[Federal Register Volume 63, Number 111 (Wednesday, June 10, 1998)]
[Rules and Regulations]
[Pages 31868-31869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15477]



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Part IV





Department of Housing and Urban Development





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24 CFR Part 570



Community Development Work Study Program; Repayment Requirements; Final 
Rule

  Federal Register / Vol. 63, No. 111 / Wednesday, June 10, 1998 / 
Rules and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR-4324-F-01]
RIN 2528-AA08


Community Development Work Study Program; Repayment Requirements

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

ACTION: Final rule.

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SUMMARY: On July 10, 1996, HUD published a Final Rule making various 
amendments to the Community Development Work Study Program (CDWSP), 
including the removal of requirements that students who are terminated 
from the CDWSP repay the tuition and additional assistance to the grant 
recipient, and that the grant recipient repay those funds to HUD. HUD 
has determined to extend this relief to all open grants, including 
those entered into before the effective date of the July 10 final rule.

DATES: Effective date: July 10, 1998.

FOR FURTHER INFORMATION CONTACT: John M. Hartung, Office of University 
Partnerships, Department of Housing and Urban Development, Room 8130, 
451 Seventh Street, SW, Washington, D.C. 20410, telephone (202) 708-
1537. Hearing or speech-impaired individuals may call HUD's TTY number 
(202) 708-0770, or 1-800-877-8399 (Federal Information Relay Service 
TTY). (Other than the ``800'' number, these are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

I. Background

    Section 501(b)(2) of the Housing and Community Development Act of 
1987 (Pub. L. 100-242, approved February 5, 1988), added a new section 
107(c) to the Housing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.), authorizing the Community Development Work Study Program 
(CDWSP). Under the CDWSP, HUD is authorized to award grants to 
institutions of higher education, either directly or through areawide 
planning organizations (APOs) or States, for the purpose of providing 
assistance to economically disadvantaged and minority students who 
participate in a community development work study program while 
enrolled in a full-time graduate or undergraduate Community Development 
Academic Program.
    On June 27, 1989, HUD published a final rule (45 FR 27128) 
implementing section 107(c) at 24 CFR 570.415. Based on its experience 
in administering the CDWSP over many years, HUD made several amendments 
to 24 CFR 570.415 on July 10, 1996 (61 FR 36456) so that the CDWSP 
could more effectively and efficiently meet its program objectives. 
Among other revisions, the July 10, 1996 final rule: (1) Limited the 
number of students assisted under the CDWSP to five students per 
participating institution of higher education; (2) limited the CDWSP to 
graduate level programs; (3) permitted institutions of higher education 
to apply individually or through APOs; (4) streamlined the selection 
factors used to select grantees; and (5) eliminated the requirement 
that students who are terminated from the CDWSP repay tuition and 
additional assistance and that the grant recipient repay those funds to 
HUD.
    In eliminating the repayment requirement, the Department found, 
among other considerations, that the requirement was both a 
disincentive to prospective students and imposed substantial 
administrative burdens on institutions of higher education. Public 
comment submitted in response to the proposed rule for removing the 
repayment requirement strongly favored removal. In addition, HUD is not 
aware of any adverse consequences following the removal of the 
repayment requirement. HUD has therefore determined to eliminate the 
repayment requirement entirely with respect to all open CDWSP grants, 
including those executed before the effective date of the June 10, 1996 
final rule, to the extent that HUD has not received repayment.
    This rule amends 24 CFR 570.415(k)(3)(ii) to provide that there is 
no requirement, with respect to any grant and regardless of date of 
grant award, for students who are terminated from the CDWSP to repay 
tuition and additional assistance or for the grant recipient to repay 
such funds to HUD. Of course, the funds must still be otherwise 
expended consistent with CDWSP regulations and the grant agreement, or 
repayment may be required under Sec. 570.415(k)(3)(iii).

II. Findings and Certifications

Justification for Final Rulemaking

    In general, the Department publishes a rule for public comment 
before issuing a rule for effect, in accordance with its own 
regulations on rulemaking at 24 CFR part 10. However, part 10 does 
provide for exceptions from that general rule where the agency finds 
good cause to omit advance notice and public participation. The good 
cause requirement is satisfied when prior public procedure is 
``impracticable, unnecessary, or contrary to the public interest.'' (24 
CFR 10.1) The Department finds that good cause exists to publish this 
rule for effect without first soliciting public comment. Prior public 
procedure is unnecessary because public comment on the very issue 
addressed by this rule, removal of repayment requirements, was 
solicited in a previous, directly related rulemaking (which resulted in 
the July 10, 1996 final rule), and was unanimously favorable. This rule 
only expands the scope of that previous rulemaking to cover any 
remaining open grants executed before its August 9, 1996 effective 
date.

Paperwork Reduction Act Statement

    The information collection requirements for the Community 
Development Work Study Program have been approved by the Office of 
Management and Budget in accordance with the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520), and assigned OMB control number 2528-0175. 
This rule does not contain additional information collection 
requirements. 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

    The Secretary has reviewed this rule before publication and by 
approving it certifies, in accordance with the Unfunded Mandates Reform 
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal 
mandate that will result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year.

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 final rule will not have a significant economic 
impact on a substantial number of small entities. This rule only 
affects applicants and participants in HUD's Community Development Work 
Study Program, and will not have any meaningful economic impact on any 
entity.

Environmental Impact

    In accordance with 40 CFR 1508.4 of the regulations of the Council 
on Environmental Quality and 24 CFR 50.19(c)(2) of the HUD regulations, 
the policies and procedures in this document are not subject to the 
individual compliance requirements of

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the authorities cited in 24 CFR 50.4, and, therefore, are categorically 
excluded from the requirements of the National Environmental Policy Act 
of 1969, although this document amends a previous document which as a 
whole does not fall within the exemption. Accordingly, a Finding of No 
Significant Impact is not required.

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. Specifically, the requirements of 
this final rule are directed toward applicants and participants in 
HUD's Community Development Work Study Program (CDWSP). It effects no 
changes in the current relationships between the Federal government, 
the States and their political subdivisions in connection with CDWSP.

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 
to children.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance program number is 
14.234.

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 is amended as follows:

PART 570--COMMUNITY DEVELOPMENT BLOCK 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 570.415 is amended by revising paragraph (k)(3)(ii) to 
read as follows:


Sec. 570.415  Community Development Work Study Program.

* * * * *
    (k) * * *
    (3) * * *
    (ii) If a student's participation in CDWSP is terminated before the 
completion of the two-year term of the student's program, the recipient 
may substitute another student to complete the two-year term of a 
student whose participation has terminated. The substituted student 
must have a sufficient number of academic credits to complete the 
degree program within the remaining portion of the terminated student's 
two-year term. With respect to any CDWSP grant, there is no 
requirement, regardless of the date of grant award, for students who 
are terminated from the CDWSP to repay tuition and additional 
assistance or for the grant recipient to repay such funds to HUD. Funds 
must still be otherwise expended consistent with CDWSP regulations and 
the grant agreement, or repayment may be required under paragraph 
(k)(3)(iii) of this section.
* * * * *

    Dated: June 4, 1998.
Paul A. Leonard,
Deputy Assistant, Secretary for Policy Development and Research.
[FR Doc. 98-15477 Filed 6-9-98; 8:45 am]
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