[Federal Register Volume 69, Number 116 (Thursday, June 17, 2004)]
[Rules and Regulations]
[Pages 34020-34021]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13721]



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Part III





Department of Housing and Urban Development





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24 CFR Part 1000



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

  Federal Register / Vol. 69, No. 116 / Thursday, June 17, 2004 / Rules 
and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 1000

[Docket No. FR-4825-I-02]
RIN 2577-AC43


Extension of 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 provides authority for Indian tribes to 
receive a minimum grant amount under the need component of the Indian 
Housing Block Grant (IHBG) formula in Fiscal Year 2004. The minimum 
funding provision currently in effect in HUD's regulations limited 
authority for receipt of a minimum grant amount to Fiscal Year 2003. 
The reinstatement of the authority for minimum grant amounts in Fiscal 
Year 2004 will avoid hardship to the affected tribes.

DATES: Effective Date: July 19, 2004.
    Comment Due Date: August 16, 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 20410-0500. 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 8 a.m. to 5 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, Room 4126, Department of 
Housing and Urban Development, 451 Seventh Street, SW., 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 
through TTY by calling the toll-free Federal Information Relay Service 
at 800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    The Native American Housing Assistance and Self-Determination Act 
of 1996 (25 U.S.C. 4101 et seq.) (NAHASDA) streamlined the way that 
housing assistance is provided to Native Americans. NAHASDA eliminated 
several separate assistance programs and replaced them with a single 
block grant program, known as the Indian Housing Block Grant (IHBG) 
Program. In addition to simplifying the process of providing housing 
assistance, the purpose of NAHASDA is to provide federal assistance for 
Indian tribes in a manner that recognizes the right of Indian self-
determination and tribal self-governance.
    The regulations governing the IHBG Program are found in part 1000 
of HUD's regulations in title 24 of the Code of Federal Regulations. 
The part 1000 regulations were established as part of a March 12, 1998, 
final rule implementing NAHASDA. In accordance with section 106 of 
NAHASDA, HUD developed the March 12, 1998, final rule with active 
tribal participation and using the procedures of the Negotiated 
Rulemaking Act of 1990 (5 U.S.C. 561-570).
    Under the IHBG Program, HUD makes assistance available to tribes 
for Indian housing activities. The amount of assistance made available 
to each Indian tribe is determined using a formula (IHBG Formula) that 
was developed as part of the NAHASDA negotiated rulemaking process. A 
regulatory description of the IHBG Formula is located in subpart D of 
24 CFR part 1000 (Sec. Sec.  1000.301-1000.340). The IHBG Formula 
consists of two components: (1) Need and (2) formula current assisted 
stock (FCAS). Generally, the amount of funding for a tribe is the sum 
of the need component and the FCAS component, subject to a minimum 
funding amount authorized by Sec.  1000.328.
    The minimum funding provision at Sec.  1000.328 provides that 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. In 
subsequent fiscal years, 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. As originally adopted by 
the negotiated rulemaking committee and reflected in the March 12, 
1998, final rule, Sec.  1000.328 provided that minimum funding under 
the need component would not extend beyond Federal Fiscal Year 2002.
    Section 1000.328 also specifies that the need for the minimum 
funding provisions will be reviewed in accordance with Sec.  1000.306. 
Section 1000.306 provides that the IHBG Formula be reviewed within five 
years after promulgation to determine whether any changes are needed. 
The negotiated rulemaking committee intended that the IHBG Formula 
would be reviewed before expiration of the minimum funding provision.
    In accordance with Sec.  1000.306, HUD established a negotiated 
rulemaking committee for the purposes of reviewing and developing 
changes to the regulations governing the IHBG Formula. However, the 
work of the committee continued beyond FY2002 and the expiration of the 
minimum funding provisions. Accordingly, on June 24, 2003 (68 FR 
37660), HUD published an interim rule extending the minimum funding 
under the need component through FY2003 in order to avoid hardship to 
the affected Indian tribes. The interim rule provided for a 60-day 
public comment period. HUD received no comments in response to the 
interim rule.
    The negotiated rulemaking committee is close to completion of its 
work, and a proposed rule to implement the consensus decisions reached 
by the committee is under development. However, because a rule 
implementing these regulatory changes was not published prior to the 
end of Fiscal Year 2003, HUD has determined that an additional 
extension is required for the minimum funding provision of Sec.  
1000.328. If action is not taken now to extend the minimum funding 
provision, Indian tribes, especially small Indian tribes, would be 
affected by the lapse of the minimum funding provision.

II. This Interim Rule

    This interim rule authorizes for Fiscal Year 2004 the provision in 
Sec.  1000.328 with respect to the minimum funding amount under the 
need component of the IHBG for tribes returning for their second or 
subsequent year's grant. The provision with respect to the $50,000 an 
Indian tribe receives in its first year of funding under the IHBG 
Program is not revised by this interim rule. That provision, unlike the 
minimum funding amount for returning Indian tribes, has no expiration 
date. Accordingly, this rule applies only to the minimum grant amount 
that returning Indian tribes may receive.
    HUD believes that continuing into Fiscal Year 2004 the 
authorization for returning Indian tribes to receive the minimum grant 
amount would avoid unnecessary hardship to many Indian tribes. In the 
interim, the affected tribes will not suffer a financial loss because 
of the expiration of the provision in the current regulation.

III. Justification for Interim Rulemaking

    Generally, HUD publishes a rule for public comment before issuing a 
rule for

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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 HUD 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.''
    HUD 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 significant reduction 
in funds. The funding meets a critical need of many tribes, which would 
go unmet during the time that it otherwise would take to publish a rule 
for effect. HUD, however, solicits public comment on this rule.

IV. Findings and Certifications

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 change 
made to the rule subsequent to its submission to OMB is identified in 
the docket file, which is available for public inspection in the 
Regulations Division, Office of General Counsel, Room 10276, 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. 
1531-1538) (UMRA) 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 mandate on any state, local, or tribal government or 
the private sector within the meaning of UMRA.

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
was made for the June 24, 2003, interim rule, 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(2)(C)). That 
finding remains applicable to this interim rule and is available for 
public inspection between the hours of 8 a.m. and 5 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 has certified that this rule will not have a significant economic 
impact on a substantial number of small entities. This interim rule 
does not impose any new or modify existing regulatory requirements. 
Rather, the rule is exclusively concerned with extending the minimum 
funding provisions under the need component of the IHBG Formula. To the 
extent the interim rule has any impact on small entities, it will be to 
the benefit of small Indian tribes, that are the primary beneficiaries 
of the minimum funding provisions. 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 alternative 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 for the IHBG 
Program 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. The 
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 2004, 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: June 2, 2004.
Michael M. Liu,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 04-13721 Filed 6-16-04; 8:45 am]
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