[Federal Register Volume 61, Number 190 (Monday, September 30, 1996)]
[Rules and Regulations]
[Pages 51174-51176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24873]



[[Page 51173]]


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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 583



Supportive Housing Program: Streamlining; Final Rule

  Federal Register / Vol. 61, No. 190 / Monday, September 30, 1996 / 
Rules and Regulations  

[[Page 51174]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 583

RIN 2506-AB85
[Docket No. FR-4089-F-01]


Office of the Assistant Secretary for Community Planning and 
Development; Supportive Housing Program; Streamlining

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

ACTION: Final rule.

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SUMMARY: This final rule amends HUD's regulations for the Supportive 
Housing Program. In an effort to comply with the President's regulatory 
reform initiatives, this rule will streamline the Supportive Housing 
regulations by eliminating provisions that are redundant of statutes or 
are otherwise unnecessary. This final rule will make the Supportive 
Housing regulations clearer and more concise.

EFFECTIVE DATE: October 30, 1996.

FOR FURTHER INFORMATION CONTACT: Maggie H. Taylor, Director, Office of 
Special Needs Assistance Programs, Department of Housing and Urban 
Development, 451 7th Street, SW, Washington, DC 20410; telephone (202) 
708-4300 (this is not a toll-free number). Hearing- or speech-impaired 
persons may access this number via TTY by calling the Federal 
Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a 
memorandum to all Federal departments and agencies regarding regulatory 
reinvention. In response to this memorandum, the Department conducted a 
page-by-page review of its regulations to determine which can be 
eliminated, consolidated, or otherwise improved. The regulations in 24 
CFR part 583 implement the Department's Supportive Housing Program, 
which provides assistance for housing and supportive services for 
homeless persons, as authorized by title IV, subtitle C of the Stewart 
B. McKinney Homeless Assistance Act of 1987, as amended (the McKinney 
Act) (42 U.S.C. 11381-11389). In developing the regulations for the 
Supportive Housing Program, the Department has always attempted to 
codify only those requirements that are necessary to the proper 
administration of the program, and to allow the recipients the 
flexibility to carry out projects that benefit homeless persons (see, 
e.g., the preamble to the Supportive Housing final rule, published on 
July 19, 1994 (59 FR 36886)). However, the Department has determined 
that it can further improve and streamline the regulations for the 
Supportive Housing Program by eliminating unnecessary provisions.
    For example, many of the provisions in part 583 come directly from 
the McKinney Act. It is unnecessary to maintain statutory requirements 
in the Code of Federal Regulations (CFR), since those requirements are 
otherwise fully accessible and binding. Furthermore, if regulations 
contain statutory language, HUD must amend the regulations whenever 
Congress amends the statute. Therefore, this final rule will remove 
repetitious statutory language and replace it with a citation to the 
specific statutory section for easy reference.
    This final rule will make the following specific amendments to part 
583:
    (1) Amend the first sentence of Sec. 583.1 regarding the 
authorizing statute--the Stewart B. McKinney Homeless Assistance Act--
in order to facilitate references to the statute throughout the 
regulations;
    (2) Replace many of the definitions in Sec. 583.5 that are 
redundant of the statute with references to the pertinent statutory 
sections. For the definition of ``Operating costs'', this rule will 
also amend Secs. 583.125 and 583.135 to include regulatory guidance 
that is not redundant of the statute. This rule also updates Sec. 583.5 
to refer to the consolidated plan, rather than the Comprehensive 
Housing Affordability Strategy, according to HUD's Consolidated Plan 
final rule, published on January 5, 1995 (60 FR 1878);
    (3) Remove the provision regarding the rating criteria for 
applications in Sec. 583.200(b). This information is repetitive of the 
statute, and can more appropriately be provided in the annual notice of 
funding availability (NOFA);
    (4) Streamline the language in Sec. 583.230 regarding environmental 
review. The substance of this language is redundant of the 
environmental review regulations in 24 CFR parts 50 and 58;
    (5) Replace language from Sec. 583.300(f) regarding the 
participation of homeless individuals that is redundant of the statute 
with a reference to the statutory section;
    (6) Replace much of Sec. 583.305, which is redundant of the 
statute, with statutory references;
    (7) Remove the nondiscrimination requirements in 
Sec. 583.325(b)(2). The Department issued a final rule on February 9, 
1996 (61 FR 5198) creating a new 24 CFR part 5, subpart A of which 
contains certain definitions, Federal requirements, and a waiver 
provision that are generally applicable to all HUD programs. The 
February 9, 1996 final rule removed the duplicative nondiscrimination 
requirements that were in Sec. 583.325(b)(1); this final rule will 
remove the duplicative requirements from paragraph (b)(2) of that 
section;
    (8) Remove the outdated reference to the Comprehensive Housing 
Affordability Strategy (CHAS) in Sec. 583.405(a)(1), and replace it 
with a reference to the consolidated plan, in accordance with the 
Consolidated Plan final rule published on January 5, 1995 (60 FR 1878).
    This rule will result in the elimination of approximately four 
pages of unnecessary regulations.

Justification for Final Rulemaking

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

Findings and Certifications

Regulatory Flexibility Act

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

Environmental Impact

    This rule does not have an environmental impact. This rule simply 
amends existing regulations by consolidating and streamlining 
provisions; it does not alter the environmental effect of the 
regulations being amended. As the Department

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developed the regulations in part 583, Findings of No Significant 
Impact with respect to the environment were made in accordance with 
regulations in 24 CFR part 50 that implement section 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332). Those 
findings remain applicable to this rule, and are available for public 
inspection between 7:30 a.m. and 5:30 p.m. weekdays in the Office of 
the Rules Docket Clerk, Office of General Counsel, Room 10276, 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Washington, DC.

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that this rule 
will not have substantial direct effects on States or their political 
subdivisions, or the relationship between the Federal Government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government. No programmatic or policy changes 
will result from this rule that would affect the relationship between 
the Federal Government and State and local governments.

Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule will not have 
the potential for significant impact on family formation, maintenance, 
or general well-being, and thus is not subject to review under the 
order. No significant change in the Department's policies or programs 
will result from promulgation of this rule.

List of Subjects in 24 CFR Part 583

    Homeless, Rent subsidies, Reporting and recordkeeping requirements, 
Supportive housing programs--housing and community development, 
Supportive services.

PART 583--SUPPORTIVE HOUSING PROGRAM

    Accordingly, for the reasons set forth in the preamble, 24 CFR part 
583 is amended as follows:
    1. The authority citation for 24 CFR part 583 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 11389.

    2. In Sec. 583.1, paragraph (a) is amended by revising the first 
sentence to read as follows:


Sec. 583.1  Purpose and scope.

    (a) General. The Supportive Housing Program is authorized by title 
IV of the Stewart B. McKinney Homeless Assistance Act (the McKinney 
Act) (42 U.S.C. 11381-11389). * * *
* * * * *
    3. Section 583.5 is revised to read as follows:


Sec. 583.5  Definitions.

    As used in this part:
    Applicant is defined in section 422(1) of the McKinney Act (42 
U.S.C. 11382(1)). For purposes of this definition, governmental 
entities include those that have general governmental powers (such as a 
city or county), as well as those that have limited or special powers 
(such as public housing agencies).
    Consolidated plan means the plan that a jurisdiction prepares and 
submits to HUD in accordance with 24 CFR part 91.
    Date of initial occupancy means the date that the supportive 
housing is initially occupied by a homeless person for whom HUD 
provides assistance under this part. If the assistance is for an 
existing homeless facility, the ``date of initial occupancy'' is the 
date that services are first provided to the residents of supportive 
housing with funding under this part.
    Date of initial service provision means the date that supportive 
services are initially provided with funds under this part to homeless 
persons who do not reside in supportive housing. This definition 
applies only to projects funded under this part that do not provide 
supportive housing.
    Disability is defined in section 422(2) of the McKinney Act (42 
U.S.C. 11382(2)).
    Homeless person means an individual or family that is described in 
section 103 of the McKinney Act (42 U.S.C. 11302).
    Metropolitan city is defined in section 102(a)(4) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5302(a)(4)). In 
general, metropolitan cities are those cities that are eligible for an 
entitlement grant under 24 CFR part 570, subpart D.
    New construction means the building of a structure where none 
existed or an addition to an existing structure that increases the 
floor area by more than 100 percent.
    Operating costs is defined in section 422(5) of the McKinney Act 
(42 U.S.C. 11382(5)).
    Outpatient health services is defined in section 422(6) of the 
McKinney Act (42 U.S.C. 11382(6)).
    Permanent housing for homeless persons with disabilities is defined 
in section 424(c) of the McKinney Act (42 U.S.C. 11384(c)).
    Private nonprofit organization is defined in section 422(7) (A), 
(B), and (D) of the McKinney Act (42 U.S.C. 11382(7) (A), (B), and 
(D)). The organization must also have a functioning accounting system 
that is operated in accordance with generally accepted accounting 
principles, or designate an entity that will maintain a functioning 
accounting system for the organization in accordance with generally 
accepted accounting principles.
    Project is defined in sections 422(8) and 424(d) of the McKinney 
Act (42 U.S.C. 11382(8), 11384(d)).
    Recipient is defined in section 422(9) of the McKinney Act (42 
U.S.C. 11382(9)).
    Rehabilitation means the improvement or repair of an existing 
structure or an addition to an existing structure that does not 
increase the floor area by more than 100 percent. Rehabilitation does 
not include minor or routine repairs.
    State is defined in section 422(11) of the McKinney Act (42 U.S.C. 
11382(11)).
    Supportive housing is defined in section 424(a) of the McKinney Act 
(42 U.S.C. 11384(a)).
    Supportive services is defined in section 425 of the McKinney Act 
(42 U.S.C. 11385).
    Transitional housing is defined in section 424(b) of the McKinney 
Act (42 U.S.C. 11384(b)). See also Sec. 583.300(j).
    Tribe is defined in section 102 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5302).
    Urban county is defined in section 102(a)(6) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5302(a)(6)). In general, 
urban counties are those counties that are eligible for an entitlement 
grant under 24 CFR part 570, subpart D.
    4. Section 583.125 is amended by revising paragraph (b) to read as 
follows:


Sec. 583.125  Grants for operating costs.

* * * * *
    (b) Operating costs. Operating costs are those associated with the 
day-to-day operation of the supportive housing. They also include the 
actual expenses that a recipient incurs for conducting on-going 
assessments of the supportive services needed by residents and the 
availability of such services; relocation assistance under 
Sec. 583.310, including payments and services; and insurance.
* * * * *
    5. Section 583.135 is amended by revising paragraph (b) to read as 
follows:


Sec. 583.135  Administrative costs.

* * * * *

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    (b) Administrative costs. Administrative costs include the costs 
associated with accounting for the use of grant funds, preparing 
reports for submission to HUD, obtaining program audits, similar costs 
related to administering the grant after the award, and staff salaries 
associated with these administrative costs. They do not include the 
costs of carrying out eligible activities under Secs. 583.105 through 
583.125.
    6. Section 583.200 is revised to read as follows:


Sec. 583.200  Application and grant award.

    When funds are made available for assistance, HUD will publish a 
notice of funding availability (NOFA) in the Federal Register, in 
accordance with the requirements of 24 CFR part 4. HUD will review and 
screen applications in accordance with the requirements in section 426 
of the McKinney Act (42 U.S.C. 11386) and the guidelines, rating 
criteria, and procedures published in the NOFA.
    7. Section 583.230 is revised to read as follows:


Sec. 583.230  Environmental review.

    (a) Generally. Project selection is subject to completion of an 
environmental review of the proposed site, and the project may be 
modified or the site rejected as a result of that review. The 
environmental effects must be assessed in accordance with the 
provisions of the National Environmental Policy Act of 1969 (42 U.S.C. 
4320) (NEPA) and the related environmental laws and authorities listed 
in HUD's implementing regulations at 24 CFR parts 50 or 58, depending 
on who is responsible for environmental review.
    (b) Environmental review by HUD. HUD will perform an environmental 
review, in accordance with part 50 of this title, before approval of 
conditionally selected applications received directly from private 
nonprofit organizations and governmental entities with special or 
limited purpose powers. Any application subject to environmental review 
by HUD that requires an Environmental Impact Statement (EIS) in 
accordance with the procedures in 24 CFR part 50, subpart E, will not 
be eligible for assistance under this part.
    (c) Environmental review by applicants. Applicants that are States, 
metropolitan cities, urban counties, tribes, or other governmental 
entities with general purpose powers must assume responsibility for 
environmental review, decisionmaking, and action for each application 
for assistance in accordance with part 58 of this title. These 
applicants must include in their applications an assurance that they 
will assume all the environmental review responsibility that would 
otherwise be performed by HUD as the responsible Federal official under 
NEPA and related authorities listed in 24 CFR part 58. The grant award 
is subject to completion of the environmental responsibilities set out 
in 24 CFR part 58 within a reasonable time period after notification of 
the award. Applicants may, however, enclose an environmental 
certification and Request for Release of Funds with their applications.
    8. Section 583.300 is amended by revising paragraph (f) to read as 
follows:


Sec. 583.300  General operation.

* * * * *
    (f) Participation of homeless persons. (1) Each recipient must 
provide for the participation of homeless persons as required in 
section 426(g) of the McKinney Act (42 U.S.C. 11386(g)). This 
requirement is waived if an applicant is unable to meet it and presents 
a plan for HUD approval to otherwise consult with homeless or formerly 
homeless persons in considering and making policies and decisions. See 
also Sec. 583.330(e).
    (2) Each recipient of assistance under this part must, to the 
maximum extent practicable, involve homeless individuals and families, 
through employment, volunteer services, or otherwise, in constructing, 
rehabilitating, maintaining, and operating the project and in providing 
supportive services for the project.
* * * * *
    9. Section 583.305 is revised to read as follows:


Sec. 583.305  Term of commitment; repayment of grants; prevention of 
undue benefits.

    (a) Term of commitment and conversion. Recipients must agree to 
operate the housing or provide supportive services in accordance with 
this part and with sections 423 (b)(1) and (b)(3) of the McKinney Act 
(42 U.S.C. 11383(b)(1), 11383(b)(3)).
    (b) Repayment of grant and prevention of undue benefits. In 
accordance with section 423(c) of the McKinney Act (42 U.S.C. 
11383(c)), HUD will require recipients to repay the grant unless HUD 
has authorized conversion of the project under section 423(b)(3) of the 
McKinney Act (42 U.S.C. 11383(b)(3)).
    10. Section 583.325 is amended by revising paragraph (b) to read as 
follows:


Sec. 583.325  Nondiscrimination and equal opportunity requirements.

* * * * *
    (b) Nondiscrimination and equal opportunity requirements. The 
nondiscrimination and equal opportunity requirements set forth at part 
5 of this title apply to this program. The Indian Civil Rights Act (25 
U.S.C. 1301 et seq.) applies to tribes when they exercise their powers 
of self-government, and to Indian housing authorities (IHAs) when 
established by the exercise of such powers. When an IHA is established 
under State law, the applicability of the Indian Civil Rights Act will 
be determined on a case-by-case basis. Projects subject to the Indian 
Civil Rights Act must be developed and operated in compliance with its 
provisions and all implementing HUD requirements, instead of title VI 
and the Fair Housing Act and their implementing regulations.
* * * * *


Sec. 583.405  [Amended]

    11. In Sec. 583.405, paragraph (a)(1) is amended by removing the 
term ``CHAS'', and by adding in its place the term ``consolidated 
plan''.

    Dated: September 23, 1996.
Andrew M. Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-24873 Filed 9-27-96; 8:45 am]
BILLING CODE 4210-29-P