[Federal Register Volume 63, Number 37 (Wednesday, February 25, 1998)]
[Rules and Regulations]
[Pages 9682-9683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4718]



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Part III





Department of Housing and Urban Development





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24 CFR Part 570



Hispanic-Serving Institutions Work Study Program; Final Rule

  Federal Register / Vol. 63, No. 37 / Wednesday, February 25, 1998 / 
Rules and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR-4269-I-01]
RIN 2528-AA07


Hispanic-Serving Institutions Work Study Program

AGENCY: Office of the Assistant Secretary for Policy Development and 
Research, HUD.

ACTION: Interim rule.

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SUMMARY: On April 9, 1997, HUD published a final rule for the Hispanic-
serving Institutions Work Study Program (HSI-WSP). That rule 
established, among other things, eligibility for the program. 
Eligibility was limited to certain public and private non-profit two-
year institutions of higher education. This interim rule broadens 
eligibility to a larger universe of these institutions.

DATES: Effective Date: March 27, 1998.
    Comment Due Date: April 27, 1998.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Rules Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW, Washington, DC 20410-0500. 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.

FOR FURTHER INFORMATION CONTACT: Jane Karadbil, Office of University 
Partnerships. U.S. Department of Housing and Urban Development, Room 
8110, 451 Seventh Street, SW, Washington, DC 20410, telephone (202) 
708-1537, extension 218. Hearing-or speech-impaired individuals may 
call HUD's TTY number, (202) 708-1455, or 1-800-877-8399 (Federal 
Information Relay Service TTY). (Other than the ``800'' number, these 
are not toll-free numbers.) Ms. Karadbil can also be contacted via the 
Internet at Jane__.R.__K[email protected].

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act

    The information collection requirements contained in this interim 
rule were submitted to the Office of Management and Budget (OMB) for 
review under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) 
and have been assigned OMB control number 2528-0182. 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.

II. Background

    The HSI-WSP is authorized by section 107(c) of the Housing and 
Community Development Act of 1974, as amended (42 U.S.C. 5307, 88 Stat. 
647). This section provides authority to ``* * * make grants to 
institutions of higher education * * * for the purposes of providing 
assistance to economically disadvantaged and minority students who 
participate in community development work study programs and are 
enrolled in full-time * * * undergraduate programs in community or 
economic development, community planning, or community management.''
    On April 9, 1997 (62 FR 17492), HUD issued a final rule governing 
the program. The final rule limited eligibility for HUD's HSI-WSP to 
certain Hispanic-serving Institutions (HSIs). Specifically, only public 
or private institutions of higher education that offer two-year 
associate degrees and qualify as HSIs are eligible for HSI-WSP. While 
the statute authorizing the program does not require it, HUD decided to 
determine eligibility by using the definition of an HSI contained in 
section 316 of the Higher Education Amendments of 1992 (20 U.S.C. 
1059c; 106 Stat. 448, 473). The Act defines an HSI as: an institution 
that has an enrollment of undergraduate full-time students that is at 
least 25 percent Hispanic; in which not less than 50 percent of the 
Hispanic students are low-income individuals (i.e., 150 percent of the 
poverty level) who are first generation college students (i.e., whose 
parent(s) did not complete a baccalaureate degree) and another 25 
percent are either low-income individuals or first generation college 
students. The U.S. Department of Education determines the eligibility 
of specific institutions as HSIs and issues a list of institutions 
meeting this definition. HUD's final rule noted that a list of HSI-WSP-
eligible community colleges that are included in the U.S. Department of 
Education's list of HSIs would appear with each Notice of Funding 
Availability (NOFA) for the program. Only institutions on this list, or 
HSI-WSP-eligible institutions subsequently added to the U.S. Department 
of Education's list prior to that NOFA's application deadline, are 
eligible to apply for HSI-WSP funds.

III. A Change in the Procedure To Determine Eligibility

    HUD has decided to eliminate the use of the U.S. Department of 
Education's list to determine eligibility and, instead, allow 
institutions to certify that they meet the statutory definition.
    The process for an institution to be put on the U.S. Department of 
Education's list has several steps. First, an institution must apply 
for and receive Title III (of the Higher Education Amendments of 1992). 
(This eligibility applies to a broader universe of institutions, not 
just HSIs, and allows these institutions to compete for Title III 
grants.) Second, with this eligibility, an institution must apply for 
the U.S. Department of Education's Hispanic-serving Institutions 
Program (which is a capacity building program for institutions of 
higher education, not a work study program). Third, the U.S. Department 
of Education must receive, as part of the application for their HSI 
program, a certification from the institution that it meets the 
statutory HSI definition. Fourth, as a result of this certification, 
the U.S. Department of Education puts the institution on its HSI list. 
Based on the language in the HSI-WSP final rule, only when all of these 
steps have occurred is the institution eligible for HUD's HSI-WSP.
    HUD's use of the U.S. Department of Education's list means that 
some Hispanic-serving institutions are not eligible for HSI-WSP for one 
of two reasons. First, institutions that meet the eligibility 
requirements but do not apply for the U.S. Department of Education's 
program (and are therefore not on the U.S. Department of Education's 
list) cannot apply for the HUD program. Second, because the U.S. 
Department of Education had no funding for new grants for its HSI 
Program in FY 1996, FY 1997, and FY 1998, there was no call for 
applications for three years, and, thus, no additional determinations 
of HSI eligibility which could be added to the list of HSIs that 
Department produces. HUD has determined that it may be unfairly 
penalizing institutions if it relies on a potentially out-of-date and 
overly restrictive eligibility list. HUD has, therefore, decided not to 
base eligibility on the U.S. Department of Education's list, but 
instead allow applicants to certify to HUD that they are eligible to 
apply for the HSI-WSP.

IV. Justification for an Interim Rule

    In general, HUD publishes a rule for public comments before issuing 
a rule for effect, in accordance with its own regulations on 
rulemaking, 24 CFR part 10. However, part 10 does provide for

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exceptions from the general rule where the Department finds good cause 
to omit advance notice and public participation. The good cause 
requirement is satisfied when prior public procedure is 
``impracticable, unnecessary, or contrary to the public interest.'' (24 
CFR 10.1)
    The Department finds that good cause exists to publish this rule 
for effect without first soliciting public comment, in that prior 
public procedure is contrary to the public interest. The purpose of the 
rule is to expand eligibility to additional institutions of higher 
education. If the rule were issued for public comment, it could not 
take effect before the next round of competition, preventing otherwise 
eligible schools from competing. This, in turn, would deny eligible 
students from entering these community colleges and moving on to 
careers in community building. Although the rule will take effect 30 
days from the date of publication, HUD solicits comments from the 
public on this interim rule.

V. Findings and Certifications

Environmental Impact

    In accordance with 24 CFR 50.19(b)(9) of the HUD regulations, the 
policies and procedures contained in this rule relate only to training 
grants and technical assistance, and therefore, are categorically 
excluded from the requirements of the National Environmental Policy 
Act.

Regulatory Flexibility

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this interim rule, and in so 
doing, certifies that it will not have a significant economic impact on 
a substantial number of small entities. The rule only affects 
applicants and participants in the Hispanic-Serving Institutions Work 
Study Program and will not have any meaningful economic impact on any 
other entity.

Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
and procedures contained in 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. 
As a result, the rule is not subject to review under the Order. 
Specifically, the rule solicits participation by institutions of higher 
education in creating community development work study programs for 
some of their economically disadvantaged and minority students. The 
rule does not impinge upon the relationships between the Federal 
government and State or local governments.

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 on the private sector. This interim 
rule would not impose any Federal mandates on any State, local, or 
tribal governments, or on the private sector, within the meaning of the 
UMRA.

The Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance program number is 
14.513.

List of Subjects in 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, 24 CFR part 570, subpart E is amended as follows:

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

Subpart E--Special Purpose Grants

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

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

    2. Section 570.416 is amended by revising the definition of 
``Hispanic-serving institution'' in paragraph (b) to read as follows:


Sec. 570.416  Hispanic-serving institutions work study program.

* * * * *
    (b) Definitions. * * *
* * * * *
    Hispanic-serving institution is an institution of higher education 
that certifies to the satisfaction of the Secretary that it meets the 
criteria set out at 20 U.S.C. 1059c(b)(1), including the following: An 
institution that has an enrollment of undergraduate full-time students 
that is at least 25 percent Hispanic; in which not less than 50 percent 
of the Hispanic students are low-income individuals (i.e., their 
families' taxable income for the preceding year did not exceed 150 
percent of the poverty level) who are first generation college 
students; and in which another 25 percent are either low-income 
individuals or first generation college students.
* * * * *
    Dated: January 22, 1998.
Paul A. Leonard,
Deputy Assistant Secretary for Policy Development.
[FR Doc. 98-4718 Filed 2-24-98; 8:45 am]
BILLING CODE 4210-62-P