[Federal Register Volume 61, Number 190 (Monday, September 30, 1996)]
[Rules and Regulations]
[Pages 51168-51171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24875]



[[Page 51167]]


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Part III





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 582



Shelter Plus Care Program: Streamlining; Final Rule

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

[[Page 51168]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


Office of the Assistant Secretary for Community Planning and 
Development; Shelter Plus Care Program; Streamlining

24 CFR Part 582

[Docket No. FR-4091-F-01]
RIN 2506-AB86
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 Shelter Plus 
Care Housing Program. In an effort to comply with the President's 
regulatory reform initiatives, this rule will streamline the Shelter 
Plus Care regulations by removing provisions that are redundant of 
statutes or are otherwise unnecessary. This final rule will make the 
Shelter Plus Care regulations clearer and more concise.

EFFECTIVE DATE: October 30, 1996.

FOR FURTHER INFORMATION CONTACT: David Pollack, Program Development 
Division, Office of Community Planning and Development, Department of 
Housing and Urban Development, Room 7260, 451 7th Street, SW., 
Washington, DC 20410; telephone (202) 708-1234. (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 1-800-877-
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 582 implement the Department's Shelter Plus Care Program, 
which provides rental assistance that is matched with supportive 
services for hard-to-serve homeless persons with disabilities. In 
developing the regulations for the Shelter Plus Care, 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 as much discretion and flexibility as possible. See, for 
example, the interim rule, published on May 10, 1994 (59 FR 24252). The 
Department has determined that it can further improve and streamline 
the regulations for the Shelter Plus Care program.
    This final rule makes the following specific amendments to part 
582:
    (1) Amends the first sentence of Sec. 582.1 regarding the 
authorizing statute--the Stewart B. McKinney Homeless Assistance Act--
in order to facilitate references to the statute throughout the 
regulations;
    (2) Replaces many of the definitions in Sec. 582.5 that are 
redundant of the statute with references to the pertinent statutory 
sections;
    (3) Removes the rating criteria for applications in Sec. 582.200(b) 
that repeat statute and adds cross-reference to the statute;
    (4) Revises Sec. 582.230 to add provisions on nonrecipient 
responsible entities assuming HUD environmental review responsibilities 
under the SRO component of the program. These revisions conform 
Sec. 582.230 to 24 CFR part 58 as revised at 60 FR 13518, March 13, 
1995, and at 60 FR 48610, September 19, 1995;
    (5) Removes provisions in Sec. 582.310 that repeat the text of 
section 3(a)(1) of the United States Housing Act of 1937; and
    (6) Makes several conforming amendments to Secs. 582.105, 582.300, 
582.305, and 582.340.

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 merely 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 streamlines 
the Shelter Plus Care 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 developed the regulations 
in part 582, 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.

Unfunded Mandates Reform Act

    The Secretary has reviewed this rule before publication and by 
approving it certifies, in accordance with the Unfunded Mandates Reform 
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal 
mandate that will result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. This rule is

[[Page 51169]]

limited to removing those unnecessary provisions in the Shelter Plus 
Care Program regulations.

Catalog

    The Catalog of Federal Domestic Assistance number is 14.238, 
Shelter Plus Care.

List of Subjects in 24 CFR Part 582

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

    Accordingly, for the reasons set forth in the preamble, 24 CFR part 
582 is amended as follows:

PART 582--SHELTER PLUS CARE

    1. The authority citation for 24 CFR part 582 is revised to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 11403-11407b.

    2. Section 582.1 is amended by revising the first sentence in 
paragraph (a) and by revising paragraph (b), to read as follows:


Sec. 582.1  Purpose and scope.

    (a) General. The Shelter Plus Care program (S+C) is authorized by 
title IV, subtitle F, of the Stewart B. McKinney Homeless Assistance 
Act (the McKinney Act) (42 U.S.C. 11403-11407b). * * *
* * * * *
    (b) Components. Rental assistance is provided through four 
components described in Sec. 582.100. Applicants may apply for 
assistance under any one of the four components, or a combination.
    3. Section 582.5 is revised to read as follows:


Sec. 582.5  Definitions.

    The terms Fair Market Rent (FMR), HUD, Public Housing Agency (PHA), 
Indian Housing Authority (IHA), and Secretary are defined in 24 CFR 
part 5.
    As used in this part:
    Acquired immunodeficiency syndrome (AIDS) and related diseases has 
the meaning given in section 853 of the AIDS Housing Opportunity Act 
(42 U.S.C. 12902).
    Applicant has the meaning given in section 462 of the McKinney Act 
(42 U.S.C. 11403g).
    Eligible person means a homeless person with disabilities 
(primarily persons who are seriously mentally ill; have chronic 
problems with alcohol, drugs, or both; or have AIDS and related 
diseases) and, if also homeless, the family of such a person. To be 
eligible for assistance, persons must be very low income, except that 
low-income individuals may be assisted under the SRO component in 
accordance with 24 CFR 813.105(b).
    Homeless or homeless individual has the meaning given in section 
103 of the McKinney Act (42 U.S.C. 11302).
    Indian tribe has the meaning given in section 102 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5302).
    Low-income means an annual income not in excess of 80 percent of 
the median income for the area, as determined by HUD. HUD may establish 
income limits higher or lower than 80 percent of the median income for 
the area on the basis of its finding that such variations are necessary 
because of the prevailing levels of construction costs or unusually 
high or low family incomes.
    Nonprofit organization has the meaning given in section 104 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704). 
The term nonprofit organization also includes a community mental health 
center established as a public nonprofit organization.
    Participant means an eligible person who has been selected to 
participate in S+C.
    Person with disabilities means a household composed of one or more 
persons at least one of whom is an adult who has a disability.
    (1) A person shall be considered to have a disability if such 
person has a physical, mental, or emotional impairment which is 
expected to be of long-continued and indefinite duration; substantially 
impedes his or her ability to live independently; and is of such a 
nature that such ability could be improved by more suitable housing 
conditions.
    (2) A person will also be considered to have a disability if he or 
she has a developmental disability, which is a severe, chronic 
disability that--
    (i) Is attributable to a mental or physical impairment or 
combination of mental and physical impairments;
    (ii) Is manifested before the person attains age 22;
    (iii) Is likely to continue indefinitely;
    (iv) Results in substantial functional limitations in three or more 
of the following areas of major life activity:
    (A) Self-care;
    (B) Receptive and expressive language;
    (C) Learning;
    (D) Mobility;
    (E) Self-direction;
    (F) Capacity for independent living; and
    (G) Economic self-sufficiency; and
    (v) Reflects the person's need for a combination and sequence of 
special, interdisciplinary, or generic care, treatment, or other 
services which are of lifelong or extended duration and are 
individually planned and coordinated.
    (3) Notwithstanding the preceding provisions of this definition, 
the term person with disabilities includes, except in the case of the 
SRO component, two or more persons with disabilities living together, 
one or more such persons living with another person who is determined 
to be important to their care or well-being, and the surviving member 
or members of any household described in the first sentence of this 
definition who were living, in a unit assisted under this part, with 
the deceased member of the household at the time of his or her death. 
(In any event, with respect to the surviving member or members of a 
household, the right to rental assistance under this part will 
terminate at the end of the grant period under which the deceased 
member was a participant.
    Recipient means an applicant approved to receive a S+C grant.
    Seriously mentally ill has the meaning given in section 462 of the 
McKinney Act (42 U.S.C. 11403g).
    Single room occupancy (SRO) housing means a unit for occupancy by 
one person, which need not but may contain food preparation or sanitary 
facilities, or both.
    Sponsor means a nonprofit organization which owns or leases 
dwelling units and has contracts with a recipient to make such units 
available to eligible homeless persons and receives rental assistance 
payments under the SRA component.
    State has the meaning given in section 462 of the McKinney Act (42 
U.S.C. 11403g).
    Supportive service provider, or service provider, means a person or 
organization licensed or otherwise qualified to provide supportive 
services, either for profit or not for profit.
    Supportive services means assistance that--
    (1) Addresses the special needs of eligible persons; and
    (2) Provides appropriate services or assists such persons in 
obtaining appropriate services, including health care, mental health 
treatment, alcohol and other substance abuse services, child care 
services, case management services, counseling, supervision, education, 
job training, and other services essential for achieving and 
maintaining independent living.

(Inpatient acute hospital care does not qualify as a supportive 
service.).

    Unit of general local government has the meaning given in section 
102 of the Housing and Community Development Act of 1974 (42 U.S.C. 
5302).

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    Very low-income means an annual income not in excess of 50 percent 
of the median income for the area, as determined by HUD, with 
adjustments for smaller and larger families. HUD may establish income 
limits higher or lower than 50 percent of the median income for the 
area on the basis of its finding that such variations are necessary 
because of unusually high or low family incomes.


Sec. 582.105   [Amended]

    4. In Sec. 582.105, paragraph (a) is amended by removing the words 
``paragraph (f)'' and adding, in their place, the words ``paragraph 
(e)''; and paragraph (d)(2) is amended by removing the word 
``paragraph'' and adding, in its place, the words ``paragraph (d)''.
    5. Section 582.200 is revised to read as follows:


Sec. 582.200   Application and grant award.

    (a) Review. When funds are made available for assistance, HUD will 
publish a notice of fund availability in the Federal Register in 
accordance with the requirements of 24 CFR part 4. Applications will be 
reviewed and screened in accordance with the guidelines, rating 
criteria and procedures published in the notice.
    (b) Rating criteria. HUD will award funds based on the criteria 
specified in section 455(a)(1) through (8) of the McKinney Act (42 
U.S.C. 11403d(1)--11403d(8)) and on the following criteria authorized 
by section 455(a)(9) of the McKinney Act (42 U.S.C. 11403d(9)):
    (1) The extent to which the applicant has demonstrated coordination 
with other Federal, State, local, private and other entities serving 
homeless persons in the planning and operation of the project, to the 
extent practicable;
    (2) Extent to which the project targets homeless persons living in 
emergency shelters, supportive housing for homeless persons, or in 
places not designed for, or ordinarily used as, a regular sleeping 
accommodation for human beings;
    (3) Quality of the project; and
    (4) Extent to which the program will serve homeless persons who are 
seriously mentally ill, have chronic alcohol and/or drug abuse 
problems, or have AIDS and related diseases.

(Approved by the Office of Management and Budget under control 
number 2506-0118)

    6. Section 582.230 is revised to read as follows:


Sec. 582.230   Environmental review requirements.

    (a) Responsibility for review. (1) HUD will perform the 
environmental review, in accordance with part 50 of this title, for 
conditionally selected applications received from PHA applicants and 
from IHA applicants. HUD is not permitted to approve such applications 
prior to its completion of this review, nor is the PHA or IHA permitted 
to enter into a contract for, or otherwise commit HUD or local funds 
for, acquisition, rehabilitation, conversion, lease, repair, or 
construction of property to provide housing under the program, prior to 
HUD's completion of this review and approval of the application, except 
under the SRO component.
    (2) Applicants that are States, units of general local government, 
or Indian tribes must assume responsibility as ``responsible entities'' 
for environmental review, decisionmaking, and action for each 
application for assistance in accordance with part 58 of this title. In 
addition, for PHA projects and IHA projects under the SRO component, 
environmental reviews will be performed by State, local government, 
Indian tribe, or Alaska native village ``nonrecipient responsible 
entities'' as provided under part 58 of this title. HUD is permitted to 
approve such applications subject to the completion of reviews by the 
applicant in accordance with part 58 of this title. Applicants 
performing these reviews may adopt relevant and adequate prior reviews 
conducted by HUD or another governmental entity if the reviews meet the 
particular requirements of the Federal environmental law or authority 
under which they would be adopted, and only under certain conditions 
(e.g., a determination that no environmentally significant changes have 
occurred since the review was done). Applicants who adopt such relevant 
and adequate prior reviews may include the environmental certification 
and Request for Release of Funds with their applications.
    (b) Environmental review by HUD. With regard to the environmental 
effects of applications for which HUD performs the review, HUD will 
undertake its review in accordance with the provisions of NEPA and the 
related authorities listed in 24 CFR 50.4. HUD may eliminate an 
application from consideration where the application would require an 
Environmental Impact Statement (EIS). PHA applicants and IHA applicants 
(other than under the SRO component) must include in their application 
an assurance that the applicant will:
    (1) Not enter into a contract for, or otherwise commit HUD or local 
funds for, acquisition, rehabilitation, conversion, lease, repair, or 
construction of property to provide housing under the program, prior to 
HUD's completion of the review and approval of the application;
    (2) Supply HUD with information necessary for HUD to perform any 
applicable environmental review when requested under Sec. 582.225(a); 
and
    (3) Carry out mitigating measures required by HUD or ensure that 
alternate sites are utilized.
    (c) Environmental review by applicants or nonrecipient responsible 
entities. (1) An applicant that is required under paragraph (a)(2) of 
this section to assume environmental review responsibility must include 
in its application an assurance that the applicant 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 58.5. A PHA or IHA applicant under the SRO 
component must include in its application an assurance by the 
nonrecipient responsible entity that the entity 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 58.5.
    (2) For applicants required to assume environmental review 
responsibility and for PHAs and IHAs under the SRO component, the award 
of funding 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. (This provision does not 
preclude the applicant from enclosing its environmental certification 
and Request for Release of Funds with its application.)
    (i) Upon completion of the requirements in 24 CFR part 58:
    (A) Applicants required to assume environmental review 
responsibility must certify the completion;
    (B) PHA and IHA applicants under the SRO component must submit the 
nonrecipient responsible entities' certification of completion; and
    (C) All applicants must submit a Request for Release of Funds. This 
submission is not required in cases in which the applicant determines, 
in accordance with part 58 that its program components are totally 
exempt.
    (ii) HUD will not release grant funds if the recipient or any other 
party commits grant funds (i.e., incurs any costs or expenditures to be 
paid or reimbursed with such funds) before the grantee submits and HUD 
approves its Request for Release of Funds (when such submission is 
required).

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Sec. 582.300  [Amended]

    6. In Sec. 582.300, paragraph (a)(1) is amended by removing the 
words ``Sec. 582.340(e)'' and adding, in their place, the words 
``Sec. 582.340(b)''.


Sec. 582.305  [Amended]

    7. In Sec. 582.305, paragraph (a) is amended by removing the words 
``882.109'' and adding, in their place, the words ``982.401''.
    8. In Sec. 582.310, paragraph (a) is revised to read as follows:


Sec. 582.310  Resident rent.

    (a) Amount of rent. Each participant must pay rent in accordance 
with section 3(a)(1) of the U.S. Housing Act of 1937 (42 U.S.C. 
1437a(3)(1)), except that the gross income of a person occupying an 
intermediate care facility assisted under title XIX of the Social 
Security Act is the same as if the person were being assisted under 
title XVI of the Social Security Act.
* * * * *
    9. Section 582.340 is amended by:
    a. Revising paragraph (a)(1);
    b. In paragraphs (b)(2) and (b)(3)(iv), removing the words 
``paragraph (e)(1)'', each place they appear and adding in each place, 
the words ``paragraph (b)(1)'';
    c. Revising paragraph (b)(2)(i); and
    d. In the introductory text of paragraph (b)(3), removing the words 
``paragraph (e)(2)'' and adding, in their place, the words ``paragraph 
(b)(2)'', to read as follows:


Sec. 582.340  Other Federal requirements.

    (a) * * *
    (1) The policies, guidelines, and requirements of OMB Circular No. 
A-87 (Cost Principles Applicable to Grants, Contracts and Other 
Agreements with State and Local Governments) and 24 CFR part 85 apply 
to the acceptance and use of assistance under the program by 
governmental entities, and OMB Circular Nos. A-110 (Grants and 
Cooperative Agreements with Institutions of Higher Education, 
Hospitals, and Other Nonprofit Organizations) and 24 CFR part 84 and A-
122 (Cost Principles Applicable to Grants, Contracts and Other 
Agreements with Nonprofit Institutions) apply to the acceptance and use 
of assistance by private nonprofit organizations, except where 
inconsistent with provisions of the McKinney Act, other Federal 
statutes, or this part. (OMB Circulars are available from the Executive 
Office of the President, Publication Service, 725 17th Street, N.W., 
Suite G-2200, Washington, DC 20503, Telephone 202-395-7332.)
    (b) * * *
    (2) * * *
    (i) For States, units of general local governments, PHAs and IHAs, 
a disclosure of the nature of the conflict, accompanied by an assurance 
that there has been public disclosure of the conflict and a description 
of how the public disclosure was made; and
* * * * *
    Dated: September 23, 1996.
Andrew M. Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-24875 Filed 9-27-96; 8:45 am]
BILLING CODE 4210-29-P