[Federal Register Volume 61, Number 83 (Monday, April 29, 1996)] [Rules and Regulations] [Pages 18672-18674] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-10240] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Part 570 [Docket No. FR-2905-C-03] RIN 2506-AB24 Office of the Assistant Secretary for Community Planning and Development; Community Development Block Grant Program; Correction of Identified Deficiencies and Updates; Technical Correction AGENCY: Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Technical correction. ----------------------------------------------------------------------- SUMMARY: On November 9, 1995 (60 FR 56892), HUD published in the Federal Register a final rule that corrected identified deficiencies in the Community Development Block (CDBG) program, implemented relevant portions of the Cranston-Gonzalez National Affordable Housing Act, amended the CDBG conflict of interest provisions, implemented statutory changes from the Housing and community Development Act of 1987 and the Appropriations Act of 1989, and provided criteria for performance reviews and timely expenditure of funds under the CDBG program. This document corrects minor errors in that final rule. EFFECTIVE DATE: December 11, 1995. FOR FURTHER INFORMATION CONTACT: Deirdre Maguire-Zinni, Director, Entitlement Communities Division, Room 7282, Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20410, telephone number (202) 708-1577. (This telephone number is not toll- free.) Hearing- or speech-impaired persons may access this number via TTY by calling the Federal Information Relay Service at (800) 877-8339. SUPPLEMENTARY INFORMATION: I. Corrections to November 9, 1995 Final Rule On November 9, 1995 (60 FR 56812), HUD published a final rule in the [[Page 18673]] Federal Register that amended the regulations for the Community Development Block Grant (CDBG) program in 24 CFR part 570. As described in the preamble (60 FR 65892), the November 9, 1995 final rule represented the final rulemaking for several prior rules, and it reflected the President's regulatory reinvention efforts by updating the regulations to conform with significant statutory changes to the CDBG program. More specifically, the November 9, 1995 final rule corrected identified deficiencies in the CDBG program, implemented relevant portions of the Cranston-Gonzalez National Affordable Housing Act, amended the CDBG conflict of interest provisions, implemented statutory changes from the Housing and Community Development Act of 1987 and the Appropriations Act of 1989, and provided criteria for performance reviews and timely expenditure of funds under the CDBG program. In reviewing this final rule in preparation for its codification in the Code of Federal Regulations (CFR), HUD discovered several minor errors. In the November 9, 1995 final rule (60 FR 56912), HUD amended Sec. 570.208 by adding and redesignating certain paragraphs. However, the rule inadvertently did not make the necessary conforming change to the definition of ``Income'' in Sec. 570.3, which contains a reference to the CDBG regulations on resident income surveys (60 FR 56909). The definition incorrectly refers to Sec. 570.208(a)(1)(iv) for those regulations, but the November 9, 1995 rule redesignated this paragraph as paragraph (a)(1)(vi). Therefore, this document corrects the definition of ``Income'' in Sec. 570.3 to refer correctly to Sec. 570.208(a)(1)(vi). Similarly, the first sentence of the newly redesignated Sec. 570.208(a)(1)(vi) contains an internal reference to paragraph (a)(1)(v). However, the November 9, 1995 rule redesignated paragraph (a)(1)(v) as (a)(1)(vii). Therefore, this document corrects Sec. 570.208(a)(1)(vi) to refer correctly to paragraph (a)(1)(vii). The November 9, 1995 final rule removed the obsolete reference in Sec. 570.200(d)(1) to a compensation level of General Schedule (GS)-18, replacing it with a correct reference to Level IV of the Executive Schedule (60 FR 56910). The General Schedule and the Executive Schedule indicate certain levels of compensation for Federal employees. However, while the November 9, 1995 final rule updated Sec. 570.200(d)(1), it inadvertently failed to update paragraph (d)(2) of that section. Therefore, this document corrects Sec. 570.200(d)(2) regarding the correct level of consultant compensation. In a proposed rule published on March 28, 1990 (55 FR 11556), HUD proposed to add a new paragraph (f) to Sec. 570.202 that would implement section 510 of the Housing and Community Development Act of 1987 (Pub. L. 100-242, approved February 5, 1988), authorizing the substantial reconstruction of housing owned and occupied by low- and moderate-income persons under certain circumstances. However, in the November 9, 1995 final rule (60 FR 56902), HUD explained that it would not be finalizing the proposed Sec. 570.202(f) at that time due to pending legislative proposals that would make this change unnecessary. Instead, the November 9, 1995 final rule used paragraph (f) to contain the authority for evaluating and reducing lead-based paint hazards. However, HUD failed to remove two incorrect references, in Secs. 570.200(e) and 570.506(c), to paragraph (f) as it had been proposed for substantial reconstruction. This document removes those incorrect references. This document also removes two references to ``enumeration districts,'' replacing them with the correct term ``block numbering areas.'' The Census Bureau now uses the term ``block numbering area,'' and HUD recognized the use of this term in its CDBG economic development final rule (January 5, 1995; 60 FR 1922, 1946) in Sec. 570.208(a)(4)(iv). However, HUD used the incorrect term ``enumeration districts'' in Sec. 570.208(a)(1)(iii) (B) and (D) of its November 9, 1995 final rule. therefore, this document corrects these paragraphs. The effective date of this correction, December 11, 1995, reflects the effective date of the November 9, 1995 final rule (60 FR 56892). II. Housing Opportunity Program Extension Act of 1996 The November 9, 1995 final rule updated Sec. 570.201(n), by providing that CDBG funds could be used to provide direct homeownership assistance to low- and moderate-income households until October 1, 1995 (60 FR 56911). Although the eligibility for this activity had expired by the date the Department published the final rule, the Department maintained the provision in Sec. 570.201(n), hoping that Congress would respond to the Department's request to reinstate the activity's eligibility (60 FR 56905). This document corrects Sec. 570.201(n) by removing the obsolete reference to the expiration date. Section 3(a) of the Housing Opportunity Program Extension Act of 1996 (Pub. L. 104-120; approved March 28, 1996) renewed the eligibility of using CDBG funds to provide direct homeownership assistance during Fiscal Year 1996 (October 1, 1995 through September 30, 1996). However, rather than simply changing the date, which will again become obsolete and require additional regulatory amendments, this document corrects the section to provide that direct homeownership assistance is eligible ``subject to statutory authority.'' In an effort to keep grantees informed, the Department will attempt to publish a notice in the Federal Register as quickly as possible if Congress does not reinstate this authority. III. Other Corrections and Conforming Changes The Department has also discovered several technical corrections and changes to other sections of the regulations that it should have included in the November 9, 1995 final rule. The Department will publish a separate technical amendment to correct these sections. The Department cannot include such corrections and changes in this technical correction document, because they involve sections that the Department did not otherwise amend in the November 9, 1995 final rule. IV. Clarification Regarding ``Extent of Growth Lag'' The November 9, 1995 final rule revised the definition of ``Extent of growth lag'' in Sec. 570.3 in an effort to reflect an amendment to section 102(a)(12) of the Housing and Community Development Act of 1974 (the Act). This amendment, in section 904 of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625, approved November 28, 1990), provides instructions on adjusting population in the event of annexation. In the November 9, 1995 final rule, the Department referred to the 1990 Census in the erroneous belief that the Act requires the most recent census data available when adjusting the ``extent of growth lag'' calculation (see 60 FR 56905). However, the Department has reconsidered its interpretation of the Act and concludes that the Act's definition of ``Extent of growth lag'' requires the use of data from the 1980 Census, not the most recent census data available, in cases where boundaries have changed as a result of annexation. No further changes to the regulations are necessary, however, since the Department already removed the incorrect language from the definition in the CDBG Streamlining final rule, [[Page 18674]] published on March 20, 1996 (61 FR 11474). Section 570.3 now refers directly to section 102(a)(12) of the Act for the definition of ``Extent of growth lag''. Accordingly, FR Doc. 95-27488, a final rule published in the Federal Register on November 9, 1995 (60 FR 56892), is corrected to read as follows: 1. On page 56909, in the third column, in Sec. 570.3, the second sentence of the definition of the term ``Income'' is corrected to read as follows. Sec. 570.3 Definitions. * * * * * Income. * * * The option to choose a definition does not apply to activities that qualify under Sec. 570.208(a)(1) (Area benefit activities), except when the recipient carries out a survey under Sec. 570.208(a)(1)(vi). * * * * * * * * 2. On page 56910, in the third column, in Sec. 570.200, paragraph (d)(2) is corrected, and the third sentence of paragraph (e) is corrected, to read as follows: Sec. 570.200 General policies. * * * * * (d) * * * (2) Independent contractor relationship. Consultant services provided under an independent contractor relationship are governed by the procurement requirements in 24 CFR 85.36, and are not subject to the compensation limitation of Level IV of the Executive Schedule. (e) * * * A written determination is required for any activity carried out under the authority of Secs. 570.201(f), 570.201(i)(2), 570.201(p), 570.201(q), 570.202(b)(3), 570.206(f), 570.209, and 570.309. * * * * * 2a. On page 56911, in the second column, in instruction paragraph 8., the words ``the introductory text of paragraph (n)'' are corrected to read ``paragraph (n)''. 3. On page 56911, in the third column, in Sec. 570.201, paragraph (n) is corrected to read as follows: Sec. 570.201 Basic eligible activities. * * * * * (n) Homeownership assistance. Subject to statutory authority, CDBG funds may be used to provide direct homeownership assistance to low- and moderate-income households, as provided in section 105(a)(25) of the Act. * * * * * 4. On page 56912, in the second and third columns, in Sec. 570.208, the second sentence of paragraph (a)(1)(iii)(B), the second sentence of paragraph (a)(1)(iii)(D), and the first sentence of paragraph (a)(1)(vi) are corrected to read as follows: Sec. 570.208 Ineligible activities. (a) * * * (1) * * * (iii) * * * (B) * * * As available, the recipient must provide information that identifies the total number of calls actually received over the preceding 12-month period for each of the emergency services to be covered by the emergency telephone number system and relates those calls to the geographic segment (expressed as nearly as possible in terms of census tracts, block numbering areas, block groups, or combinations thereof that are contained within the segment) of the service area from which the calls were generated. * * * * * * * * (D) * * * For this purpose, the recipient must include a description of the boundaries of the service area of the emergency telephone number system, the census divisions that fall within the boundaries of the service area (census tracts or block numbering areas), the total number of persons and the total number of low- and moderate-income persons within each census division, the percentage of low- and moderate-income persons within the service area, and the total cost of the system. * * * * * (vi) In determining whether there is a sufficiently large percentage of low- and moderate-income persons residing in the area served by an activity to qualify under paragraphs (a)(1) (i), (ii), or (vii) of this section, the most recently available decennial census information must be used to the fullest extent feasible, together with the section 8 income limits that would have applied at the time the income information was collected by the Census Bureau. * * * * * * * * 5. On page 56916, in the first column, in Sec. 570.506, paragraph (c) is corrected to read as follows: Sec. 570.506 Records to be maintained. * * * * * (c) Records that demonstrate that the recipient has made the determinations required as a condition of eligibility of certain activities, as prescribed in Secs. 570.201(f), 570.201(i)(2), 570.201(p), 570.201(q), 570.202(b)(3), 570.206(f), 570.209, and 570.309. * * * * * Dated: April 18, 1996. Camille E. Acevedo, Assistant General Counsel for Regulations. [FR Doc. 96-10240 Filed 4-26-96; 8:45 am] BILLING CODE 4210-29-M