[Federal Register Volume 70, Number 17 (Thursday, January 27, 2005)]
[Rules and Regulations]
[Pages 4000-4001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1454]



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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 Final Rule

  Federal Register / Vol. 70, No. 17 / Thursday, January 27, 2005 / 
Rules and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 1000

[Docket No. FR-4825-I-03; HUD-2005-0001]
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 for Fiscal Years 2005 and 2006. The 
minimum funding provision currently in effect in HUD's regulations 
limited authority for receipt of a minimum grant amount to Fiscal Year 
2004. HUD and Indian tribes, through negotiated rulemaking procedures, 
have developed a proposed rule to address ways to improve and clarify 
the IHBG Formula regulations, including the minimum funding provisions. 
The reinstatement of the authority for minimum grant amounts in Fiscal 
Years 2005 and 2006 will avoid hardship to the affected tribes until 
the revised minimum funding provisions contained in the negotiated 
proposed rule are issued as a final rule and become effective.

DATES: Effective Date: February 28, 2005.
    Comment Due Date: March 28, 2005.

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. Electronic comments may be submitted 
through either:
     The Federal eRulemaking Portal at http://www.regulations.gov; or
     The HUD electronic Web site at http://www.epa.gov/feddocket. Follow the link entitled ``View Open HUD Dockets.'' 
Commenters should follow the instructions provided on that site to 
submit comments electronically.
    Facsimile (FAX) comments are not acceptable. In all cases, 
communications must refer to the docket number and title. All comments 
and communications submitted will be available for public inspection 
and copying between 8 a.m. and 5 p.m. weekdays at the above address. 
Copies are also available for inspection and downloading at http://www.epa.gov/feddocket.

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 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, including the 
minimum funding provisions. However, the work of the committee 
continued beyond Fiscal Year 2002 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 Fiscal Year 2003 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. On June 17, 2004 (69 FR 34020), HUD published a second interim 
rule extending the minimum funding requirement for Fiscal Year 2004. 
The June 17, 2004, interim rule also provided for a 60-day public 
comment period, and HUD did not receive any public comments on the 
interim rule.
    The negotiated rulemaking committee has completed its work on 
development of the proposed rule. HUD anticipates that the negotiated 
proposed rule will be published within the next few months. However, 
because a rule implementing these regulatory changes was not published 
prior to the end of Fiscal Year 2004, 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,

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Indian tribes, especially small Indian tribes, would be affected by the 
lapse of the minimum funding provision.

II. This Interim Rule

    The interim rule authorizes for Fiscal Years 2005 and 2006 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.
    The reinstatement of the authority for minimum grant amounts in 
Fiscal Years 2005 and 2006 will avoid unnecessary hardship to the many 
Indian tribes until the revised minimum funding provisions contained in 
the negotiated proposed rule are issued as a final rule and become 
effective. Once effective, the minimum funding provisions established 
by the negotiated final rule will supersede the current regulations. In 
the interim, affected tribes will not suffer a financial loss because 
of the expiration of the minimum funding provision in the current 
regulation.

III. Justification for Interim Rulemaking

    Generally, HUD 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 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. Further, as noted above in this preamble, this interim rule 
follows publication of two HUD interim rules published on June 24, 
2003, and June 17, 2004, which similarly extended the IHBG minimum 
funding provisions. The rules were non-controversial and welcomed by 
Indian tribes. Although both interim rules invited public comments, HUD 
did not receive any public comments on the extension of the minimum 
funding provisions. HUD, however, solicits public comment on this rule.

IV. Findings and Certifications

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 Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements unless the agency certifies that the 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. Accordingly, 
the undersigned certifies that this rule will not have a significant 
economic impact on a substantial number of small entities.

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 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 2006, 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: January 5, 2005.
Michael M. Liu,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 05-1454 Filed 1-26-05; 8:45 am]
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