[Federal Register Volume 61, Number 84 (Tuesday, April 30, 1996)]
[Rules and Regulations]
[Pages 19120-19132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10467]




[[Page 19119]]


_______________________________________________________________________

Part II





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 58



Office of the Secretary; Environmental Review Procedures for Entities 
Assuming HUD Environmental Responsibilities; Final Rule

  Federal Register / Vol. 61, No. 84 / Tuesday, April 30, 1996 / Rules 
and Regulations  

[[Page 19120]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 58

[Docket No. FR-3514-F-04]
RIN 2501-AB67


Office of the Secretary; Environmental Review Procedures for 
Entities Assuming HUD Environmental Responsibilities

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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

SUMMARY: This rule makes final two rules, one interim and one proposed, 
which amended the existing environmental regulations in 24 CFR part 58, 
governing entities that assume HUD responsibilities, by making the 
environmental review procedures consistent under the various programs 
to which these regulations apply. This final rule takes into 
consideration the public comments received on both rules, and also 
makes streamlining and editorial changes to the existing environmental 
regulations governing entities that assume HUD responsibilities.

EFFECTIVE DATE: This rule becomes effective May 30, 1996, except for 
Sec. 58.1(b)(6)(i) and Sec. 58.2(a)(5)(v)(A), which pertain to public 
housing development and modernization programs. These sections will 
become effective on October 14, 1996, unless the Department publishes a 
document in the Federal Register that specifies a different effective 
date.

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-TTY (1-800-877-8339) and refer to (202) 708-1201.

SUPPLEMENTARY INFORMATION:

I. Background

    This final rule revises and restates 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. This 
rule makes final two rules, one interim rule and one proposed rule, 
which amended 24 CFR part 58. The interim rule was published on March 
13, 1995 (60 FR 13518), and the proposed rule was published on 
September 25, 1995 (60 FR 49466). This final rule takes into 
consideration the public comments received on both rules.
    Applicable HUD programs under 24 CFR part 58 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 reduction and 
abatement of lead-based paint, (6) Indian Housing and most Section 8 
programs under Title I of the United States Housing Act of 1937, (7) 
Special projects appropriated under an appropriation Act of HUD, (8) 
the FHA Multifamily Housing Finance Agency Pilot Program under section 
542(c) of the Housing and Community Development Act of 1992, and (9) 
the Self-Help Homeownership Opportunity Program under section 11 of the 
Housing Opportunity Program Extension Act of 1996.
    The interim and proposed rules did not refer to the last program 
cited above, the Self-Help Homeownership Opportunity Program, because 
the Housing Opportunity Program Extension Act was approved on March 28, 
1996, after those rules were published. However, section 11(m) of that 
Act provides that a grant under that program shall be considered to be 
funds for a special project for purposes of section 305(c) of the 
Multifamily Housing Property Disposition Reform Act of 1994, which 
authorized the provisions in the current interim rule providing for 
States and units of general local government to assume environmental 
responsibilities for special projects under item (7) above. 
Accordingly, grants under the new Self-Help Homeownership Opportunity 
Program are already subject to the part 58 procedures, by being 
considered special project funds. The final rule adds specific 
references to the new program in order to provide a complete list of 
programs currently subject to part 58.

II. Discussion of Public Comments on the March 13, 1995 Interim Rule

    The Department received two comments on the March 13, 1995 interim 
rule--one from a State housing development authority and one from a 
national organization of State housing agencies.
    Both commenters requested, with respect to the FHA Multifamily 
Housing Finance Agency Pilot Program in particular, that the rule 
clarify that State housing finance agencies (HFAs) may assume 
environmental responsibilities. The Department has not changed the 
final rule in response to these comments. Section 542(c)(9) of the 
Housing and Community Development Act of 1992, as amended, provides 
that the Secretary of HUD may provide for agreements to endorse 
mortgages for insurance ``upon the request of qualified housing finance 
agencies * * *, if the State or unit of general local government, as 
designated by the Secretary in accordance with regulations, assumes'' 
environmental responsibilities.
    However, the Department agrees that a State HFA may assume the 
responsibility for environmental reviews on behalf of the State if the 
HFA is an agency of the State government and is given authority to do 
so by the State. If an official of the State HFA will act as the 
Certifying Officer for the State, section 542 (c) requires that the 
official must have the authority to certify, among other things, that 
he or she ``is authorized and consents on behalf of the State * * * and 
himself or herself'' to accept Federal court jurisdiction for 
enforcement of the environmental responsibilities (emphasis added). The 
Certifying Officer's responsibilities are set out in Sec. 58.13 of the 
rule, which indicates that he or she must represent the responsible 
entity, e.g., the State, rather than merely the State HFA.
    Even where the State's Certifying Officer is outside the HFA, the 
HFA may contribute information or prepare a draft environmental 
assessment for the State, but the Certifying Officer must evaluate this 
work and take responsibility for the review in accordance with 40 CFR 
1506.5 of the regulations of the Council on Environmental Quality.
    One of the commenters, citing statements in Secs. 58.4(b) and 58.10 
of the interim rule that responsible entities ``shall'' or ``must'' 
assume environmental review responsibilities, requested that the final 
rule clarify that

[[Page 19121]]

the assumption of environmental responsibilities is voluntary. The 
Department agrees that assumption of environmental responsibilities by 
non-recipient recipient responsible entities is voluntary. However, the 
Department has concluded that no change in the rule is necessary on 
this point. The cited language (which is similar in the final rule) 
must be read in conjunction with Sec. 58.11(d) of the interim and final 
rules. Section 58.11(d) indicates that if a responsible entity, other 
than a recipient, objects to performing an environmental review, or if 
HUD may designate another responsible entity to perform the review or 
may perform the review itself.

III. Discussion of Public Comments on the September 25, 1995 Proposed 
Rule

    The Department received 11 comments on the September 25, 1995 
proposed rule. The Department received four from local governments, 
three from county governments, two from State housing agencies, and two 
from special interest groups. As a result of these, the Department has 
made certain changes to the proposed rule which are incorporated into 
today's final rule. The following discussion summarizes and provides 
HUD responses to those comments. Every comment was reviewed and 
considered, although all comments may not be specifically addressed in 
this preamble.
    One city urged HUD to conduct a detailed federalism analysis in 
accordance with Executive Order 12612 on Federalism before taking any 
further action on this proposed rule. The charge is made that the 
proposed rule would constitute an unfunded mandate on local governments 
by transferring to States and local governments various environmental 
functions previously performed by HUD. This final rule does not change 
any requirements that were not in effect or put in effect by the 
interim rule, published in the Federal Register on March 13, 1995 (60 
FR 13518) that became effective on April 12, 1995.
    The second issue raised by this city was that the tenant-based 
Section 8 Existing Housing Program should be exempt from all 
environmental review requirements. Section 58.35(b)(1) makes all 
tenant-based rental assistance essentially exempt, except for 
extraordinary circumstances in which a categorically excluded activity 
may have a significant environmental effect.
    A second city requested that Sec. 58.34(a)(2) be more declarative 
with respect to environmental review requirements for payment of 
principal and/or interest to the Federal government. A change in 
Sec. 58.34(a) was made to preserve and make more generic the exemption 
for payments of principal and interest that is in the interim rule.
    A third city suggested that the final rule should make changes that 
would allow local communities more latitude in applying section 106 of 
the National Historic Preservation Act and applicable regulations in 36 
CFR part 800. The Department does not have the authority to effect 
changes in the procedures of the State Historic Preservation Officer 
(SHPO) or to allow local communities more autonomy in determining which 
resources are historically significant.
    A fourth city made a number of suggestions to be more specific and/
or carry over some specific language in the interim rule into this 
final rule. Some clarifications have been made in Sec. 58.35 of the 
final rule.
    One county housing agency wanted more clarification about what 
would be considered ``adequate local news media'' when disseminating 
information to the public. Adequate local news media would be 
considered to be at least a newspaper of general circulation in the 
affected community. A change has also been made in Sec. 58.21 to 
clarify that when there is no publication of Notices, the time periods 
start when there is a mailing and posting of a Finding of No 
Significant Impact (FONSI) or the Notice of Intent to Request Release 
of Funds (NOI/RROF). In addition, this county wanted a definition of 
``an individual action'' in reference to the categorical exclusion of 
one- to four-family dwellings. Some clarifications have been made to 
Sec. 58.35 to reflect current practices with respect to categorical 
exclusions.
    A second county agency felt there was a contradiction in the 
requirement for the responsible entity to address in the Environmental 
Review Record (ERR) its compliance with Sec. 58.6 while Sec. 58.34 of 
the proposed rule stated that the responsible entity does not have to 
comply with the environmental requirements of this part in the case of 
exempt activities. The requirements of Sec. 58.6 must be complied with 
and the responsible entity is required to address these requirements 
where applicable. These requirements apply to exempt activities, when 
there is no requirement for an environmental certification by the 
certifying officer that indicates that all environmental requirements 
have been met. A change has been made in Sec. 58.34 to remove this 
contradiction.
    A third county agency suggested that the Housing Opportunities for 
Persons With AIDS (HOPWA) program should be reviewed under part 58 
because HOPWA projects are often funded jointly with CDBG. HUD has no 
authority to assign this responsibility to local governments. However, 
part 50 and part 58 reviews should not be done in such a manner that 
there is duplication. If a review has already been made of a jointly 
funded proposal, the prior review can be referenced in subsequent 
reviews. The county agency suggested additions to Sec. 58.2 that would 
define in more detail ``financial services'' and when a decrease in 
unit density would require an environmental review.
    The Department feels that these terms are adequately defined in 
Secs. 58.34(a)(2) and 58.35(a) and that further detail would not be 
appropriate. The county agency also raised a question about the 
proposed deletion of the reference to Section 108 loans from 
Sec. 58.34(a) of the interim rule. The intent of this rule is to make 
requirements more generic and not be program specific. In response to 
comments, there is no change in the exempt classification of the 
repayment of Section 108 loans to the Federal government and the 
comment is addressed generically in Sec. 58.34(a)(11). This county 
suggested that changes be made in Sec. 58.47 to address a concern about 
when there is a need to re-evaluate an environmental finding. Changes 
have been made in Sec. 58.47 to expand the context when a change in 
conditions or a change in funding would require a re-evaluation.
    One State housing agency requested that Sec. 58.35(b)(5) be 
expanded to include homeownership assistance for new housing that is 
planned but may or may not yet be built. In response to this comment, 
the final rule expands this exclusion to cover assistance to homebuyers 
for units under construction as well as existing housing. However, 
housing that is not yet under construction cannot be covered by this 
exclusion because Sec. 58.53(b) does not require compliance with the 
environmental laws and authorities listed in Sec. 58.5. Assistance to 
purchase housing yet to be constructed, on a limited scale, as 
identified in Sec. 58.35(a)(4), can be determined to be categorically 
excluded, but it cannot be exempt from the requirements of Sec. 58.5.
    A second State agency suggested that environmental reviews 
conducted by other entities on co-funded projects should be used 
whenever possible. This final rule encourages combining reviews 
conducted by other entities for jointly funded projects.
    A national county association wanted to know what was meant by 
``broader review'' in Sec. 58.15 on Tiering. The tiering concept is 
explained very well in

[[Page 19122]]

the NEPA regulations of the Council on Environmental Quality but 
focuses on tiering in EIS situations. This final rule encourages the 
use of the tiering concept in non-EIS situations. Tiering, for HUD 
purposes, allows responsible entities that have assumed Federal 
environmental responsibilities to complete an environmental review and 
obtain a release of funds from HUD before the specific properties to be 
treated have been identified. Once the properties have been identified, 
the responsible entity must comply with environmental laws and 
authorities that could not be satisfied until the properties were 
identified. The responsible entity may use any available environmental 
information. Compliance with section 106 of the National Historic 
Preservation Act would normally occur when the properties to be treated 
have been identified.
    Another commenter requested that the proposed change to Sec. 58.22 
prohibiting recipients from committing local (non-HUD) funds before the 
approval of RROF be dropped in favor of the language in the present 
interim rule. This suggestion has not been adopted, since the language 
of proposed Sec. 58.22 better reflects the intent of the Council on 
Environmental Quality regulation.
    The Department also received a comment on the Home Investment 
Partnership Program interim rule published on July 12, 1995 (60 FR 
36020) that is relevant to this rule. The comment objected to the 
requirement contained in the Home environmental guidelines, and also 
contained in proposed Sec. 58.22, that options on property entered into 
before completion of the environmental review be refundable, since 
refundability is not generally a provision for refundable options in 
favor of options being limited to a nominal portion of the purchase 
price.

IV. Other Matters

Environmental Impact

    A Finding of No Significant Impact (FONSI) with respect to the 
environment was made in connection with development of the September 
25, 1995 proposed rule in accordance with HUD regulations in 24 CFR 
Part 50 which implement Section 102(2)(C) of the National Environmental 
Policy Act (NEPA). Since the changes made to the proposed rule in this 
final rule do not change the impact on the environment, the original 
Finding is still valid. The original Finding is available for public 
inspection during regular business hours in the Office of the General 
Counsel, Rules Docket Clerk, at the above address.

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 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 rule is not subject to review under the order. Specifically, this 
final rule modifies environmental requirements for recipients of HUD 
assistance and other entities that assume environmental review 
responsibilities for activities and projects where 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.

Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order, The Family, has determined that this final rule will 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 final 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 rule, and in so doing certifies that this final rule will not have 
a significant economic impact on a substantial number of small 
entities. This final rule streamlines part 58 and carries 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

    Environmental protection, Community Development Block Grants, 
Environmental impact statements, Grant programs--housing and community 
development, Reporting and recordkeeping requirements.

    Accordingly, 24 CFR part 58 is revised 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.
58.4  Assumption authority.
58.5  Related Federal laws and authorities.
58.6  Other requirements.

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.
58.17  Historic Preservation requirements for prior section 17 
grants.
58.18  Responsibilities of States Assuming HUD Responsibilities.

Subpart C--General Policy: Environmental Review Procedures

58.21  Time periods.
58.22  Limitations on activities pending clearance.
58.23  Financial assistance for environmental review.
Subpart D--Environmental Review Process: Documentation, Range of 
Activities, Project Aggregation and Classification
58.30  Environmental Review Process.
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.
Subpart E--Environmental Review Process: Environmental Assessments 
(EA's)
58.40  Preparing the environmental assessment.
58.43  Dissemination and/or publication of the findings of no 
significant impact.
58.45  Public comment periods.
58.46  Time delays for exceptional circumstances.
58.47  Re-evaluation of environmental assessments and other 
environmental findings.
Subpart F--Environmental Review Process: Environmental Impact Statement 
Determinations
58.52  Adoption of other agencies' EISs.
58.53  Use of prior environmental impact statements.
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.

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58.57  Lead agency designation.
58.59  Public hearings and meetings.
58.60  Preparation and filing of environmental impact statements.

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.

    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, 3 CFR, 1966-1970, Comp., p. 902, as amended by E.O. 11991, 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) Grants to States and units of general local government under 
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 heading ``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);
    (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); and
    (9) The Self-Help Homeownership Opportunity Program under section 
11 of the Housing Opportunity Program Extension Act of 1996 (Pub. L. 
104-120, 110 Stat. 834), in accordance with section 11(m)).


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):
    (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);

[[Page 19124]]

    (vii) With respect to the FHA Multifamily Housing Finance Agency 
Pilot Program under Sec. 58.1(b)(8), a qualified housing finance 
agency; and
    (viii) With respect to the Self-Help Homeownership Opportunity 
Program under Sec. 58.1(b)(9), any direct grantee of HUD.
    (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 (9), 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:

(1) CDBG--Community Development Block Grant;
(2) CEQ--Council on Environmental Quality;
(3) EA--Environmental Assessment;
(4) EIS--Environmental Impact Statement;
(5) EPA--Environmental Protection Agency;
(6) ERR--Environmental Review Record;
(7) FONSI--Finding of No Significant Impact;
(8) HUD--Department of Housing and Urban Development;
(9) NAHA--Cranston-Gonzalez National Affordable Housing Act of 1990;
(10) NEPA--National Environmental Policy Act of 1969, as amended;
(11) NOI/EIS--Notice of Intent to Prepare an EIS;
(12) NOI/RROF--Notice of Intent to Request Release of Funds;
(13) ROD--Record of Decision;
(14) ROF--Release of Funds; and
(15) RROF--Request for Release of Funds.


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) States must exercise HUD's responsibilities in accordance with 
Sec. 58.18, 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 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 470h-2), except as provided in Sec. 58.17 
for Section 17 projects.
    (2) Executive Order 11593, Protection and Enhancement of the 
Cultural Environment, May 13, 1971 (36 FR 8921), 3 CFR 1971-1975 Comp., 
p. 559, 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 as amended by the 
Archeological and Historic Preservation Act of 1974 (16

[[Page 19125]]

U.S.C. 469 et seq.), particularly section 3 (16 U.S.C. 469a-1).
    (b) Floodplain management and wetland protection. (1) Executive 
Order 11988, Floodplain Management, May 24, 1977 (42 FR 26951), 3 CFR, 
1977 Comp., p. 117, as interpreted in HUD regulations at 24 CFR part 
55, particularly section 2(a) of the order (For an explanation of the 
relationship between the decision-making process in 24 CFR part 55 and 
this part, see Sec. 55.10 of this subtitle A.)
    (2) Executive Order 11990, Protection of Wetlands, May 24, 1977 (42 
FR 26961), 3 CFR, 1977 Comp., p. 121, 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), 3 CFR, 1994 Comp. p. 859.


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.

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 requirements 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 applicable to 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 must 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, special project or self-
help homeownership opportunity 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 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

[[Page 19126]]

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 requirements 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. 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 done 
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. 58.17  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 of this part 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.

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 or the mailing and posting 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 addition, until the RROF and related 
certification has been approved, the recipient may not commit 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

[[Page 19127]]

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 this part and 
the cost of the option is a nominal portion of the purchase price. 
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. Funds may be committed for relocation assistance 
before the approval of the RROF and related certification for the 
project provided that the relocation assistance is 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 costs to the extent allowable 
under the HUD assistance program regulations.

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


Sec. 58.30  Environmental Review Process.

    (a) The environmental review process consists of all the actions 
that a responsible entity must take to determine compliance with 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.
    (b) The environmental review process should begin as soon as a 
recipient determines the projected use of HUD assistance.


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 estimated range of 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) Except for the applicable requirements of Sec. 58.6, the 
responsible entity does not have to comply with the 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 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) Payment of principal and interest on loans made or obligations 
guaranteed by HUD;
    (12) Any of the categorical exclusions listed in Sec. 58.35(a) 
provided that there 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.

[[Page 19128]]

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, improvement, 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.
    (6) Combinations of the above activities.
    (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 ``or new 
dwelling units not assisted with Federal funds'' 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 
options, project financing, administrative costs and fees for 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.
    (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

[[Page 19129]]

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.

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 subpart F or G of this part.


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 
the appropriate tribal, local, State and Federal agencies; to the 
Regional Offices of the Environmental Protection Agency having 
jurisdiction and to the HUD Field Office (or the State where 
applicable). 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 
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. If funds will be used in Presidentially declared 
disaster areas, modifications resulting from public comment, if 
appropriate, must be made before proceeding with the expenditure of 
funds.


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.


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.

[[Page 19130]]

Sec. 58.47  Re-evaluation of environmental assessments and other 
environmental findings.

    (a) A responsible entity must re-evaluate its environmental 
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;
    (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 in 
the original finding.
    (b) The purpose of the responsible entity's re-evaluation is to 
determine if the original findings are still valid. If the original 
findings are still valid but the data or conditions upon which they 
were based have changed, the responsible entity must amend the original 
findings and update its ERR by including this re-evaluation and its 
determination based on its findings. If the responsible entity 
determines that the original findings are 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 findings before proceeding.

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. 58.60(d) 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.

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 disseminating or 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).


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 in the local news media 15 days 
before the hearing date. The Notice must:

[[Page 19131]]

    (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.
    (c) The responsible entity may request waivers from the time 
requirements specified for the draft and final EIS as prescribed in 40 
CFR 1506.6.
    (d) When substantial changes are proposed in a project or when 
significant new circumstances or information becomes available during 
an environmental review, the recipient may prepare a supplemental EIS 
as prescribed in 40 CFR 1502.9.
    (e) The responsible entity must prepare a Record of Decision (ROD) 
as prescribed in 40 CFR 1502.2.

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 commit funds 
for 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 
subpart H of this part. 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.
    (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 of this part 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.

[[Page 19132]]

    (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 person 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 is 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 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.

    Dated: March 27, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-10467 Filed 4-29-96; 8:45 am]
BILLING CODE 4210-29-P