[Federal Register Volume 61, Number 194 (Friday, October 4, 1996)]
[Rules and Regulations]
[Pages 52186-52187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25298]



[[Page 52185]]


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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 585



Opportunities for Youth; Youthbuild Program Streamlining; Amendment of 
Interim Rule; Final Rule

  Federal Register / Vol. 61, No. 194 / Friday, October 4, 1996 / Rules 
and Regulations  

[[Page 52186]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 585

[Docket No. FR-4038-N-02]
RIN 2506-AB79


Office of the Assistant Secretary for Community Planning and 
Development; Opportunities for Youth: Youthbuild Program Streamlining; 
Amendment of Interim Rule

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

ACTION: Final rule.

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SUMMARY: This final rule amends the interim rule which amended the 
regulations for the Youthbuild Program to define administrative costs 
for which Youthbuild funds may be expended. This final rule also makes 
streamlining amendments to part 585.

EFFECTIVE DATE: November 4, 1996.

FOR FURTHER INFORMATION CONTACT: The Office of Economic Development, 
Department of Housing and Urban Development, Room 7136, 451 Seventh 
Street, SW, Washington, DC 20410. Telephone (202) 708-2035; TTY (202) 
708-1455. (These telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Background

    Section 164 of the Housing and Community Development Act of 1992 
(Pub.L. 102-550) amended title IV of the National Affordable Housing 
Act (42 U.S.C. 1437aaa) to add a new subtitle D which established the 
Youthbuild program. On February 21, 1995, the Department published a 
final rule at 60 FR 9734, which is codified at 24 CFR Part 585.

Amendment of Interim Rule

    On May 17, 1996, the Department published an interim rule which 
further addressed the use of Youthbuild funds for administrative costs, 
including overhead and salaries and wages associated with an 
implementation grant. The public comment period on the interim rule 
expired on July 1, 1996. Fourteen commenters responded: Ten recipients 
of Youthbuild funds, one potential grant operator, one certified public 
accounting firm, and two national organizations. Overall, the 
commenters believe that the rule diminishes the quality of the program 
and is contrary to the goal of increasing the number of young adults in 
Youthbuild programs. The commenters believe that it is contradictory to 
the guiding principles in HUD's Community Planning and Development 
programs and hampers the comprehensive approach to the program. The 
commenters also assert that Youthbuild has worked up until now because 
HUD has recognized the need to stimulate community investment and 
support for Youthbuild's success and that the interim rule starts the 
unraveling of this philosophy by weakening the infrastructure that 
guides the Youthbuild program. The Department welcomes the comments of 
the grantees and participants in the Youthbuild Program, and therefore 
in recognition of the overwhelming criticism of the May 17, 1996 
interim rule, the Department criticism of the May 17, 1996 interim 
rule, the Department further amends Sec. 585.305(m) by removing 
paragraphs (m)(1) and (m)(2) which were added by the interim rule.

Streamlining of Part 585

    President Clinton's memorandum of March 4, 1995, titled 
``Regulatory Reinvention Initiative'' directed heads of Federal 
departments and agencies to review all existing regulations to 
eliminate those that are outdated and modify others to increase 
flexibility and reduce burden. As a part of HUD's overall effort to 
reduce regulatory burden and streamline the content of title 24 of the 
Code of Federal Regulations, this rule removes those provisions which 
are unnecessary to be codified and can be made available through other 
non-rulemaking means.
    The Youthbuild program is authorized under subtitle D of title IV 
of the National Affordable Housing Act (42 U.S.C. 12899) (``NAHA''), as 
added by section 164 of the Housing and Community Development Act of 
1992 (Pub. L. 102-550). Several provisions of the Youthbuild 
regulations repeat statutory language from the legislation. It is 
unnecessary to maintain statutory requirements in the Code of Federal 
Regulations (CFR), since these requirements are otherwise fully 
accessible and binding. Furthermore, if regulations contain statutory 
language, HUD must amend the regulations whenever Congress amends the 
statute. This final rule removes repetitious statutory language and 
replaces it with a citation to the specific statutory section for easy 
reference. The following streamlining amendments are made, therefore, 
by this rule:
    1. Section 585.2 Program Purpose is amended to state that the 
purpose is set out in section 451 of NAHA.
    2. Section 585.4 Definitions is amended to remove the definitions 
for ``adjusted income,'' ``community based organization,'' ``homeless 
individual,'' ``housing development agency,'' ``Indian tribe,'' 
``individual who has dropped out of high school,'' ``institution of 
higher education,'' ``limited-English proficiency,'' ``low-income 
family,'' ``offender,'' ``State,'' and ``very low-income family.'' An 
introductory statement is added to Sec. 585.4 stating that the 
definitions for these terms can be found in section 457 of NAHA.
    3. Section 585.309 Project-related restrictions applicable to 
Youthbuild residential rental housing is amended to revise paragraph 
(e) to state that the monthly rental limitation and the profit 
limitations on partners can be found in sec. 455(c)(1) and (2) of NAHA, 
respectively. The same amendment is made to Sec. 585.310 Project-
related restrictions applicable to Youthbuild transitional housing for 
the homeless.
    4. Section 585.312 Wages, labor standards, and nondiscrimination is 
revised to state that the applicable provisions are set out in sec. 
456(e) of NAHA.

Justification for Final Rule on Streamlining Provisions

    HUD generally publishes a rule for public comment before issuing a 
rule for effect, in accordance with its own 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). HUD finds that good cause exists 
to publish this rule for effect without first soliciting public comment 
on the streamlining provisions. The streamlining provisions merely 
remove unnecessary regulatory provisions and do not establish or affect 
substantive policy. Therefore, prior public comment is unnecessary.

Findings and Certifications

    (a) Environmental Impact. A Finding of No Significant Impact with 
respect to the environment for this rule has been made in accordance 
with HUD regulations at 24 CFR part 50, which implement section 
102(2)(C) of the National Environmental Policy Act of 1969. The 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

[[Page 52187]]

Seventh Street, SW., Washington, DC 20410.
    (b) Regulatory Flexibility Act. The Secretary, in accordance with 
the Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this 
rule before publication and by approving it certifies that this rule 
will not have a significant economic impact on a substantial number of 
small entities because the rule merely withdraws an interim rule and 
makes nonsubstantive streamlining amendments to part 585.
    (c) 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 does not have ``federalism 
implications'' because it does not have substantial direct effects on 
the States (including their political subdivisions), or on the 
distribution of power and responsibilities among the various levels of 
government.
    (d) 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 a potential significant impact 
on family formation, maintenance, and general well-being. This rule 
merely withdraws an interim rule and makes nonsubstantive streamlining 
amendments to part 585.
    (e) Unfunded Mandates Reform Act. Title II of the Unfunded Mandates 
Reform Act of 1995, Pub. L. 104-4, established requirements for Federal 
agencies to assess the effects of their regulatory actions on State, 
local, and tribal governments and the private sector. This rule does 
not impose any Federal mandates on any State, local, or tribal 
governments or the private sector within the meaning of the Unfunded 
Mandates Reform Act of 1995.
    (f) Catalog of Federal Domestic Assistance. The Catalog of Federal 
Domestic Assistance Program number assigned to this program is 14.243.
    (g) List of Subjects in 24 CFR Part 585. Grant programs--housing 
and community development, Homeless, Low- and very low-income families, 
Reporting and record keeping requirements.

    Accordingly, for the reasons set forth in the preamble, part 585 of 
title 24 of the Code of Federal Regulations is amended as follows:

PART 585--YOUTHBUILD PROGRAM

    1. The authority citation for part 585 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 12899.

    2. Section 585.2 is revised to read as follows:


Sec. 585.2  Program Purpose.

    The purposes of the Youthbuild program are set out in section 451 
of the National Affordable Housing Act (42 U.S.C. 12899) (``NAHA'').
    3. Section 585.4 is amended to remove the definitions for 
``adjusted income,'' ``community based organization,'' ``homeless 
individual,'' ``housing development agency,'' ``Indian tribe,'' 
``individual who has dropped out of high school,'' ``institution of 
higher education,'' ``limited-English proficiency,'' ``low-income 
family,'' ``offender,'' ``State,'' and ``very low-income family'' and 
to add introductory text to read as follows:


Sec. 585.4  Definitions.

    The terms ``adjusted income,'' ``community based organization,'' 
``homeless individual,'' ``housing development agency,'' ``Indian 
tribe,'' ``individual who has dropped out of high school,'' 
``institution of higher education,'' ``limited-English proficiency,'' 
``low-income family,'' ``offender,'' ``State,'' and ``very low-income 
family'' are defined in section 457 of NAHA.
* * * * *


Sec. 585.305  [Amended]

    4. In Sec. 585.305, paragraph (m) is amended to remove paragraphs 
(m)(1) and (m)(2).
    5. Section 585.309 is amended to revise paragraph (e) to read as 
follows:


Sec. 585.309  Project-related restrictions applicable to Youthbuild 
residential rental housing.

* * * * *
    (e) Limitations on profit. Youthbuild residential rental housing 
projects meeting the requirements of this section shall be restricted 
from producing profit in excess of the limitations set out in sections 
455(c)(1) and (2) of NAHA.
* * * * *
    6. Section 585.310 is amended to revise paragraph (a) to read as 
follows:


Sec. 585.310 Project-related restrictions applicable to Youthbuild 
transitional housing for the homeless.

* * * * *
    (a) Limitations on profit. Youthbuild residential rental housing 
projects meeting the requirements of this section shall be restricted 
from producing profit in excess of the limitations set out in sections 
455(c)(1) and (2) of NAHA.
* * * * *
    7. Section 585.312 is revised to read as follows:


Sec. 585.312  Wages, labor standards, and nondiscrimination.

    Applicable provisions are stated in section 456(e) of NAHA.

    Dated: September 24, 1996.
Andrew M. Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-25298 Filed 10-3-96; 8:45 am]
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