[Federal Register Volume 69, Number 59 (Friday, March 26, 2004)]
[Rules and Regulations]
[Pages 15671-15673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6759]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 5

[Docket No. FR-4876-I-01]
RIN 2501-AD01


Implementation of Requirement in HUD Programs for Use of Data 
Universal Numbering System (DUNS) Identifier

AGENCY: Office of the Secretary, HUD.

ACTION: Interim rule.

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SUMMARY: This interim rule implements an Office of Management and 
Budget (OMB) policy directive that requires grant applicants, other 
than individuals, to provide a Data Universal Numbering System (DUNS) 
number when applying for federal grants or other assistance agreements 
on or after October 1, 2003. HUD is applying this policy widely to its 
assistance programs in order to have a single identifier for applicants 
and facilitate the transition to electronic application submission.

DATES: Comment Due Date: May 25, 2004.
    Effective Date: April 26, 2004.

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 20410-5000. Communications should refer to the 
above docket number and title. A copy of each communication submitted 
will be available for public inspection and copying between 8 a.m. and 
5 p.m. weekdays at the above address. Facsimile (FAX) comments are not 
acceptable.

FOR FURTHER INFORMATION CONTACT: Barbara Dorf, Director, Office of 
Departmental Grants Management and Oversight, Room 3156, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410-3000, telephone (202) 708-0667 (this is not a toll-free number). 
Hearing-or speech-impaired individuals may access this number through 
TTY by calling the toll-free Federal Information Relay Service at (800) 
877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    In a notice published on October 30, 2002 (67 FR 66177), OMB 
proposed to establish the Dun and Bradstreet (D&B) Data Universal 
Numbering System (DUNS) number as the universal identifier for federal 
grant and cooperative agreement applicants. The OMB notice solicited 
public comments and included a proposal to establish this policy as a 
governmentwide requirement.
    On June 27, 2003 (68 FR 38402), OMB published a final policy 
directive that implemented a governmentwide requirement for applicants 
to provide a DUNS number when applying for federal grants or 
cooperative agreements on or after October 1, 2003.
    OMB has determined that there is a governmentwide need for improved 
statistical reporting of federal grants and cooperative agreements. 
Governmentwide use of the DUNS number will provide a means to identify 
entities receiving those awards, as well as their business 
relationships. The identifier will be used for tracking purposes and to 
validate address and point-of-contact information. The DUNS number 
already is in use by the federal government generally to identify 
entities receiving federal contracts and by some federal agencies in 
their grant and cooperative agreement processes. Among existing 
numbering systems, DUNS is the only one that provides the federal 
government the ability to determine hierarchical and family-tree data 
for related organizations.
    Based on the OMB directive, HUD is extending this policy to all 
assistance awards unless the recipient is specifically exempted under 
this policy or the program is granted an exemption by OMB. For purposes 
of the DUNS requirement, assistance awards subject to this policy 
include, but are not limited to, such financial assistance awards as 
Section 8 contract administration and Section 108 loan guarantees. At 
this time, the DUNS requirement does not extend to FHA insurance or 
loan guarantee transactions that are not associated with a grant 
program or grant award.
    The objective of this DUNS policy is to help ensure that HUD is 
able to identify funding received by the various entities that receive 
HUD program awards. Recipients affected include but are not limited to: 
state, local, and tribal governments, public housing agencies (PHAs), 
tribally designated housing entities (TDHEs), universities and 
colleges, nonprofit organizations, for-profit organizations, owners of 
assisted housing and resident management organizations, and resident 
councils. It is HUD's intent to make all funding opportunities and 
applications for assistance available online at http://www.grants.gov 
and this requirement is consistent with the intent and direction of the 
OMB Policy Directive issued on June 27, 2003. Use of the DUNS number 
will be required for all submissions through http://www.grants.gov.

II. This Interim Rule

    HUD is implementing OMB's DUNS policy and making it widely 
applicable to HUD funding programs by amending 24 CFR part 5 to add a 
new subpart K that requires organizations that apply for HUD grants or 
financial assistance to provide a DUNS number with the application. 
This policy covers funds awarded as a grant, cooperative agreement, 
capital fund or operating fund subsidy, capital advance, or other 
assistance. Every application for a new grant or assistance award or 
renewal of an award or plan (including PHA plans) under all 
discretionary and formula grant programs, must include a DUNS number 
for the applicant.
    The DUNS requirement will also apply to groups of organizations 
applying for HUD grants or financial

[[Page 15672]]

assistance as consortia. Applicants or groups of applicants under 
consortia arrangements must have a DUNS number for the organization 
that submits an application for federal assistance on behalf of the 
other applicants and manages the funds. If each organization is 
submitting a separate application for federal assistance, then each 
organization must have a separate DUNS submitted with its application 
for assistance. If an organization is managing funds for a group of 
organizations (as may be the case with several small PHAs utilizing a 
single management organization to apply for and manage funds on their 
behalf), a DUNS number must be submitted for the managing organization 
if it is drawing down HUD funds directly. If an organization, such as a 
PHA, draws down funds directly from HUD and subsequently turns the 
funds over to a management organization, then the management 
organization must obtain a DUNS number and provide the number to HUD.
    Unless an exemption is granted by OMB, an application will not be 
considered complete until a valid DUNS number is provided by the 
applicant.
    Individuals who would personally receive an assistance award from 
HUD, apart from any business or nonprofit organization with which they 
may operate or participate, are exempt from this requirement. 
Specifically, individuals may continue to apply under programs for 
which they are eligible without providing a DUNS number. In addition, 
an applicant is not required to submit DUNS numbers for entities with 
which it may enter into subawards.
    The DUNS number does not replace existing identifiers, such as the 
Employer Identification Number (EIN), the Tax Identification Number 
(TIN), and State Application Identifier (SAI) numbers that are required 
by statute, Executive Order, or regulation.
    Obtaining a DUNS number is free for all entities doing business 
with the federal government. This includes grant and cooperative 
agreement applicants and prospective applicants. Applicants should 
identify their organizations as a federal grant applicant or 
prospective applicant when they contact D&B, as explained below.
    The DUNS Number is site-specific, therefore each distinct physical 
location of an entity (such as branches, divisions, and headquarters) 
may be assigned a DUNS number. If an organization already has a DUNS 
number in connection with the federal acquisition process, or requested 
or had one assigned for another purpose, the applicant may use that 
number for its application. When possible, organizations should avoid 
establishing new numbers. Organizations should take responsibility for 
updating and validating the DUNS information associated with the 
existing numbers. To help organizations manage multiple DUNS, an entity 
may request D&B to supply a family-tree report of the DUNS numbers 
associated with the organization. Organizations should work with D&B to 
ensure the correct information is on the report. If an organization 
wishes to determine if it has an existing DUNS number or to request a 
family tree report, it can contact D&B using the toll-free number, 
(866) 705-5711.
    Organizations can receive a DUNS number by calling the dedicated 
toll-free DUNS Number request line at (866) 705-5711 between 8 a.m. and 
6 p.m. (local time of the caller when calling from within the United 
States). Speech-or hearing-impaired individuals may access the toll-
free DUNS Number request line through TTY by calling (866) 814-7818. 
Organizations may also apply online at http://www.dunandbradstreet.com. 
For faster service, HUD recommends using the telephone request line to 
obtain the DUNS number. The telephone call to receive the DUNS number 
takes approximately five to ten minutes and the number will be assigned 
at the conclusion of the call. Applicants can expect that the following 
information will be requested: legal name; name and address for the 
organization's headquarters; ``doing business as'' (DBA) or other name 
by which the organization is commonly known or recognized; physical 
address, city, state and ZIP Code; mailing address (if separate from 
headquarters or physical address); telephone number; contact name and 
title; and number of employees.

III. Findings and Certifications

Justification for Interim Rulemaking

    In general, HUD publishes a rule for public comment before issuing 
a rule for effect, in accordance with its own regulations on 
rulemaking, 24 CFR part 10. Part 10, however, provides 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. This rule will 
require organizations that apply for HUD assistance to obtain and 
provide a DUNS number in their applications. Organizations that call 
the DUNS dedicated, toll-free telephone number can immediately obtain a 
DUNS number. Therefore, the burden placed on organizations is a minimal 
amount of time, and there are no additional costs associated with 
acquiring the DUNS. In addition, OMB, by its October 30, 2002, notice, 
already has solicited and received comments from the public concerning 
this governmentwide requirement.
    The Department, however, is soliciting additional public comment on 
this rule. All comments received on this rule will be considered in 
adopting the final rule.

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 interim rule does not impose 
any federal mandates on any state, local, or tribal government 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 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 Order.

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 has certified that this rule will not have a significant economic 
impact on a substantial number of small entities. DUNS numbers are 
immediately obtained at no cost with minimal time and effort. 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

[[Page 15673]]

regarding less burdensome alternatives to this rule that will meet 
HUD's objectives as described in this preamble.

Environmental Impact

    In accordance with 24 CFR 50.19(c)(1) of the Department's 
regulations, this interim rule does not direct, provide for assistance 
or loan and mortgage insurance for, or otherwise govern or regulate, 
real property acquisition, disposition, leasing, rehabilitation, 
alteration, demolition, or new construction, or establish, revise, or 
provide for standards for construction or construction materials, 
manufactured housing, or occupancy. Therefore, this proposed rule is 
categorically excluded from the requirements of the National 
Environmental Policy Act (42 U.S.C. 4321 et seq.).

List of Subjects in 24 CFR Part 5

    Administrative practice and procedure, Aged, Claims, Drug abuse, 
Drug traffic control, Grant programs--housing and community 
development, Grant programs--Indians, Individuals with disabilities, 
Information and statistics, Loan programs--housing and community 
development, Low and moderate income housing, Mortgage insurance, Pets, 
Public housing, Rent subsidies, Reporting and recordkeeping 
requirements.


0
For the reasons described in the preamble, 24 CFR part 5 is amended as 
follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

0
1. The authority citation for 24 CFR part 5 continues to read as 
follows:

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


0
2. A new subpart K is added to part 5 to read as follows:

Subpart K--Application submission requirements

5.1001 Applicability.
5.1003 Use of a universal identifier for organizations applying for 
HUD grants.

Subpart K--Application Submission Requirements


Sec.  5.1001  Applicability.

    This subpart applies to all applicants for HUD grants, cooperative 
agreements, capital fund or operating fund subsidy, capital advance, or 
other assistance under HUD programs, including grant programs that are 
classified by OMB as including formula grant programs or activities, 
but excluding FHA insurance and loan guarantees that are not associated 
with a grant program or grant award.


Sec.  5.1003  Use of a universal identifier for organizations applying 
for HUD grants.

    (a) Every application for a new or renewal of a grant, cooperative 
agreement, capital fund or operating fund subsidy, capital advance, or 
other assistance, including an application or plan under a grant 
program that is classified by OMB as including formula grant programs, 
must include a Data Universal Numbering System (DUNS) number for the 
applicant.
    (b) (1) Applicants or groups of applicants under a consortium 
arrangement must have a DUNS number for the organization that is 
submitting the application for federal assistance as the lead applicant 
on behalf of the other applicants. If each organization is submitting a 
separate application as part of a group of applications, then each 
organization must include its DUNS number with its application 
submission.
    (2) If an organization is submitting an application as a sponsor or 
on behalf of other applicants, and the other entities will be receiving 
funds directly from HUD, then the applicant or sponsor must submit an 
application for funding that includes the DUNS number of each applicant 
that would receive funds directly from HUD.
    (3) If an organization is managing funds for a group of 
organizations, a DUNS number must be submitted for the managing 
organization, if it is drawing down funds directly from HUD.
    (4) If an organization is drawing down funds directly from HUD and 
subsequently turning the funds over to a management organization, then 
the management organization must obtain a DUNS number and submit the 
number to HUD.
    (c) Individuals who would personally receive a grant or other 
assistance from HUD, independent from any business or nonprofit 
organization with which they may operate or participate, are exempt 
from this requirement.
    (d) In cases where individuals apply for funding, but the funding 
will be awarded to an institution or other entity on the individual's 
behalf, the institution or entity must obtain a DUNS number and the 
individual must submit the institution's DUNS number with the 
application.
    (e) Unless an exemption is granted by OMB, HUD will not consider an 
application as complete until a valid DUNS number is provided by the 
applicant. For classes of grants and grantees subject to this part, 
exceptions to this rule must be submitted to OMB for approval in 
accordance with procedures prescribed by the Department.

    Dated: March 3, 2004.
Alphonso Jackson,
Secretary (Acting).
[FR Doc. 04-6759 Filed 3-25-04; 8:45 am]
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