[Federal Register Volume 67, Number 137 (Wednesday, July 17, 2002)]
[Rules and Regulations]
[Pages 47212-47213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17928]
[[Page 47211]]
-----------------------------------------------------------------------
Part IV
Department of Housing and Urban Development
-----------------------------------------------------------------------
24 CFR Part 570
Requirement of HUD Approval Before a Grantee May Undertake CDBG-
Assisted Demolition of HUD-Owned Housing Units; Final Rule
Federal Register / Vol. 67, No. 137 / Wednesday, July 17, 2002 /
Rules and Regulations
[[Page 47212]]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 570
[Docket No. FR-4698-F-02]
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the Community Development Block Grant
(CDBG) Entitlement program regulations by requiring grantees to obtain
HUD's approval to demolish HUD-owned housing units. The 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. This final rule
follows publication of a proposed rule on January 22, 2002, which
elicited one comment. The one comment supported the rule, which HUD is
adopting without change.
DATES: Effective Date: August 16, 2002.
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. Background--The January 22, 2002, Proposed Rule
On January 22, 2002 (67 FR 2958), HUD published a proposed rule to
revise the CDBG Entitlement program regulations at 24 CFR 570.201(d),
to prohibit grantees from using CDBG funds for the demolition of HUD-
owned housing units without prior approval from HUD. Before this
amendment, the regulation at Sec. 570.201(d) required that a grantee
obtain HUD's approval to demolish HUD-assisted housing units. The
preamble to the proposed rule indicated that, although the CDBG
regulations did not contain a definition of the term ``HUD-assisted
housing units,'' the term had been considered to include various forms
of subsidized housing such as section 8 or public housing. It had not
been HUD policy to interpret the regulation as including HUD-owned
properties. Thus, this amendment to Sec. 570.201(d) will ensure that
CDBG-assisted demolition of HUD-owned housing units could be carried
out only with the prior approval of HUD.
The proposed rule also stated that HUD believed that the amendment
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.
II. This Final Rule
This final rule follows publication of the January 22, 2002,
proposed rule. The proposed rule invited public comment on the revision
to 24 CFR 570.201(d). The comment period closed on March 25, 2002. One
comment was received that urged HUD to adopt the rule. Accordingly,
because the commenter encouraged the adoption of the rule, and because
HUD believes this final rule will achieve the objectives described in
the proposed rule of January 22, 2002, and restated above, HUD is
adopting the proposed rule without change.
III. The Public Comment
The one comment received in response to the issuance of the
proposed rule on January 22, 2002, supported the rule. The commenter
stated that it believes ``requiring HUD approval before CDBG funds can
be used to demolish HUD-owned properties will help ensure the existence
of integrated housing opportunities and the continued supply of
affordable housing for minority and low- and moderate-income
communities.'' The commenter wrote that HUD oversight of CDBG funds
used in the demolition of HUD-owned housing units will help to ensure
that grantees do not violate the anti-discrimination provisions of the
Fair Housing Act. The commenter further added that adoption of the rule
is critical to ensure the financial stability of the FHA mortgage
insurance program. According to the commenter, the costs of unnecessary
demolitions, often resulting in liens being placed on the property, and
the decrease in value of the property after demolition, result in the
FHA insurance program suffering significant losses.
IV. Findings and Certifications
Environmental Impact
A Finding of No Significant Impact with respect to the environment
was 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 remains
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, SW, 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.
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 final 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.
1531-1538) 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 final 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 program number is
14.218.
[[Page 47213]]
List of Subjects in 24 CFR Part 570
Administrative practice and procedure, American Samoa, Community
development block grant, Grant programs-education, Grant program-
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 in the preamble, HUD amends 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: June 27, 2002.
Donna M. Abbenante,
General Deputy Assistant Secretary for Community Planning and
Development.
[FR Doc. 02-17928 Filed 7-16-02; 8:45 am]
BILLING CODE 4120-29-P