[Federal Register Volume 67, Number 123 (Wednesday, June 26, 2002)]
[Proposed Rules]
[Pages 43208-43216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15881]



[[Page 43207]]

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Part II





Department of Housing and Urban Development





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24 CFR Part 50, et al.



Environmental Review Procedures for Entities Assuming HUD's 
Environmental Responsibilities; Proposed Rule

  Federal Register / Vol. 67 , No. 123 / Wednesday, June 26, 2002 / 
Proposed Rules  

[[Page 43208]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 50, 58, 574, 582, 583, and 970

[Docket No. FR-4523-P-01]
RIN 2501-AC64


Environmental Review Procedures for Entities Assuming HUD's 
Environmental Responsibilities

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

ACTION: Proposed rule.

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SUMMARY: This proposed rule would update the list of programs and 
statutory authorities for which other entities may assume HUD's 
environmental responsibilities, and make other changes to update the 
regulation on assumption of HUD's environmental responsibilities. Also, 
the proposed rule would make conforming changes to the affected 
environmental provisions contained in various program regulations.

DATES: Comment Due Date: August 26, 2002.

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: Richard H. Broun, Director, Office of 
Community Viability, Office of Community Planning and Development, Room 
7240, Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410-7000. For inquiry by phone or e-mail: contact 
Walter Prybyla, Deputy Director for Policy, Environmental Review 
Division, Office of Community Planning and Development, at (202) 708-
1201, Ext. 4466 (this is not a toll-free number), or e-mail: 
[email protected]. Hearing-impaired or speech-impaired individuals 
may access the voice telephone number listed above by calling the 
Federal information relay service during working hours at 1-800-877-
8339.

SUPPLEMENTARY INFORMATION: This proposed rule would make a number of 
changes to HUD regulations in 24 CFR part 58. Part 58 implements 
statutory authorities that permit certain entities other than HUD to 
assume HUD's environmental responsibilities for various HUD programs. 
HUD proposes to update the list of programs and statutory authorities 
covered by part 58. Also, the proposed rule would make conforming 
changes to environmental provisions in certain program regulations to 
include a cross-reference to part 58. In addition, the proposed rule 
would make conforming changes in HUD's regulations in 24 CFR part 50, 
which governs when HUD is responsible to perform environmental 
responsibilities in accordance with the National Environmental Policy 
Act (NEPA) (42 U.S.C. 4321 et seq.), the Council on Environmental 
Quality Regulations (40 CFR parts 1500-1508), and other environmental 
requirements (as specified in 24 CFR 50.4).
    The following additional programs would be added to the list in 
Sec. 58.1:
    (1) Grants provided to private nonprofit organizations and housing 
agencies under the Supportive Housing Program and the Shelter Plus Care 
Program (in accordance with section 443 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11402), as amended by section 208 of the HUD 
Appropriations Act for FY 2001 (Pub. L. 106-377, approved October 27, 
2000)). Section 443 was amended to provide for assumption of 
environmental responsibilities by a State or unit of general local 
government regardless of whether or not it is the recipient. The rule 
would reflect prospective part 58 coverage of grants to nonprofit 
organizations and housing agencies, i.e., coverage of such grants for 
Fiscal Year (FY) 2001 and later;
    (2) Assistance provided under the Native American Housing 
Assistance and Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4101 
et seq.), (in accordance with section 105 of NAHASDA);
    (3) Indian housing loan guarantees under section 184 of the Housing 
and Community Development Act of 1992 (1992 Act) (12 U.S.C. 1715z-13a, 
in accordance with section 184(k) of the 1992 Act);
    (4) HOPE VI grants for FY 1999 and earlier (in accordance with the 
HUD Appropriations Act for FY 1999 (Pub. L. 105-276, approved October 
21, 1998)). Section 58.1 also would be amended to reflect amendments to 
the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), 
including amendments that make permanent the HOPE VI program and thus 
make section 26 of the United States Housing Act of 1937 the permanent 
authority for States and units of general local government to assume 
environmental responsibilities for the HOPE VI program;
    (5) Housing Opportunities for Persons with AIDS (HOPWA) (42 
U.S.C.12901 et seq.) grants. Section 203(c) of the HUD Appropriations 
Act for FY 2001 (Pub. L. 106-377, approved October 27, 2000) added 
section 856(h) of the AIDS Housing Opportunity Act, which provides 
permanent authority for HOPWA grantees to assume environmental 
responsibilities. Section 207(c) of HUD's Appropriations Act for FY 
1999 instructed HUD to treat HOPWA grants for FY 1999 and prior years 
as assistance for special projects subject to section 305(c) of the 
Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 
3547), and subject to HUD's regulations implementing that section at 24 
CFR part 58. The HUD Appropriations Act for FY 2000 (Pub. L. 106-74, 
approved October 20, 1999) extended section 207(a) and (b) of the 1999 
Act to apply to FY 2000 grants, but did not extend section 207(c).
    Accordingly, part 58 applies to environmental reviews for all HOPWA 
grants entered into after enactment of section 856(h) of HOPWA and all 
HOPWA grants for FY 1999 and prior years. Part 58 also applies to HOPWA 
formula grants for FY 2000, but does not apply to HOPWA competitive 
grants for FY 2000, which by their terms are not subject to subsequent 
changes in the HOPWA legislation. The amendment to Sec. 58.1 would 
reflect this applicability.
    The Rental Rehabilitation Program and the Housing Development Grant 
Program authorized by section 17 of the United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.) are no longer in use and would be removed 
from paragraph (b)(2) of the list in Sec. 58.1. The authority for these 
programs was repealed by the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12701 et seq.). References to these programs 
would be removed from Secs. 58.4(b)(2), 58.4(b)(3), 58.5(a)(i), 58.17, 
and 58.18.
    A new Sec. 58.1(c) also would be added to clarify that activities 
assisted with repayments to a revolving loan fund initially assisted 
with HUD funds are subject to environmental requirements only if HUD 
program rules treat the activity assisted with repayments as being 
subject to Federal requirements.
    A new Sec. 58.1(d) would clarify that the Assistant Secretary for 
Community Planning and Development, to the extent permitted by 
applicable laws and the regulations of the Council on Environmental 
Quality, may, for good cause and with appropriate conditions,

[[Page 43209]]

approve waivers and exceptions or establish criteria for exceptions 
from the requirements of this part.
    Changes would be made to the definitions section, Sec. 58.2. 
Obsolete references to Indian Housing Authorities would be removed from 
the definition of ``recipient'' and the Indian tribe would be defined 
as the ``recipient'' for part 58 purposes with respect to assistance 
awarded under NAHASDA and the Section 184 Indian Housing Loan Guaranty 
program (Section 184 program). The specification of the Indian tribe as 
the ``recipient'' for these two programs is for part 58 purposes only. 
The revision reflects the Indian tribe's role in the part 58 process 
under section 105 of NAHASDA and the Section 184 program and would not 
affect the definition of ``recipient'' in 24 CFR part 1000 and section 
4 of NAHASDA.
    Further, the definition of ``responsible entity'' (RE) would be 
revised to clarify that the Indian tribe is the RE under NAHASDA 
whether or not a Tribally Designated Housing Entity is authorized to 
receive funds on behalf of the tribe and is also the RE under the 
Section 184 program. This definition also would state that Regional 
Corporations in Alaska are considered Indian tribes. The inclusion of 
Regional Corporations as Indian tribes reflects their specific 
inclusion in the definition of ``Indian tribe'' in section 4 of 
NAHASDA.
    A new Sec. 58.4(c) would clarify that under NAHASDA and the Section 
184 program, Indian tribes have a choice whether or not to assume 
environmental responsibilities under part 58. This provision conforms 
to NAHASDA rules that were adopted through negotiated rulemaking (24 
CFR 1000.20).
    The list of NEPA-related environmental authorities in Sec. 58.5 
would be updated by replacing a reference to an obsolete HUD notice on 
toxic chemicals and radioactive materials with updated requirements 
regarding contamination. The new requirements would be similar to those 
identified in 24 CFR 50.3(i), which apply when HUD performs the 
environmental review for a project. The new provision would reflect a 
general HUD policy that regardless of whether the environmental reviews 
are performed by HUD or by the responsible entity, the same standards 
would be used. The proposed provision would state HUD's policy that 
property proposed for use in HUD programs must be free of hazardous 
materials, contamination, toxic chemicals and gases, and radioactive 
substances, where a hazard could affect the health and safety of 
occupants of the property or conflict with the intended utilization of 
the property.
    Environmental reviews for multifamily housing with five or more 
units (including leasing) and non-residential property must include 
evaluation of previous site uses and other evidence of contamination on 
or near the site. The entity responsible for compliance with part 58 
must give particular attention to any proposed site on or in the 
general proximity of areas that contain or may have contained hazardous 
waste, such as dumps, landfills, and industrial sites. This provision 
relies on a general performance standard, which could include a Phase I 
environmental assessment for toxics (American Society for Testing 
Materials, ASTM E 1527). Some HUD programs already require a Phase I 
report, which is a standard of private real estate transactions.
    Section 58.11 (pertaining to legal capacity and performance) is 
revised to exclude the term ``Indian housing'' recipient and add the 
term ``HOPWA'' recipient. This section allows recipients that are not a 
responsible entity to object to the performance of the environmental 
review by a responsible entity on the basis of performance, timing, or 
compatibility of objectives. In such a case, HUD will review the facts 
to determine who will perform the environmental review.
    The current provisions of Sec. 58.22(a) would be revised and placed 
in paragraphs (a) through (c). The new provisions would make it clear 
that all participants in the development process are subject to the 
provisions of this part.
    The proposed provisions would clarify that the limitations on 
activities apply not only to recipients, but also to other project 
participants, such as public or private nonprofit or for-profit 
entities and their contractors. The provisions also would make it clear 
that undertaking an activity that would have adverse environmental 
impact or limit the choice of alternatives, as well as committing non-
HUD funds to such an activity, is prohibited before the request for 
release of funds and environmental certification have been approved.
    New paragraph (c) would require that, if a recipient is considering 
an application from a prospective sub-recipient or beneficiary and is 
aware that the applicant is about to take an action within the 
recipient's jurisdiction that is prohibited by Sec. 58.22(a), the 
recipient shall promptly notify the applicant that the recipient will 
take appropriate action to ensure that the objectives and procedures of 
NEPA are achieved. This latter provision is based on provisions in the 
NEPA regulations of the Council on Environmental Quality (40 CFR 
1506.1(b)). The Department is concerned that there have been situations 
in which the environmental review process has been impaired where 
private participants have undertaken choice-limiting actions on pending 
projects with the apparent acquiescence or encouragement of recipients. 
These revisions would clarify that until the environmental review 
process and release of funds process are completed, participants other 
than recipients are expected to adhere to limitations on permissible 
actions. Further, recipients have a responsibility to respond when they 
are aware that an applicant is taking a prohibited action.
    In addition, a new paragraph would be added to Sec. 58.22 to 
reflect a statutory amendment that permits an organization, consortium, 
or affiliate under the Self-Help Homeownership Opportunity Program 
(SHOP) to advance nongrant funds to acquire land prior to completion of 
the environmental review process. Section 202(b) of the American 
Homeownership and Economic Opportunity Act of 2000 (Pub. L. 106-569, 
approved December 27, 2000) amended section 11(d)(2)(A) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) to 
provide that eligible expenses under the SHOP program ``may include 
reimbursing an organization, consortium, or affiliate upon approval of 
any required environmental review, for nongrant amounts of the 
organization, consortium, or affiliate advanced before such a review to 
acquire land.'' This amendment permits SHOP recipients to advance 
nongrant amounts to acquire land before completion of the environmental 
review process and be reimbursed from grant amounts. However, such 
advances are incurred at the recipient's risk, and the Department is 
not under any obligation to reimburse a recipient for these acquisition 
costs if the subsequent environmental review is unfavorable and the 
land is deemed unsuitable to carry out the SHOP project. The Department 
also notes that advancing nongrant funds for land acquisition prior to 
approval of a request for release of funds is generally considered a 
choice-limiting action that is prohibited under Sec. 58.22. The new 
provision would reflect a statutory exception to this prohibition that 
applies only under the SHOP program. All other forms of HUD assistance 
continue to have the more restrictive policy.
    The proposed rule would revise the first sentence of Sec. 58.33(b) 
concerning when and how the pre-submission

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comment periods for the Notice of Finding of No Significant Impact 
(FONSI Notice) and/or the Notice of Intent to Request a Release of 
Funds (NOI/RROF) may be combined with the post-submission comment 
period for the Request for Release of Funds (RROF). Under the proposed 
rule, the combined procedure could be used if funds are needed on an 
emergency basis due to a locally declared emergency as well as during a 
Presidentially declared disaster, and there is immediate need for 
public action to protect public safety.
    Three of the NEPA categorical exclusions in Sec. 58.35 would be 
revised and one new exclusion would be added. With respect to 
rehabilitation, the rule would be revised to clarify that the 
categorical exclusion for minor rehabilitation applies to single-family 
dwellings as well as to multifamily buildings. The rule would add a 
reference to ``single-family'' residential buildings (with one to four 
dwelling units), whose unit density is not increased beyond four units, 
and whose dwelling units do not result from a conversion of use from a 
non-residential use. The rule also would indicate that the exclusion 
for an individual action on a one-to four-family dwelling would apply 
when there are no more than four dwelling units on any one site, 
whether in one or multiple buildings. This rulemaking includes 
conforming changes to 24 CFR part 50 pertaining to the proposed 
revision for the exclusions for rehabilitation and individual actions.
    New Sec. 58.35(b)(7) would exclude from NEPA and non-NEPA 
environmental requirements the approval of supplemental assistance 
(including insurance or guarantee) to complete a project previously 
approved under this part, if the project or activities have already 
been environmentally assessed by the same responsible entity, unless a 
reevaluation of the environmental findings is required under 
Sec. 58.47(a). This statement of policy is new to this part and would 
conform this part to the long-held HUD policy stated at 24 CFR 50.36, 
when HUD itself performs the environmental responsibilities. Also, the 
exclusion for acquisition of an existing structure or vacant land to be 
retained for the same use would be revised to clarify that acquisition 
includes leasing, and a conforming change would be made to 24 CFR part 
50. The homeownership assistance exclusion in Sec. 58.35(b)(5) covers 
dwelling units under construction as well as existing units, while the 
similar exclusion in Sec. 50.19(b)(5) covers only existing 
construction; therefore, this rule amends Sec. 50.19(b)(5) to cover 
units under construction.
    Sections 58.34(b) and 58.35(d) would be revised to clarify that the 
responsible entity's documentation of exemptions and exclusions must be 
made prior to committing funds for or undertaking the exempt or 
excluded activities.
    In Sec. 58.45, revised language would clarify that the periods 
provided for certain public comment periods are minimum required 
periods. Section 58.45 also has been reformatted into a chart for 
easier reading.
    Sections 58.72 and 58.75 would be revised to conform to the changes 
proposed in Sec. 58.22 ``Limitations on actions pending clearance.''
    The Department also proposes to add language to certain program 
regulations for programs that are subject to part 58 procedures. They 
are part 574 (Housing Opportunities for Persons with AIDS or HOPWA), 
part 582 (Shelter Plus Care), part 583 (Supportive Housing Program), 
and part 970 (Public Housing Program--Demolition or Disposition of 
Public Housing Projects). The added language makes conforming 
amendments for certain program regulations that do not currently 
adequately reflect the applicability of part 58 procedures.

Findings and Certifications

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
for this rule 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. The Finding of No Significant Impact 
is available for public inspection between 7:30 a.m. and 5:30 p.m. 
weekdays in the Office of the Rules Docket Clerk, Office of the General 
Counsel, Department of Housing and Urban Development, Room 10276, 451 
Seventh Street, SW., Washington, DC 20410-5000.

Unfunded Mandates Reform Act

    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 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.

Regulatory Flexibility Act

    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 would 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 would 
need to be complied with by small entities. Although HUD has determined 
that this proposed rule would not have a significant economic impact on 
a substantial number of small entities, HUD welcomes comments regarding 
any less burdensome alternatives to this rule that will meet HUD's 
objectives as described in this preamble.

Executive Order 13132, Federalism

    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.

List of Subjects in 24 CFR

Part 58

    Environmental protection, Community Development Block Grants, 
Public Housing Capital Fund Grants, HOPE VI Program Grants, Indian 
Housing Block Grants, HOME Investment Partnerships Grants, Housing 
Opportunities for Persons with AIDS Grants, Shelter Plus Care Grants, 
Supportive Housing Program Grants, Self-Help Homeownership Opportunity 
Program Grants, Environmental Impact Statements, Environmental 
Assessments, Grant programs--housing and community development, 
Reporting and recordkeeping requirements.

Part 574

    AIDS, Community facilities, Disabled, Emergency shelter, Grant 
programs--health programs, Grant programs--housing and community 
development, Grant programs--social programs, Homeless, Housing, Low 
and moderate income housing, Nonprofit organizations, Rent subsidies, 
Reporting and recordkeeping requirements, Technical assistance.

Part 582

    Homeless, Rent subsidies, Reporting and recordkeeping requirements, 
Supportive housing programs--housing and community development, 
Supportive services.

Part 583

    Homeless, Rent subsidies, Reporting and recordkeeping requirements, 
Supportive housing programs--housing

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and community development, Supportive services.

Part 970

    Grant programs--housing and community development, Loan programs--
housing and community development, Public housing, Reporting and 
recordkeeping requirements.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers are 14.235, 
14.238, 14.241, 14.850, and 14.866.
    Accordingly, for the reasons described in the preamble, the 
Department proposes to amend 24 CFR parts 50, 58, 574, 582, 583, and 
970 as follows:

PART 50--PROTECTION AND ENHANCEMENT OF ENVIRONMENTAL QUALITY

    1. The authority citation for part 50 continues to read as follows:

    Authority: 42 U.S.C. 3535(d) and 4332; and Executive Order 
11991, 3 CFR, 1977 Comp., p. 123.

    2. Amend Sec. 50.19 by revising paragraph (b)(15) to read as 
follows:


Sec. 50.19  Categorical exclusions not subject to the Federal laws and 
authorities cited in Sec. 50.4.

* * * * *
    (b) * * *
    (15) Activities to assist homebuyers to purchase existing dwelling 
units or dwelling units under construction, including closing costs and 
downpayment assistance, interest buydowns, and similar activities that 
result in the transfer of title.
* * * * *
    3. Amend Sec. 50.20 by revising paragraphs (a)(2), (a)(3), and 
(a)(4), to read as follows:


Sec. 50.20  Categorical exclusions subject to the Federal laws and 
authorities cited in Sec. 50.4.

    (a) * * *
    (2) Rehabilitation of buildings and improvements when the following 
conditions are met:
    (i) In the case of single-family buildings (with one to four 
units), unit density is not increased beyond four units and the 
dwellings do not result from a conversion of use from a non-residential 
use;
    (ii) In the case of multifamily residential buildings:
    (A) Unit density is not changed more than 20 percent;
    (B) The project does not involve changes in land use from non-
residential to residential or from residential to non-residential; and
    (C) The estimated cost of rehabilitation is less than 75 percent of 
the total estimated cost of replacement after rehabilitation.
    (iii) In the case of non-residential structures, including 
commercial, industrial, and public buildings:
    (A) The facilities and improvements are in place and will not be 
changed in size or capacity by more than 20 percent; and
    (B) The activity does not involve a change in land use, such as 
from non-residential to residential, commercial to industrial, or from 
one industrial use to another.
    (3)(i) An individual action on up to four dwelling units where 
there is a maximum of four units on any one site. The units can be four 
one-unit buildings or one four-unit building or any combination in 
between; or
    (ii) An individual action on a project of five or more housing 
units developed on scattered sites when the sites are more than 2,000 
feet apart and there are not more than four housing units on any one 
site.
    (4) Acquisition (including leasing) or disposition of, or equity 
loans on an existing structure, or acquisition (including leasing) of 
vacant land provided that the structure or land acquired, financed, or 
disposed of will be retained for the same use.
* * * * *

PART 58--ENVIRONMENTAL REVIEW PROCEDURES FOR ENTITIES ASSUMING HUD 
ENVIRONMENTAL RESPONSIBILITIES

    4. The authority citation for part 58 is revised to read as 
follows:

    Authority: 12 U.S.C. 1707 note, 1715z-13a(k); 25 U.S.C. 4115; 42 
U.S.C. 1437x, 3535(d), 3547, 4332, 4852, 5304(g), 11402, 12838, and 
12905(h); title II of Pub. L. 105-276; E.O. 11514 as amended by E.O. 
11991, 3 C.F.R. 1977 Comp. p 123.

    5. Amend Sec. 58.1 as follows:
    a. Removing paragraph (b)(2) and designating it as ``reserved'';
    b. Redesignating paragraph (b)(3) as paragraph (b)(3)(i) and 
revising newly redesignated paragraph (b)(3)(i);
    c. Adding paragraph (b)(3)(ii);
    d. Revising paragraph (b)(6);
    e. Removing ``and'' at the end of paragraph (b)(8);
    f. Replacing the period at the end of paragraph (b)(9) with a 
semicolon; and
    g. Adding new paragraphs (b)(10), (11), (12), (c), and (d).
    The revisions and additions read as follows:


Sec. 58.1  Purpose and applicability.

* * * * *
    (b) * * *
    (2) [Reserved]
    (3)(i) Grants to States and units of general local government under 
the Emergency Shelter Grant Program, Supportive Housing Program (and 
its predecessors, the Supportive Housing Demonstration Program (both 
Transitional Housing and Permanent Housing for Homeless Persons with 
Disabilities) and Supplemental Assistance for Facilities to Assist the 
Homeless), Shelter Plus Care Program, Safe Havens for Homeless 
Individuals Demonstration Program, and Rural Homeless Housing 
Assistance, authorized by Title IV of the McKinney-Vento Homeless 
Assistance Act, in accordance with section 443 (42 U.S.C. 11402);
    (ii) Grants beginning with fiscal year 2001 to private nonprofit 
organizations and housing agencies under the Supportive Housing Program 
and Shelter Plus Care Program authorized by Title IV of the McKinney-
Vento Homeless Assistance Act, in accordance with section 443 (42 
U.S.C. 11402);
* * * * *
    (6)(i) Public Housing Programs under Title I of the United States 
Housing Act of 1937, including HOPE VI grants authorized under section 
24 of the Act for fiscal year 2000 and later, in accordance with 
section 26 (42 U.S.C. 1437x);
    (ii) Grants for the revitalization of severely distressed public 
housing (HOPE VI) for fiscal year 1999 and prior years, in accordance 
with Title II of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1999 
(Pub. L. 105-276, approved October 21, 1998); and
    (iii) Assistance administered by a public housing agency under 
section 8 of the United States Housing Act of 1937, except for 
assistance provided under part 886 of this title, in accordance with 
section 26 (42 U.S.C. 1437x);
* * * * *
    (10) Assistance provided under the Native American Housing 
Assistance and Self-Determination Act of 1996 (NAHASDA), in accordance 
with section 105 (25 U.S.C. 4115);
    (11) Indian Housing Loan Guarantees authorized by section 184 of 
the Housing and Community Development Act of 1992, in accordance with 
section 184(k) (12 U.S.C. 1715z-13a(k)); and
    (12) Grants for Housing Opportunities for Persons with AIDS (HOPWA) 
under the AIDS Housing Opportunity Act, as follows: competitive grants 
beginning with fiscal year 2001 and all formula

[[Page 43212]]

grants, in accordance with section 856(h) (42 U.S.C. 12905(h)); all 
grants for fiscal year 1999 and prior years, in accordance with section 
207(c) of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1999 (Pub. L. 
105-276, approved October 21, 1998).
    (c) When HUD assistance is used to help fund a revolving loan fund 
that is administered by a recipient or another party, the activities 
initially receiving assistance from the fund are subject to the 
requirements in this part. Future activities receiving assistance from 
the revolving loan fund, after the fund has received loan repayments, 
are subject to the environmental review requirements if the rules of 
the HUD program that initially provided assistance to the fund continue 
to treat the activities as subject to the Federal requirements. If the 
HUD program treats the activities as not being subject to any Federal 
requirements, then the activities cease to become Federally funded 
activities and the provisions of this part do not apply.
    (d) To the extent permitted by applicable laws and the applicable 
regulations of the Council on Environmental Quality, the Assistant 
Secretary for Community Planning and Development may, for good cause 
and with appropriate conditions, approve waivers and exceptions or 
establish criteria for exceptions from the requirements of this part.
    6. Amend Sec. 58.2 as follows:
    a. Revising paragraph (a)(5)(v);
    b. Removing ``and'' at the end of paragraph (a)(5)(vii);
    c. Adding new paragraphs (a)(5)(ix) and (x);
    d. Revising paragraphs (a)(6) and (a)(7), introductory text, 
(a)(7)(i), and (a)(7)(ii), introductory text;
    e. Removing paragraphs (a)(7)(ii)(D) and (E).
    The revisions and additions read as follows:


Sec. 58.2  Terms, abbreviations and definitions.

    (a) * * *
    (5) * * *
    (v) With respect to Public Housing Programs under 
Sec. 58.1(b)(6)(i), fiscal year 1999 and prior HOPE VI grants under 
Sec. 58.1(b)(6)(ii) or Section 8 assistance under Sec. 58.1(b)(6)(iii), 
a public housing agency;
* * * * *
    (vii) With respect to the FHA Multifamily Housing Finance Agency 
Pilot Program under Sec. 58.1(b)(8), a qualified housing finance 
agency;
    (viii) With respect to the Self-Help Homeownership Opportunity 
Program under Sec. 58.1(b)(9), any direct grantee of HUD;
    (ix) With respect to NAHASDA assistance under Sec. 58.1(b)(10) and 
the Section 184 Indian Housing Loan Guarantee program under 
Sec. 58.1(b)(11), the Indian tribe.
    (x) With respect to the Shelter Plus Care and Supportive Housing 
Programs under Sec. 58.1(b)(3)(ii), nonprofit organizations and other 
entities.
    (6) Release of funds. In the case of the FHA Multifamily Housing 
Finance Agency Pilot Program under Sec. 58.1(b)(8), Release of Funds, 
as used in this part, refers to HUD issuance of a firm approval letter, 
and Request for Release of Funds refers to a recipient's request for a 
firm approval letter. In the case of the Section 184 Indian Housing 
Loan Guarantee program under Sec. 58.1(b)(11), Release of Funds refers 
to HUD's issuance of a commitment to guarantee a loan, or if there is 
no commitment, HUD's issuance of a certificate of guarantee.
    (7) Responsible Entity. Responsible Entity means:
    (i) With respect to environmental responsibilities under programs 
listed in Sec. 58.1(b)(1), (2), (3)(i), (4), and (5), a recipient under 
the program.
    (ii) With respect to environmental responsibilities under the 
programs listed in Sec. 58.1(b)(3)(ii) and (6) through (12), a State, 
unit of general local government, Indian tribe or Alaska Native 
Village, when it is the recipient under the program. Under the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4101 et seq.) listed in Sec. 58.1(b)(10), the Indian tribe is 
the responsible entity whether or not a Tribally Designated Housing 
Entity is authorized to receive grant amounts on behalf of the tribe. 
The Indian tribe is also the responsible entity under the Section 184 
Indian Housing Loan Guarantee program listed in Sec. 58.1(b)(11). 
Regional Corporations in Alaska are considered Indian tribes in this 
part. Non-recipient responsible entities are designated as follows:
* * * * *
    7. Amend Sec. 58.4 as follows:
    a. Revising paragraph (b)(2);
    b. Removing paragraph (b)(3); and
    c. Adding a new paragraph (c).
    The revision and addition read as follows:


Sec. 58.4  Assumption authority.

* * * * *
    (b) * * *
    (2) States must exercise HUD's responsibilities in accordance with 
Sec. 58.18, with respect to approval of a unit of local government's 
environmental certification and RROF for a HUD assisted project funded 
through the State. Approval by the State of a unit of local 
government's certification and RROF satisfies the Secretary's 
responsibilities under NEPA and the related laws cited in Sec. 58.5.
    (c) Particular responsibilities of Indian tribes. An Indian tribe 
may, but is not required to, assume responsibilities for environmental 
review, decision-making and action for programs authorized by the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4101 et seq.) or section 184 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-13a). The tribe must make a 
separate decision regarding assumption of responsibilities for each of 
these Acts and communicate that decision in writing to HUD. If the 
tribe assumes these responsibilities, the requirements of this part 
shall apply. If a tribe formally declines assumption of these 
responsibilities, they are retained by HUD and the provisions of part 
50 of this title apply.
    8. Amend Sec. 58.5 by revising paragraphs (a)(1) and (i) to read as 
follows:


Sec. 58.5  Related Federal laws and authorities.

* * * * *
    (a) Historic properties. (1) The National Historic Preservation Act 
of 1966 (16 U.S.C. 470 et seq.), particularly sections 106 and 110 (16 
U.S.C. 470 and 470h-2).
* * * * *
    (i) HUD environmental standards. (1) Applicable criteria and 
standards specified in part 51 of this title, other than the runway 
clear zone notification requirement in Sec. 51.303(a)(3). Also, it is 
HUD policy that all properties that are being proposed for use in HUD 
programs be free of hazardous materials, contamination, toxic chemicals 
and gases, and radioactive substances, where a hazard could affect the 
health and safety of occupants or conflict with the intended 
utilization of the property.
    (2) The environmental review of multifamily housing with five or 
more dwelling units (including leasing), or non-residential property, 
must include the evaluation of previous uses of the site or other 
evidence of contamination on or near the site, to assure that the 
occupants of proposed sites are not adversely affected by any of the 
hazards listed in Sec. 58.5(i)(1).
    (3) Particular attention should be given to any proposed site on or 
in the general proximity of such areas as dumps, landfills, industrial 
sites, or other locations that contain, or may have contained, 
hazardous wastes.

[[Page 43213]]

    (4) The responsible entity shall use current techniques by 
qualified professionals to undertake investigations determined 
necessary.
* * * * *
    9. Revise Sec. 58.10 to read as follows:


Sec. 58.10  Basic environmental responsibility.

    In accordance with the provisions of law cited in Sec. 58.1(b), 
except as otherwise provided in Sec. 58.4(c), the responsible entity 
must assume the environmental responsibilities for projects under 
programs cited in Sec. 58.1(b). In doing so, the responsible entity 
must comply with the provisions of NEPA and the CEQ regulations 
contained in 40 CFR parts 1500 through 1508, including the requirements 
set forth in this part.
    10. Amend Sec. 58.11 by revising paragraph (b) to read as follows:


Sec. 58.11  Legal capacity and performance.

* * * * *
    (b) If a public housing, special project, HOPWA, Supportive 
Housing, Shelter Plus Care, or Self-Help Homeownership Opportunity 
recipient that is not a responsible entity objects to the non-recipient 
responsible entity conducting the environmental review on the basis of 
performance, timing, or compatibility of objectives, HUD will review 
the facts to determine who will perform the environmental review.
* * * * *
    11. Remove and reserve Sec. 58.17 to read as follows.


Sec. 58.17  [Reserved]

    12. Revise Sec. 58.18 to read as follows:


Sec. 58.18  Responsibilities of States assuming HUD environmental 
responsibilities.

    States that elect to administer a HUD program shall ensure that the 
program complies with the provisions of this part. The State must:
    (a) Designate the State agency or agencies that will be responsible 
for carrying out the requirements and administrative responsibilities 
set forth in subpart H of this part and which will:
    (1) Develop a monitoring and enforcement program for post-review 
actions on environmental reviews and monitor compliance with any 
environmental conditions included in the award.
    (2) Receive public notices, RROFs and certifications from 
recipients pursuant to Secs. 58.70 and 58.71; accept objections from 
the public and from other agencies (Sec. 58.73); and perform other 
related responsibilities regarding releases of funds.
    (b) Fulfill the State role in subpart H relative to the time period 
set for the receipt and disposition of comments, objections and appeals 
(if any) on particular projects.
    13. Revise Sec. 58.22 to read as follows:


Sec. 58.22  Limitations on activities pending clearance.

    (a) Neither a recipient nor any participant in the development 
process, including public or private nonprofit or for-profit entities, 
or any of their contractors, may commit HUD assistance under a program 
listed in Sec. 58.1(b) on an activity or project until HUD or the state 
has approved the recipient's RROF and the related certification from 
the responsible entity. In addition, until the RROF and the related 
certification have been approved, neither a recipient nor any 
participant in the development process may commit non-HUD funds on or 
undertake an activity or project under a program listed in Sec. 58.1(b) 
if the activity or project would have an adverse environmental impact 
or limit the choice of reasonable alternatives.
    (b) If a project or activity is exempt under Sec. 58.34, or is 
categorically excluded (except in extraordinary circumstances) under 
Sec. 58.35(b), no RROF is required and the recipient may undertake the 
activity immediately after the responsible entity has documented its 
determination as required in Sec. 58.34(b) and Sec. 58.35(d), but the 
recipient must comply with applicable requirements under Sec. 58.6.
    (c) If a recipient is considering an application from a prospective 
subrecipient or beneficiary and is aware that the prospective 
subrecipient or beneficiary is about to take an action within the 
jurisdiction of the recipient that is prohibited by Sec. 58.22(a), then 
the recipient will take appropriate action to ensure that the 
objectives and procedures of NEPA are achieved.
    (d) An option agreement on a proposed site or property is allowable 
prior to the completion of the environmental review if the option 
agreement is subject to a determination by the recipient on the 
desirability of the property for the project as a result of the 
completion of the environmental review in accordance with this part and 
the cost of the option is a nominal portion of the purchase price. 
There is no constraint on the purchase of an option by third parties 
that have not been selected for HUD funding, have no responsibility for 
the environmental review and have no say in the approval or disapproval 
of the project.
    (e) Self-Help Homeownership Opportunity Program (SHOP). In 
accordance with section 11(d)(2)(A) of the Housing Opportunity Program 
Extension Act of 1996 (42 U.S.C. 12805 note), an organization, 
consortium, or affiliate receiving assistance under the SHOP program 
may advance nongrant funds to acquire land prior to completion of an 
environmental review and approval of an Request for Release of Funds 
(RROF) and certification, notwithstanding Sec. 58.22(a). Any advances 
to acquire land prior to approval of the RROF and certification are 
made at the risk of the organization, consortium, or affiliate and 
reimbursement for such advances may depend on the result of the 
environmental review. This authorization is limited to the SHOP program 
only and all other forms of HUD assistance are subject to the 
limitations in paragraph (a) of this section.
    (f) Relocation. Funds may be committed for relocation assistance 
before the approval of the RROF and related certification for the 
project provided that the relocation assistance is required by 24 CFR 
part 42.
    14. Amend Sec. 58.33 by revising paragraph (b) to read as follows:


Sec. 58.33  Emergencies.

* * * * *
    (b) If funds are needed on an emergency basis and adherence to 
separate comment periods would prevent the giving of assistance during 
a Presidentially declared disaster, or during a local emergency that 
has been declared by the chief elected official of the responsible 
entity who has proclaimed that there is an immediate need for public 
action to protect the public safety, the combined Notice of FONSI and 
Notice of Intent to Request Release of Funds (NOI/RROF) may be 
disseminated and/or published simultaneously with the submission of the 
RROF. The combined Notice of FONSI and NOI/RROF shall state that the 
funds are needed on an emergency basis due to a declared disaster and 
that the comment periods have been combined. The Notice shall also 
invite commenters to submit their comments to both HUD and the 
responsible entity issuing the notice to assure that these comments 
will receive full consideration.
    15. Amend Sec. 58.34 by revising paragraph (b) to read as follows:


Sec. 58.34  Exempt activities.

* * * * *
    (b) A recipient does not have to submit an RROF and certification, 
and no further approval from HUD or the State will be needed by the 
recipient for

[[Page 43214]]

the drawdown of funds to carry out exempt activities and projects. 
However, the responsible entity must document in writing its 
determination that each activity or project is exempt and meets the 
conditions specified for such exemption under this section. 
Documentation in the Environmental Review Record (ERR) must be made 
prior to the commitment of funds or undertaking any of the activities 
listed in Sec. 58.34(a).
    16. Amend Sec. 58.35 as follows:
    a. Redesignating paragraphs (a)(3)(i) and (a)(3)(ii) as paragraphs 
(a)(3)(ii) and (a)(3)(iii);
    b. Adding a new paragraph (a)(3)(i);
    c. Revising newly redesignated paragraph (a)(3)(ii)(B);
    d. Revising paragraphs (a)(4) and (a)(5); and
    e. Adding a new paragraph (b)(7) and adding a last sentence to the 
end of paragraph (d).
    The additions and revisions read as follows:


Sec. 58.35  Categorical exclusions.

    (a) * * *
    (3) * * *
    (i) In the case of single family residential buildings (with one to 
four units), unit density is not increased beyond four units and the 
dwellings do not result from a conversion of use from a non-residential 
use.
    (ii) * * *
    (A) * * *
    (B) The project does not involve changes in land use from non-
residential to residential or from residential to non-residential; and
    (C) * * *
    (4)(i) An individual action on up to four dwelling units where 
there is a maximum of four units on any one site. The units can be four 
one-unit buildings or one four-unit building or any combination in 
between; or
    (ii) An individual action on a project of five or more housing 
units developed on scattered sites when the sites are more than 2,000 
feet apart and there are not more than four housing units on any one 
site.
    (5) Acquisition (including leasing) or disposition of, or equity 
loans on an existing structure, or acquisition (including leasing) of 
vacant land provided that the structure or land acquired, financed or 
disposed of will be retained for the same use.
* * * * *
    (b) * * *
    (7) Approval of supplemental assistance (including insurance or 
guarantee) to a project previously approved under this part, if the 
approval is made by the same responsible entity that conducted the 
environmental review on the original project and re-evaluation of the 
environmental findings is not required under Sec. 58.47.
* * * * *
    (d) Documentation in the ERR must be made prior to the commitment 
of funds or to undertaking any of the activities listed in Sec. 58.35.
    17. Revise Sec. 58.45 to read as follows:


Sec. 58.45  Public comment periods.

    Required notices must afford the public the following minimum 
comment periods, counted in accordance with Sec. 58.21:
    (a) Notice of Finding of No Significant Impact (FONSI): 15 days 
when published or, if no publication, 18 days when mailing and posting.
    (b) Notice of Intent to Request Release of Funds (NOI-RROF): 7 days 
when published or, if no publication, 10 days when mailing and posting.
    (c) Concurrent or combined notices: 15 days when published or, if 
no publication, 18 days when mailing and posting.
    18. Amend Sec. 58.72 by revising paragraph (b) to read as follows:


Sec. 58.72  HUD or State actions on RROFs and certifications.

* * * * *
    (b) HUD (or the State) may disapprove a certification and RROF if 
it has knowledge that the responsible entity or other participants in 
the development process have not complied with the items in Sec. 58.75, 
or that the RROF and certification are inaccurate.
* * * * *
    19. Amend Sec. 58.75 by revising paragraph (e) to read as follows:


Sec. 58.75  Permissible bases for objections.

* * * * *
    (e) The recipient or other participants in the development process 
have committed funds, incurred costs or undertaken activities not 
authorized by this part before release of funds and approval of the 
environmental certification by HUD (or the State).
* * * * *

PART 574--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

    20. The authority citation for part 574 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 12901-12912.

    21. Revise Sec. 574.510 to read as follows:


Sec. 574.510  Environmental procedures and standards.

    (a) Activities under this part are subject to HUD environmental 
regulations in part 58 of this title, except that HUD will perform an 
environmental review in accordance with part 50 of this title for any 
competitive grant for fiscal year 2000.
    (b) The recipient, its project partners and their contractors may 
not acquire, rehabilitate, convert, lease, repair, dispose of, demolish 
or construct property for a project under this part, or commit or 
expend HUD or local funds for such eligible activities under this part, 
until the responsible entity (as defined in Sec. 58.2 of this title) 
has completed the environmental review procedures required by part 58 
and the environmental certification and RROF have been approved (or HUD 
has performed an environmental review and the recipient has received 
HUD approval of the property). HUD will not release grant funds if the 
recipient or any other party commits grant funds (i.e., incurs any 
costs or expenditures to be paid or reimbursed with such funds) before 
the recipient submits and HUD approves its RROF (where such submission 
is required).
    (c) For activities under a grant to a nonprofit entity that would 
generally be subject to review under part 58, HUD may make a finding in 
accordance with Sec. 58.11(d) and may itself perform the environmental 
review under the provisions of part 50 of this title if the recipient 
nonprofit entity objects in writing to the responsible entity's (RE) 
performing the review under part 58. Irrespective of whether the RE in 
accord with part 58 (or HUD in accord with part 50) performs the 
environmental review, the recipient shall supply all available, 
relevant information necessary for the RE (or HUD, if applicable) to 
perform for each property any environmental review required by this 
part. The recipient also shall carry out mitigating measures required 
by the RE (or HUD, if applicable) or select alternate eligible 
property.

PART 582--SHELTER PLUS CARE

    22. The authority citation for part 582 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 11403-11407b.

    23. Revise Sec. 582.230 to read as follows:


Sec. 582.230  Environmental review.

    (a) Activities under this part are subject to HUD environmental 
regulations in part 58 of this title, except that HUD will perform an

[[Page 43215]]

environmental review in accordance with part 50 of this title prior to 
its approval of any conditionally selected applications from PHAs for 
fiscal year 2000 and prior years for other than the SRO component. For 
activities under a grant to a PHA that generally would be subject to 
review under part 58, HUD may make a finding in accordance with 
Sec. 58.11(d) and may itself perform the environmental review under the 
provisions of part 50 of this title if the recipient PHA objects in 
writing to the responsible entity's (RE) performing the review under 
part 58. Irrespective of whether the RE in accord with part 58 (or HUD 
in accord with part 50) performs the environmental review, the 
recipient shall supply all available, relevant information necessary 
for the RE (or HUD, if applicable) to perform for each property any 
environmental review required by this part. The recipient also shall 
carry out mitigating measures required by the RE (or HUD, if 
applicable) or select alternate eligible property. HUD may eliminate 
from consideration any application that would require an Environmental 
Impact Statement (EIS).
    (b) The recipient, its project partners and their contractors may 
not acquire, rehabilitate, convert, lease, repair, dispose of, demolish 
or construct property for a project under this part, or commit or 
expend HUD or local funds for such eligible activities under this part, 
until the responsible entity (as defined in Sec. 58.2 of this title) 
has completed the environmental review procedures required by part 58 
and the environmental certification and RROF have been approved or HUD 
has performed an environmental review under part 50 and the recipient 
has received HUD approval of the property. HUD will not release grant 
funds if the recipient or any other party commits grant funds (i.e., 
incurs any costs or expenditures to be paid or reimbursed with such 
funds) before the recipient submits and HUD approves its RROF (where 
such submission is required).

PART 583--SUPPORTIVE HOUSING

    24. The authority citation for part 583 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 11389.

    25. Revise Sec. 583.230 to read as follows:


Sec. 583.230  Environmental review.

    (a) Activities under this part are subject to HUD environmental 
regulations in part 58 of this title, except that HUD will perform an 
environmental review in accordance with part 50 of this title prior to 
its approval of any conditionally selected applications for fiscal year 
2000 and prior years that were received directly from private nonprofit 
entities and governmental entities with special or limited purpose 
powers. For activities under a grant that generally would be subject to 
review under part 58, HUD may make a finding in accordance with 
Sec. 58.11(d) and may itself perform the environmental review under the 
provisions of part 50 of this title if the recipient objects in writing 
to the responsible entity (RE) performing the review under part 58. 
Irrespective of whether the RE in accord with part 58 (or HUD in accord 
with part 50) performs the environmental review, the recipient shall 
supply all available, relevant information necessary for the RE (or 
HUD, if applicable) to perform for each property any environmental 
review required by this part. The recipient also shall carry out 
mitigating measures required by the RE (or HUD, if applicable) or 
select alternate eligible property. HUD may eliminate from 
consideration any application that would require an Environmental 
Impact Statement (EIS).
    (b) The recipient, its project partners and their contractors may 
not acquire, rehabilitate, convert, lease, repair, dispose of, demolish 
or construct property for a project under this part, or commit or 
expend HUD or local funds for such eligible activities under this part, 
until the RE (as defined in Sec. 58.2 of this title) has completed the 
environmental review procedures required by part 58 and the 
environmental certification and RROF have been approved or HUD has 
performed an environmental review under part 50 and the recipient has 
received HUD approval of the property. HUD will not release grant funds 
if the recipient or any other party commits grant funds (i.e., incurs 
any costs or expenditures to be paid or reimbursed with such funds) 
before the recipient submits and HUD approves its RROF (where such 
submission is required).

PART 970--PUBLIC HOUSING PROGRAM--DEMOLITION OR DISPOSITION OF 
PUBLIC HOUSING PROJECTS

    26. The authority citation for part 970 continues to read as 
follows:

    Authority: 42 U.S.C. 1437p and 3535(d).

    27. Amend Sec. 970.4 by revising paragraph (b), removing paragraph 
(c) and designating it as reserved, to read as follows:


Sec. 970.4  General requirements for HUD approval of applications for 
demolition or disposition.

* * * * *
    (b) Environmental review. (1) Activities under this part are 
subject to HUD environmental regulations in part 58 of this title. 
However, HUD may make a finding in accordance with Sec. 58.11(d) and 
may itself perform the environmental review under the provisions of 
part 50 of this title if a PHA objects in writing to the responsible 
entity (RE) performing the review under part 58.
    (2) The PHA, its project partners and their contractors may not 
acquire, rehabilitate, convert, lease, repair, dispose of, demolish or 
construct property for a project under this part, or commit or expend 
HUD or local funds for such eligible activities under this part, until 
the responsible entity (as defined in Sec. 58.2 of this title) has 
completed the environmental review procedures required by part 58 and 
the environmental certification and RROF have been approved or HUD has 
performed an environmental review under part 50 and has notified the 
PHA in writing of environmental approval of the property. HUD will not 
release grant funds if the recipient or any other party commits grant 
funds (i.e., incurs any costs or expenditures to be paid or reimbursed 
with such funds) before the recipient submits and HUD approves its RROF 
(where such submission is required).
    (3) Irrespective of whether the RE in accord with part 58 (or HUD 
in accord with part 50) performs the environmental review, the PHA 
shall supply all available, relevant information necessary for the RE 
(or HUD, if applicable) to perform for each property any environmental 
review required by this part. The PHA also shall carry out mitigating 
measures required by the RE (or HUD, if applicable) or select alternate 
eligible property.
    (4) Demolition or disposition (including any related replacement 
housing plan) will be aggregated in accordance with Sec. 58.32 to meet 
the environmental review requirements. If the site of the replacement 
housing is unknown at the time of submission of the application for 
demolition or disposition, the application must contain a certification 
that the applicant agrees to assist the responsible entity to comply 
with part 58 (or HUD to comply with part 50, if applicable) of this 
title, and that the applicant shall obtain environmental clearance of 
the replacement housing in accordance with

[[Page 43216]]

procedures of part 58 (or part 50 if applicable) of this title.
    (c) [Reserved]
* * * * *

    Dated: May 28, 2002.
Roy A. Bernardi,
Assistant Secretary for Community Planning and Development.
[FR Doc. 02-15881 Filed 6-25-02; 8:45 am]
BILLING CODE 4210-29-P