[Federal Register Volume 67, Number 14 (Tuesday, January 22, 2002)]
[Proposed Rules]
[Pages 2958-2959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1411]



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Part II





Department of Housing and Urban Development





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24 CFR Part 570



Requirement of HUD Approval Before a Grantee May Undertake CDBG-
Assisted Demolition of HUD-Owned Housing Units; Proposed Rule

  Federal Register / Vol. 67, No. 14 / Tuesday, January 22, 2002 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR-4698-P-01]
RIN 2506-AC10


Requirement of HUD Approval Before a Grantee May Undertake CDBG-
Assisted Demolition of HUD-Owned Housing Units

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Proposed rule.

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SUMMARY: The Department of Housing and Urban Development (HUD) proposes 
to amend the Community Development Block Grant (CDBG) Entitlement 
program regulations by requiring grantees to obtain HUD's approval to 
demolish HUD-owned housing units. The proposed amendment will ensure 
that HUD receives notification of a grantee's intent to use CDBG funds 
to demolish HUD-owned housing units. In addition, the application of 
this rule will aid in preserving the supply of affordable housing that 
is available to low- and moderate-income persons.

DATES: Comments Due Date: March 25, 2002.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Rules Docket Clerk, Office of General 
Counsel, Room 10276, U.S. Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410. Comments should refer to 
the above docket number and title. A copy of each comment submitted 
will be available for public inspection and copying during weekdays 
between 7:30 a.m. and 5:30 p.m. at the above address. Comments 
submitted by facsimile (FAX) will not be accepted.

FOR FURTHER INFORMATION CONTACT: Sue Miller, Director, Entitlement 
Communities Division, Office of Block Grant Assistance, Room 7282, U.S. 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410; telephone (202) 708-1577 (this is not a toll-free 
number). Hearing-or speech-impaired individuals may access the 
telephone number listed in this section by calling the toll-free 
Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

    Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301-5320) establishes the statutory framework for the CDBG 
program. HUD's regulations implementing the CDBG program are codified 
at 24 CFR part 570 (entitled ``Community Development Block Grants'').

II. This Proposed Rule

    This rule proposes to change Sec. 570.201(d), Clearance activities, 
which currently allows the demolition of HUD-assisted housing units 
only if HUD has approved the demolition. The proposed change will 
require that grantees also obtain the approval of HUD before proceeding 
with CDBG-assisted demolition of HUD-owned housing units.
    HUD believes that the proposed revision will aid in achieving three 
primary objectives: (1) Ensure that grantees notify HUD of their plans 
to demolish HUD-owned housing units; (2) prevent grantees from 
demolishing, without reasonable cause, HUD-owned housing units; and, 
(3) ensure that grantees preserve the supply of affordable housing 
available to low- and moderate-income persons.

III. Background Information Concerning the Proposed Rule

    As discussed above, the proposed rule would revise the CDBG 
Entitlement program (24 CFR part 570) regulations at Sec. 570.201(d), 
Clearance activities, to prohibit grantees from using CDBG funds for 
the demolition of HUD-owned housing units without prior approval from 
HUD. The current regulation at Sec. 570.201(d) requires that a grantee 
obtain HUD's approval to demolish HUD-assisted housing units. Although 
the CDBG regulations do not contain a definition of the term ``HUD-
assisted housing units'', the term has been considered to include 
various forms of subsidized housing such as section 8 or public 
housing. It has not been HUD policy to interpret the regulation as 
including HUD-owned properties. Thus, a regulatory change to 
Sec. 570.201(d) is required to ensure that CDBG-assisted demolition of 
HUD-owned housing units can only be carried out with the prior approval 
of HUD.

IV. Findings and Certifications

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
which implement section 102(2)(C) of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4223). The Finding of No Significant Impact is 
available for public inspection weekdays between the hours of 7:30 a.m. 
and 5:30 p.m. in the Office of the Rules Docket Clerk, Office of 
General Counsel, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, NW., Washington, DC 20410.

Impact on Small Entities

    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 does not have a significant 
economic impact on a substantial number of small entities. There are no 
anti-competitive discriminatory aspects of the rule with regard to 
small entities and there are not any unusual procedures that need to be 
complied with by small entities. Although HUD has determined that this 
proposed rule does not have a significant economic impact on a 
substantial number of small entities, HUD invites comments regarding 
any less burdensome alternatives to this rule that will meet HUD's 
objectives as described in this preamble.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments and is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This proposed rule does not have 
Federalism implications and does not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive Order.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1532) 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 proposed rule does not 
impose a Federal mandate on any State, local, or tribal governments, or 
on the private sector, within the meaning of the Unfunded Mandates 
Reform Act of 1995.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance (CFDA) program number is 
14.218.

List of Subjects in 24 CFR Part 570

    Administrative practice and procedure, American Samoa,

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Community development block grant, Grant programs--education, Grant 
programs--housing and community development, Guam, Indians, Loan 
programs-housing and community development, Low and moderate income 
housing, Northern Mariana Islands, Pacific Islands Trust Territory, 
Puerto Rico, Reporting and recordkeeping requirements, Student aid, 
Virgin Islands.
    Accordingly, for the reasons stated above, HUD proposes to amend 24 
CFR part 570 to read 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 5301-5320.

    2. Section 570.201 is amended by revising paragraph (d) to read as 
follows:


Sec. 570.201  Basic eligible activities.

* * * * *
    (d) Clearance activities. Clearance, demolition, and removal of 
buildings and improvements, including movement of structures to other 
sites. Demolition of HUD-assisted or HUD-owned housing units may be 
undertaken only with the prior approval of HUD.
* * * * *

    Dated: November 26, 2001.
Roy A. Bernardi,
Assistant Secretary for Community Planning and Development.
[FR Doc. 02-1411 Filed 1-18-02; 8:45 am]
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