[Federal Register Volume 62, Number 133 (Friday, July 11, 1997)]
[Rules and Regulations]
[Pages 37478-37484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18136]



[[Page 37477]]

_______________________________________________________________________

Part V





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 586



Base Closure Community Redevelopment and Homeless Assistance; Final 
Rule

  Federal Register / Vol. 62, No. 133 / Friday, July 11, 1997 / Rules 
and Regulations  

[[Page 37478]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 586

[Docket No. FR-3820-F-03]
RIN 2506-AB72


Base Closure Community Redevelopment and Homeless Assistance

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, Department of Housing and Urban Development (HUD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule amends the Revitalizing Base Closure Communities and 
Community Assistance--Community Redevelopment and Homeless Assistance 
interim regulation of the Department of Housing and Urban Development 
published on August 17, 1995. The Department of Defense (DoD) made an 
identical publication on August 8, 1995. It establishes policies and 
procedures, developed by both DoD and HUD, to take into account Section 
2838 of the National Defense Authorization Act for FY 96 and comments 
received from the public on the interim rule.

DATES: Effective: August 11, 1997.

FOR FURTHER INFORMATION CONTACT: Bill Poythress, Base Redevelopment 
Team, Office of the Assistant Secretary for Community Planning and 
Development, Department of Housing and Urban Development, 75 Spring 
Street, SW, Atlanta, GA 30303-3388, (404) 331-5001, ext. 2546, or, TTY 
number for hearing and speech-impaired, 1-800-877-8391, or Patrick 
O'Brien, Base Closure and Community Reinvestment Office, Department of 
Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202, (703) 
604-5844 (except for the 800 number, these telephone numbers are not 
toll-free).

SUPPLEMENTARY INFORMATION:

Regulatory History and Background Information

    DoD and HUD published interim final rules on August 8, 1995, (60 FR 
40277) and August 17, 1995, (60 FR 42972), respectively, implementing 
the Base Closure Community Redevelopment and Homeless Assistance Act, 
Public Law 103-421, (the ``Redevelopment Act''). Public comments were 
accepted until October 16, 1995. Comments were received from six 
different sources including State and local entities and non-profit 
organizations.
    On February 10, 1996, the President signed the National Defense 
Authorization Act for FY 96 (Public Law 104-106) which, in section 
2838, amended the Redevelopment Act. This final rule addresses both the 
comments received on the interim rules during the public comment 
period, and the amendments to the Redevelopment Act contained in Public 
Law 104-106. HUD's final rule is identical to DoD's final rule, 
published on July 1, 1997 (62 FR 35343). Readers are referred to the 
preamble of the DoD final rule for a full discussion of the public 
comments and statutory changes that affect this rule.

Extent of Changes to the Rule

    DoD and HUD believe that the process created in the interim final 
rule requires few changes as evidenced by the limited number of 
comments received on the rule, the ease with which LRAs have been 
complying with the requirements set out in the rule, and most 
importantly, by the content of the applications that have been 
submitted to HUD for approval. The redevelopment plans contained in the 
applications that have been submitted have, for the most part, balanced 
the economic redevelopment and other development needs of the 
communities in the vicinity of the installation with the needs of the 
homeless in those communities in an appropriate manner. As a result, 
extensive changes based on public comments have not been made. However, 
changes stemming from the recent amendments to the Redevelopment Act 
have been incorporated.

HUD's Review Process

    Since the publication of the interim final rule, the area that has 
raised the most questions has been the process HUD uses to review 
applications. In accordance with the procedures outlined in the 
Redevelopment Act, the LRA must submit to HUD and DoD an application 
which includes a copy of the redevelopment plan and a homeless 
assistance submission. HUD reviews these applications and notifies DoD 
and the LRA of its findings. The review criteria used by HUD are 
outlined in Sec. 586.35(b) of this rule.
    To help facilitate the completion of approvable applications, HUD 
works with LRAs, the affected communities, and representatives of the 
homeless throughout the development of the redevelopment plan and 
application. HUD is available to provide assistance to LRAs throughout 
the planning process. Such assistance includes attending LRA workshops 
held under Sec. 586.20(c)(3) and meeting with LRAs at their request to 
discuss specific issues.
    HUD must receive the LRA's application no later than 270 days from 
the deadline for receipt of notices of interest. HUD's headquarters 
Base Redevelopment Team, and the local HUD Field Office will jointly 
review the applications and approve or disapprove the LRA's submission. 
This evaluation includes a completeness review to determine if all the 
required elements have been submitted by the LRA. The HUD Field Office 
will contact the LRA regarding any elements that were omitted. Next, 
HUD evaluates if the redevelopment plan balances the economic 
redevelopment and other development needs of the communities in the 
vicinity of the installation with the needs of the homeless in those 
communities in an appropriate manner. Finally, HUD evaluates the 
legally binding agreements to ensure that the terms and conditions are 
clearly articulated.
    To assist LRAs with completing their applications and to provide 
more information to interested parties about the Redevelopment Act 
process, including HUD's review process, HUD has developed a 
publication called the ``Guidebook on Military Base Reuse and Homeless 
Assistance.'' To obtain a copy write the Department of Housing and 
Urban Development, Base Redevelopment Team, 75 Spring Street, SW, 
Atlanta, GA 30303-3388 or call (404) 331-5001 x2546. The Guidebook is 
also available on the World Wide Web at: http://www.hud.gov/cpd/
milbase.

I. Findings and Certifications

Paperwork Reduction Act

    The information collection requirements contained in Secs. 586.20 
and 586.30 of this rule have been approved by the Office of Management 
and Budget in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. Chapter 35), and assigned OMB control number 2506-0154. 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.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 establishes 
requirements for Federal agencies to assess the effects of their 
regulatory actions on State, local, 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.

[[Page 37479]]

Impact on the Environment

    For the interim rule published for this part, HUD made a Finding of 
No Significant Impact with respect to the environment in accordance 
with HUD regulations in 24 CFR part 50, which implement Section 
102(2)(C) of the National Environmental Policy Act of 1969, 42 U.S.C. 
4332. The changes made in the text of the final rule do not 
substantively affect the Finding of No Significant Impact prepared for 
the interim rule, and it remains applicable. That Finding of No 
Significant Impact is available for public inspection and copying 
between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules 
Docket Clerk, Room 10276, 451 Seventh Street, S.W., Washington, D.C. 
20410.

Executive Order 13045, Protection of Children From Environmental Health 
Risks and Safety Risks

    This rule will not pose an environmental health risk or safety risk 
on children.

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 would not have a significant 
economic impact on a substantial number of small entities. This rule 
only states the Department's criteria and procedures for reviewing 
applications submitted by local redevelopment authorities (LRAs).

Federalism Impact

    The General Counsel of HUD, as the Designated Official under 
Executive Order 12612, Federalism, has determined that the policies 
contained in this rule would not have any impact under the Order. The 
rule states HUD's review criteria and procedures for reviewing 
applications submitted by the LRA for balancing homeless, community and 
economic redevelopment and other development needs of the communities 
in the vicinity of the installation.

List of Subjects in 24 CFR Part 586

    Government property, Homeless, Housing, Intergovernmental 
relations, Surplus government property.

    Accordingly, for the reasons set forth in the preamble, part 586 of 
title 24 of the Code of Federal Regulations is revised to read as 
follows:

PART 586--REVITALIZING BASE CLOSURE COMMUNITIES AND COMMUNITY 
ASSISTANCE--COMMUNITY REDEVELOPMENT AND HOMELESS ASSISTANCE

Sec.
586.1  Purpose.
586.5  Definitions.
586.10  Applicability.
586.15  Waivers and extensions of deadlines.
586.20  Overview of the process.
586.25  HUD's negotiations and consultations with the LRA.
586.30  LRA application.
586.35  HUD's review of the application.
586.40  Adverse determinations.
586.45  Disposal of buildings and property.

    Authority: 10 U.S.C. 2687 note; 42 U.S.C. 3535(d).

Sec. 586.1  Purpose.

    This part implements the Base Closure Community Redevelopment and 
Homeless Assistance Act, as amended (10 U.S.C. 2687 note), which 
instituted a new community-based process for addressing the needs of 
the homeless at base closure and realignment sites. In this process, 
Local Redevelopment Authorities (LRAs) identify interest from homeless 
providers in installation property and develop a redevelopment plan for 
the installation that balances the economic redevelopment and other 
development needs of the communities in the vicinity of the 
installation with the needs of the homeless in those communities. The 
Department of Housing and Urban Development (HUD) reviews the LRA's 
plan to see that an appropriate balance is achieved. This part also 
implements the process for identifying interest from State and local 
entities for property under a public benefit transfer. The LRA is 
responsible for concurrently identifying interest from homeless 
providers and State and local entities interested in property under a 
public benefit transfer.


Sec. 586.5  Definitions.

    As used in this part:
    CERCLA. Comprehensive Environmental Response, Compensation, and 
Liability Act (42 U.S.C. 9601 et seq.).
    Communities in the vicinity of the installation. The communities 
that constitute the political jurisdictions (other than the State in 
which the installation is located) that comprise the LRA for the 
installation. If no LRA is formed at the local level, and the State is 
serving in that capacity, the communities in the vicinity of the 
installation are deemed to be those political jurisdiction(s) (other 
than the State) in which the installation is located.
    Consolidated Plan. The plan prepared in accordance with the 
requirements of 24 CFR part 91.
    Continuum of care system.
    (1) A comprehensive homeless assistance system that includes:
    (i) A system of outreach and assessment for determining the needs 
and condition of an individual or family who is homeless, or whether 
assistance is necessary to prevent an individual or family from 
becoming homeless;
    (ii) Emergency shelters with appropriate supportive services to 
help ensure that homeless individuals and families receive adequate 
emergency shelter and referral to necessary service providers or 
housing finders;
    (iii) Transitional housing with appropriate supportive services to 
help those homeless individuals and families who are not prepared to 
make the transition to independent living;
    (iv) Housing with or without supportive services that has no 
established limitation on the amount of time of residence to help meet 
long-term needs of homeless individuals and families; and
    (v) Any other activity that clearly meets an identified need of the 
homeless and fills a gap in the continuum of care.
    (2) Supportive services are services that enable homeless persons 
and families to move through the continuum of care toward independent 
living. These services include, but are not limited to, case 
management, housing counseling, job training and placement, primary 
health care, mental health services, substance abuse treatment, child 
care, transportation, emergency food and clothing, family violence 
services, education services, moving services, assistance in obtaining 
entitlements, and referral to veterans services and legal services.
    Day. One calendar day including weekends and holidays.
    DoD. Department of Defense.
    HHS. Department of Health and Human Services.
    Homeless person. (1) An individual or family who lacks a fixed, 
regular, and adequate nighttime residence; and
    (2) An individual or family who has a primary nighttime residence 
that is:
    (i) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters and transitional housing for the mentally ill);
    (ii) An institution that provides a temporary residence for 
individuals intended to be institutionalized; or

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    (iii) A public or private place not designed for, or ordinarily 
used as, a regular sleeping accommodation for human beings.
    (3) This term does not include any individual imprisoned or 
otherwise detained under an Act of the Congress or a State law.
    HUD. Department of Housing and Urban Development.
    Installation. A base, camp, post, station, yard, center, homeport 
facility for any ship or other activity under the jurisdiction of DoD, 
including any leased facility, that is approved for closure or 
realignment under the Base Closure and Realignment Act of 1988 (Pub. L. 
100-526), as amended, or the Defense Base Closure and Realignment Act 
of 1990 (Pub. L. 101-510), as amended (both at 10 U.S.C. 2687, note).
    Local redevelopment authority (LRA). Any authority or 
instrumentality established by State or local government and recognized 
by the Secretary of Defense, through the Office of Economic Adjustment, 
as the entity responsible for developing the redevelopment plan with 
respect to the installation or for directing implementation of the 
plan.
    NEPA. National Environmental Policy Act of 1969 (42 U.S.C. 4320).
    OEA. Office of Economic Adjustment, Department of Defense.
    Private nonprofit organization. An organization, no part of the net 
earnings of which inures to the benefit of any member, founder, 
contributor, or individual; that has a voluntary board; that has an 
accounting system or has designated an entity that will maintain a 
functioning accounting system for the organization in accordance with 
generally accepted accounting procedures; and that practices 
nondiscrimination in the provision of assistance.
    Public benefit transfer. The transfer of surplus military property 
for a specified public purpose at up to a 100 percent discount in 
accordance with 40 U.S.C. 471 et seq., or 49 U.S.C. 47151-47153.
    Redevelopment plan. A plan that is agreed to by the LRA with 
respect to the installation and provides for the reuse or redevelopment 
of the real property and personal property of the installation that is 
available for such reuse and redevelopment as a result of the closure 
of the installation.
    Representative(s) of the homeless. A State or local government 
agency or private nonprofit organization, including a homeless 
assistance planning board, that provides or proposes to provide 
services to the homeless.
    Substantially equivalent. Property that is functionally suitable to 
substitute for property referred to in an approved Title V application. 
For example, if the representative of the homeless had an approved 
Title V application for a building that would accommodate 100 homeless 
persons in an emergency shelter, the replacement facility would also 
have to accommodate 100 at a comparable cost for renovation.
    Substantially equivalent funding. Sufficient funding to acquire a 
substantially equivalent facility.
    Surplus property. Any excess property not required for the needs 
and the discharge of the responsibilities of all Federal Agencies. 
Authority to make this determination, after screening with all Federal 
Agencies, rests with the Military Departments.
    Title V. Title V of the Stewart B. McKinney Homeless Assistance Act 
of 1987 (42 U.S.C 11411) as amended by the National Defense 
Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).
    Urban county. A county within a metropolitan area as defined at 24 
CFR 570.3.


Sec. 586.10  Applicability.

    (a) General. This part applies to all installations that are 
approved for closure/realignment by the President and Congress under 
Pub. L. 101-510 after October 25, 1994.
    (b) Request for inclusion under this process. This part also 
applies to installations that were approved for closure/realignment 
under either Public Law 100-526 or Public Law 101-510 prior to October 
25, 1994 and for which an LRA submitted a request for inclusion under 
this part to DoD by December 24, 1994. A list of such requests was 
published in the Federal Register on May 30, 1995 (60 FR 28089).
    (1) For installations with Title V applications pending but not 
approved before October 25, 1994, the LRA shall consider and 
specifically address any application for use of buildings and property 
to assist the homeless that were received by HHS prior to October 25, 
1994, and were pending with the Secretary of HHS on that date. These 
pending requests shall be addressed in the LRA's homeless assistance 
submission.
    (2) For installations with Title V applications approved before 
October 25, 1994 where there is an approved Title V application, but 
property has not been assigned or otherwise disposed of by the Military 
Department, the LRA must ensure that its homeless assistance submission 
provides the Title V applicant with:
    (i) The property requested;
    (ii) Properties, on or off the installation, that are substantially 
equivalent to those requested;
    (iii) Sufficient funding to acquire such substantially equivalent 
properties;
    (iv) Services and activities that meet the needs identified in the 
application; or
    (v) A combination of the properties, funding, and services and 
activities described in Sec. 586.10(b)(2)(i) through (iv).
    (c) Revised Title V process. All other installations approved for 
closure or realignment under either Public Law 100-526 or Public Law 
101-510 prior to October 25, 1994, for which there was no request for 
consideration under this part, are covered by the process stipulated 
under Title V. Buildings or property that were transferred or leased 
for homeless use under Title V prior to October 25, 1994, may not be 
reconsidered under this part.


Sec. 586.15  Waivers and extensions of deadlines.

    (a) After consultation with the LRA and HUD, and upon a finding 
that it is in the interest of the communities affected by the closure/
realignment of the installation, DoD, through the Director of the 
Office of Economic Adjustment, may extend or postpone any deadline 
contained in this part.
    (b) Upon completion of a determination and finding of good cause, 
and except for deadlines and actions required on the part of DoD, HUD 
may waive any provision of Secs. 586.20 through 586.45 in any 
particular case, subject only to statutory limitations.


Sec. 586.20  Overview of the process.

    (a) Recognition of the LRA. As soon as practicable after the list 
of installations recommended for closure or realignment is approved, 
DoD, through OEA, will recognize an LRA for the installation. Upon 
recognition, OEA shall publish the name, address, and point of contact 
for the LRA in the Federal Register and in a newspaper of general 
circulation in the communities in the vicinity of the installation.
    (b) Responsibilities of the Military Department. The Military 
Department shall make installation properties available to other DoD 
components and Federal agencies in accordance with the procedures set 
out at 32 CFR part 175. The Military Department will keep the LRA 
informed of other Federal interest in the property during this process. 
Upon completion of this process the Military Department will notify HUD 
and either the LRA, or the Chief Executive Officer of the State, as

[[Page 37481]]

appropriate, and publish a list of surplus property on the installation 
that will be available for reuse in the Federal Register and a 
newspaper of general circulation in the communities in the vicinity of 
the installation.
    (c) Responsibilities of the LRA. The LRA should begin to conduct 
outreach efforts with respect to the installation as soon as is 
practicable after the date of approval of closure/realignment of the 
installation. The local reuse planning process must begin no later than 
the date of the Military Department's Federal Register publication of 
available property described at Sec. 586.20(b). For those installations 
that began the process described in this part prior to August 17, 1995, 
HUD will, on a case by case basis, determine whether the statutory 
requirements have been fulfilled and whether any additional 
requirements listed in this part should be required. Upon the Federal 
Register publication described in Sec. 586.20(b), the LRA shall:
    (1) Publish, within 30 days, in a newspaper of general circulation 
in the communities in the vicinity of the installation, the time period 
during which the LRA will receive notices of interest from State and 
local governments, representatives of the homeless, and other 
interested parties. This publication shall include the name, address, 
telephone number and the point of contact for the LRA who can provide 
information on the prescribed form and contents of the notices of 
interest. The LRA shall notify DoD of the deadline specified for 
receipt of notices of interest. LRAs are strongly encouraged to make 
this publication as soon as possible within the permissible 30 day 
period in order to expedite the closure process.
    (i) In addition, the LRA has the option to conduct an informal 
solicitation of notices of interest from public and non-profit entities 
interested in obtaining property via a public benefit transfer other 
than a homeless assistance conveyance under either 40 U.S.C. 471 et 
seq., or 49 U.S.C. 47151-47153. As part of such a solicitation, the LRA 
may wish to request that interested entities submit a description of 
the proposed use to the LRA and the sponsoring Federal agency.
    (ii) For all installations selected for closure or realignment 
prior to 1995 that elected to proceed under Public Law 103-421, the LRA 
shall accept notices of interest for not less than 30 days.
    (iii) For installations selected for closure or realignment in 1995 
or thereafter, notices of interest shall be accepted for a minimum of 
90 days and not more than 180 days after the LRA's publication under 
Sec. 586.20(c)(1).
    (2) Prescribe the form and contents of notices of interest.
    (i) The LRA may not release to the public any information regarding 
the capacity of the representative of the homeless to carry out its 
program, a description of the organization, or its financial plan for 
implementing the program, without the consent of the representative of 
the homeless concerned, unless such release is authorized under Federal 
law and under the law of the State and communities in which the 
installation concerned is located. The identity of the representative 
of the homeless may be disclosed.
    (ii) The notices of interest from representatives of the homeless 
must include:
    (A) A description of the homeless assistance program proposed, 
including the purposes to which the property or facility will be put, 
which may include uses such as supportive services, job and skills 
training, employment programs, shelters, transitional housing or 
housing with no established limitation on the amount of time of 
residence, food and clothing banks, treatment facilities, or any other 
activity which clearly meets an identified need of the homeless and 
fills a gap in the continuum of care;
    (B) A description of the need for the program;
    (C) A description of the extent to which the program is or will be 
coordinated with other homeless assistance programs in the communities 
in the vicinity of the installation;
    (D) Information about the physical requirements necessary to carry 
out the program including a description of the buildings and property 
at the installation that are necessary to carry out the program;
    (E) A description of the financial plan, the organization, and the 
organizational capacity of the representative of the homeless to carry 
out the program; and
    (F) An assessment of the time required to start carrying out the 
program.
    (iii) The notices of interest from entities other than 
representatives of the homeless should specify the name of the entity 
and specific interest in property or facilities along with a 
description of the planned use.
    (3) In addition to the notice required under Sec. 586.20(c)(1), 
undertake outreach efforts to representatives of the homeless by 
contacting local government officials and other persons or entities 
that may be interested in assisting the homeless within the vicinity of 
the installation.
    (i) The LRA may invite persons and organizations identified on the 
HUD list of representatives of the homeless and any other 
representatives of the homeless with which the LRA is familiar, 
operating in the vicinity of the installation, to the workshop 
described in Sec. 586.20(c)(3)(ii).
    (ii) The LRA, in coordination with the Military Department and HUD, 
shall conduct at least one workshop where representatives of the 
homeless have an opportunity to:
    (A) Learn about the closure/realignment and disposal process;
    (B) Tour the buildings and properties available either on or off 
the installation;
    (C) Learn about the LRA's process and schedule for receiving 
notices of interest as guided by Sec. 586.20(c)(2); and
    (D) Learn about any known land use constraints affecting the 
available property and buildings.
    (iii) The LRA should meet with representatives of the homeless that 
express interest in discussing possible uses for these properties to 
alleviate gaps in the continuum of care.
    (4) Consider various properties in response to the notices of 
interest. The LRA may consider property that is located off the 
installation.
    (5) Develop an application, including the redevelopment plan and 
homeless assistance submission, explaining how the LRA proposes to 
address the needs of the homeless. This application shall consider the 
notices of interest received from State and local governments, 
representatives of the homeless, and other interested parties. This 
shall include, but not be limited to, entities eligible for public 
benefit transfers under either 40 U.S.C. 471 et seq., or 49 U.S.C. 
47151-47153; representatives of the homeless; commercial, industrial, 
and residential development interests; and other interests. From the 
deadline date for receipt of notices of interest described at 
Sec. 586.20(c)(1), the LRA shall have 270 days to complete and submit 
the LRA application to the appropriate Military Department and HUD. The 
application requirements are described at Sec. 586.30.
    (6) Make the draft application available to the public for review 
and comment periodically during the process of developing the 
application. The LRA must conduct at least one public hearing on the 
application prior to its submission to HUD and the appropriate Military 
Department. A summary of the public comments received during the 
process of developing the application shall be

[[Page 37482]]

included in the application when it is submitted.
    (d) Public benefit transfer screening. The LRA should, while 
conducting its outreach efforts, work with the Federal agencies that 
sponsor public benefit transfers under either 40 U.S.C. 471 et seq. or 
49 U.S.C. 47151-47153. Those agencies can provide a list of parties in 
the vicinity of the installation that might be interested in and 
eligible for public benefit transfers. The LRA should make a reasonable 
effort to inform such parties of the availability of the property and 
incorporate their interests within the planning process. Actual 
recipients of property are to be determined by the sponsoring Federal 
agency. The Military Departments shall notify sponsoring Federal 
agencies about property that is available based on the community 
redevelopment plan and keep the LRA apprised of any expressions of 
interest. Such expressions of interest are not required to be 
incorporated into the redevelopment plan, but must be considered.


Sec. 586.25  HUD's negotiations and consultations with the LRA.

    HUD may negotiate and consult with the LRA before and during the 
course of preparation of the LRA's application and during HUD's review 
thereof with a view toward avoiding any preliminary determination that 
the application does not meet any requirement of this part. LRAs are 
encouraged to contact HUD for a list of persons and organizations that 
are representatives of the homeless operating in the vicinity of the 
installation.


Sec. 586.30  LRA application.

    (a) Redevelopment plan. A copy of the redevelopment plan shall be 
part of the application.
    (b) Homeless assistance submission. This component of the 
application shall include the following:
    (1) Information about homelessness in the communities in the 
vicinity of the installation.
    (i) A list of all the political jurisdictions which comprise the 
LRA.
    (ii) A description of the unmet need in the continuum of care 
system within each political jurisdiction, which should include 
information about any gaps that exist in the continuum of care for 
particular homeless subpopulations. The source for this information 
shall depend upon the size and nature of the political jurisdictions(s) 
that comprise the LRA. LRAs representing:
    (A) Political jurisdictions that are required to submit a 
Consolidated Plan shall include a copy of their Homeless and Special 
Needs Population Table (Table 1), Priority Homeless Needs Assessment 
Table (Table 2), and narrative description thereof from that 
Consolidated Plan, including the inventory of facilities and services 
that assist the homeless in the jurisdiction.
    (B) Political jurisdictions that are part of an urban county that 
is required to submit a Consolidated Plan shall include a copy of their 
Homeless and Special Needs Population Table (Table 1), Priority 
Homeless Needs Assessment Table (Table 2), and narrative description 
thereof from that Consolidated Plan, including the inventory of 
facilities and services that assist the homeless in the jurisdiction. 
In addition, the LRA shall explain what portion of the homeless 
population and subpopulations described in the Consolidated Plan are 
attributable to the political jurisdiction it represents.
    (C) A political jurisdiction not described by 
Sec. 586.30(b)(1)(ii)(A) or Sec. 586.30(b)(1)(ii)(B) shall submit a 
narrative description of what it perceives to be the homeless 
population within the jurisdiction and a brief inventory of the 
facilities and services that assist homeless persons and families 
within the jurisdiction. LRAs that represent these jurisdictions are 
not required to conduct surveys of the homeless population.
    (2) Notices of interest proposing assistance to homeless persons 
and/or families.
    (i) A description of the proposed activities to be carried out on 
or off the installation and a discussion of how these activities meet a 
portion or all of the needs of the homeless by addressing the gaps in 
the continuum of care. The activities need not be limited to 
expressions of interest in property, but may also include discussions 
of how economic redevelopment may benefit the homeless;
    (ii) A copy of each notice of interest from representatives of the 
homeless for use of buildings and property and a description of the 
manner in which the LRA's application addresses the need expressed in 
each notice of interest. If the LRA determines that a particular notice 
of interest should not be awarded property, an explanation of why the 
LRA determined not to support that notice of interest, the reasons for 
which may include the impact of the program contained in the notice of 
interest on the community as described in Sec. 586.30(b)(2)(iii); and
    (iii) A description of the impact that the implemented 
redevelopment plan will have on the community. This shall include 
information on how the LRA's redevelopment plan might impact the 
character of existing neighborhoods adjacent to the properties proposed 
to be used to assist the homeless and should discuss alternative plans. 
Impact on schools, social services, transportation, infrastructure, and 
concentration of minorities and/or low income persons shall also be 
discussed.
    (3) Legally binding agreements for buildings, property, funding, 
and/or services.
    (i) A copy of the legally binding agreements that the LRA proposes 
to enter into with the representative(s) of the homeless selected by 
the LRA to implement homeless programs that fill gaps in the existing 
continuum of care. The legally binding agreements shall provide for a 
process for negotiating alternative arrangements in the event that an 
environmental analysis conducted under Sec. 586.45(b) indicates that 
any property identified for transfer in the agreement is not suitable 
for the intended purpose. Where the balance determined in accordance 
with Sec. 586.30(b)(4) provides for the use of installation property as 
a homeless assistance facility, legally binding agreements must provide 
for the reversion or transfer, either to the LRA or to another entity 
or entities, of the buildings and property in the event they cease to 
be used for the homeless. In cases where the balance proposed by the 
LRA does not include the use of buildings or property on the 
installation, the legally binding agreements need not be tied to the 
use of specific real property and need not include a reverter clause. 
Legally binding agreements shall be accompanied by a legal opinion of 
the chief legal advisor of the LRA or political jurisdiction or 
jurisdictions which will be executing the legally binding agreements 
that the legally binding agreements, when executed, will constitute 
legal, valid, binding, and enforceable obligations on the parties 
thereto;
    (ii) A description of how buildings, property, funding, and/or 
services either on or off the installation will be used to fill some of 
the gaps in the current continuum of care system and an explanation of 
the suitability of the buildings and property for that use; and
    (iii) Information on the availability of general services such as 
transportation, police, and fire protection, and a discussion of 
infrastructure such as water, sewer, and electricity in the vicinity of 
the proposed homeless activity at the installation.
    (4) An assessment of the balance with economic and other 
development needs.
    (i) An assessment of the manner in which the application balances 
the expressed needs of the homeless and the

[[Page 37483]]

needs of the communities comprising the LRA for economic redevelopment 
and other development; and
    (ii) An explanation of how the LRA's application is consistent with 
the appropriate Consolidated Plan(s) or any other existing housing, 
social service, community, economic, or other development plans adopted 
by the jurisdictions in the vicinity of the installation.
    (5) A description of the outreach undertaken by the LRA. The LRA 
shall explain how the outreach requirements described at 
Sec. 586.20(c)(1) and Sec. 586.20(c)(3) have been fulfilled. This 
explanation shall include a list of the representatives of the homeless 
the LRA contacted during the outreach process.
    (c) Public comments. The LRA application shall include the 
materials described at Sec. 586.20(c)(6). These materials shall be 
prefaced with an overview of the citizen participation process observed 
in preparing the application.


Sec. 586.35  HUD's review of the application.

    (a) Timing. HUD shall complete a review of each application no 
later than 60 days after its receipt of a completed application.
    (b) Standards of review. The purpose of the review is to determine 
whether the application is complete and, with respect to the expressed 
interest and requests of representatives of the homeless, whether the 
application:
    (1) Need. Takes into consideration the size and nature of the 
homeless population in the communities in the vicinity of the 
installation, the availability of existing services in such communities 
to meet the needs of the homeless in such communities, and the 
suitability of the buildings and property covered by the application 
for use and needs of the homeless in such communities. HUD will take 
into consideration the size and nature of the installation in reviewing 
the needs of the homeless population in the communities in the vicinity 
of the installation.
    (2) Impact of notices of interest. Takes into consideration any 
economic impact of the homeless assistance under the plan on the 
communities in the vicinity of the installation, including:
    (i) Whether the plan is feasible in light of demands that would be 
placed on available social services, police and fire protection, and 
infrastructure in the community; and,
    (ii) Whether the selected notices of interest are consistent with 
the Consolidated Plan(s) or any other existing housing, social service, 
community, economic, or other development plans adopted by the 
political jurisdictions in the vicinity of the installation.
    (3) Legally binding agreements. Specifies the manner in which the 
buildings, property, funding, and/or services on or off the 
installation will be made available for homeless assistance purposes. 
HUD will review each legally binding agreement to verify that:
    (i) They include all the documents legally required to complete the 
transactions necessary to realize the homeless use(s) described in the 
application;
    (ii) They include all appropriate terms and conditions;
    (iii) They address the full range of contingencies including those 
described at Sec. 586.30(b)(3)(i);
    (iv) They stipulate that the buildings, property, funding, and/or 
services will be made available to the representatives of the homeless 
in a timely fashion; and
    (v) They are accompanied by a legal opinion of the chief legal 
advisor of the LRA or political jurisdiction or jurisdictions which 
will be executing the legally binding agreements that the legally 
binding agreements will, when executed, constitute legal, valid, 
binding, and enforceable obligations on the parties thereto.
    (4) Balance. Balances in an appropriate manner a portion or all of 
the needs of the communities in the vicinity of the installation for 
economic redevelopment and other development with the needs of the 
homeless in such communities.
    (5) Outreach. Was developed in consultation with representatives of 
the homeless and the homeless assistance planning boards, if any, in 
the communities in the vicinity of the installation and whether the 
outreach requirements described at Sec. 586.20(c)(1) and 
Sec. 586.20(c)(3) have been fulfilled by the LRA.
    (c) Notice of determination. (1) HUD shall, no later than the 60th 
day after its receipt of the application, unless such deadline is 
extended pursuant to Sec. 586.15(a), send written notification both to 
DoD and the LRA of its preliminary determination that the application 
meets or fails to meet the requirements of Sec. 586.35(b). If the 
application fails to meet the requirements, HUD will send the LRA:
    (i) A summary of the deficiencies in the application;
    (ii) An explanation of the determination; and
    (iii) A statement of how the LRA must address the determinations.
    (2) In the event that no application is submitted and no extension 
is requested as of the deadline specified in Sec. 586.20(c)(5), and the 
State does not accept within 30 days a DoD written request to become 
recognized as the LRA, the absence of such application will trigger an 
adverse determination by HUD effective on the date of the lapsed 
deadline. Under these conditions, HUD will follow the process described 
at Sec. 586.40.
    (d) Opportunity to cure. (1) The LRA shall have 90 days from its 
receipt of the notice of preliminary determination under 
Sec. 586.35(c)(1) within which to submit to HUD and DoD a revised 
application which addresses the determinations listed in the notice. 
Failure to submit a revised application shall result in a final 
determination, effective 90 days from the LRA's receipt of the 
preliminary determination, that the redevelopment plan fails to meet 
the requirements of Sec. 586.35(b).
    (2) HUD shall, within 30 days of its receipt of the LRA's 
resubmission, send written notification of its final determination of 
whether the application meets the requirements of Sec. 586.35(b) to 
both DOD and the LRA.


Sec. 586.40  Adverse determinations.

    (a) Review and consultation. If the resubmission fails to meet the 
requirements of Sec. 586.35(b), or if no resubmission is received, HUD 
will review the original application, including the notices of interest 
submitted by representatives of the homeless. In addition, in such 
instances or when no original application has been submitted, HUD:
    (1) Shall consult with the representatives of the homeless, if any, 
for purposes of evaluating the continuing interest of such 
representatives in the use of buildings or property at the installation 
to assist the homeless;
    (2) May consult with the applicable Military Department regarding 
the suitability of the buildings and property at the installation for 
use to assist the homeless; and
    (3) May consult with representatives of the homeless and other 
parties as necessary.
    (b) Notice of decision. (1) Within 90 days of receipt of an LRA's 
revised application which HUD determines does not meet the requirements 
of Sec. 586.35(b), HUD shall, based upon its reviews and consultations 
under Sec. 586.40(a):
    (i) Notify DoD and the LRA of the buildings and property at the 
installation that HUD determines are suitable for use to assist the 
homeless; and
    (ii) Notify DoD and the LRA of the extent to which the revised

[[Page 37484]]

redevelopment plan meets the criteria set forth in Sec. 586.35(b).
    (2) In the event that an LRA does not submit a revised 
redevelopment plan under Sec. 586.35(d), HUD shall, based upon its 
reviews and consultations under Sec. 586.40(a), notify DoD and the LRA 
of the buildings and property at the installation that HUD determines 
are suitable for use to assist the homeless, either
    (i) Within 190 days after HUD sends its notice of preliminary 
adverse determination under Sec. 586.35(c)(1), if an LRA has not 
submitted a revised redevelopment plan; or
    (ii) Within 390 days after the Military Department's Federal 
Register publication of available property under Sec. 586.20(b), if no 
redevelopment plan has been received and no extension has been 
approved.


Sec. 586.45  Disposal of buildings and property.

    (a) Public benefit transfer screening. Not later than the LRA's 
submission of its redevelopment plan to DoD and HUD, the Military 
Department will conduct an official public benefit transfer screening 
in accordance with the Federal Property Management Regulations (41 CFR 
part 101-47.303-2) based upon the uses identified in the redevelopment 
plan. Federal sponsoring agencies shall notify eligible applicants that 
any request for property must be consistent with the uses identified in 
the redevelopment plan. At the request of the LRA, the Military 
Department may conduct the official State and local public benefit 
screening at any time after the publication of available property 
described at Sec. 586.20(b).
    (b) Environmental analysis. Prior to disposal of any real property, 
the Military Department shall, consistent with NEPA and section 2905 of 
the Defense Base Closure and Realignment Act of 1990, as amended (10 
U.S.C. 2687 note), complete an environmental impact analysis of all 
reasonable disposal alternatives. The Military Department shall consult 
with the LRA throughout the environmental impact analysis process to 
ensure both that the LRA is provided the most current environmental 
information available concerning the installation, and that the 
Military Department receives the most current information available 
concerning the LRA's redevelopment plans for the installation.
    (c) Disposal. Upon receipt of a notice of approval of an 
application from HUD under Sec. 586.35(c)(1) or Sec. 586.35(d)(2), DoD 
shall dispose of buildings and property in accordance with the record 
of decision or other decision document prepared under Sec. 586.45(b). 
Disposal of buildings and property to be used as homeless assistance 
facilities shall be to either the LRA or directly to the 
representative(s) of the homeless and shall be without consideration. 
Upon receipt of a notice from HUD under Sec. 586.40(b), DoD will 
dispose of the buildings and property at the installation in 
consultation with HUD and the LRA.
    (d) LRA's responsibility. The LRA shall be responsible for the 
implementation of and compliance with legally binding agreements under 
the application.
    (e) Reversions to the LRA. If a building or property reverts to the 
LRA under a legally binding agreement under the application, the LRA 
shall take appropriate actions to secure, to the maximum extent 
practicable, the utilization of the building or property by other 
homeless representatives to assist the homeless. An LRA may not be 
required to utilize the building or property to assist the homeless.

    Dated: June 27, 1997.
Jacquie M. Lawing,
Acting Assistant Secretary for Community Planning and Development.
[FR Doc. 97-18136 Filed 7-10-97; 8:45 am]
BILLING CODE 4210-29-P