[Federal Register Volume 61, Number 205 (Tuesday, October 22, 1996)]
[Rules and Regulations]
[Pages 54914-54922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26957]



[[Page 54913]]


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Part IV





Department of Housing and Urban Development





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24 CFR Parts 91 and 570



Community Development Block Grant Program for States; Community 
Revitalization Strategy Requirements and Miscellaneous Technical 
Amendments; Interim Rule

  Federal Register  /  Vol. 61, No. 205 / Tuesday, October 22, 1996  /  
Rules and Regulations  

[[Page 54914]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 91 and 570

[Docket No. FR-4081-I-01]
RIN 2502-AB83


Community Development Block Grant Program for States; Community 
Revitalization Strategy Requirements and Miscellaneous Technical 
Amendments; Interim Rule

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

ACTION: Interim rule.

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SUMMARY: This interim rule contains changes to the regulations for the 
State Community Development Block Grant (CDBG) program and the 
Consolidated Plan. These revisions fall into three categories: 
implementation of the community revitalization strategies concept into 
the State program; technical amendments to correct inaccurate or 
obsolete regulatory citations and to reinstate language that was 
inadvertently deleted by the publication of the Consolidated Plan 
regulations on January 5, 1995; and technical amendments to implement 
statutory changes or clarify existing regulatory language affecting 
eligibility and compliance with national objectives for certain 
activities.

DATES: Effective date: November 21, 1996. The information collection 
requirements in Sec. 91.315(e)(2) of this interim rule, however, will 
not be effective until the Office of Management and Budget (OMB) has 
approved them under the Paperwork Reduction Act of 1995 and assigned 
them a control number. Publication of the control numbers notifies the 
public that OMB has approved these information collection requirements. 
A document announcing the effective date of Sec. 91.315(e)(2) will be 
published in the Federal Register at a later date.
    Deadline for comments on the interim rule: February 16, 1997.
    Deadline for comments on the proposed information collection 
requirements: December 23, 1996.

ADDRESSES: HUD invites interested persons to submit comments regarding 
this interim rule to the Rules Docket Clerk, Office of General Counsel, 
Room 10276, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410. Communications should refer to the 
above docket number and title. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 7:30 a.m. and 5:30 p.m. 
weekdays at the above address.
    HUD also invites interested persons to submit comments on the 
proposed information collection requirements in this interim rule. 
Comments should refer to the above docket number and title, and should 
be sent to the Office of Information and Regulatory Affairs, Office of 
Management and Budget, Attention: Desk Officer for HUD, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Steve Johnson, Assistant Director, 
State & Small Cities Division, Room 7184, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410; 
telephone number (202) 708-1322. FAX inquiries (but not comments on the 
interim rule) may be sent to Mr. Johnson at (202) 708-2575. (These 
numbers are not toll-free.) Hearing- or speech-impaired persons may 
access that number via TTY by calling the Federal Information Relay 
Service toll free at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    This interim rule revises the regulations for the State Community 
Development Block Grant (CDBG) program (24 CFR part 570) and for the 
Consolidated Submissions for Community Planning and Development 
Programs (24 CFR part 91) to provide additional flexibility to States 
in implementing their programs, to correct several inaccurate 
regulatory citations, and to correct several other errors that resulted 
from previous regulation changes. Specifically, this interim rule 
contains: (1) Changes to the consolidated plan action plan regarding 
the standard of review; (2) Changes to the consolidated plan action 
plan to allow for community revitalization strategies; (3) Changes to 
the low and moderate income benefit national objective criteria and 
public benefit standards regarding community revitalization strategies; 
(4) Additional changes to the low and moderate income benefit national 
objective criteria regarding limited clientele activities, removal of 
architectural barriers, and housing services; (5) A change regarding 
HUD approval of States' grants; and (6) Various technical and 
conforming changes to the State CDBG regulations, in association with 
the above changes or to correct inaccurate regulatory citations. The 
preamble of this interim rule describes each of these changes.

II. Community Revitalization Strategies

    In the final rule for the Consolidated Submission for Community 
Planning and Development Programs, published in the Federal Register on 
January 5, 1995 (60 FR 1878), HUD gave Entitlement communities the 
option of developing a strategy for revitalizing particular 
neighborhoods. A community that elected to follow this approach, and 
whose strategy was approved, would be allowed greater flexibility in 
meeting certain national objectives and public benefit requirements. 
HUD noted in the preamble to the concurrent CDBG Program Economic 
Development Guidelines final rule (January 5, 1995; 60 FR 1922) that 
HUD was not incorporating the concept into the State CDBG program at 
that time because significant issues remained unresolved regarding how 
to apply the concept in non-Entitlement communities (60 FR 1929).
    Following additional study of the concept and consultation with 
States, this interim rule introduces the community revitalization 
strategy concept into the State CDBG program. In the CDBG Entitlement 
program, revitalization strategies are called ``neighborhood 
revitalization strategies.'' The State CDBG program uses the more 
generic term ``community revitalization strategies.'' The essential 
concept is very similar for both programs, but the nature of the area 
covered may be quite different. HUD has consciously avoided referring 
to ``neighborhood'' strategies in the State CDBG program; the concept 
of a ``neighborhood'' is not meaningful or definable in many small 
communities and rural areas.
    This interim rule amends Sec. 91.315 of the Consolidated Plan 
regulations by adding a new paragraph (e)(2), which provides that 
States may (at their option) allow units of general local government to 
develop and implement community revitalization strategies. The State 
CDBG regulations allow such communities additional flexibility in 
meeting certain national objectives and public benefit requirements. 
Responsibility for approving individual revitalization strategies from 
units of local government lies with the State. States wishing to take 
advantage of this approach will need to ensure that the Method of 
Distribution in their consolidated plan action plans reflect the 
States' processes and criteria for approving local revitalization 
strategies. The normal CDBG requirement that States consult with units 
of local government in developing their method of distribution also 
applies to States'

[[Page 54915]]

development of their community revitalization strategy implementation 
approaches.
    HUD has crafted this approach to give States maximum flexibility in 
implementing the revitalization strategy concept (including the choice 
of whether or not to implement it). Before implementing its approach to 
revitalization strategies, a State must submit for HUD approval a 
description of its implementation approach; approval of a consolidated 
plan action plan will not constitute automatic approval of the State's 
approach to revitalization strategies. HUD intends that approval of 
States' submissions will occur at the field office level. HUD will 
establish the parameters within which States may design approaches that 
best meet their communities' needs. HUD will not establish the overall 
design parameters and strategy approval process by regulation; instead 
HUD will distribute this guidance to both States and HUD field office 
staff in the form of a notice.
    The extent to which a State will need to alter its method of 
distribution depends on how the State intends to implement the 
revitalization strategy concept and on the nature of its present method 
of distribution. A State may choose to establish a separate funding 
category for revitalization strategy projects; alternatively, a State 
might retain its existing funding categories and award bonus points to 
an applicant whose application was developed pursuant to a strategy. In 
such cases, a State would need to describe explicitly in the method of 
distribution its criteria and process for approving local strategies. 
In contrast, a State may decide that its existing funding process can 
incorporate the revitalization strategy concept without altering the 
method of distribution.
    HUD believes that an essential component of the revitalization 
strategy concept is the provision of economic opportunities to 
residents of revitalization strategy areas. Revitalization strategies 
are a means for holistically addressing the identified needs of a 
targeted area. A number of States presently have funding categories 
such that localities may apply for a combination of activities to be 
carried out in a defined target area. States' methods of distribution 
often refer to these as ``comprehensive'' applications. HUD cautions 
States, however, that the community revitalization strategy concept, as 
HUD envisions it, may be more geographically focused and encompass a 
wider variety of activities (particularly concerning economic 
empowerment) than is presently provided for in typical 
``comprehensive'' funding categories.
    Several corresponding changes to the CDBG eligibility and national 
objectives requirements (discussed below) further implement the 
revitalization concept.

A. Public Services

    This interim rule expands the list of activities that may be 
excluded from the limitations on public services. Section 570.482(d) 
currently excludes those public service activities specifically 
designed to increase economic opportunities by supporting the 
development of permanent jobs. This interim rule amends Sec. 570.482 by 
adding a new paragraph (d)(3), which excludes services of any type 
carried out pursuant to a community revitalization strategy approved by 
a State.

B. Public Benefit Standards

    This interim rule amends Sec. 570.482(f)(3)(v) by adding two 
additional types of activities to the list of ``important national 
interest'' activities for which the public benefit standards allow 
extra flexibility. Certain economic development activities that provide 
services to residents of a revitalization strategy area, or that create 
or retain jobs in such an area, may now be excluded from the aggregate 
public benefit standards for economic development activities in 
Sec. 570.482(f)(2).

C. Low and Moderate Income Benefit National Objective

    The State CDBG regulations prior to this interim rule provided 
additional flexibility to certain job creation/retention and housing 
activities undertaken by Community Development Financial Institutions. 
In certain circumstances, jobs created or retained and housing units 
assisted may be aggregated to demonstrate compliance with the national 
objectives, as required under 104(b)(3) of the Housing and Community 
Development Act of 1974, as amended (the Act), and as provided in 
Sec. 570.483 of the regulations. This interim rule provides similar 
flexibility to activities carried out pursuant to an approved 
revitalization strategy. Job creation or retention activities 
undertaken in an area pursuant to an approved revitalization strategy 
may be treated as meeting the national objective of benefiting a low 
and moderate income area. Provision or improvement of multiple housing 
units pursuant to an approved revitalization strategy may be treated as 
one structure in demonstrating low and moderate income benefit.
    To ensure targeting of CDBG resources through community 
revitalization strategy areas to the most needy areas, the area benefit 
presumption is limited to areas that meet certain need indicators. 
Therefore, this interim rule provides in Sec. 570.483(b)(1)(v) that 
strategy areas must be in one of the following areas:
    (1) A Federally-designated Empowerment Zone or Enterprise 
Community; or
    (2) A primarily residential area that contains at least 70 percent 
low and moderate income residents; or
    (3) A primarily residential area where all the census tracts (or 
block numbering areas) have poverty rates of at least 20 percent and at 
least 90 percent of all the census tracts/block numbering areas have 
poverty rates of at least 25 percent.
    The 70 percent low and moderate income threshold applies to the 
entire area. The 20 and 25 percent poverty rates thresholds are adopted 
from the Empowerment Zone/Enterprise Community legislation (section 
13301 of the Omnibus Budget Reconciliation Act of 1993, 26 U.S.C. 
1392(a)(4)). Consistent with that program, the poverty criteria are 
applied on a census-tract-by-census-tract basis. This does not mean 
that the boundaries of the community revitalization strategy areas must 
coincide with census tract/block numbering area boundaries. If only 
part of a census tract/block numbering area will be included in a 
strategy area, the poverty rate for those block groups within the 
strategy area should be calculated and used instead of the poverty rate 
for the entire census tract/block numbering area.
    For individual strategy areas, a State may request an exception to 
either the 70 percent low and moderate income threshold or the 25 
percent poverty threshold. In no case, however, will HUD approve a 
revitalization strategy for an area that has neither a 20 percent 
poverty rate for all census tracts nor 51 percent of its residents 
qualifying as low and moderate income. HUD field offices will review 
and approve exceptions on a case-by-case basis only. HUD envisions that 
it will grant exceptions only for unusual circumstances, in which 
strong targeting of benefits to low and moderate income purposes can 
still be shown. HUD will not entertain requests for ``blanket'' 
exceptions covering all proposed strategy areas in a State.

[[Page 54916]]

III. Technical Amendments to State CDBG and Consolidated Plan 
Regulations

A. State CDBG Waiver Provisions

    On February 9, 1996 (61 FR 5198), HUD published a final rule 
entitled ``General HUD Program Requirements; Cross-Cutting 
Requirements,'' which created a new 24 CFR part 5. This final rule 
consolidates in part 5 various definitions and cross-cutting 
requirements that are common to many HUD programs. Consolidating these 
requirements eliminated the redundancy of repeating requirements or 
definitions that apply to more than one program. Section 5.110 contains 
HUD's provision for granting waivers of regulations. The February 9, 
1996 final rule, however, inadvertently failed to revise the existing 
State CDBG Program waiver provision at Sec. 570.480(b). This interim 
rule revises Sec. 570.480(b) to refer to HUD's waiver authority in part 
5 and HUD's statutory authority (under section 122 of the Act) to 
suspend requirements in Presidentially-declared disaster areas.

B. Low and Moderate Income National Objective Criteria

    This interim rule changes several of the criteria for demonstrating 
compliance with the national objective of benefitting low and moderate 
income persons. HUD made similar changes to the CDBG Entitlement 
regulations in a final rule published on November 9, 1995 (60 FR 
56892). Making similar changes to the State CDBG regulations will 
provide States the same flexibility and maintain consistency between 
the requirements of the State program and the Entitlement program.
    1. Limited clientele activities. This interim rule changes the list 
of clientele groups in Sec. 570.483(b)(2)(ii)(A) that HUD presumes to 
be principally of low and moderate income. This interim rule adds the 
term ``persons living with AIDS'' to the list of ``presumed'' low/
moderate income groups. Reliable national data from the Center for 
Disease Control in Atlanta, Georgia supports a reasonable presumption 
that at least 51 percent of such persons in a given geographic area are 
low and moderate income.
    This interim rule also replaces the term ``handicapped'' with terms 
compatible with available income data on persons with a disability 
provided by the Bureau of the Census' Current Population Reports. The 
data, issued in 1993 from the Survey of Income and Program 
Participation, justify a national presumption that adults meeting the 
Census criteria for ``severe disability'' meet the low and moderate 
income national objective under the CDBG program. The Census definition 
of ``severe disability'' only applies in the CDBG program for purposes 
of making presumptions about income levels for groups of disabled 
persons; it does not apply for purposes of meeting responsibilities 
under section 504 of the Rehabilitation Act of 1973, the Americans With 
Disabilities Act, or the Architectural Barriers Act. Therefore, HUD is 
changing the terminology in this interim rule to clarify the 
distinction between the income presumption provision and the civil 
rights requirements.
    2. Architectural Barriers Removal. This change clarifies provisions 
under which the use of CDBG funds is authorized for the removal of 
barriers to accessibility for elderly and disabled persons. Section 
105(a)(5) of the Act (42 U.S.C. 5305(a)(5)) makes eligible the use of 
program funds for special projects directed to the removal of material 
and architectural barriers that restrict the mobility and accessibility 
of elderly and handicapped persons. Under current law and regulation, 
this provision has very limited usefulness and has caused confusion. It 
is important that the regulations clearly state how CDBG funds may be 
used for barrier removal. The real questions arise with respect to 
compliance with the national objectives. Virtually all public 
facilities and improvements serve an area generally and are thus 
subject to the limitations imposed by section 105(c)(2) of the Act. 
Section 105(c)(2) states that activities that serve an area generally 
may be considered to address the national objective of benefit to low 
and moderate income persons only if the percentage of residents in the 
service area who are of such income meets certain minimum levels. The 
present regulations implement this limitation in Sec. 570.483(b)(1). 
Where accessibility barriers exist in a facility or improvement that 
serves an area that does not meet this requirement, the use of CDBG 
funds to remove such barriers can be problematic. This interim rule 
revises Sec. 570.483(b)(2)(iii) to clarify the circumstances in which 
the limited clientele presumption may be applied to such activities.
    3. Housing activities. This interim rule makes two amendments to 
Sec. 570.483(b)(3). First, this interim rule amendment clarifies the 
housing activities that may qualify as benefitting low and moderate 
income persons. The present regulations include ``the acquisition or 
rehabilitation of property.'' This interim rule expands the list to 
indicate that such acquisition or rehabilitation may be undertaken by 
units of general local government, subrecipients, developers, 
homeowners or homebuyers, and nonprofit entities qualifying under 
section 105(a)(15) of the Act.
    Second, this interim rule reflects two statutory changes to 
eligible activities, and it further clarifies HUD's policy regarding 
these changes. Section 105(a)(25) of the Act makes downpayment 
assistance to homebuyers an eligible activity. Section 105(a)(15) of 
the Act makes nonprofit organizations serving the community development 
needs of non-Entitlement communities eligible to receive assistance to 
carry out neighborhood revitalization, community economic development 
and energy conservation projects.
    This interim rule also responds to another statutory change. 
Section 207 of the Multifamily Housing Property Disposition Reform Act 
of 1994 (Pub. L. 103-233; approved April 11, 1994) amended section 
105(a)(21) of the Housing and Community Development Act of 1974. 
Section 105(a)(21) now authorizes housing services, such as housing 
counseling in connection with tenant-based rental assistance and 
affordable housing projects assisted under the HOME Program (title II 
of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-
625, approved November 28, 1990) (NAHA)), energy auditing, preparation 
of work specifications, loan processing, inspections, tenant selection, 
management of tenant-based rental assistance, and other services 
related to assisting owners, tenants, contractors, and other entities 
participating or seeking to participate in housing activities assisted 
under title II of the NAHA. Any costs of delivering the housing 
services made eligible under the amended section 105(a)(21) are also 
eligible.
    HUD reminds States and localities using HOME and CDBG funds 
together that the eligibility and benefit requirements of the two 
programs differ; the HOME term ``project'' and the CDBG term 
``activity'' are not synonymous, and States and localities should 
exercise care in managing and documenting jointly-funded activities. To 
simplify this process, this interim rule creates a new 
Sec. 570.483(b)(3)(iii), stating that when CDBG funds are used for 
housing services eligible under section 105(a)(21) of the Act, such 
funds shall be considered to benefit low and moderate income persons 
when the housing for which the services are provided is to be occupied 
by low and moderate income households. Documentation demonstrating that 
the

[[Page 54917]]

HOME project (or projects) supported by the CDBG housing services 
activity meets the HOME income targeting criteria at 24 CFR 92.252 and 
92.254 are sufficient to demonstrate compliance with this provision.

C. Program Income Requirements

    This interim rule corrects the program income requirements 
contained in Sec. 570.489. The final rule for CDBG Program Economic 
Development Guidelines (January 5, 1995; 60 FR 1922) renumbered 
paragraph (e)(2) of this section as paragraph (e)(3). Within that 
section, however, the final rule did not similarly renumber a reference 
to paragraph (e)(2)(ii) as paragraph (e)(3)(ii). This interim rule 
makes the correction. HUD will soon issue a proposed rule that would 
substantially revise all of paragraph (e). HUD will finalize the 
technical change described above when it finalizes those new program 
income requirements.

D. HUD Actions in Approving Plans and Making Grants

    The CDBG Entitlement program final rule that HUD published on 
November 9, 1995 (60 FR 56892) restored language in the Entitlement 
program regulations that was inadvertently deleted by the Consolidated 
Plan final rule (January 5, 1995; 60 FR 1878). That final rule 
clarified that HUD retains the authority to require additional 
assurances from grantees when substantial evidence exists that a 
certification of future performance is not valid. This authority is in 
addition to the current Consolidated Plan regulations (based on the 
Comprehensive Housing Affordability Strategy statutory language), which 
simply provide for certifications to be wholly accepted or wholly 
rejected. Requiring additional assurances and potentially delaying or 
limiting the grantee's access to funds may trigger CDBG due process 
hearing requirements. Therefore, HUD will coordinate such actions 
between HUD field offices and Headquarters.
    The Consolidated Plan final rule inadvertently deleted a similar 
provision in Sec. 570.485(c) of the State CDBG regulations. This 
interim rule restores this language, which is similar to that found in 
Sec. 570.485(b), except that Sec. 570.485(c) includes references to the 
Consolidated Plan regulations in part 91. This interim rule also makes 
a conforming change to Sec. 91.500(b) of the Consolidated Plan 
regulations by adding a cross-reference to the restored 
Sec. 570.485(c).
    This interim rule makes another technical correction also resulting 
from the Consolidated Plan final rule. Section 570.486(a) requires 
units of general local government to follow the citizen participation 
requirements imposed by the State. The associated requirement for State 
citizen participation processes originally appeared at 
Sec. 570.485(c)(1)(i). The Consolidated Plan final rule moved those 
requirements to Sec. 91.115(e). This interim rule replaces the old 
regulatory citation with the correct one.

E. Other Applicable Laws

    This interim rule applies the requirements of the Architectural 
Barriers Act of 1968 (42 U.S.C. 4151-4157) (the ABA) to the State CDBG 
program. The ABA requires certain Federal and Federally-funded 
buildings and other facilities to be designed, constructed, or altered 
in accordance with standards that ensure accessibility to, and use by, 
persons with physical disabilities. HUD's original CDBG regulations 
required compliance with accessibility standards issued pursuant to the 
ABA (see former 24 CFR 570.606, as issued on November 13, 1974 (39 FR 
40148); and amended on June 28, 1977 (42 FR 33020)). In 1983, HUD 
eliminated the requirement that the Entitlement and HUD-Administered 
Small Cities programs comply with the ABA accessibility standards. HUD 
did not apply the ABA to the State CDBG program when it became 
operational in 1982 (47 FR 15290; April 8, 1982). HUD stated that the 
CDBG program was not statutorily subject to the accessibility standards 
of the ABA, because the CDBG statute does not provide authority for 
imposing design, construction, or alteration standards on CDBG-funded 
facilities, as required by section 4151(3) of the ABA. HUD further 
stated that it had imposed the ABA standards on the CDBG Entitlement 
and Small Cities programs as a regulatory requirement (47 FR 43909). 
HUD noted, however, that some facilities constructed or altered with 
CDBG assistance would remain subject to accessibility standards through 
section 504 of the Rehabilitation Act of 1973.
    Since HUD's decision in 1983 not to require compliance with the ABA 
in the CDBG program, two significant events have caused HUD to 
reconsider this decision. The first event was the passage of the Fair 
Housing Amendments Act of 1988 (Pub. L. 100-430; approved September 13, 
1988) (the Amendments Act), which amended title VIII of the Civil 
Rights Act of 1968 to prohibit discrimination in housing on the basis 
of handicap and familial status. The Amendments Act also makes it 
unlawful to design and construct certain multifamily dwellings for 
first occupancy after March 13, 1991 in a manner that makes them 
inaccessible to persons with disabilities. Further, the Amendments Act 
makes it unlawful to refuse to permit, at the expense of the person 
with a disability, reasonable modifications to existing premises 
occupied or to be occupied by such person if such modifications are 
necessary to afford such person full enjoyment of the premises.
    The second event was the passage of the Americans with Disabilities 
Act (Pub. L. 101-336; approved July 26, 1990) (the ADA), which provides 
comprehensive civil rights to individuals with disabilities in the 
areas of employment, public accommodations, State and local government 
services, and telecommunications. The ADA provides that discrimination 
includes a failure to design and construct facilities for first 
occupancy no later than January 26, 1993 that are readily accessible to 
and usable by individuals with disabilities. Further, the ADA requires 
the removal of architectural barriers and communication barriers that 
are structural in nature from existing facilities, where such removal 
is readily achievable--that is, easily accomplishable and able to be 
carried out without much difficulty or expense. (See the final rule 
implementing the ADA published by the Department of Justice on July 26, 
1991 (56 FR 35544, 35568).)
    The Amendments Act and the ADA indicate a clear policy that 
housing, commercial facilities, and public accommodations should be 
``readily accessible and usable by'' individuals with disabilities. In 
light of these developments and to foster consistency in the 
administration of HUD's programs, this interim rule requires compliance 
with the ABA in the State CDBG program. (HUD has already required such 
compliance in the Entitlement program in the November 9, 1995 final 
rule (60 FR 56892).) Assisted facilities would have to meet the 
requirements of the Uniform Federal Accessibility Standards for 
alterations if the alterations are financed in whole or in part by CDBG 
funds made available after the effective date of a final rule. Although 
alterations made without the use of Federal funds would not have to 
comply with the accessibility requirements of the ABA, alterations made 
to these facilities, in most instances, would have to comply with the 
accessibility requirements of the public accommodations provisions of 
the ADA. This interim rule establishes this requirement in a new 
Sec. 570.487(e).

[[Page 54918]]

F. HUD's Reviews and Audits

    To clarify the relationship between HUD's review procedures and 
HUD's expectations for States regarding recordkeeping, this interim 
rule amends Sec. 570.493(b) by adding an additional sentence. The 
additional sentence provides that a State's failure to maintain records 
may result in a finding of noncompliance with the requirement to which 
the record pertains. This provision does not represent a change in 
HUD's overall policy (a comparable provision already exists in the 
Entitlement program); it is just a clearer expression of this 
relationship. This interim rule also updates Sec. 570.493(a) by 
replacing the reference to a ``final statement'' with a reference to 
the consolidated plan action plan.

Justification for Interim Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
rule for effect, in accordance with it's regulations on rulemaking in 
24 CFR part 10. Part 10 provides exceptions, however, if HUD 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 interim 
rule for effect without first soliciting public comment, since prior 
public procedure would be unnecessary.
    HUD has already implemented the community revitalization strategy 
approach in the Entitlement CDBG program through the Consolidated Plan 
final rule published on January 5, 1995 (60 FR 1878). HUD has decided 
that it is unnecessary to solicit comments prior to implementing this 
flexible initiative in the State CDBG program for the following 
reasons: (1) States have been generally aware of the community 
revitalization strategy concept since the publication of the CDBG 
Economic Development Guidelines final rule for the Entitlement program 
on January 5, 1995 (60 FR 1922, 1929), in which HUD solicited comments 
on the development of the concept for States; (2) HUD has consulted 
with a representational cross section of States on the specific content 
of this interim rule; (3) A number of States have asked HUD to 
institute the revitalization strategy concept in the State program as 
quickly as possible, so that they may take advantage of this flexible 
new approach; and (4) Adoption of the concept is optional for States, 
and so imposes no involuntary burden on them.
    This interim rule allows States to implement the revitalization 
concept promptly, while still providing for public comment on the 
regulations before they are finalized. HUD is providing an extended 
comment period (120 days rather than 60 days) so that respondents may 
base their comments on their actual experience in implementing the 
revitalization strategy concept. During the extended comment period, 
HUD also plans to publish a notice in the Federal Register describing 
the parameters within which States may design their approach and 
explaining HUD's process for approval of States' process descriptions.
    HUD has also determined that it is unnecessary to solicit prior 
comment before implementing the other changes in this interim rule. The 
changes to the national objectives criteria concerning architectural 
barriers removal, housing activities, and ``presumed benefit'' groups 
provide increased flexibility to States and State grantees. HUD has 
previously adopted the changes in the Entitlement program after 
soliciting and considering comments. The changes regarding housing 
activities merely provide clarification in light of statutory changes. 
HUD has also solicited and considered public comments before clarifying 
HUD's policy regarding reviews and audits in the Entitlement program.
    It is also unnecessary to solicit prior public comment regarding 
the application of the Architectural Barriers Act (ABA) to the State 
CDBG program, because this application is necessitated by other 
statutory changes. In adding this requirement to Sec. 570.487, HUD does 
not provide further regulatory interpretation of the ABA, but refers to 
other applicable Federal regulations. HUD issued those regulations 
through previous rulemaking actions. HUD also recently solicited and 
considered public comments before applying the ABA to the Entitlement 
CDBG program.
    This interim rule also corrects regulatory citations and reinstates 
unintentionally-deleted language. It is unnecessary to solicit prior 
public comment on these minor technical corrections and clarifications, 
because they do not represent substantive changes to the regulations.
    The interim rulemaking process allows interested parties an 
opportunity to comment on all of the changes included in this interim 
rule. HUD will consider all comments received in developing a final 
rule concerning these changes.

Findings and Certifications

Paperwork Reduction Act of 1995

    The information collection requirements contained in 
Sec. 91.315(e)(2) of this interim rule have been submitted to the 
Office of Management and Budget (OMB) for review in accordance with the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). An agency may 
not conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection displays a valid 
control number. The OMB control number, when assigned, will be 
announced by separate notice in the Federal Register.
    As required under 5 CFR 1320.8(d)(1), HUD and OMB are seeking 
comments from members of the public and affected agencies concerning 
the proposed collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond; including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses. Interested persons are 
invited to submit comments according to the instructions in the 
``Dates'' and ``Addresses'' sections in the preamble of this interim 
rule.
    This document also provides the following information:
    Title of Proposal: Community Revitalization Strategies: submission 
of implementation process description statement by States; submission 
of Community Revitalization Strategy by units of general local 
government to States.
    OMB Control Number: OMB has previously approved the information 
collection requirements for the State CDBG Program under control number 
2506-0117. This proposed information collection would be in addition to 
the information collection requirements presently covered under control 
number 2506-0117.
    Description of the Need for the Information and Proposed Use: This 
interim rule will, among other changes, allow States the option of 
implementing a community revitalization strategy approach to community 
development.

[[Page 54919]]

States that wish to adopt this approach will develop a process for 
implementing community revitalization strategies in their State CDBG 
program, including the specific process and criteria to be used in 
approving local strategies. This process description, which will be 
part of the State's consolidated plan action plan, must be submitted to 
and approved by HUD. Units of local government applying for or 
receiving State CDBG funds may then prepare a community revitalization 
strategy and submit it to the State for approval. If the strategy is 
approved, the locality will be allowed greater flexibility in meeting 
certain national objectives and public benefit criteria.
    Form Numbers: Not applicable. Process descriptions will be 
submitted by States to HUD in narrative format; no forms will be 
required. States will determine the format for submission of community 
revitalization strategies by units of general local government.
    Members of Affected Public: States, units of general local 
government. Units of local government will be expected to consult with 
citizens and involve citizens in the development of community 
revitalization strategies.
    Estimation of the Total Number of Hours Needed to Prepare the 
Information Collection including Number of Respondents, Frequency of 
Response, and Hours of Response: Both State and local governments, as 
well as HUD staff, will expend time in implementing the community 
revitalization strategy approach. States' time will be spent in 
designing their process and in reviewing and approving local 
governments' strategies; local governments' time will be spent in 
developing strategies and in reporting to states on the progress and 
outcomes of strategy implementation. HUD's time will be spent in 
reviewing States' implementation process descriptions.
    The exact number of hours needed to prepare the information 
collection cannot be estimated with great certainty. The actual time 
spent may vary greatly, depending on a number of variable factors:
     Whether or not a particular State chooses to adopt the 
community revitalization strategy approach in its program;
     The number of communities in which a particular State 
chooses to authorize the community revitalization strategy approach;
     The scope and nature of States' existing application and 
funding distribution processes for units of local government;
     The design of a particular State's approach to implement 
community revitalization strategies;
     The process a State uses to develop its implementation 
approach;
     The process a unit of local government uses to develop its 
revitalization strategy.
    The Department anticipates that under some States' processes, the 
preparation of a community revitalization strategy will entail 
additional work by a local government beyond that normally required to 
prepare an application for funding. Some States may only slightly alter 
their existing application requirements to incorporate the 
revitalization strategy concept; under those programs, the 
incorporation of a community revitalization strategy may involve little 
or no additional preparation time. Some communities may have, for their 
own purposes, previously prepared a document that meets their State's 
requirements for a community revitalization strategy; no additional 
work may be necessary in those cases.
    The burden of any additional work entailed in development of a 
strategy will be offset by a reduced documentation burden for certain 
activities undertaken pursuant to an approved strategy. For example, 
certain economic development activities may be shown to meet the low- 
and moderate-income benefit national objective on the basis of serving 
a principally low- and moderate-income area rather than on the basis of 
creating (or retaining) jobs for persons of low and moderate incomes. 
In such cases, communities would not need to collect information on the 
household income of each employee hired or retained; this would 
substantially reduce the amount of time spent by communities in 
demonstrating compliance with program requirements.
    The following figures represent estimates of the additional 
information collection burden resulting from implementation of 
community revitalization strategies. These figures represent additional 
increments of time beyond those normally involved in the State CDBG 
program. In developing these estimates of time and cost, the Department 
has melded its own estimations with averaged figures provided by 
several States that have expressed interest in implementing community 
revitalization strategies. To the extent that States minimize or 
streamline the process for submission of strategies, the actual burden 
per unit of local government may be less than these estimates. The 
amount of time for States to review communities' strategies is 
anticipated to be minimal; it is anticipated that, in many States, the 
format for submitting a strategy will subsume much of the documentation 
that States presently request in applications.

----------------------------------------------------------------------------------------------------------------
                                                                                              Total             
                       Burden of collection                         Frequency   Number of   hours per    Total  
                                                                               respondents   response    hours  
----------------------------------------------------------------------------------------------------------------
State process description:                                                                                      
    State.........................................................          1          25         120      3,000
    Federal.......................................................          1          25           2         50
Community revitalization strategy:                                                                              
    Local.........................................................          1         300         120     36,000
    State.........................................................          1         300           1        300
    Federal.......................................................          0           0           0          0
Local recordkeeping on approved strategies:                                                                     
    Local.........................................................    Ongoing         300         -80    -24,000
    State.........................................................          0           0           0          0
    Federal.......................................................          0           0           0          0
Local reporting to State on approved strategies:                                                                
    Local.........................................................    Ongoing         300           8      2,400
    State.........................................................          0           0           0          0
    Federal.......................................................          0           0           0          0
                                                                   ---------------------------------------------

[[Page 54920]]

                                                                                                                
      Total.......................................................                    325                 17,750
----------------------------------------------------------------------------------------------------------------

    Status of the Proposed Information Collection: New collection.

    Authority: Section 3506 of the Paperwork Reduction Act of 1995, 
44 U.S.C. Chapter 35, as amended.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this interim rule before publication and 
by approving it certifies that this interim rule does not have a 
significant economic impact on a substantial number of small entities. 
Specifically, this interim rule makes technical amendments and provides 
States and communities the same flexibility of the community 
revitalization strategies concept that HUD previously provided for 
recipients in the Entitlement program.

Environmental Impact

    At the time of the development of the regulations in part 570, and 
when the regulations were substantively amended by the rules described 
in this preamble, HUD made Findings of No Significant Impact with 
respect to the environment in accordance with the 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). This interim rule does not make 
significant changes to those regulations in terms of environmental 
impact. Accordingly, those findings remain applicable to this interim 
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 the policies 
contained in this interim rule will not have substantial direct effects 
on States or their political subdivisions, on the relationship between 
the Federal Government and the States, or on the distribution of power 
and responsibilities among the various levels of government. This 
interim rule will benefit States and communities by providing them with 
additional flexibility in meeting certain national objectives and 
public benefit requirements of the CDBG program. As a result, the 
interim rule is not subject to review under the order.

Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this interim rule does 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 interim rule, as those policies and 
programs relate to family concerns.

List of Subjects

24 CFR Part 91

    Aged, Grant programs--housing and community development, Homeless, 
Individuals with disabilities, Low and moderate income housing, 
Reporting and recordkeeping requirements.

24 CFR Part 570

    Administrative practice and procedure, American Samoa, Community 
development block grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Lead poisoning, Loan 
programs--housing and community development, Low and moderate income 
housing, New communities, Northern Mariana Islands, Pacific Islands 
Trust Territory, Pockets of poverty, Puerto Rico, Reporting and 
recordkeeping requirements, Small cities, Student aid, Virgin Islands.
    Accordingly, for the reasons described in this preamble, 24 CFR 
parts 91 and 570 are amended, as follows:

PART 91--CONSOLIDATED SUBMISSIONS FOR COMMUNITY PLANNING AND 
DEVELOPMENT PROGRAMS

    1. The authority citation for part 91 continues to read as follows:

    Authority: 42 U.S.C. 3535(d), 3601-3619, 5301-5315, 11331-11388, 
12701-12711, 12741-12756, and 12901-12912.

    2. Section 91.315 is amended by redesignating the text of paragraph 
(e) as paragraph (e)(1), and by adding a new paragraph (e)(2), to read 
as follows:


Sec. 91.315  Strategic plan.

* * * * *
    (e) * * *
    (2) A State may elect to allow units of general local government to 
carry out a community revitalization strategy that includes the 
economic empowerment of low income residents, in order to obtain the 
additional flexibility available as provided in 24 CFR part 570, 
subpart I. A State must approve a local government's revitalization 
strategy before it may be implemented. If a State elects to allow 
revitalization strategies in its program, the method of distribution 
contained in a State's action plan pursuant to Sec. 91.320(g)(1) must 
reflect the State's process and criteria for approving local 
governments' revitalization strategies. The State's process and 
criteria are subject to HUD approval.
* * * * *
    3. In Sec. 91.320, paragraph (g)(1) is amended by adding a new 
sentence after the third sentence and before the parenthetical sentence 
at the end of the paragraph, to read as follows:


Sec. 91.320  Action plan.

* * * * *
    (g) * * *
    (1) * * * If a State elects to allow units of general local 
government to carry out community revitalization strategies, the method 
of distribution shall reflect the State's process and criteria for 
approving local governments' revitalization strategies. * * *
* * * * *
    4. Section 91.500 is amended by revising the introductory text of 
paragraph (b) to read as follows:


Sec. 91.500  HUD approval action.

* * * * *
    (b) Standard of review. HUD may disapprove a plan or a portion of a 
plan if it is inconsistent with the purposes of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12703), if it is 
substantially incomplete, or, in the case of certifications applicable 
to the CDBG program under Secs. 91.225 (a) and (b) or 91.325 (a) and 
(b), if it is not satisfactory to the Secretary in accordance with

[[Page 54921]]

Sec. Sec. 570.304, 570.429(g), or 570.485(c) of this title, as 
applicable. The following are examples of consolidated plans that are 
substantially incomplete:
* * * * *

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

    5. The authority citation for part 570 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 5300-5320.

    6. Section 570.480 is amended by revising paragraph (b) to read as 
follows:


Sec. 570.480  General.

* * * * *
    (b) HUD's authority for the waiver of regulations and for the 
suspension of requirements to address damage in a Presidentially-
declared disaster area is described in 24 CFR part 5 and in section 122 
of the Act, respectively.
* * * * *
    7. Section 570.482 is amended by:
    a. Amending paragraph (d)(1) by removing the word ``and'' at the 
end of the paragraph;
    b. Amending paragraph (d)(2) by removing the period at the end of 
the paragraph and adding in it's place the phrase ``; and'';
    c. Adding a new paragraph (d)(3); and
    d. Amending paragraph (f)(3)(v) by adding new paragraphs 
(f)(3)(v)(L) and (f)(3)(v)(M), to read as follows:


Sec. 570.482  Eligible activities.

* * * * *
    (d) * * *
    (3) Services of any type carried out under the provisions of 
section 105(a)(15) of the Act, pursuant to a strategy approved by a 
State under the provisions of Sec. 91.315(e)(2) of this title.
* * * * *
    (f) * * *
    (3) * * *
    (v) * * *
    (L) Provides services to the residents of an area pursuant to a 
strategy approved by the State under the provisions of 
Sec. 91.315(e)(2) of this title;
    (M) Creates or retains jobs through businesses assisted in an area 
pursuant to a strategy approved by the State under the provisions of 
Sec. 91.315(e)(2) of this title.
* * * * *
    8. Section 570.483 is amended by:
    a. Revising paragraph (b)(1)(iv);
    b. Adding a new paragraph (b)(1)(v);
    c. Revising the second sentence of paragraph (b)(2)(ii)(A);
    d. Revising paragraph (b)(2)(iii);
    e. Revising the introductory text of paragraph (b)(3);
    f. Adding a new paragraph (b)(3)(iii);
    g. Amending the last sentence of paragraph (b)(4)(vi)(D) by 
removing the reference to ``paragraph (e)(5)'' and by adding in its 
place a reference to ``paragraph (e)(6)'';
    h. Amending the last sentence of paragraph (b)(4)(vi)(E) by 
removing the reference to ``paragraph (e)(5)'' and by adding in its 
place a reference to ``paragraph (e)(6)'';
    i. Amending paragraph (b)(4)(vi)(F)(2) by removing the citation 
``Sec. 570.482(e)'' and by adding in its place the citation 
``Sec. 570.482(f)'';
    j. Redesignating paragraph (e)(5) as (e)(6), and by revising the 
first sentence of newly redesignated paragraph (e)(6); and
    k. Adding a new paragraph (e)(5); to read as follows:


Sec. 570.483  Criteria for national objectives.

* * * * *
    (b) * * *
    (1) * * *
    (iv) Activities meeting the requirements of paragraph (e)(4)(i) of 
this section may be considered to qualify under paragraph (b)(1) of 
this section.
    (v) HUD will consider activities meeting the requirements of 
paragraph (e)(5)(i) of this section to qualify under paragraph (b)(1) 
of this section, provided that the area covered by the strategy meets 
one of the following criteria:
    (A) The area is in a Federally-designated Empowerment Zone or 
Enterprise Community;
    (B) The area is primarily residential and contains a percentage of 
low and moderate income residents that is no less than 70 percent;
    (C) All of the census tracts (or block numbering areas) in the area 
have poverty rates of at least 20 percent, at least 90 percent of the 
census tracts (or block numbering areas) in the area have poverty rates 
of at least 25 percent, and the area is primarily residential. (If only 
part of a census tract or block numbering area is included in a 
strategy area, the poverty rate shall be computed for those block 
groups (or any part thereof) which are included in the strategy area.)
    (D) Upon request by the State, HUD may grant exceptions to the 70 
percent low and moderate income or 25 percent poverty minimum 
thresholds on a case-by-case basis. In no case, however, may a strategy 
area have both a percentage of low and moderate income residents less 
than 51 percent and a poverty rate less than 20 percent.
    (2) * * *
    (ii) * * *
    (A) * * * Activities that exclusively serve a group of persons in 
any one or a combination of the following categories may be presumed to 
benefit persons, 51 percent of whom are low and moderate income: abused 
children, battered spouses, elderly persons, adults meeting the Bureau 
of the Census' Current Population Reports definition of ``severely 
disabled,'' homeless persons, illiterate adults, persons living with 
AIDS, and migrant farm workers; or
* * * * *
    (iii) An activity that serves to remove material or architectural 
barriers to the mobility or accessibility of elderly persons or of 
adults meeting the Bureau of the Census' Current Population Reports 
definition of ``severely disabled'' will be presumed to qualify under 
this criterion if it is restricted, to the extent practicable, to the 
removal of such barriers by assisting:
    (A) The reconstruction of a public facility or improvement, or 
portion thereof, that does not qualify under Sec. 570.483(b)(1);
    (B) The rehabilitation of a privately owned nonresidential building 
or improvement that does not qualify under Sec. 570.483(b) (1) or (4); 
or
    (C) The rehabilitation of the common areas of a residential 
structure that contains more than one dwelling unit and that does not 
qualify under Sec. 570.483(b)(3).
* * * * *
    (3) Housing activities. An eligible activity carried out for the 
purpose of providing or improving permanent residential structures 
that, upon completion, will be occupied by low and moderate income 
households. This would include, but not necessarily be limited to, the 
acquisition or rehabilitation of property by the unit of general local 
government, a subrecipient, an entity eligible to receive assistance 
under section 105(a)(15) of the Act, a developer, an individual 
homebuyer, or an individual homeowner; conversion of nonresidential 
structures; and new housing construction. If the structure contains two 
dwelling units, at least one must be so occupied, and if the structure 
contains more than two dwelling units, at least 51 percent of the units 
must be so occupied. If two or more rental buildings being assisted are 
or will be located on the same or contiguous properties, and the 
buildings will be under common ownership and management, the grouped 
buildings may be considered for this purpose as a single structure. If 
housing activities being assisted meet the requirements of paragraph 
(e)(4)(ii) or (e)(5)(ii) of this

[[Page 54922]]

section, all such housing may also be considered for this purpose as a 
single structure. For rental housing, occupancy by low and moderate 
income households must be at affordable rents to qualify under this 
criterion. The unit of general local government shall adopt and make 
public its standards for determining ``affordable rents'' for this 
purpose. The following shall also qualify under this criterion:
* * * * *
    (iii) When CDBG funds are used for housing services eligible under 
section 105(a)(21) of the Act, such funds shall be considered to 
benefit low and moderate income persons if the housing units for which 
the services are provided are HOME-assisted and the requirements of 
Sec. 92.252 or Sec. 92.254 of this title are met.
* * * * *
    (e) * * *
    (5) If the unit of general local government has elected to prepare 
a community revitalization strategy pursuant to the authority of 
Sec. 91.315(e)(2) of this title, and the State has approved the 
strategy, the unit of general local government may also elect the 
following options:
    (i) Activities undertaken pursuant to the strategy for the purpose 
of creating or retaining jobs may, at the option of the grantee, be 
considered to meet the requirements of paragraph (b) of this section 
under the criteria at Sec. 570.483(b)(1)(v) instead of the criteria at 
Sec. 570.483(b)(4); and
    (ii) All housing activities in the area undertaken pursuant to the 
strategy may be considered to be a single structure for purposes of 
applying the criteria at paragraph (b)(3) of this section.
    (6) If an activity meeting the criteria in Sec. 570.482(f)(3)(v) 
also meets the requirements of either paragraph (e)(4)(i) or (e)(5)(i) 
of this section, the unit of general local government may elect to 
qualify the activity either under the area benefit criteria at 
paragraph (b)(1) (iv) or (v) of this section or under the job 
aggregation criteria at paragraph (b)(4)(vi)(D) of this section, but 
not under both. * * *
* * * * *
    9. Section 570.485 is amended by revising the section heading, and 
by adding a new paragraph (c), to read as follows:


Sec. 570.485  Making of grants.

* * * * *
    (c) Approval of grant. HUD will approve a grant if the State's 
submissions have been made and approved in accordance with 24 CFR part 
91, and the certifications required therein are satisfactory to the 
Secretary. The certifications will be satisfactory to the Secretary for 
this purpose unless the Secretary has determined pursuant to 
Sec. 570.493 that the State has not complied with the requirements of 
this subpart, or has determined that there is evidence, not directly 
involving the State's past performance under this program, that tends 
to challenge in a substantial manner the State's certification of 
future performance. If the Secretary makes any such determination, 
however, the State may be required to submit further assurances as the 
Secretary may deem warranted or necessary to find the grantee's 
certification satisfactory.


Sec. 570.486  [Amended]

    10. In Sec. 570.486, paragraph (a) introductory text is amended by 
removing the reference to ``Sec. 570.485(c)(1)(i)'', and by adding in 
its place a reference to ``Sec. 91.115(e) of this title''.
    11. Section 570.487 is amended by adding a new paragraph (e) to 
read as follows:


Sec. 570.487  Other applicable laws and related program requirements.

* * * * *
    (e) Architectural Barriers Act and the Americans with Disabilities 
Act. The Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) 
requires certain Federal and Federally-funded buildings and other 
facilities to be designed, constructed, or altered in accordance with 
standards that ensure accessibility to, and use by, physically 
handicapped people. A building or facility designed, constructed, or 
altered with funds allocated or reallocated under this subpart after 
November 21, 1996 and that meets the definition of residential 
structure as defined in 24 CFR 40.2, or the definition of building as 
defined in 41 CFR 101-19.602(a), is subject to the requirements of the 
Architectural Barriers Act of 1968 and shall comply with the Uniform 
Federal Accessibility Standards. For general type buildings, these 
standards are in Appendix A to 41 CFR part 101-19.6. For residential 
structures, these standards are available from the Department of 
Housing and Urban Development, Office of Fair Housing and Equal 
Opportunity, Disability Rights Division, Room 5240, 451 Seventh Street, 
SW, Washington, DC 20410; telephone (202) 708-2333 (voice) or (203) 
708-1734 (TTY) (these are not toll-free numbers).


Sec. 570.489  [Amended]

    12. Section 570.489 is amended by:
    a. Amending the first sentence of the introductory text of 
paragraph (e)(3) by removing the phrase ``paragraph (e)(2)(ii)'', and 
by adding in its place the phrase ``paragraph (e)(3)(ii)'';
    b. Removing paragraph (k)(2); and
    c. Redesignating paragraph (k)(1) as paragraph (l).
    13. Section 570.493 is amended by:
    a. Amending paragraph (a)(1) by removing the phrase ``final 
Statement'', and by adding in its place the phrase ``action plan under 
part 91 of this title''; and
    b. Amending paragraph (b) by adding a sentence at the end to read 
as follows:


Sec. 570.493  HUD's reviews and audits.

* * * * *
    (b) * * * A State's failure to maintain records in accordance with 
Sec. 570.490 may result in a finding that the State has failed to meet 
the applicable requirement to which the record pertains.

    Dated: August 28, 1996.
Andrew M. Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 96-26957 Filed 10-21-96; 8:45 am]
BILLING CODE 4210-29-P