[Federal Register Volume 65, Number 178 (Wednesday, September 13, 2000)]
[Rules and Regulations]
[Pages 55169-55175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23461]



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  Federal Register / Vol. 65, No. 178 / Wednesday, September 13, 2000 / 
Rules and Regulations  

[[Page 55169]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight

12 CFR Part 1710

RIN 2550-AA09


Releasing Information; Electronic Freedom of Information 
Amendment

AGENCY: Office of Federal Housing Enterprise Oversight, HUD.

ACTION: Final rule.

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

SUMMARY: The Office of Federal Housing Enterprise Oversight (OFHEO) is 
publishing a final regulation that reflects the changes to the Freedom 
of Information Act (FOIA) made by the Electronic Freedom of Information 
Act Amendments Act of 1996 (1996 Act) and revises the method of 
computing fees. The final regulation provides for: electronic FOIA 
requests; access to records published or released under FOIA in 
electronic format; expedited processing of FOIA requests upon a showing 
of compelling need; publication of responses to FOIA requests that are 
likely to become repeat requests; aggregation of clearly related 
requests by a single requester or group of requesters acting in 
concert; informing the requester of the volume of requested material 
withheld and the extent of deletions both in publicly available records 
and records released in response to a FOIA request; and a method for 
computing fees that is based upon the classification of the employee 
performing the work as executive, professional, or clerical.

DATES: The final regulation is effective October 13, 2000.

FOR FURTHER INFORMATION CONTACT: Dorothy J. Acosta, Deputy General 
Counsel, 1700 G Street NW, Fourth Floor, Washington, DC 20552, 
telephone (202) 414-3829 (not a toll-free number). The telephone number 
for the Telecommunications Device for the Deaf is (800) 877-8339.

SUPPLEMENTARY INFORMATION: On May 25, 2000 the Office of Federal 
Housing Enterprise Oversight (OFHEO) published a proposed regulation, 
implementing certain provisions of the Electronic Freedom of 
Information Act Amendments of 1996, and revising the fee schedule, 65 
FR 33790. The comment period closed July 24, 2000. No comments were 
received. Accordingly, the proposed regulation is published as a final 
regulation without change.

Background

    The 1996 Act amendments that are reflected in the final regulation 
are: (1) The requirement to make requested documents available in the 
form or format specified by the requester, provided the document is 
readily reproducible in that form or format; (2) the requirement to 
make publicly available copies of records released in response to FOIA 
requests that are likely to become the subject of subsequent requests 
for substantially the same records; (3) the requirement for electronic 
access to records required to be made public by 5 U.S.C. 552 (a)(2) 
that were created after November 1, 1996; (4) the requirement to 
provide expedited processing of FOIA requests upon a showing of 
compelling need by the requester and in such other cases as the agency 
may determine; (5) the requirement to indicate the extent of any 
deletion made in released records and publicly available records; (6) 
the requirement to inform the requester of the estimated volume of 
material withheld; and (7) the provision for aggregating clearly 
related requests as a single request when such a request would 
constitute an ``unusual circumstance'' justifying an extension of the 
response time. Although not required by the 1996 Act, this final 
regulation would allow requests to be made electronically.
    The final regulation also revises the way fees are determined for 
personnel costs involved in processing a request. Previously, the 
hourly rate OFHEO charged for actual time spent searching, reviewing, 
and duplicating was determined by the salary of the particular employee 
performing the work plus 16% of that amount to reflect the cost of 
benefits. The final regulation provides for fees to be based on one of 
three hourly rates for personnel costs associated with responding to a 
request, depending on whether the employee performing the work is 
classified as executive, professional, or clerical. An average of the 
actual compensation (salary and benefits) of all employees of OFHEO in 
a particular classification determines the actual hourly fee for that 
classification. These fees will be adjusted periodically to reflect 
significant changes in average compensation. The current fee schedule 
will be available on OFHEO's web site (http://www.ofheo.gov/docs/) and 
by mail.

Section-by-Section Analysis

Subpart A--General Definitions

    The definition of ``record'' in Sec. 1710.2(j) is amended by 
inserting the phrase ``regardless of form or format.''

Subpart B--Documents and Information Generally

    OFHEO's web site (http://www.ofheo.gov) is added to the list of 
routine distribution procedures referred to in Sec. 1710.7(c).

Subpart C--Availability of Records of OFHEO

    The final regulation amends Sec. 1710.11 by relocating the 
provisions that relate to records required to be made publicly 
available pursuant to 5 U.S.C. 552(a)(2) to Sec. 1710.12.
    Section 1710.11(a) is amended to incorporate the substance of 
Sec. 1710.11(c), which addresses copying costs, and to state that 
records will be made available in the form or format requested provided 
they are readily reproducible in that form or format with reasonable 
effort. ``Readily reproducible'' is defined to mean, with respect to 
electronic format, that the requested record or records can be 
downloaded or transferred intact to a computer disk, or other 
electronic medium using equipment currently in use by OFHEO.
    Section 1710.11(b), which addresses records required to be made 
publicly available under 5 U.S.C. 552(a)(2), is redesignated as 
Sec. 1710.12(a) and amended to: (1) Incorporate the substance of 
Sec. 1710.11(c) addressing copying costs; (2) state that all publicly 
available documents are available by

[[Page 55170]]

mail; (3) state that records created after November 1, 1996, including 
current indexes to all publicly available records regardless of when 
created, will be available on OFHEO's web site; and (4) add to the list 
of records publicly available, copies of records that have been 
released under the FOIA that OFHEO believes are likely to become the 
subject of subsequent requests for substantially the same records.
    Section 1710.11(c), which relates to copying charges, is deleted 
and its substance incorporated in Secs. 1710.11(a) and 1710.12(a).
    Section 1710.11(d), which sets forth FOIA exemptions, is 
redesignated as Sec. 1710.11(b).
    Section 1710.11(e) is redesignated as Sec. 1710.1(c).
    Section 1710.11(f) is redesignated as Sec. 1710.11(d) and amended 
to require that the amount of any information deleted from a record 
released under FOIA be indicated on the released portion of the record 
(at the place the deletion is made, if technically feasible).
    Section 1710.11(g), which relates to permissible deletions in 
publicly available records, is redesignated as Sec. 1710.12(b) and 
amended to state that the extent of any deletions necessary to protect 
personal privacy will be indicated on the records that are publicly 
available under redesignated Sec. 1710.12(a), at the place where the 
deletion is made if technically feasible, unless including the 
indication would harm an interest protected by the exemption on which 
the deletion is based.
    Section 1710.11(h) is redesignated as Sec. 1710.11(e).
    Section 1710.12 is amended by revising the heading of Sec. 1710.12 
to read ``Publicly Available Records''; redesignating Sec. 1710.11(b) 
as Sec. 1710.12(a); and deleting the existing provisions of 
Sec. 1710.12(a) and replacing them with the provisions of 
Sec. 1710.11(b), amended as described above.
    Section 1710.12(b) previously contained the Director's 
determination that, because of the lack of requests to date for records 
required to be indexed, such indexes do not need to be published 
quarterly. It stated, however, that the indexes would be provided by 
mail upon request. Because OFHEO proposes to publish current indexes on 
its web site, this finding is unnecessary and is deleted in the final 
regulation. The statement that current indexes are available by mail is 
relocated to Sec. 1710.12(a). Section 1710(b) is amended by replacing 
the existing provisions with the requirement that OFHEO explain any 
deletions made to protect personal privacy and indicate where in the 
record the deletion is made (if technically feasible), unless including 
that indication would harm an interest protected by the exemption 
pursuant to which the deletion is made.
    Section 1710.13 is amended to permit requests to be made by 
facsimile or electronic mail and to require that the request include 
the submitter's name, address and telephone number.
    Section 1710.14(c) is amended to state that OFHEO is not required 
to create a record to respond to a request, replacing a statement that 
OFHEO will not create a record.
    Section 1710.15, which prescribes the form and content of FOIA 
responses, is amended by adding a requirement that a notice of denial 
of a FOIA request (in whole or in part) include an estimate of the 
volume of requested material withheld, unless providing it would harm 
an interest protected by the exemption on which the denial is based.
    Section 1710.16 sets forth the process for appeal of denials. 
Paragraph (a) is amended to clarify that the appeal procedures also 
apply to denials of requests for expedited processing. Paragraph (b) is 
amended to permit appeals to be submitted electronically or by 
facsimile. Paragraph (g), which sets forth the right to judicial 
review, states that a requester will be deemed to have exhausted his or 
her administrative remedies if an administrative appeal has been denied 
or has not been acted on within 20 days of receipt. This paragraph is 
amended to state that if OFHEO provides the requester an opportunity to 
limit the scope of the request or arrange an alternate time for 
processing the request, the requester's refusal to do either will be 
considered a factor in determining whether ``exceptional 
circumstances'' exist. A showing of exceptional circumstances and due 
diligence on the part of the agency allows a court in which judicial 
review is sought to grant a stay to allow the agency additional time to 
complete its review of the records.
    Section 1710.17 of the existing rule describes the time limits 
within which OFHEO will respond to initial requests and appeals of 
denials of requests. Paragraph (b) is amended to state that appeals of 
denials of expedited processing will be acted on as expeditiously as 
practicable. Paragraph (c) is amended by providing that if OFHEO 
extends the time limit stated in that paragraph and is unable to 
process the request by the date specified in the notice, OFHEO will 
offer the requester an opportunity to limit the scope of the request or 
arrange an alternate time frame for processing the request or a 
modified request. A new paragraph (d) is added that provides for 
aggregating multiple requests involving clearly related matters made by 
a single requester, or group of requesters acting in concert, when such 
requests would, if considered as a single request, constitute an 
``unusual circumstance'' justifying an extension of the response time. 
A new paragraph (e) is added that provides for expedited processing 
upon a showing of compelling need by the requester and in such other 
cases as OFHEO may determine. A request for expedited processing must 
be accompanied by a statement, certified to be true and correct by the 
requester, that demonstrates compelling need. To show compelling need, 
the requester's statement must demonstrate that failure to obtain the 
requested records could reasonably be expected to pose an imminent 
threat to the life or physical safety of an individual, or, in the case 
of a requester whose main professional occupation or activity is the 
dissemination of information, that there is urgency to inform the 
public of the government activity involved in the request beyond the 
public's right to know of government activity generally. The requester 
must be notified within 10 working days of the disposition of the 
request, and any appeal of the denial must be acted on expeditiously.

Subpart D--Fees for Provision of Information

    Subpart D sets forth the fees that will be assessed for services 
rendered in responding to and processing requests for records under the 
FOIA. The definition of ``direct costs'' in Sec. 1710.21(b) is amended 
to include the costs of any automated searches and the cost of securing 
any contract services that may be necessary to respond to a FOIA 
request. To reflect the revised fee schedule set forth in the amended 
section 1710.22(b), a reference to that section is substituted for the 
reference to the actual salary of the person performing the work as a 
basis for the fees charged.
    Section 1710.21(f) is amended by adding a requirement that the copy 
of the requested record be provided in the form or format requested, 
provided it is readily reproducible in that form or format with 
reasonable effort.
    Section 1710.22 is revised to reflect a new method for computing 
fees and to make minor technical changes to better accommodate the 
changes made in response to the 1996 Act. Instead of basing the fee on 
the actual salary rate of the employee performing the work plus 16% for 
benefits, OFHEO is charging one of three hourly fees

[[Page 55171]]

determined by whether the employee performing the work is classified as 
executive, professional, or clerical. The fee for each category is 
determined by the average of the actual salaries and benefits of the 
employees in that category and will be adjusted periodically to reflect 
significant changes in average compensation of the class. The 
``executive'' category refers to the senior management of the agency 
(i.e. Director, Deputy Director, Associate Directors, and Deputy 
Associate Directors). The ``clerical'' category includes employees 
performing primarily secretarial, clerical or ministerial tasks. The 
``professional'' category includes all other employees. A current fee 
schedule will be available on OFHEO's web site or by mail. Conforming 
changes are made in paragraph (b)(1)(ii) of this section, 
Sec. 1710.23(g), and Sec. 1710.38(a) of this part.
    Technical changes to Sec. 1710.22 include substituting ``computer 
equipment'' for ``central processing unit'' and changing the heading in 
Sec. 1710.22(b)(2) from ``Duplication'' to ``Reproduction'' to clarify 
that the paragraph applies both to duplicating a record in the same 
format and to reproducing a record in a different format, and by 
changing the word ``reproduction'' to ``photocopied'' in the first 
sentence to clarify that the per page charge applies only to 
photocopies of records. Conforming changes are made in Sec. 1710.23.
    Throughout the regulation, minor, nonsubstantive syntactical 
changes are made in the revised sections and citations to sections of 
the Freedom of Information Act are replaced with citations to the 
sections of the regulation containing the relevant statutory 
provisions. Citations to 5 U.S.C. 552 are replaced with ``the Freedom 
of Information Act.''

Regulatory Impact

Executive Order 13132, Federalism

    Executive Order 13132 requires that Executive departments and 
agencies identify regulatory actions that have significant federalism 
implications. A regulation has federalism implications if it has 
substantial direct effects on the States, on the relationship or 
distribution of power between the Federal Government and the States, or 
on the distribution of power and responsibilities among various levels 
of Government. OFHEO has determined that this rule has no federalism 
implications that warrant the preparation of a Federalism Assessment in 
accordance with Executive Order 13132.

Executive Order 12866, Regulatory Planning and Review

    OMB has determined that rulemakings that amend FOIA regulations to 
implement the requirements of the Electronic Freedom of Information Act 
Amendments of 1996 are not ``significant'' regulations for the purposes 
of Executive Order 12866.

Executive Order 12988, Civil Justice Reform

    Executive Order 12988 sets forth guidelines to promote the just and 
efficient resolution of civil claims and to reduce the risk of 
litigation to the Federal Government. This final rule meets the 
applicable standards of sections 3(a) and (b) of Executive Order 12988.

Unfunded Mandates Reform Act of 1995

    This rule does not include a Federal mandate that may result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100,000,000 or more (adjusted annually 
for inflation) in any one year. Consequently, the rule does not warrant 
the preparation of an assessment statement in accordance with the 
Unfunded Mandates Reform Act of 1995.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires that 
a regulation that has a significant economic impact on a substantial 
number of small entities, small businesses, or small organizations must 
include an initial regulatory flexibility analysis describing the 
regulation's impact on small entities. Such an analysis need not be 
undertaken if the agency has certified that the regulation will not 
have a significant economic impact on a substantial number of small 
entities. 5 U.S.C. 605(b).
    OFHEO has considered the impact of the regulation under the 
Regulatory Flexibility Act. The General Counsel has certified that this 
final rule will not have significant economic impact on a substantial 
number of small entities.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35, requires 
that regulations involving the collection of information receive 
clearance from OMB. This rule contains no such collection of 
information requiring OMB approval under the Paperwork Reduction Act. 
Consequently, no information has been submitted to OMB for review under 
the Paperwork Reduction Act.

List of Subjects in 12 CFR Part 1710

    Administrative practice and procedure, Confidential business 
information, Electronic products, Freedom of information.

    Accordingly, for reasons set forth in the preamble, OFHEO amends 12 
CFR part 1710 as follows:

PART 1710--RELEASING INFORMATION

    1. The authority citation for part 1710 continues to read as 
follows:

    Authority: 5 U.S.C. 301, 552; 12 U.S.C. 4513, 4522, 4639; E.O. 
12600; 3 CFR, 1987 Comp., p. 235.

Subpart A--General Definitions


Sec. 1710.2  [Amended]

    2. Amend Sec. 1710.2(j) by adding ``, regardless of form or 
format,'' after ``document''.

Subpart B--Documents and Information Generally


Sec. 1710.7  [Amended]

    3. Amend the first sentence of Sec. 1710.7(c) by adding ``or 
material offered on OFHEO's web site (http://www.ofheo.gov),'' after 
the comma following the parenthetical.

Subpart C--Availability of Records of OFHEO

    4. Revise Sec. 1710.11 to read as follows:


Sec. 1710.11  Official records of OFHEO.

    (a) OFHEO shall, upon a written request for records that reasonably 
describes the information or records and is made in accordance with the 
provisions of this subpart, make the records available as promptly as 
practicable to any person for inspection and/or copying, except as 
provided in paragraph (b) of this section. OFHEO may charge a fee 
determined in accordance with subpart D of this part. OFHEO will make 
the record available in the form or format requested if the record is 
readily reproducible in that form or format with reasonable effort. 
``Readily reproducible'' means, with respect to electronic format, that 
the requested record or records can be downloaded or transferred intact 
to a computer disk, tape, or other electronic medium using equipment 
currently in use by OFHEO.
    (b) Records not available. Except as otherwise provided in this 
part, or as may be specifically authorized by the Director, the 
following information and

[[Page 55172]]

records, or portions thereof, are not available to requesters:
    (1) Any record, or portion thereof, that is--
    (i) Specifically authorized under criteria established by an 
Executive order to be kept secret in the interest of national defense 
or foreign policy, and
    (ii) Is in fact properly classified pursuant to such Executive 
order.
    (2) Any record, or portion thereof, related solely to the internal 
personnel rules and practices of OFHEO.
    (3) Any record, or portion thereof that is specifically exempted 
from disclosure by statute (other than 5 U.S.C. 552b), provided that 
such statute--
    (i) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue, or
    (ii) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld.
    (4) Any matter that is a trade secret or that constitutes 
commercial or financial information obtained from a person and that is 
privileged or confidential.
    (5) Any matter contained in inter-agency or intra-agency memoranda 
or letters that would not be available by law to a private party in 
litigation with OFHEO.
    (6) Any information contained in personnel and medical files and 
similar files (including financial files) the disclosure of which would 
constitute a clearly unwarranted invasion of personal privacy.
    (7) Any records or information compiled for law enforcement 
purposes, but only to the extent that the production of such law 
enforcement records or information--
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution or an Enterprise regulated and 
examined by OFHEO that furnished information on a confidential basis, 
and, in the case of a record of information compiled by a criminal law 
enforcement authority in the course of a criminal investigation or by 
an agency conducting a lawful national security intelligence 
investigation, information furnished by a confidential source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (8) Any matter that is contained in or related to examination, 
operating, or condition reports that are prepared by, on behalf of, or 
for the use of OFHEO.
    (9) Any geological and geophysical information and data, including 
maps, concerning wells.
    (c) Even if an exemption described in paragraph (b) of this section 
may be reasonably applicable to a requested record, or portion thereof, 
OFHEO may elect under the circumstances of any particular request not 
to apply the exemption to such requested record, or portion thereof. 
The fact that the exemption is not applied by OFHEO to any requested 
record, or portion thereof, has no precedential significance as to the 
application or nonapplication of the exemption to any other requested 
record, or portion thereof, no matter when the request is received.
    (d) Any reasonably segregable portion of a record shall be provided 
to any person properly requesting such record after deletion of the 
portions which are exempt under this subpart. The amount of the 
information deleted shall be indicated on the released portion of the 
record, unless including that indication would harm an interest 
protected by the exemption in paragraph (b) of this section pursuant to 
which the deletion is made. If technically feasible, the amount of the 
information deleted shall be indicated at the place in the record where 
the deletion is made.
    (e) This section does not authorize withholding of information or 
limit the availability of records to the public, except as specifically 
stated in this section. This section is not authority to withhold 
information from Congress.

    5. Revise Sec. 1710.12 to read as follows:


Sec. 1710.12  Publicly available records.

    (a) The records described in this paragraph are available for 
public inspection and copying, for a fee determined in accordance with 
subpart D of this part, at OFHEO's offices located at 1700 G Street, 
NW., Fourth Floor, Washington, DC 20552. Records created on or after 
November 1, 1996, and current indexes to all records described in 
paragraphs (a)(1), (a)(2), (a)(3), and (a)(4) of this section, 
including those created before November 1, 1996, are available 
electronically at http://www.ofheo.gov/docs/. The publicly available 
records include--
    (1) Any final opinions issued by OFHEO, as well as orders made in 
adjudication of cases as set forth in Sec. 1710.9 of subpart B of this 
part;
    (2) Any statements of policy and interpretation that have been 
adopted by OFHEO and have not been published in the Federal Register;
    (3) Any OFHEO administrative staff manuals and instructions to 
staff that affect a member of the public, and that are not exempt from 
disclosure under the Freedom of Information Act;
    (4) Copies of all records released pursuant to this subpart that 
OFHEO determines have become or are likely to become the subject of 
subsequent requests for substantially the same records; and
    (5) Current indexes to the records described in this paragraph.
    (b) To the extent necessary to prevent an invasion of personal 
privacy, the Director may delete identifying details from a record 
described in paragraph (a) of this section. In each case of such 
deletion, the justification will be clearly explained in writing and 
the extent of such deletion indicated (at the place in the record where 
the deletion is made if technically feasible), unless including that 
indication would harm an interest protected by the exemption in 
Sec. 1710.11(b) pursuant to which the deletion is made.

    6. Revise Sec. 1710.13(a) to read as follows:


Sec. 1710.13  Requests for records.

    (a) Addressing requests. Requests for records in the possession of 
OFHEO shall be made in writing but may be submitted by regular mail, 
electronic mail, or facsimile. If the request is sent by regular mail, 
the request shall be addressed to FOIA Officer, Office of Federal 
Housing Enterprise Oversight, 1700 G Street NW., Fourth Floor, 
Washington, DC 20552, with both the envelope and the letter marked 
``FOIA Request.'' Electronic mail requests shall be addressed to foia--
[email protected], with ``FOIA Request'' in the subject line. Requests 
submitted by fax shall be sent to FOIA Officer at (202) 414-8917 and 
shall be clearly marked ``FOIA Request.'' All requests shall include 
the requester's name, address, and telephone number. An improperly 
addressed request will be deemed not to have been received for purposes 
of the 20-day time period set forth in Sec. 1710.17(a) of this subpart 
until it is received, or would have been received with the exercise of 
due diligence, by the FOIA Officer. Records requested in conformance 
with this subpart that are not exempt records may be obtained in 
person, by regular mail, or by electronic

[[Page 55173]]

mail, as specified in the request, provided the records are readily 
reproducible in the requested form or format with reasonable effort. 
Records to be obtained in person will be available for inspection or 
copying during business hours on a regular business day in the office 
of OFHEO.
* * * * *


Sec. 1710.14  [Amended]

    7. Amend Sec. 1710.14(c) by removing ``will not'' and adding ``is 
not required to'' in its place in the last sentence.

    8. Amend Sec. 1710.15(b) by redesignating paragraphs (b)(2) and 
(b)(3) as (b)(3) and (b)(4) respectively, and adding a new paragraph 
(b)(2) to read as follows:


Sec. 1710.15  Form and content of responses.

* * * * *
    (b) * * *
    (2) An estimate of the volume of any requested matter that is 
withheld, unless providing the estimate would harm an interest 
protected by the exemption in Sec. 1710.11(b) pursuant to which the 
denial was made;
* * * * *

    9. Amend Sec. 1710.16 by revising paragraphs (a), (b), and (d) to 
read as follows:


Sec. 1710.16  Appeals of denials.

    (a) Right of appeal. If a request, including a request for 
expedited processing, has been denied in whole or in part, the 
requester may appeal the denial to: FOIA Appeals Officer, Office of 
Federal Housing Enterprise Oversight, 1700 G Street, NW, Fourth Floor, 
Washington DC 20552. Electronic appeals shall be submitted to 
[email protected] with ``FOIA Appeal'' in the subject 
line.
    (b) Letter of appeal. The appeal must be in writing and submitted 
within 30 days of receipt of the denial letter. The appeal shall be 
submitted in the manner described in Sec. 1710.13, except that it shall 
be clearly marked ``FOIA Appeal'' instead of ``FOIA Request.'' An 
appeal shall include a copy of the initial request, a copy of the 
letter denying the request in whole or in part, and a statement of the 
circumstances, reasons, or arguments advanced in support of disclosure 
of the requested record. An improperly addressed appeal shall be deemed 
not to have been received for the purposes of the 20-day time period 
set forth in Sec. 1710.17(b) until it is received, or would have been 
received with the exercise of due diligence, by the Appeals Officer.
* * * * *
    (d) Judicial review. If the denial of the request for records is 
upheld in whole or in part, or, if a determination on the appeal has 
not been mailed at the end of the 20-day period or the last extension 
thereof, the requester is deemed to have exhausted his or her 
administrative remedies, giving rise to a right of judicial review 
under 5 U.S.C. 552(a)(4). However, a requester's refusal of OFHEO's 
offer of an opportunity to limit the scope of the request or arrange an 
alternate time frame for processing the request shall be considered as 
a factor in determining whether ``exceptional circumstances'' exist, 
which permits a court in which a requester has sought judicial review, 
to grant a stay to allow OFHEO to complete its review of the records.

    10. Revise Sec. 1710.17 to read as follows:


Sec. 1710.17  Time limits.

    (a) Initial request. Following receipt of a request for records, 
the FOIA Officer will determine whether to comply with the request and 
will notify the requester in writing of his or her determination within 
20 days (excluding Saturdays, Sundays, and legal holidays) after 
receipt of the request.
    (b) Appeal. A written determination on an appeal submitted in 
accordance with Sec. 1710.16 of this subpart will be issued within 20 
days (excluding Saturdays, Sundays, and legal holidays) after receipt 
of the appeal. However, determination of an appeal of a denial of 
expedited processing will be issued as expeditiously as practicable. 
When a determination cannot be mailed within the applicable time limit, 
the appeal will nevertheless be processed. In such case, upon the 
expiration of the time limit, the requester will be informed of the 
reason for the delay, of the date on which a determination may be 
expected to be mailed, and of that person's right to seek judicial 
review. The requester may be asked to forego judicial review until 
determination of the appeal.
    (c) Extension of time limits. The time limits specified in either 
paragraph (a) or (b) of this section may be extended in unusual 
circumstances after written notice to the requester setting forth the 
reasons for the extension and the date on which a determination is 
expected to be made. If the date specified for the extension is more 
than 10 days after the initial time allowed for response, OFHEO will 
provide the requester an opportunity to limit the scope of the request 
or arrange for an alternate time frame for processing the request. As 
used in this paragraph, unusual circumstances means that there is a 
need to--
    (1) Search for and collect the requested records from facilities 
that are separate from the office processing the request;
    (2) Search for, collect, and appropriately examine a voluminous 
amount of separate and distinct records which are demanded in a single 
request; or
    (3) Consult with another agency having a substantial interest in 
the determination of the request, or consult with various offices 
within OFHEO that have a substantial interest in the records requested.
    (d) Related requests. OFHEO may aggregate multiple requests 
involving clearly related matters made by a single requester, or a 
group of requesters acting in concert, if OFHEO reasonably believes 
that such requests actually constitute a single request that would 
qualify as an ``unusual circumstance.''
    (e) Expedited processing. (1) Upon a demonstration of compelling 
need by the requester, OFHEO will grant a request for expedited 
processing of a FOIA request. If a request for expedited processing is 
granted, OFHEO will give the request priority and process it as soon as 
practicable.
    (2) To show a compelling need for expedited processing, the 
requester shall provide a statement demonstrating that:
    (i) The failure to obtain the requested records could reasonably be 
expected to pose an imminent threat to the life or physical safety of 
an individual; or
    (ii) The requester's main professional occupation or activity is 
information dissemination and there is a particular urgency to inform 
the public of government activity involved in the request beyond the 
public's right to know about government activity generally.
    (3) The requester's statement of compelling need must be certified 
to be true and correct to the best of his or her knowledge and belief 
and must explain in detail the basis for requesting expedited 
processing. The formality of the certification required to obtain 
expedited treatment may be waived by OFHEO in its discretion.
    (4) A requester seeking expedited processing will be notified 
within ten (10) working days of the receipt of the request whether 
expedited processing has been granted. If the request for expedited 
processing is denied, OFHEO will act on any appeal expeditiously.


Sec. 1710.18  [Amended]

    11. Amend Sec. 1710.18 as follows:
    a. In paragraph (b)(1), remove ``Exemption 4 of the FOIA, 5 U.S.C.

[[Page 55174]]

552(b)(4)'' and add in its place ``Sec. 1710.11(b)(4)''.
    b. In paragraph (c), remove ``Exemption 4 of the FOIA, 5 
U.S.C.552(b)(4)'' and add in its place ``Sec. 1710.11(b)(4)''.
    c. In paragraph (d)(2), remove ``5 U.S.C. 552(b)(4)'' and add in 
its place ``Sec. 1710.11(b)(4)''.
    d. In paragraph (e)(1), remove ``5 U.S.C. 552(b)(4)'' and add in 
its place ``Sec. 1710.11(b)(4)''.
    e. In paragraph (i)(3), remove ``5 U.S.C. 552'' and add in its 
place ``the Freedom of Information Act''.

Subpart D--Fees for Provision of Information

    12. Amend Sec. 1710.21 by revising paragraphs (b) and (f) to read 
as follows:


Sec. 1710.21  Fees.

* * * * *
    (b) Direct costs means the expenditures actually incurred by OFHEO 
in searching for and reproducing records to respond to a request for 
information. In the case of a commercial use request, the term also 
means those expenditures OFHEO actually incurs in reviewing records to 
respond to the request. The direct costs shall include the cost of the 
time of the employee performing the work, determined in accordance with 
Sec. 1710.22(b)(1)(i), the cost of any computer searches, determined in 
accordance with Sec. 1710.22(b)(1)(ii), and the cost of operating 
duplication equipment. Not included in direct costs are overhead 
expenses such as costs of space, and heating or lighting the facility 
in which the records are stored. Direct costs also include the costs 
incurred by OFHEO for any contract services that may be needed to 
respond to a request.
* * * * *
    (f) Reproduce and reproduction means the process of making a copy 
of a record necessary to respond to a request for information. Such 
copies take the form of paper copy, microfilm, audio-visual materials, 
or machine-readable documentation, e.g., magnetic tape or disk. The 
copy provided shall be in the form or format requested, provided the 
record is readily reproducible in that form or format with reasonable 
effort, and shall be in a form reasonably usable by the requesters.
* * * * *

    13. Revise Sec. 1710.22 to read as follows:


Sec. 1710.22  Fees to be charged--general.

    (a) Generally, the fees charged for requests for records pursuant 
to the Freedom of Information Act will cover the full allowable direct 
costs of searching for, reproducing, and reviewing records that are 
responsive to a request for information. Fees will be assessed 
according to the schedule contained in paragraph (b) of this section 
and the category of requesters described in Sec. 1710.23 of this 
subpart for services rendered by OFHEO staff in responding to, and 
processing requests for, records under this part. Fees assessed shall 
be paid by check or money order payable to the Office of Federal 
Housing Enterprise Oversight.
    (b) Types of charges. The types of charges that may be assessed in 
connection with the production of records in response to a FOIA request 
are as follows:
    (1) Searches. (i) Manual searches for records. OFHEO will charge 
for actual search time, billed in 15-minute segments, at a rate 
determined by whether the employee performing the work is classified as 
clerical, professional, or executive. The hourly fee for each 
classification is based on the average of the actual compensation 
(salary and benefits) of employees in the classification and is 
adjusted periodically to reflect significant changes in the average 
compensation of the class. The ``executive'' classification includes 
the senior management of OFHEO, i.e. Director, Deputy Director, 
Associate Directors and Deputy Associate Directors. The ``clerical'' 
classification includes employees performing primarily secretarial, 
clerical, or ministerial tasks. The ``professional'' classification 
includes all positions not classified as ``executive'' or ``clerical.'' 
A current fee schedule is available on electronically at http://www.ofheo.gov/docs/ or by regular mail.
    (ii) Computer searches for records. Requesters will be charged at 
the actual direct costs of conducting a search using existing 
programming. These direct costs will include the cost of operating the 
computer equipment for that portion of operating time that is directly 
attributable to searching for records and the cost of the time of the 
employee performing the work, determined as described in paragraph 
(b)(1)(i) of this section. A charge will also be made for any 
substantial amounts of special supplies or materials used to contain, 
present, or make available the output of computers, based upon the 
prevailing levels of costs to OFHEO for the type and amount of such 
supplies of materials that are used. Nothing in this paragraph shall be 
construed to entitle any person or entity, as of right, to any services 
in connection with computerized records, other than services to which 
such person or entity may be entitled under the provisions of this 
subpart.
    (iii) Unproductive searches. OFHEO may charge search fees even if 
no records are found that are responsive to the request or if the 
records found are exempt from disclosure.
    (2) Reproduction. Records will be photocopied at a rate of $.15 per 
page. For copies prepared by computer, such as tapes or printouts, the 
requester will be charged the actual cost, including operator time, of 
production of the tape or printout. For other methods of reproduction, 
the actual direct costs of reproducing the record(s) will be charged.
    (3) Review. Only requesters who are seeking records for commercial 
use may be charged for time spent reviewing records to determine 
whether they are exempt from mandatory disclosure. Charges may be 
assessed only for initial review, i.e., the review undertaken the first 
time OFHEO analyzes the applicability of a specific exemption to a 
particular record or portion of a record. Records or portions of 
records withheld in full under an exemption that is subsequently 
determined not to apply may be reviewed again to determine the 
applicability of other exemptions not previously considered. The costs 
for such a review are properly assessable.
    (4) Other services and materials. Where OFHEO elects, as a matter 
of administrative discretion, to comply with a request for a special 
service or materials, such as certifying that records are true copies 
or sending records by special methods, the actual direct costs of 
providing the service or materials will be charged.

    14. Amend Sec. 1710.23 by revising paragraph (g) to read as 
follows:


Sec. 1710.23  Fees to be charged--categories of requesters.

* * * * *
    (g) For purposes of paragraph (e) of this section, the term 
``search time'' has as its basis, manual search. To apply this term to 
searches made by computer, OFHEO will determine the hourly cost of 
operating the computer equipment and the operator's time determined as 
described in paragraph (b)(1)(i) of Sec. 1710.22. When the cost of the 
search (including the operator's time and the cost of operating the 
computer equipment to process a request) equals the equivalent dollar 
amount of two hours of the time of the person performing the work, 
i.e., the operator, OFHEO will begin assessing charges for the 
computer.

[[Page 55175]]

Subpart E--Testimony and Production of Documents in Legal 
Proceedings in Which OFHEO Is Not a Named Party

    15. Amend Sec. 1710.38 by revising paragraph (a) to read as 
follows:


Sec. 1710.38  Fees.

* * * * *
    (a) Searches for documents. OFHEO will charge for the actual search 
time of the employee performing the work, billed in 15-minute segments, 
as described in Sec. 1710.22(b)(1)(i).
* * * * *

    Dated: September 7, 2000.
Armando Falcon, Jr.,
Director, Office of Federal Housing Enterprise Oversight.
[FR Doc. 00-23461 Filed 9-12-00; 8:45 am]
BILLING CODE 4220-01-U