[Federal Register Volume 62, Number 121 (Tuesday, June 24, 1997)]
[Rules and Regulations]
[Pages 34144-34145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16507]



[[Page 34143]]

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Part III





Department of Housing and Urban Development





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24 CFR Part 572



Streamlining of Homeownership of Single Family Homes Program (HOPE 3) 
Regulations; Final Rule

  Federal Register / Vol. 62, No. 121 / Tuesday, June 24, 1997 / Rules 
and Regulations  

[[Page 34144]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 572

[Docket No. FR-3857-F-05]
RIN 2506-AB71


Homeownership of Single Family Homes Program (HOPE 3); 
Streamlining Rule

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

ACTION: Final rule.

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SUMMARY: In compliance with the President's regulatory reform 
initiatives, this rule further streamlines HUD's regulations for the 
HOPE for Homeownership of Single Family Homes Program (HOPE 3) by 
eliminating remaining provisions that are unnecessarily expansive in 
light of existing statutory requirements.

EFFECTIVE DATE: July 24, 1997.

FOR FURTHER INFORMATION CONTACT: Gordon McKay, Director, Office of 
Affordable Housing Programs, Room 7168, Department of Housing and Urban 
Development, 451 7th Street, SW, Washington, DC 20410, telephone number 
(202) 708-2685 (this is not a toll-free number). For hearing-and 
speech-impaired persons, this number may be accessed via TTY (text 
telephone) 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 of Housing 
and Urban Development conducted a page-by-page review of its 
regulations to determine which can be eliminated, consolidated, or 
otherwise improved. HUD determined that the regulations for the HOPE 
for Homeownership of Single Family Homes program (HOPE 3) could be 
improved and streamlined. On September 16, 1996 (61 FR 48796), HUD 
published in the Federal Register a final rule that completed a 
previous rulemaking process on the HOPE 3 program regulations and made 
streamlining changes to those regulations for which prior notice and 
comment were not required.
    On October 10, 1996 (61 FR 53276), HUD published a proposed rule 
containing further streamlining amendments for which prior notice and 
comment were required. In that rule, HUD noted that because of recent 
statutory amendments, direct homeownership assistance is now a 
permanent eligible activity under both the HOME Investment Partnerships 
and Community Development Block Grant programs. As a result, families 
that might have been assisted by the HOPE 3 program may instead be 
eligible for homeownership assistance through those programs. The 
availability of other assistance makes future HOPE 3 appropriations and 
competitions less likely. Therefore, the HOPE 3 regulations on 
applications for funding include outdated references and are 
unnecessarily lengthy and prescriptive. The October 10, 1996 proposed 
rule sought to preserve those regulations only to the extent necessary 
to ensure HUD's ability to conduct future competitions in the event 
funds become available to make awards under the program.
    Specifically, the October 10, 1996 rule proposed to remove most of 
the requirements relating to competitive distributions of HOPE 3 funds. 
In making such distributions, HUD is required to comply with section 
102 of the Department of Housing and Urban Development Reform Act (HUD 
Reform Act) (42 U.S.C. 3545). The requirements of section 102 are 
binding, whether HUD maintains implementing provisions in regulatory 
text in the CFR or in separate published notices announcing 
competitions for funding. Therefore, it is unnecessary to maintain all 
of those requirements in the HOPE 3 regulations.
    The October 10, 1996 rule also proposed to remove lengthy 
provisions explaining the Cash and Management Information System that 
is used to disburse HOPE 3 grant funds (see Sec. 572.230). This 
information is contained in other guidance material and does not need 
to be codified.
    The deadline for submitting public comments on the October 10, 1996 
proposed rule was December 9, 1996. HUD has not received any comments 
on the proposed rule. Therefore, today's rule adopts the provisions of 
the proposed rule as final, eliminating approximately 5 pages of 
unnecessary regulations from the Code of Federal Regulations (CFR).

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 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 merely recognizes 
administrative changes in HUD's structure and streamlines regulations 
by removing unnecessary provisions. The rule will have no adverse or 
disproportionate economic impact on small businesses.

Environmental Impact

    In accordance with 24 CFR 50.19(c)(1), published in the Federal 
Register on September 27, 1996 (61 FR 50914), this final rule does not 
direct, provide for assistance or loan and mortgage insurance for, or 
otherwise govern or regulate, real property acquisition, disposition, 
leasing (other than tenant-based rental assistance), rehabilitation, 
alteration, demolition, or new construction. This rule merely 
streamlines the HOPE 3 regulations by removing unnecessary provisions. 
Therefore, this final rule is categorically excluded from the 
requirements of the National Environmental Policy Act and the related 
Federal authorities in 24 CFR 50.4.

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. As a result, 
the rule is not subject to review under the Order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (UMRA) establishes 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 on the private sector, within the meaning of the UMRA.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for this program 
is 14.240.

List of Subjects in 24 CFR Part 572

    Condominiums, Cooperatives, Fair housing, Government property, 
Grant

[[Page 34145]]

programs--housing and community development, Low and moderate income 
housing, Nonprofit organizations, Reporting and recordkeeping 
requirements.

    Accordingly, for the reasons set out in the preamble, part 572 of 
title 24 of the Code of Federal Regulations is amended as follows:

PART 572--HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM 
(HOPE 3)

    1. The authority citation for part 572 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 12891.

    2. Section 572.5 is amended by revising the definition of Program 
income to read as follows:


Sec. 572.5  Definitions.

* * * * *
    Program income means income earned from the program as described in 
parts 84 and 85 of this title, as applicable, except that program 
income does not include proceeds from the sale and resale of 
properties. Such sale and resale proceeds, and interest earned by the 
recipient or its designee on those proceeds, are governed by 
Sec. 572.135 (a) through (c).
* * * * *


Sec. 572.100  [Amended]

    3. Section 572.100 is amended by removing the second sentence of 
paragraph (a)(2).
    4. Section 572.135 is amended by revising paragraph (d) to read as 
follows:


Sec. 572.135  Use of proceeds from sales to eligible families, resale 
proceeds, and program income.

* * * * *
    (d) Program income. Any program income, as defined in Sec. 572.5, 
received by the recipient may be added to the funds committed to the 
grant agreement by HUD and the recipient, in accordance with the 
requirements of parts 84 and 85 of this title, as applicable.
    5. Section 572.210 is revised to read as follows:


Sec. 572.210  Implementation grants.

    (a) General authority. Any implementation grants for the purpose of 
carrying out homeownership programs approved under this part will be 
awarded using a selection process and selection criteria to be 
published in a NOFA.
    (b) Deadline for completion. A recipient must spend all 
implementation grant amounts within 4 years from the effective date of 
the grant agreement. The appropriate HUD field office may approve a 
request to extend the deadline when it determines that an extension is 
warranted. A previously approved grant amount may not be amended to 
increase the grant amount.
    (c) Program closeout. Recipients will comply with closeout 
procedures as issued by HUD.
    6. Section 572.230 is revised to read as follows:


Sec. 572.230  Cash and Management Information (C/MI) System.

    Disbursement of HOPE 3 grant funds is managed through HUD's Cash 
and Management Information (C/MI) System for the HOPE 3 program. Funds 
that may be disbursed through the C/MI System include funds awarded to 
the recipient and obligated through the grant approval letter issued by 
HUD. HOPE 3 funds are drawn down by the recipient or its authorized 
designee from a United States Treasury account for the program, using 
the Treasury Automated Clearinghouse (ACH) System. Any drawdown of HOPE 
3 funds from the United States Treasury account is conditioned upon the 
submission of satisfactory information about the program and compliance 
with other procedures specified by HUD in HUD's forms and issuances 
concerning the C/MI System.
    7. Section 572.300 is revised to read as follows:


Sec. 572.300  Notices of funding availability (NOFAs); grant 
applications.

    When funds are made available for planning grants or implementation 
grants under this part, HUD will publish a NOFA in the Federal 
Register, in accordance with the requirements of part 4 of this title, 
and will select applications for funding on a competitive basis as 
provided in the applicable NOFA.


Secs. 572.305, 572.310, and 572.320  [Removed]

    8. Sections 572.305, 572.310, and 572.320 are removed.
    9. Section 572.420 is amended by revising the second sentence of 
paragraph (a)(1) to read as follows:


Sec. 572.420  Miscellaneous requirements.

    (a) * * *
    (1) * * * Part 84 of this title (Grants and Agreements with 
Institutions of Higher Education, Hospitals, and Other Nonprofit 
Organizations) and OMB Circular Nos. A-122 (Cost Principles Applicable 
to Grants, Contract and Other Agreements with Nonprofit Institutions) 
and, as applicable, A-21 (Cost Principles for Educational Institutions) 
apply to the acceptance and use of assistance under this part by 
covered organizations, except where inconsistent with the provisions of 
Federal statutes or this part. * * *
* * * * *
    Dated: June 16, 1997.
Jacquie Lawing,
General Deputy Assistant, Secretary for Community Planning and 
Development.
[FR Doc. 97-16507 Filed 6-23-97; 8:45 am]
BILLING CODE 4210-29-P