[Federal Register Volume 66, Number 24 (Monday, February 5, 2001)]
[Rules and Regulations]
[Pages 8897-8898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2912]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 903

[Docket No. FR-4420-F-11]
RIN 2577-AB89


Rule To Deconcentrate Poverty and Promote Integration in Public 
Housing; Change in Applicability Date of Deconcentration Component of 
PHA Plan

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule; amendment.

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SUMMARY: This final rule amends HUD's December 22, 2000 final rule 
revising the deconcentration provisions of its Public Housing Agency 
(PHA) Plan regulations. Specifically, the final rule provides that the 
December 22, 2000 amendments concerning the deconcentration component 
of a PHA's admission policy are applicable to PHAs with fiscal years 
commencing on and after October 1, 2001.

DATES: Effective Date: March 7, 2001.

FOR FURTHER INFORMATION CONTACT: Rod Solomon, Deputy Assistant 
Secretary for Policy, Program and Legislative Initiatives, Department 
of Housing and Urban Development, Office of Public and Indian Housing, 
451 Seventh Street, SW, Room 4116, Washington, DC 20410; telephone 
(202) 708-0713 (this is not a toll-free telephone number). Persons with 
hearing or speech disabilities may access this number via TTY by 
calling the free Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    On December 22, 2000 (65 FR 81214), HUD published a final rule to 
amend the deconcentration provisions of its October 21, 1999 Public 
Housing Agency (PHA) Plan final rule. The December 22, 2000 final rule 
followed publication of an April 17, 2000 proposed rule.
    The December 22, 2000 final rule provides that the first PHA fiscal 
year that is covered by the new requirements is the PHA fiscal year 
that begins July 2001 (see Sec. 903.5). Upon further consideration, HUD 
believes that the July 1, 2001 date may not provide PHAs with 
sufficient time to bring their practices into compliance with the new 
deconcentration requirements. Accordingly, this final rule provides 
that the December 22, 2000 amendments concerning the deconcentration 
component of a PHA's admission policy are applicable to PHAs with 
fiscal years commencing on and after October 1, 2001.

II. Justification for Issuance of Rule for Effect

    In general, HUD 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. Part 10, however, does provide for exceptions from 
that general rule where HUD finds good cause to omit advance notice and 
public participation. The good cause requirement is satisfied when the 
prior public procedure is ``impracticable, unnecessary, or contrary to 
the public interest'' (24 CFR 10.1). HUD finds that good cause exists 
to publish this rule for effect without first soliciting public 
comment, in that prior public procedure is unnecessary. Public 
procedure is unnecessary because this rule makes a technical change to 
24 CFR part 903 regarding the first PHA fiscal year covered by the 
deconcentration-related amendments of HUD's December 22, 2000 final 
rule to allow PHAs more time to comply with this requirement. The 
amendment will benefit PHAs, the residents they serve and the public by 
assuring that PHAs have sufficient time to become familiar with the 
requirements of the December 22, 2000 final rule and to bring their 
practices into compliance with the new deconcentration procedures.

[[Page 8898]]

III. Findings and Certifications

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this rule, and in so doing 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities. This rule makes a technical 
amendment to 24 CFR part 903 regarding the first PHA fiscal year 
covered by the deconcentration-related amendments of HUD's December 22, 
2000 final rule.

Environmental Impact

    This rule is exempt from the environmental review procedures under 
HUD regulations in 24 CFR part 50 that implement section 102(2)(C) of 
the National Environmental Policy Act of 1969 (42 U.S.C. 4332) because 
of the exemption under Sec. 50.19(c)(1). This rule only makes a 
technical amendment to an existing regulation.

Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 13132, Federalism, has determined that this rule 
does not impose substantial direct compliance costs on States or local 
governments or preempt State law within the meaning of the Executive 
Order. As a result, the rule is not subject to review under the order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. This proposed rule does not impose 
any Federal mandates on any State, local, or tribal governments or the 
private sector within the meaning of Unfunded Mandates Reform Act of 
1995.

List of Subjects in 24 CFR Part 903

    Administrative practice and procedure, Public housing, Reporting 
and recordkeeping requirements.

    For the reasons discussed in the preamble, HUD amends 24 CFR part 
903 as follows:

PART 903--PUBLIC HOUSING AGENCY PLANS

    1. The authority citation for part 903 continues to read as 
follows:

    Authority: 42 U.S.C. 1437c; 42 U.S.C. 3535(d).

    2. Revise Sec. 903.5(a)(1), (a)(4), and (b)(1) to read as follows:


Sec. 903.5  When must a PHA submit the plans to HUD?

    (a) 5-Year Plan. (1) The first PHA fiscal year that is covered by 
the requirements of this part as amended on December 22, 2000, is the 
PHA fiscal year that begins October 2001. This 5-Year Plan submitted by 
a PHA must be submitted for the 5-year period beginning October 1, 
2001.
* * * * *
    (4) PHAs may choose to update their 5-Year Plans every year as good 
management practice and must update their 5-Year Plans that were 
submitted for PHA fiscal years beginning before October 1, 2001, to 
comply with the requirements of this part as amended on December 22, 
2000, at the time they submit their next Annual Plan for fiscal years 
beginning on or after October 1, 2001. PHAs must explain any 
substantial deviation from their 5-Year Plans in their Annual Plans. 
(Substantial deviation is determined by the PHA in accordance with 
criteria provided by the PHA in its Annual Plan in accordance with 
Sec. 903.7(r).)
* * * * *
    (b) The Annual Plan. (1) The first PHA fiscal year that is covered 
by the requirements of this part as amended on December 22, 2000 is the 
PHA fiscal year that begins October 1, 2001.
* * * * *

    Dated: January 29, 2001.
Mel Martinez,
Secretary.
[FR Doc. 01-2912 Filed 2-2-01; 8:45 am]
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