.4.
    (d) The regulations in this part apply to all HUD policy actions 
(as defined in Sec. 50.16), and to all HUD project actions (see 
Sec. 50.2(a)(2)). Also, they apply to projects and activities carried 
out by recipients subject to environmental policy and procedures of 24 
CFR part 58, when the recipient that is regulated under 24 CFR part 58 
claims the lack of legal capacity to assume the Secretary's 
environmental review responsibilities and the claim is approved by HUD 
or when HUD determines to conduct an environmental review itself in 
place of a nonrecipient responsible entity. For programs, activities or 
actions not specifically identified or when there are questions 
regarding the applicability of this part, the Assistant Secretary for 
Community Planning and Development shall be consulted.


Sec. 50.2  Terms and abbreviations.

    (a) The definitions for most of the key terms or phrases contained 
in this part appear in 40 CFR part 1508 and in the authorities cited in 
Sec. 50.4. The following definitions also apply to this part:
    (1) HUD approving official means the HUD official authorized to 
make the approval decision for any proposed policy or project subject 
to this part.
    (2) Project means an activity, or a group of integrally-related 
activities, undertaken directly by HUD or proposed for HUD assistance 
or insurance.
    (3) Environmental review means a process for complying with NEPA 
(through an EA or EIS) and/or with the laws and authorities cited in 
Sec. 50.4.
    (b) The following abbreviations are used throughout this part:

AS/CPD--Assistant Secretary for Community Planning and Development
CEQ--Council on Environmental Quality
CO--HUD Headquarters (Central Office)
DECO--Departmental Environmental Clearance Officer
EA--Environmental Assessment
EIS--Environmental Impact Statement
EPA--U.S. Environmental Protection Agency
FECO--Field Environmental Clearance Officer
FO--HUD Field Office
FONSI--Finding of No Significant Impact
HUD--Department of Housing and Urban Development
NEPA--National Environmental Policy Act
NOI/EIS--Notice of Intent to Prepare an Environmental Impact 
Statement
PECO--Program Environmental Clearance Officer
PHA--Public Housing Authority

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Sec. 50.3  Environmental policy.

    (a) It is the policy of the Department to reject proposals which 
have significant adverse environmental impacts and to encourage the 
modification of projects in order to enhance environmental quality and 
minimize environmental harm.
    (b) The HUD approving official shall consider environmental and 
other Departmental objectives in the decisionmaking process.
    (c) When EA's or EIS's or reviews under Sec. 50.4 reveal conditions 
or safeguards that should be implemented once a proposal is approved in 
order to protect and enhance environmental quality or minimize adverse 
environmental impacts, such conditions or safeguards must be included 
in agreements or other relevant documents.
    (d) A systematic, interdisciplinary approach shall be used to 
assure the integrated use of the natural and social sciences and the 
environmental design arts in making decisions.
    (e) Environmental impacts shall be evaluated on as comprehensive a 
scale as is practicable.
    (f) HUD offices shall begin the environmental review process at the 
earliest possible time so that potential conflicts between program 
procedures and environmental requirements are identified at an early 
stage.
    (g) Applicants for HUD assistance shall be advised of environmental 
requirements and consultation with governmental agencies and 
individuals shall take place at the earliest time feasible.
    (h) For HUD grant programs in which the funding approval for an 
applicant's program must occur before the applicant's selection of 
properties, the application shall contain an assurance that the 
applicant agrees to assist HUD to comply with this part and that the 
applicant shall:
    (1) Supply HUD with all available, relevant information necessary 
for HUD to perform for each property any environmental review required 
by this part;
    (2) Carry out mitigating measures required by HUD or select 
alternate eligible property; and
    (3) Not acquire, rehabilitate, convert, lease, repair or construct 
property, nor commit or expend HUD or local funds for these program 
activities with respect to any eligible property, until HUD approval of 
the property is received.
    (i)(1) It is HUD policy that all property proposed for use in HUD 
programs be free of hazardous materials, contamination, toxic chemicals 
and gasses, and radioactive substances, where a hazard could affect the 
health and safety of occupants or the utilization of the property.
    (2) HUD environmental review of multifamily and non-residential 
properties shall include evaluation of previous uses of the site and 
other evidence of contamination on or near the site, to assure that 
occupants of proposed sites are not adversely affected by the hazards 
listed in paragraph (i)(1) of this section.
    (3) Particular attention should be given to any proposed site on or 
in the general proximity of such areas as dumps, landfills, industrial 
sites or other locations that contain hazardous wastes.
    (4) HUD shall require the use of current techniques by qualified 
professionals to undertake investigations determined necessary.


Sec. 50.4  Related Federal laws and authorities.

    HUD and/or applicants must comply, where applicable, with all 
environmental requirements, guidelines and statutory obligations under 
the following authorities and HUD standards:
    (a) Historic properties: (1) The National Historic Preservation Act 
of 1966 as amended (16 U.S.C. 470 et seq.).
    (2) Executive Order 11593, Protection and Enhancement of the 
Cultural Environment, May 13, 1971 (3 CFR, 1971-1975 Comp., p. 559).
    (3) The Archaeological and Historic Preservation Act of 1974, which 
amends the Reservoir Salvage Act of 1960 (16 U.S.C. 469 et seq.).
    (4) Procedures for the Protection of Historic and Cultural 
Properties (Advisory Council on Historic Preservation--36 CFR part 
800).
    (b) Flood insurance, floodplain management and wetland protection: 
(1) Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the 
National Flood Insurance Reform Act of 1994 (Pub. L.103-325, 108 Stat. 
2160).
    (2) HUD Procedure for the Implementation of Executive Order 11988 
of May 24, 1977 (3 CFR, 1977 Comp., p. 117)--24 CFR part 55, Floodplain 
Management.
    (3) Executive Order 11990 of May 24, 1977 (Protection of Wetlands), 
(3 CFR, 1977 Comp., p. 121).
    (c) Coastal areas protection and management: (1) The Coastal 
Barrier Resources Act, as amended by the Coastal Barrier Improvement 
Act of 1990 (16 U.S.C. 3501 et seq.).
    (2) The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
seq.), as amended.
    (d) Sole source aquifers: The Safe Drinking Water Act of 1974 (42 
U.S.C. 201, 300 et seq., and 21 U.S.C. 349), as amended. (See 40 CFR 
part 149.)
    (e) Endangered species: The Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.), as amended. (See 50 CFR part 402.)
    (f) Wild and scenic rivers: The Wild and Scenic Rivers Act (16 
U.S.C 1271 et seq.), as amended.
    (g) Water quality: The Federal Water Pollution Control Act, as 
amended by the Federal Water Pollution Control Act Amendments of 1972 
(33 U.S.C. 1251 et seq.), and later enactments.
    (h) Air quality: The Clean Air Act (42 U.S.C. 7401 et seq.), as 
amended. (See 40 CFR parts 6, 51, and 93.)
    (i) [Reserved]
    (j) Solid waste management: (1) The Solid Waste Disposal Act, as 
amended by the Resource Conservation and Recovery Act of 1976 (42 
U.S.C. 6901 et seq.), and later enactments.
    (2) The Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601 et seq.).
    (k) Farmlands protection: The Farmland Protection Policy Act of 
1981 (7 U.S.C. 4201 et seq.). (See 7 CFR part 658.)
    (l) HUD environmental standards: Applicable criteria and standards 
specified in HUD environmental regulations (24 CFR part 51).
    (m) Environmental justice: Executive Order 12898--Federal Actions 
to Address Environmental Justice in Minority Populations and Low-Income 
Populations (3 CFR, 1994 Comp., p. 859).


Secs. 50.5-50.9  [Reserved]

Subpart B--General Policy: Responsibilities and Program Coverage


Sec. 50.10  Basic environmental responsibility.

    (a) It is the responsibility of all Assistant Secretaries, the 
General Counsel, and the HUD approving official to assure that the 
requirements of this part are implemented.
    (b) The Assistant Secretary for Community Planning and Development 
(A/S CPD), represented by the Office of Community Viability, whose 
Director shall serve as the DECO, is assigned the overall Departmental 
responsibility for environmental policies and procedures for compliance 
with NEPA and the related laws and authorities. To the extent permitted 
by applicable laws and the CEQ regulations, the A/S CPD shall approve 
waivers and exceptions or establish criteria for exceptions from the 
requirements of this part.

[[Page 15345]]



Sec. 50.11  [Reserved]


Sec. 50.12  Responsibility of the HUD approving official.

    (a) The HUD approving official shall make an independent evaluation 
of the environmental issues, take responsibility for the scope and 
content of the compliance finding, EA or EIS, and make the 
environmental finding, where applicable. (Also, see Sec. 50.32.)
    (b) Copies of environmental reviews and findings shall be 
maintained in the project file for projects, in the Rules Docket files 
for Federal Register publications, and in program files for non-Federal 
Register policy documents.


Secs. 50.13-50.15  [Reserved]

Subpart C--General Policy: Decision Points


Sec. 50.16  Decision points for policy actions.

    Either an EA and FONSI or an EIS on all policy actions not meeting 
the criteria of Sec. 50.19 shall be completed prior to the approval 
action. Policy actions include all proposed Federal Register policy 
documents and other policy-related Federal actions (40 CFR 1508.18). 
The decision as to whether a proposed policy action is categorically 
excluded from an EA shall be made by the PECO as early as possible. 
Where the PECO has any doubt as to whether a proposed action qualifies 
for exclusion, the PECO shall request a determination by the AS/CPD. 
The EA and FONSI may be combined into a single document.


Sec. 50.17  Decision points for projects.

    Either an EA and FONSI or an EIS for individual projects shall be 
completed before the applicable program decision points described in 
this section for projects not meeting the criteria of Sec. 50.20. 
Compliance with applicable authorities cited in Sec. 50.4 shall be 
completed before the applicable program decision points described in 
this section unless the project meets the criteria for exclusion under 
Sec. 50.19.
    (a) New Construction. (1) Project mortgage insurance or other 
financial assistance for multifamily housing projects (including 
Sections 202 and 811), nursing homes, group practice facilities and 
manufactured home parks: Issuance of Site Appraisal and Market Analysis 
(SAMA) Letter or initial equivalent indication of HUD approval of a 
specific site;
    (2) Public Housing: PHA proposal approval.
    (b) Rehabilitation. Rehabilitation Projects: Use the decision 
points under ``new construction'' for HUD programs cited in paragraph 
(a) of this section; otherwise the decision point is the HUD project 
approval.
    (c) Public Housing Programs. Modernization Programs: HUD approval 
of the modernization grants.
    (d) Property Disposition. (1) Vacant land and one to four family 
structures: HUD approval of the Disposition Program.
    (2) Multifamily structures, college housing, nursing homes, 
manufactured homes and parks, group practice facilities: HUD approval 
of the Disposition Program.
    (e) HUD programs subject to 24 CFR part 58. For cases in which HUD 
exercises environmental responsibility under this part where a 
recipient lacks legal capacity to do so or HUD determines to do so in 
place of a nonrecipient responsible entity under 24 CFR part 58 (see 
Sec. 50.1(d)), the decision point is: HUD's execution of an agreement 
or contract, whichever comes first, or in the case of Section 8 
Project-Based Certificate Assistance and Moderate Rehabilitation, HUD 
notification to the PHA to proceed with execution of an Agreement to 
Enter into Housing Assistance Payments (HAP) Contract.
    (f) Notwithstanding the other paragraphs of this section, the 
decision point for grant programs in which HUD approval of funding for 
an applicant's program must occur before the applicant's selection of 
properties for use in its program is: HUD approval of specific 
properties (see Sec. 50.3(h)).
    (g) Steward B. McKinney Homeless Assistance Act Programs. Where the 
recipients are nonprofit organizations or governmental entities with 
special or limited purpose powers, the decision point is: HUD project 
approval.
    (h) Programs not specifically covered in this section. Consult with 
the AS/CPD for decision points.

Subpart D--General Policy: Environmental Review Procedures


Sec. 50.18  General.

    HUD may, from time to time, complete programmatic reviews that 
further avoid the necessity of complying with the laws and authorities 
in Sec. 50.4 on a property-by-property basis.


Sec. 50.19  Categorical exclusions not subject to the Federal laws and 
authorities cited in Sec. 50.4.

    (a) The activities listed in this section are not subject to the 
individual compliance requirements of the Federal laws and authorities 
cited in Sec. 50.4, unless otherwise indicated in this section. These 
activities are also categorically excluded from the EA required by NEPA 
except in extraordinary circumstances (Sec. 50.20(b)). HUD approval or 
implementation of these categories of activities and related policy 
actions does not require environmental review, because they do not 
alter physical conditions in a manner or to an extent that would 
require review under NEPA or the other laws and authorities cited at 
Sec. 50.4.
    (b)(1) Environmental and other studies, resource identification and 
the development of plans and strategies.
    (2) Information and financial advisory services.
    (3) Administrative and management activities by HUD clients.
    (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 temporary or 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) Tenant-based rental assistance.
    (12) 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.
    (13) Operating costs including maintenance, security, operation, 
utilities, furnishings, equipment, supplies, staff training and 
recruitment and other incidental costs; however, in the case of 
equipment, compliance with Sec. 50.4(b)(1) is required.
    (14) 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; however, in the case of equipment 
purchase, compliance with Sec. 50.4(b)(1) is required.
    (15) Activities to assist homeownership of existing dwelling units, 
including closing costs and down payment assistance to home buyers,

[[Page 15346]]
interest buydowns and similar activities that result in the transfer of 
title to a property; however, compliance with Sec. 50.4 (b)(1) and 
(c)(1), and 24 CFR 51.303(a)(3) is required.
    (16) Housing pre-development costs including legal, consulting, 
developer and other costs related to site options, project financing, 
administrative costs and fees for loan commitments, zoning approvals, 
and other related activities which do not have a physical impact.
    (17) HUD's endorsement of one-to-four family mortgage insurance 
under the Direct Endorsement program and HUD's acceptance for insurance 
of loans under Title I of the National Housing Act; however, compliance 
with Sec. 50.4 (b)(1) and (c)(1), and 24 CFR 51.303(a)(3) is required.
    (18) HUD's endorsement of one-to-four family mortgage insurance for 
proposed construction under Improved Area processing, however, the 
Appraiser/Review Appraiser Checksheet (Form HUD-54891) must be 
completed.
    (19) Activities of the Government National Mortgage Association 
under Title III of the National Housing Act, 12 U.S.C. 1716 et seq.
    (20) Activities under the Interstate Land Sales Full Disclosure Act 
(15 U.S.C. 1701 et seq.).
    (c)(1) Approval of policy documents that do not direct, provide for 
assistance or loan and mortgage insurance for, or otherwise govern or 
regulate property acquisition, disposition, lease, rehabilitation, 
alteration, demolition, or new construction, or set out or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy.
    (2) Approval of policy documents that amend a previous document 
where the underlying document as a whole would not fall within the 
exclusion but the amendment by itself would do so.
    (3) Approval of policy documents that set out fair housing or 
nondiscrimination standards or provide for assistance in promoting or 
enforcing fair housing or nondiscrimination.
    (4) Approval of handbooks, notices and other documents that provide 
operating instructions and procedures in connection with activities 
under a Federal Register document that has previously been subject to a 
required environmental review.
    (5) Approval of a Notice of Funding Availability (NOFA) that 
provides funding under, and does not alter environmental requirements 
of, a regulation or program guideline that was previously published in 
the Federal Register, provided that the NOFA specifically refers to the 
environmental review provisions of the regulation or guideline;
    (6) Statutorily required and/or discretionary establishment and 
review of interest rates, loan limits, building cost limits, prototype 
costs, fair market rent schedules, HUD-determined prevailing wage 
rates, and similar rate and cost determinations and related external 
administrative or fiscal requirements or procedures which do not 
constitute a development decision that affects the physical condition 
of specific project areas or building sites.


Sec. 50.20  Categorical exclusions subject to the Federal laws and 
authorities cited in Sec. 50.4.

    (a) The following actions, activities and programs are 
categorically excluded from the NEPA requirements of this part. 
However, they are not excluded from individual compliance requirements 
of other environmental statutes, Executive orders and HUD standards 
cited in Sec. 50.4, where appropriate. Form HUD-4128 shall be used to 
document compliance. Where the responsible official determines that any 
item identified in this paragraph may have an environmental effect 
because of extraordinary circumstances (40 CFR 1508.4), the 
requirements of NEPA shall apply (see paragraph (b) of this section).
    (1) Special projects directed to the removal of material and 
architectural barriers that restrict the mobility of and accessibility 
to elderly and persons with disabilities.
    (2) Rehabilitation of structures when the following conditions are 
met:
    (i) In the case of residential buildings, the unit density is not 
changed more than 20 percent;
    (ii) The project does not involve changes in land use (from non-
residential to residential or from residential to non-residential); and
    (iii) The estimated cost of rehabilitation is less than 75 percent 
of the total estimated cost of replacement after rehabilitation.
    (3) 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.
    (4) Acquisition or disposition of, or equity loans on, an existing 
structure.
    (5) Purchased or refinanced housing and medical facilities under 
section 223(f) of the National Housing Act (12 U.S.C. 1715n).
    (6) Mortgage prepayments or plans of actions (including incentives) 
under 24 CFR part 248.
    (b) For categorical exclusions having the potential for significant 
impact because of extraordinary circumstances, HUD 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 pursuant to Sec. 50.42, HUD 
should proceed directly to the preparation of an EIS in accordance with 
subpart F of this part.


Sec. 50.21  Aggregation.

    Activities which are geographically related and are logical parts 
of a composite of contemplated HUD projects shall be evaluated 
together.


Sec. 50.22  Environmental management and monitoring.

    An Environmental Management and Monitoring Program shall be 
established prior to project approval when it is deemed necessary by 
the HUD approving official. The program shall be part of the approval 
document and must:
    (a) Be concurred in by the FECO and any cooperating agencies;
    (b) Contain specific standards, safeguards and commitments to be 
completed during project implementation;
    (c) Identify the staff who will be responsible for the post-
approval inspection; and
    (d) Specify the time periods for conducting the evaluation and 
monitoring the applicant's compliance with the project agreements.


Sec. 50.23  Public participation.

    HUD shall inform the affected public about NEPA-related hearings 
and public meetings and environmental documents. Where project actions 
result in a FONSI, the FONSI will be available in the project file. In 
all cases, HUD shall mail notices to those who have requested them. 
Additional efforts for involving the public in specific notice or 
compliance requirements shall be made in accord with the NEPA-related 
laws and authorities and their implementing procedures cited in 
Sec. 50.4.
    (a) A NOI/EIS shall be forwarded to the AS/CPD to the attention of 
the DECO for publication in the Federal Register.
    (b) Notices will be bilingual if the affected public includes a 
significant portion of non-English speaking persons and will identify a 
date when the official public involvement element of the proposed 
action is to be completed and HUD internal processing is to continue.
    (c) All notices shall be published in an appropriate local printed 
news

[[Page 15347]]
medium, and sent to individuals and groups known to be interested in 
the proposed action.
    (d) All notices shall inform the public where additional 
information may be obtained.


Sec. 50.24  HUD review of another agency's EIS.

    Where another agency's EIS is referred to the HUD FO in whose 
jurisdiction the project is located, the FECO shall determine whether 
HUD has an interest in the EIS and, if so, will review and comment. Any 
EIS received from another Federal agency requesting comment on 
legislative proposals, regulations, or other policy documents shall be 
sent to the AS/CPD for comment, and the AS/CPD shall provide the 
General Counsel the opportunity for comment.


Secs. 50.25-50.30  [Reserved]

Subpart E--Environmental Assessments and Related Reviews


Sec. 50.31  The EA.

    (a) Form HUD-4128--Environmental Assessment and Compliance Findings 
for the Related Laws is the EA form to be used for analysis and 
documentation by HUD for projects and activities under subpart E of 
this part. The DECO shall approve the issuance of equivalent formats, 
if Form HUD-4128 does not meet specific program needs.
    (b) The program representative shall obtain interdisciplinary 
assistance from professional experts and other HUD staff as needed. 
Additional information may also be requested of the sponsor/applicant. 
HUD is responsible for assessing and documenting the extent of the 
environmental impact.


Sec. 50.32  Responsibility for environmental processing.

    The program staff in the HUD office responsible for processing the 
project application or recommending a policy action is responsible for 
conducting the compliance finding, EA, or EIS. The collection of data 
and studies as part of the information contained in the environmental 
review may be done by an applicant or the applicant's contractor. The 
HUD program staff may use any information supplied by the applicant or 
contractor, provided HUD independently evaluates the information, will 
be responsible for its accuracy, supplements the information, if 
necessary, to conform to the requirements of this part, and prepares 
the environmental finding. Assessments for projects over 200 lots/
dwelling units or beds shall be sent to the FECO or, in the absence of 
a FECO, to the PECO for review and comment.


Sec. 50.33  Action resulting from the assessment.

    (a) A proposal may be accepted without modifications if the EA 
indicates that the proposal will not significantly (see 40 CFR 1508.27) 
affect the quality of the human environment and a FONSI is prepared.
    (b) A proposal may be accepted with modifications provided that:
    (1) Changes have been made that would reduce adverse environmental 
impact to acceptable and insignificant levels; and
    (2) An Environmental Management and Monitoring Program is developed 
in accordance with Sec. 50.22 when it is deemed necessary by the HUD 
approving official.
    (c) A proposal should be rejected if significant and unavoidable 
adverse environmental impacts would still exist after modifications 
have been made to the proposal and an EIS is not prepared.
    (d) A proposal (if not rejected) shall require an EIS if the EA 
indicates that significant environmental impacts would result.


Sec. 50.34  Time delays for exceptional circumstances.

    (a) Under the circumstances described in this section, the FONSI 
must be made available for public review for 30 calendar days before a 
final decision is made whether to prepare an EIS and before the HUD 
action is taken. The circumstances are:
    (1) When the proposed action is, or is closely similar to, one 
which normally requires the preparation of an EIS pursuant to 
Sec. 50.42(b) but it is determined, as a result of an EA or in the 
course of preparation of a draft EIS, that the proposed action will not 
have a significant impact on the human environment; or
    (2) When the nature of the proposed action is without precedent and 
does not appear to require more than an assessment.
    (b) In such cases, the FONSI must be concurred in by the AS/CPD and 
the PECO. Notice of the availability of the FONSI shall be given to the 
public in accordance with paragraphs (a) through (d) of Sec. 50.23.


Sec. 50.35  Use of prior environmental assessments.

    When other Federal, State, or local agencies have prepared an EA or 
other environmental analysis for a proposed HUD project, these 
documents should be requested and used to the extent possible. HUD 
must, however, conduct the environmental analysis and prepare the EA 
and be responsible for the required environmental finding.


Sec. 50.36  Updating of environmental reviews.

    The environmental review must be re-evaluated and updated when the 
basis for the original environmental or compliance findings is affected 
by a major change requiring HUD approval in the nature, magnitude or 
extent of a project and the project is not yet complete. A change only 
in the amount of financing or mortgage insurance involved does not 
normally require the environmental review to be re-evaluated or 
updated.


Secs. 50.37-50.40  [Reserved]

Subpart F--Environmental Impact Statements


Sec. 50.41  EIS policy.

     EIS's will be prepared and considered in program determinations 
pursuant to the general environmental policy stated in Sec. 50.3 and 40 
CFR 1505.2(b) and (c).


Sec. 50.42  Cases when an EIS is required.

    (a) An EIS is required if the proposal is determined to have a 
significant impact on the human environment pursuant to subpart E of 
this part.
    (b) An EIS will normally be required if the proposal:
    (1) Would provide a site or sites for nursing homes containing a 
total of 2,500 or more beds; or
    (2) Would remove, demolish, convert, or substantially rehabilitate 
2,500 or more existing housing units (but not including rehabilitation 
projects categorically excluded under Sec. 50.20), or which would 
result in the construction or installation of 2,500 or more housing 
units, or which would provide sites for 2,500 or more housing units.
    (c) When the environmental concerns of one or more Federal 
authorities cited in Sec. 50.4 will be affected by the proposal, the 
cumulative impact of all such effects should be assessed to determine 
whether an EIS is required. However, where all of the affected 
authorities provide alternative procedures for resolution, those 
procedures should be used in lieu of an EIS.


Sec. 50.43  Emergencies.

    In cases of national emergency and disasters or cases of imminent 
threat to health and safety or other emergency which require the taking 
of an action with significant environmental impact, the provisions of 
40 CFR 1506.11 and of any applicable Sec. 50.4 authorities which 
provide for emergencies shall apply.

[[Page 15348]]



Secs. 50.44--50.50  [Reserved]

    Dated: February 26, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-8379 Filed 4-4-96; 8:45 am]
BILLING CODE 4210-32-P