[Federal Register Volume 61, Number 160 (Friday, August 16, 1996)]
[Proposed Rules]
[Pages 42722-42725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20697]



[[Page 42721]]


_______________________________________________________________________

Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 10



Rulemaking Policies and Procedures; Proposed Removal of Part 10; 
Proposed Rule

  Federal Register / Vol. 61, No. 160 / Friday, August 16, 1996 / 
Proposed Rules  

[[Page 42722]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Part 10

[Docket No. FR-3292-P-04]
RIN 2501-AB43


Rulemaking Policies and Procedures; Proposed Removal of Part 10

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: Part 10 of HUD's regulations, commonly known as HUD's ``Rule 
on Rules,'' contains HUD's policies and procedures for the promulgation 
and issuance of rules, including the use of public participation in the 
rulemaking process. This rule proposes to remove part 10 and replace 
this part with an uncodified policy statement, published in the Federal 
Register, that would advise the public of HUD's policies and procedures 
regarding rulemaking. This rule also proposes to revise HUD's 
rulemaking policies by removing the commitment to undertake notice and 
comment rulemaking for those matters that are exempt from notice and 
comment rulemaking under the Administrative Procedure Act. HUD's 
proposed statement of regulatory policies and procedures is part of 
this notice of proposed rulemaking.

DATES: Comments Due Date: October 15, 1996.

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

FOR FURTHER INFORMATION CONTACT: Camille E. Acevedo, Assistant General 
Counsel for Regulations, Office of General Counsel; Room 10276; U.S. 
Department of Housing and Urban Development; 451 Seventh Street, SW; 
Washington, DC 20410-0500; telephone (202) 708-3055. Hearing or speech-
impaired individuals may call HUD's TTY number 1-800-877-8399 (Federal 
Information Relay Service). (The ``800'' number is a toll-free number, 
the ``708'' number is not toll-free.)

SUPPLEMENTARY INFORMATION:

I. Background

    Part 10 establishes HUD's policy of affording public participation 
in the Department's rulemakings, gives notice of the location of HUD's 
Rules Docket, and sets forth procedures for HUD rulemakings, including 
the public's right to petition for rulemaking. In promulgating part 10, 
HUD, along with several other Federal agencies during this same time 
period, responded to public sentiment to the effect that agencies 
administering loan and grant programs, which are exempt from notice and 
comment rulemaking under 5 U.S.C. 553 (the Administrative Procedure 
Act, (APA)), should not exclude themselves from comparable limitations 
on their authority to promulgate regulations.1
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    \1\  Part 10 was initially issued on December 22, 1971 (36 FR 
24423), and underwent several revisions. Part 10, as currently 
codified, was promulgated on January 5, 1979 (44 FR 1606). With 
respect to similar rules and policies of other agencies, see the 
notice of the Department of Agriculture, published on July 24, 1971 
(36 FR 13804); the notice of the Department of Health and Human 
Services, published on February 5, 1971 (36 FR 2532); the notice of 
the Department of the Interior, published on May 5, 1971 (36 FR 
8336); the notice of the Small Business Administration, published on 
August 25, 1971 (36 FR 16716); the rule of the Department of 
Defense, published on February 3, 1975 (40 FR 4911, redesignated at 
41 FR 27074 on July 1, 1976, and redesignated and amended at 56 FR 
64482 on December 10, 1991, see 32 CFR part 336); the notice of the 
Department of Transportation, published on February 26, 1979 (44 FR 
11034); and the rule of the Department of Labor, published on 
January 2, 1981 (46 FR 35) concerning 29 CFR part 2.
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    There were two recent efforts by HUD to amend the policies and 
procedures in part 10.
    November 14, 1991 Proposed Rule. On November 14, 1991 (56 FR 
57869), HUD published a proposed rule entitled ``Rulemaking Policies 
and Procedures--Public Comment Periods.'' Through this rule, HUD 
proposed to reduce the 60-day public comment period it required for all 
rules under part 10. The November 14, 1991 proposed rule would have 
permitted HUD discretion in establishing the period for public comment 
on rules in a manner similar to that permitted by the APA. The rule 
would continue to provide for 60-day public comment period as the norm 
for HUD rulemaking, but would allow for a minimum of 30 days upon a 
finding of good cause. HUD received 21 public comments on this rule. 
The majority of the commenters opposed the rule.
    October 14, 1992 Proposed Rule. On October 14, 1992 (57 FR 47166), 
HUD published a proposed rule entitled, ``Rulemaking Policies and 
Procedures--Expediting Rulemaking and Policy Implementation''. Relying 
on the exemption from notice and comment rulemaking in the APA for 
matters involving public property, loans, grants, benefits or contracts 
(the ``proprietary'' exemption), the October 14, 1992 proposed rule 
would have amended part 10 to dispense with notice and comment 
rulemaking, except where required by statute.
    The October 14, 1992 proposed rule provided two discretionary 
grounds for employing advance notice and comment to the public: (1) 
where HUD determined it to be ``essential for the formulation of the 
rule,'' or (2) necessary to ``enhance'' the rulemaking where ``time is 
not of the essence.'' HUD received 77 comments on the proposed rule. 
The majority of the commenters opposed the rule's attempt to curtail 
the use of advance notice and opportunity for comment. The reasons for 
objecting to curtailing notice and comment rulemaking varied, but the 
overwhelming reason was that the commenters believe that public input 
makes for a better rule.
    The 1991 and 1992 proposed rules are withdrawn by this proposed 
rule.

II. This Proposed Rule

    This rule proposes to remove part 10 from HUD's regulations, and 
replace part 10 with an uncodified policy statement, published in the 
Federal Register, that would advise the public of HUD's policies and 
procedures regarding regulations. This rule also proposes to remove 
from HUD's rulemaking policies its commitment to undertake notice and 
comment rulemaking for matters that are exempt from notice and comment 
rulemaking under the APA.

A. Proposed Removal of Part 10

    On March 4, 1995, President Clinton issued a directive to all 
Federal agencies to eliminate obsolete and unnecessary regulations and 
to streamline the remaining regulations to ensure that they are 
``smart'' rules, rules that are sensible, understandable, cost-
effective, customer friendly, and minimally burdensome. In response to 
the President's directive, HUD conducted a line-by-line review of its 
regulations, and submitted two reports to the President outlining the 
Department's strategy for achieving the President's regulatory 
objectives. One of the principles of this review was that only matters 
that were required to be promulgated by regulation would be codified. 
To the maximum extent possible, HUD would find alternative, legally 
permissible means of informing

[[Page 42723]]

the public of its policies and procedures.
    In furtherance of the President's directive, HUD proposes to remove 
part 10 from its codified regulations, and to include HUD's rulemaking 
policies and procedures in a statement of policy to be published in the 
Federal Register. Several agencies have set forth their rulemaking 
policies and procedures in uncodified Federal Register documents, and 
through this document HUD proposes to do the same. (See footnote 1 in 
this preamble, and also see the more recently issued notice of the Farm 
Credit Administration on its rulemaking policies, published on May 16, 
1995, 60 FR 26034.) HUD's ``Statement of Regulatory Policies and 
Procedures'' will be published in the Federal Register after taking 
into consideration the public comments received on this proposed rule, 
and the proposed Statement of Regulatory Policies and Procedures, 
contained in Section III of this preamble.

B. Proposed Removal of Commitment to Undertake Notice and Comment 
Rulemaking in All Matters

    With the exception of the removal of the commitment to undertake 
notice and comment rulemaking in all matters, HUD is not proposing to 
make significant changes in its rulemaking policies and procedures. On 
the matter of notice and comment rulemaking, HUD would continue to be 
governed by the two general statutory authorities that currently govern 
HUD rulemakings: (1) section 552 of the APA (5 U.S.C. 552); and (2) 
section 553 of the APA (5 U.S.C. 553). Additionally, HUD, along with 
the other Federal agencies, must adhere to any regulatory principles 
and procedures adopted by the President through executive order or 
other Presidential document (such as Presidential memorandum).
1. Authorities Governing Rulemaking
    Section 552. Section 552(a)(1) of the APA, the public information 
section of the APA, requires each Federal agency to publish in the 
Federal Register several types of documents, including ``substantive 
rules of general applicability'' and ``statements of policy.'' Failure 
to publish a rule may result in its being unenforceable against the 
public. Section 552 requires HUD to have a regulatory structure based 
on regular publication of rules and policies in the Federal Register. 
The publication requirements of section 552 apply to all rules, even 
those subject to the ``proprietary'' exemption from advance public 
participation set forth in section 553.
    Section 553. Section 553, the APA's informal rulemaking provision, 
specifies the situations in which the public must be given advance 
notice and an opportunity to comment on proposed regulations. Section 
553(a)(1) contains an exception to this requirement for matters 
relating to ``public property, loans, grants, benefits, or 
contracts''--the so-called ``proprietary'' exemption. Rules that do not 
qualify for the ``proprietary'' exemption or other section 553 
exemptions must provide for advance notice and opportunity to comment, 
unless notice and comment are ``impracticable, unnecessary, or contrary 
to the public interest.''
    Many HUD programs are grant, loan and benefit programs (such as 
HUD's Federal Housing Administration programs, Government National 
Mortgage Association programs, Community Development Block Grant 
programs, and public and Indian housing programs) and fit within the 
proprietary exemption. However, other HUD programs or other HUD 
responsibilities do not qualify for the ``proprietary'' exemption. 
These include such ``regulatory'' authorities as the Real Estate 
Settlement Procedures Act (RESPA), Manufactured Home Standards, 
Interstate Land Sales, Lead-Based Paint Abatement, and possibly certain 
authorities under the Fair Housing Act.
    Executive Order 12866. In addition to the APA, HUD would continue 
to be governed by President Clinton's Executive Order 12866 on 
Regulatory Planning and Review (issued September 30, 1993, and 
published on October 4, 1993, 58 FR 51735). Section 6(a)(1) of the 
Executive Order contains the following guidance on public participation 
in rulemaking:

    Each agency shall (consistent with its own rules, regulations, 
or procedures) provide the public with meaningful participation in 
the regulatory process. In particular, before issuing a notice of 
proposed rulemaking, each agency should, where appropriate, seek the 
involvement of those who are intended to benefit from and those 
expected to be burdened by any regulation .... In addition, each 
agency should afford the public a meaningful opportunity to comment 
on any proposed regulation, which in most cases should include a 
comment period of not less than 60 days.

    The Executive Order imposes a clear and affirmative obligation on 
Federal agencies to ensure the public's meaningful participation in the 
development of agency rules. Specifically, the Executive Order 
encourages public participation before agencies' issuance of a notice 
of proposed rulemaking, where appropriate.
    In response to this provision in the Executive Order, HUD has 
conducted a number of meetings with members of the public, formal and 
informal, to solicit public guidance early in the rulemaking process. 
HUD's Fiscal Year 1995 Regulatory Plan, published on November 14, 1994 
(59 FR 57087), contains several examples of rules in which HUD sought 
the input of affected members, through informal meetings or public 
meetings, before a proposed rule was published. These examples included 
HUD's Consolidated Plan rule, the Section 3 (Economic Opportunities for 
Low- and Very Low-Income Persons) rule, the Indian Housing 
Consolidation Regulation rule, the Noncitizens rule, and the Public 
Housing Management Assessment rule. Additional examples of rules in 
which HUD solicited public comment before issuance of the rule, that 
have occurred since publication of the November 1994 Regulatory Plan, 
include HUD's Significant Facilities and Services rule (four public 
meetings were held), the Occupancy Standards rule (three informal 
meetings were held), and the Mortgagee Review Board regulation.
    In addition, under President Clinton's Executive Order, HUD has 
published one rule developed through the negotiated rulemaking process 
and is currently involved in its second negotiated rulemaking. HUD's 
first negotiated rulemaking entitled ``Low-Income Public and Indian 
Housing--Vacancy Rule'' was published as a proposed rule on July 19, 
1995 (60 FR 37294), and the final rule was published on February 28, 
1996 (61 FR 7586). HUD's second negotiated rulemaking addresses the 
subject of the treatment of certain fees received by mortgage brokers 
and other retail lenders under the Real Estate Settlement Procedures 
Act (RESPA), and the Negotiated Rulemaking Advisory Committee has been 
formed and is meeting regularly to address the issues involved in this 
rulemaking.
    Negotiated rulemaking is a process that brings together all the 
interests affected by a rule and seeks to reach a consensus policy, and 
is strongly encouraged by this Administration. HUD anticipates 
increased use of this effective mechanism for ensuring early and 
meaningful public participation.
2. Limitations on Notice and Comment Rulemaking
    In adopting the proprietary exemption in section 553 of the APA, 
the Congress recognized from the outset the additional time that notice 
and

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comment rulemaking in the areas of public property, loans, grants, 
benefits and contracts would involve, and that given the subject areas 
involved, agencies have a legitimate and recognizable need to make 
loans, grants or other benefits available to the affected public more 
quickly than notice and comment rulemaking allows (even under the most 
efficient rulemaking procedures). In adopting the proprietary exemption 
in section 553, the Congress found that agencies were justified in 
proceeding without notice and comment rulemaking in proprietary matters 
and that no further justification on the part of the agency is required 
for dispensing with notice and comment rulemaking on proprietary 
matters.
    HUD believes that the removal of its commitment to undertake 
advance notice and comment rulemaking in all matters would not result 
in a significant diminution of public participation in HUD rulemakings. 
HUD's use of notice and comment rulemaking has become more targeted 
over the years, more focused on situations in which public 
participation is most valuable. Concomitantly, HUD also has focused on 
situations in which advance notice should be waived for good cause. 
Working within the existing part 10 over the years, HUD has identified 
several ``good cause'' exceptions to part 10's advance participation 
requirements, and these are as follows:
    a. Rules involving little or no discretion. Notice and comment 
rulemaking is not required where implementation of the applicable 
statutory provision allows for minimal, if any, agency discretion. This 
includes so-called ``self-executing'' laws. The rationale is that 
public comment is only of value where there is a significant amount of 
discretion involved in the rulemaking. Typically, matters falling into 
this category are implemented by informal means (such as handbooks and 
HUD notices), followed by a conforming final rule, if a rule is 
required to be published by section 552 of the APA or part 10.
    b. ``Temporary programs.'' Notice and comment rulemaking is not 
required for demonstrations, pilot programs, and similar temporary 
programs. The rationale is that demonstrations and other temporary 
programs are presumed not to contemplate the delay inherent in notice 
and comment rulemaking, and because they are temporary programs, they 
are not intended to be permanently codified. These types of programs 
are typically implemented by non-regulatory means, such as a notice of 
funding availability (NOFA) or, if sufficiently directed, a contract 
with the recipient.
    c. Provisions in appropriations acts. Notice and comment rulemaking 
is not required for new programs or amendments that are included in 
appropriations acts and that apply for one year only (the statutory 
directives are only applicable for one year) or are tied to specific 
appropriation funds. The rationale is that by tying these authorities 
to specific time periods and appropriation funds, the Congress can be 
presumed to have intended their immediate implementation, without the 
delay attendant to notice and comment rulemaking. These provisions are 
typically implemented by informal means, such as notices of funding 
availability (NOFAs) and other notices.
    d. Authorizing legislation with funding. Notice and comment 
rulemaking is not required for recently enacted authorizing legislation 
that requires a rulemaking to implement the legislative authority, and 
that has funding for the first time. The assumption is that by funding 
such a program, the Congress intends the program to be up and running 
as soon as possible, and does not envision a two-stage rulemaking 
process that could unduly delay funding distribution, even under the 
most efficient rulemaking processes. These programs can be implemented 
in a variety of ways, including by interim rule or by NOFA accompanied 
by a proposed rule.
    e. Statutory deadlines. With increasing frequency, HUD authorizing 
statutes contain specific deadlines for the issuance of implementing 
regulations. Where compliance with a deadline does not permit use of 
two-stage rulemaking, implementation is permitted by interim rulemaking 
to ensure that the rule takes effect within the prescribed deadline.
    f. Statutory rulemaking directives. Over the years, the Congress 
has become increasingly directional about the use of public 
participation in HUD rulemakings. In some cases, Congress has mandated 
notice and comment rulemaking for specific provisions or entire titles 
or subtitles of authorizing statutes.2 In other cases, the 
Congress has provided for implementation by interim rule, with public 
participation after rule effectiveness.3 In still other cases, the 
Congress has provided for implementation by non-regulatory means.4 
Finally, the Congress has increasingly called for the effectiveness of 
statutory provisions without regard to HUD rulemaking.5
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    \2\  See, for example, the following provisions of: (1) the 
Housing and Community Development Act of 1992 (Pub.L. 102-550, 
approved October 28, 1992): sec. 191 (title I), sec. 222 (title II), 
sec. 332 (title III), and sec. 685 (title VI); and (2) sec. 103(h) 
of the Multifamily Housing Property Disposition Reform Act of 1994 
(Pub.L. 103-233, approved April 11, 1994) (notice/proposed rule for 
alternative uses for prevention of mortgage defaults).
    \3\  See, for example, sec. 101(f) of the Multifamily Housing 
Property Disposition Reform Act of 1994 (Pub. L. 103-233) (interim 
rule to implement property disposition reforms) and sec. 332 of the 
Housing and Community Development Act of 1992 (Pub. L. 102-550) 
(interim rule for title III).
    \4\  See, for example, the following provisions of the HUD 
Demonstration Act of 1993 (Pub. L. 103-120): sec. 2(c)(6) 
(noncompetitive selection in innovative homeless program) and secs. 
4(d) and 6(e) (notices to implement the NCDI and pension fund 
initiatives).
    \5\  See, for example, sec. 2 of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550) and sec. 113 of H.R. 2046 
(104th Cong., 1st Sess.), the United States Housing Act of 1995.
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    Because of HUD's interpretation of part 10 and the increasing 
incidence of Congressional direction of regulatory policy, the areas 
subject to HUD's use of notice and comment rulemaking under part 10 
have considerably narrowed over the years. The Department recognizes 
the importance of public participation in the remaining situations, and 
is committed to ensuring the public is given meaningful participation 
in those matters as required by the APA.
    The Department believes that the commitment to undertake notice and 
comment rulemaking in all matters, even those exempt by the APA from 
advance notice and comment, is not necessary and, as shown by the 
preceding discussion, is not always practicable. Additionally, the 
Department believes that its policies regarding rulemaking need not be 
codified in the Code of Federal Regulations. These policies may be set 
forth by notice that is published in the Federal Register, as several 
other agencies have done.

III. HUD's Proposed Statement of Regulatory Policies and Procedures

    The following sets forth HUD's proposed Statement of Regulatory 
Policies and Procedures.

Statement of Regulatory Policies and Procedures

A. Policy
    The Department of Housing and Urban Development will develop 
regulations consistent with the Administrative Procedure Act (APA), the 
Department of Housing and Urban Development Act, and any other statute, 
executive order, or Administration directive that contains specific 
rulemaking directions applicable to

[[Page 42725]]

HUD. HUD will promulgate regulations where required by statute, or 
necessary to interpret the law, or to promote the objectives of the 
agency. To achieve its objective, HUD will:
    1. Strive to ensure that each regulation has a well-defined 
objective.
    2. Promulgate regulations that, to the extent feasible, specify 
performance criteria and objectives rather than command and control 
requirements.
    3. Issue regulations that are clear and easy to understand to all 
who may be affected by the regulation, and that are as brief and 
uncomplicated as possible.
    4. Issue regulations that have been developed giving adequate 
consideration to regulatory alternatives, and that have been developed 
based on a reasoned determination of the costs and benefits involved in 
the regulation.
    5. Coordinate its rulemaking with other agencies to eliminate or 
minimize unnecessary duplication of regulations or inconsistency.
    6. Provide for public participation in the rulemaking consistent 
with the APA and all other applicable statutes and executive orders, 
and provide meaningful public participation in the development of the 
rule at the earliest stage possible.
    HUD will consider these principles as it develops new regulations 
and as it reviews existing regulations to determine whether the 
regulations continue to be necessary and effective.
B. Rules Docket
    1. All Federal Register documents and records of published 
documents are maintained in the Office of the Rules Docket Clerk, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW, Washington, DC 20410.
    2. All public comments on Federal Register documents should refer 
to the docket number appearing in the heading of the rule, and should 
be addressed to the Rules Docket Clerk.
    3. Federal Register documents are public records. After a docket is 
established, any person may examine docketed materials, including 
public comments, at any time during regular business hours, and may 
obtain a copy of any docketed material.
C. Petitions for Rulemaking
    1. Any interested person may petition the Secretary for the 
issuance, amendment, or repeal of a rule. Each petition shall:
    a. Be submitted to the Rules Docket Clerk, Room 10276, Department 
of Housing and Urban Development, Washington, DC 20410.
    b. Set forth the text or substance of the rule or amendment 
proposed or specify the rule sought to be repealed;
    c. Explain the interest of the petitioner in the action sought; and
    d. Set forth all data and arguments available to the petitioner in 
support of the action sought.
    2. No public procedures will be held directly on the petition 
before its disposition. If the Secretary finds that the petition 
contains adequate justification, a rulemaking proceeding will be 
initiated or a final rule will be issued, as appropriate. If the 
Secretary finds that the petition does not contain adequate 
justification, the petition will be denied by letter or other notice, 
with a brief statement of the ground for denial. The Secretary may 
consider new evidence at any time; however, repetitious petitions for 
rulemaking will not be considered.
D. Additional Rulemaking Proceedings
    The Secretary may invite interested persons to present oral 
arguments, appear at informal hearings, or participate in any other 
procedure affording opportunity for oral presentation of views. The 
transcripts or minutes of such meetings, as appropriate, will be kept 
and filed in the Rules Docket.
E. Hearings
    1. The provisions of 5 U.S.C. 556 and 557, which govern formal 
hearings in adjudicatory proceedings, do not apply to informal 
rulemaking proceedings described in this part. When opportunity is 
afforded for oral presentation, such informal hearing is a 
nonadversary, fact-finding proceeding. Any rule issued in a proceeding 
under this part in which a hearing is held is not based exclusively on 
the record of such hearing.
    2. When a hearing is provided, the Secretary will designate a 
representative to conduct the hearing, and if the presence of a legal 
officer is desirable, the General Counsel will designate a staff 
attorney to serve as the officer.
F. Adoption of a Final Rule
    All timely comments are considered in taking final action on a 
proposed rule. Each preamble to a final rule will contain a short 
analysis and evaluation of the relevant significant issues set forth in 
the comments submitted, and a clear concise statement of the basis and 
purpose of the rule.
G. Petitions for Reconsideration
    Petitions for reconsideration of a final rule will not be 
considered. Such petitions, if filed, will be treated as petitions for 
rulemaking in accordance with section C of this notice.

IV. Other Matters

    Environmental impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with HUD 
regulations at 24 CFR part 50, which implements section 102(2)(C) of 
the National Environmental Policy Act of 1969 (NEPA). This Finding of 
No Significant Impact is available for public inspection between 7:30 
a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket Clerk, 
Office of the General Counsel, Department of Housing and Urban 
Development Room 10276, 451 Seventh Street, SW, Washington, DC 20410.
    Impact on small entities. The Secretary, in accordance with the 
Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this 
proposed rule before publication and, by approving it, certifies that 
the proposed rule will not have a significant impact on a substantial 
number of small entities. The proposed rule is procedural only, and 
would not have a substantive effect on small entities.
    Executive Order 12606, the Family. The General Counsel, as the 
Designated Official under Executive Order 12606, The Family, has 
determined that this proposed rule is procedural only, and would not 
have potential for significant impact on family-formation, maintenance, 
and general well-being, and thus is not subject to review under the 
Order.
    Executive Order 12612, Federalism. The General Counsel, as the 
Designated Official under section 6(a) of Executive Order 12612, 
Federalism, has determined that this proposed rule is procedural only, 
and would not have substantial, direct effects on States, on their 
political subdivisions, or on their relationship with the Federal 
government, or on the distribution of power and responsibilities among 
the various levels of government.

List of Subjects in 24 CFR Part 10

    Administrative practice and procedure.

    Accordingly, under the authority of 42 U.S.C. 3535(d), part 10 is 
proposed to be removed from title 24 of the Code of Federal 
Regulations.

    Dated: July 18, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-20697 Filed 8-15-96; 8:45 am]
BILLING CODE 4210-32-P