[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Rules and Regulations]
[Pages 8706-8707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3316]



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Part IV





Department of Housing and Urban Development





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24 CFR Part 570



Community Development Block Grant Program; Small Cities and Insular 
Areas Programs; Final Rule

  Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / 
Rules and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR-4919-F-02]
RIN 2506-AC17


Community Development Block Grant Program; Small Cities and 
Insular Areas Programs

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Final rule.

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SUMMARY: This rule makes final a June 10, 2004, interim rule that 
established regulations to implement a statutory change moving 
Community Development Block Grant (CDBG) program assistance for insular 
areas from section 107 (Special Purpose Grants) to section 106 
(Allocation and Distribution of Funds) of the Housing and Community 
Development Act of 1974. The June 10, 2004, interim rule solicited 
public comments. No comments were received by HUD on the interim rule. 
This final rule adopts the interim rule, therefore, without change.

DATES: Effective Date: March 24, 2005.

FOR FURTHER INFORMATION CONTACT: Stephen Rhodeside, Community Planning 
and Development Specialist, State and Small Cities Division, Office of 
Block Grant Assistance, Office of Community Planning and Development, 
Room 7184, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-7000, telephone (202) 708-1322 (this 
is not a toll-free number). Individuals with speech or hearing 
impairments may access this number through TTY by calling the toll-free 
Federal Information Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: On June 10, 2004, HUD published an interim 
rule at 69 FR 32774 that amended part 570 regulations for the CDBG 
program to establish the policies and procedures governing the Insular 
Areas CDBG program consistent with section 106 of the Housing and 
Community Development Act of 1974 (HCD Act) (42 U.S.C. 5301 et seq.). 
The CDBG program, authorized under the HCD Act has provided 
discretionary assistance as special purpose grants to qualifying 
insular area jurisdictions since Fiscal Year (FY) 1982. Through the 
CDBG program, HUD allocates funds by formula among eligible state and 
local governments, and also makes funds available to insular areas, for 
activities which principally benefit low- and moderate-income persons, 
aid in the elimination of slums or blighting conditions, or meet other 
community development needs having a particular urgency. HUD's 
regulations for the portions of the CDBG program administered by HUD's 
Office of Community Planning and Development are located in 24 CFR part 
570.
    Title V of Public Law 108-186 (117 Stat. 2685, approved December 
16, 2003) (title V) amended title I of the HCD Act, moving the insular 
areas funding authorization from section 107(a) (42 U.S.C. 5307(a)) to 
section 106(a) (42 U.S.C. 5306(a)). This revision identified a specific 
portion of the CDBG allocation for insular areas that is separate from 
the distribution for special purpose grants as well as from the 
entitlement and state formula distribution. The change provides the 
insular areas of Guam, the Northern Mariana Islands, the Virgin 
Islands, and American Samoa with greater assurance of annual CDBG 
program funding.
    With respect to the allocation of funds, title V establishes total 
ongoing annual insular areas funding at a level of $7,000,000, 
consistent with the level of funding received by insular areas while 
under the special purpose grant section of the HCD Act. Title V 
provides for the distribution of amounts to insular areas on the basis 
of the ratio of the population of each insular area to the population 
of all insular areas, which is also consistent with the past basis for 
distribution under the special purpose grant section. Title V also 
provides HUD with the authority to include other statistical criteria 
in the distribution formula as additional data become available from 
the Bureau of the Census, if such distribution criteria are contained 
in a regulation promulgated by HUD after notice and public comment. 
Finally, the greater assurance of continued funding provided by 
inclusion under section 106 of the HCD Act and the placement of the 
Insular Areas CDBG regulations in subpart F provide insular areas with 
the opportunity to apply for loan guarantees as described in section 
108 of the HCD Act and subpart M of 24 CFR 570.
    This final rule follows publication of the June 10, 2004, interim 
rule. As noted above, HUD received no comment on the interim rule. 
Accordingly, the final rule adopts the interim rule without changes.

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 final rule does not 
impose any federal mandates on any State, local, or tribal government 
or the private sector within the meaning of UMRA.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on state and local governments and 
is not required by statute, or preempts state law, unless the relevant 
requirements of section 6 of the executive order are met. This 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.

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 rule does not impose any new or modify existing regulatory 
requirements. This rule only codifies in HUD's regulations statutory 
policies and procedures that transfer the Insular Areas program from 
eligibility under section 107 of the HCD Act to eligibility under 
section 106 of the HCD Act and makes existing sections of 24 CFR parts 
91 and 570 that apply to section 106 nonentitlement grants also 
applicable to the Insular Areas program. Accordingly, the undersigned 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities.

Environmental Impact

    A Finding of No Significant Impact (FONSI) with respect to the 
environment has been made in accordance with HUD regulations at 24 CFR 
part 50 that implement section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C) at the interim rule stage of 
this final rule, and continues to apply. The FONSI 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

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Development, 451 Seventh Street, SW., Washington, DC 20410-0500.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for the CDBG 
Small Cities Program is 14.219.

List of Subjects in 24 CFR Part 570

    Administrative practice and procedure, American Samoa, Community 
development block grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Lead poisoning, Loan 
programs--housing and community development, Low and moderate income 
housing, New communities, Northern Mariana Islands, Pacific Islands 
Trust Territory, Pockets of poverty, Puerto Rico, Reporting and 
recordkeeping requirements, Small cities, Student aid, Virgin Islands.


0
Accordingly, the interim rule amending 24 CFR part 570 that was 
published at 69 FR 32774 on June 10, 2004, is adopted as a final rule 
without change.

    Dated: February 10, 2005.
Nelson R. Breg[oacute]n,
General Deputy Assistant Secretary for Community Planning and 
Development.
[FR Doc. 05-3316 Filed 2-18-05; 8:45 am]
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