[Federal Register Volume 68, Number 121 (Tuesday, June 24, 2003)]
[Rules and Regulations]
[Pages 37660-37661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15817]



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Part III





Department of Housing and Urban Development





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24 CFR Part 1000



Minimum Funding Under the Indian Housing Block Grant Program; Interim 
Rule

  Federal Register / Vol. 68, No. 121 / Tuesday, June 24, 2003 / Rules 
and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 1000

[Docket No. FR-4825-I-01]
RIN 2577-AC43


Minimum Funding Under the Indian Housing Block Grant Program

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Interim rule.

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SUMMARY: This interim rule revises the current regulation to extend the 
period for which an Indian tribe, after its first year of funding, may 
receive a minimum grant amount under the need component of the Indian 
Housing Block Grant (IHBG) formula. The minimum funding provision in 
the regulation for returning tribes expired on September 30, 2002. This 
interim rule authorizes the extension of the minimum funding provision 
under the need component through Fiscal Year 2003 to avoid hardship to 
the affected tribes.

DATES: Effective Date: July 24, 2003.
    Comment Due Date: August 25, 2003.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410-0500. Comments should refer to the above 
docket number and title. A copy of each communication submitted will be 
available for public inspection and copying during regular business 
hours (weekdays 7:30 a.m. to 5:30 p.m. eastern time) at the above 
address. Facsimile (FAX) comments are not acceptable.

FOR FURTHER INFORMATION CONTACT: Rodger Boyd, Deputy Assistant 
Secretary for Native American Programs, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 4126, Washington, DC 20410-
0001; telephone (202) 401-7914 (this is not a toll-free number). 
Persons with hearing- or speech-impairments may access this number via 
TTY by calling the toll-free Federal Information Relay Service at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:

Background

    HUD issued regulations at 24 CFR part 1000 to implement certain 
provisions of the Native American Housing Assistance and Self-
Determination Act of 1996 (NAHASDA) (25 U.S.C. 4101 et seq.). 
Specifically, pursuant to section 302 of NAHASDA (25 U.S.C. 4152), a 
formula was established to allocate funding for block grants among 
Indian tribes. In accordance with section 302, the formula was based on 
enumerated factors that reflected the need of the Indian tribes. The 
formula, as required by section 106 of NAHASDA, was developed through 
negotiated rulemaking. The final rule published on March 12, 1998 (63 
FR 12349), provided, at 24 CFR 1000.328, for the minimum funding amount 
a tribe could receive under the need component of the formula. Section 
1000.328 also provided that the minimum funding would not ``extend 
beyond Federal Fiscal Year 2002.'' A further provision in Sec.  
1000.328 specified that ``[T]he need for Sec.  1000.328 will be 
reviewed in accordance with Sec.  1000.306.''
    As indicated above, Sec.  1000.328 contains a sunset provision with 
respect to the minimum funding amount, that is, funding would not 
``extend beyond Federal Fiscal Year 2002.'' Section 1000.306 
(referenced in Sec.  1000.328) provides for a review within five years 
of the promulgation of the rule to determine the need for the subsidy. 
It is clear, therefore, that the regulation when adopted intended that 
the IHBG formula would be reviewed before expiration of the minimum 
funding provision.
    The negotiated rulemaking committee that will review the formula 
met on April 29, 2003. Resolving the issue of minimum funding by the 
negotiated rulemaking committee, however, may not be reached for 
several months. Consequently, because the minimum funding provision has 
expired and some time may elapse before the resolution of this issue by 
the negotiated rulemaking committee, if no action is taken now to 
extend the minimum funding provision, small tribes especially would be 
affected by the lapse in the funding provision.

This Interim Rule

    This interim rule extends to Federal Fiscal Year 2003 the provision 
in Sec.  1000.328 with respect to the minimum funding amount for 
returning tribes under the need component of the IHBG. The provision 
with respect to the minimum grant amount, i.e., $50,000, a tribe may 
receive in its first year of funding remains unchanged in this rule. 
That provision, unlike the minimum funding amount for returning tribes, 
has no expiration date. Accordingly, this rule applies only to the 
minimum grant amount that returning tribes may receive.
    The Department believes that enlarging the time to Federal Fiscal 
Year 2003 for returning tribes to receive the minimum grant amount 
would avoid unnecessary hardship to many tribes. Additionally, adoption 
of this rule allows more time for the negotiated rulemaking committee 
to meet to review the IHBG formula, including the issue of minimum 
funding. In the interim, the affected tribes will not suffer a 
financial loss because of the expiration of the provision in the 
current regulation.

Findings and Certifications

Justification for Interim Rulemaking

    In general, the Department 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 in Sec.  10.1 for exceptions from that general rule where the 
Department 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.''
    The Department finds that good cause exists to publish this interim 
rule for effect without first soliciting public comment. The rule will 
allow a minimum amount of funding to continue to Indian tribes without 
a significant lapse in time during which the tribes would be foreclosed 
from receiving funds entirely or would receive a harmful reduction. The 
funding meets a critical need of many tribes, which will go unmet 
during the time that it otherwise would take to publish a rule for 
effect. The Department is still, however, soliciting public comment on 
this rule. Any comments received on this rule will be considered in 
adopting the final rule.

Regulatory Planning and Review

    The Office of Management and Budget (OMB) reviewed this rule under 
Executive Order 12866 (entitled ``Regulatory Planning and Review''). 
OMB determined that this rule is a ``significant regulatory action'' as 
defined in section 3(f) of the Order (although not economically 
significant, as provided in section 3(f)(1) of the Order). Any changes 
made to the rule subsequent to its submission to OMB are identified in 
the docket file, which is available for public inspection in the 
Regulations Division, Room 10276, Office of General Counsel, Department 
of Housing and Urban Development, 451 Seventh Street, SW., Washington, 
DC 20410-0500.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-

[[Page 37661]]

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 interim rule does not impose 
any Federal mandates on any State, local, or tribal governments or the 
private sector within the meaning of the Unfunded Mandates Reform Act 
of 1995.

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 interim 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.

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. 4332). The finding of no significant impact is 
available for public inspection between the hours of 7:30 a.m. and 5:30 
p.m. weekdays in the Regulations Division, Office of General Counsel, 
Room 10276, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-0500.

Impact on Small Entities

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this interim rule and in so 
doing certifies that this rule will not have a significant economic 
impact on a substantial number of small entities. Although HUD has 
determined that this interim 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.

Catalog of Federal Domestic Assistance Numbers

    The Catalog of Federal Domestic Assistance Number is 14.867.

List of Subjects in 24 CFR Part 1000

    Aged, Community development block grants, Grant programs--housing 
and community development, Grant programs--Indians, Indians, 
Individuals with disabilities, Public housing, Reporting and 
recordkeeping requirements.

0
Accordingly, HUD amends 24 CFR part 1000 to read as follows:

PART 1000--NATIVE AMERICAN HOUSING ACTIVITIES

0
1. The authority citation for 24 CFR part 1000 continues to read as 
follows:

    Authority: 25 U.S.C. 4101 et seq.; 42 U.S.C. 3535(d).

0
2. Revise Sec.  1000.328 to read as follows:


Sec.  1000.328  What is the minimum amount an Indian tribe can receive 
under the need component of the formula?

    In the first year of NAHASDA participation, an Indian tribe whose 
allocation is less than $50,000 under the need component of the formula 
shall have its need component of the grant adjusted to $50,000. An 
Indian tribe's IHP shall contain a certification of the need for the 
$50,000 funding. In subsequent years, but not to extend beyond Federal 
Fiscal Year 2003, an Indian tribe whose allocation is less than $25,000 
under the need component of the formula shall have its need component 
of the grant adjusted to $25,000. The need for this section will be 
reviewed in accordance with Sec.  1000.306.

    Dated: May 30, 2003.
Michael M. Liu,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 03-15817 Filed 6-23-03; 8:45 am]
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