[Federal Register Volume 73, Number 52 (Monday, March 17, 2008)]
[Rules and Regulations]
[Pages 14171-14173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-5271]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3570

RIN 0575-AC75


Community Facilities Grant Program

AGENCY: Rural Housing Service, USDA.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This rule sets forth the regulation changes for the Community

[[Page 14172]]

Facilities Grant program, which is available to rural communities 
impacted by a Presidentially declared disaster. The rule establishes 
the requirements to qualify for additional funding.
    This rule is being issued on an emergency basis due to the severe 
economic and social conditions caused by disasters, which occur every 
year in rural America. In order to prepare for these disasters, this 
rule is being published before the Spring/Summer disasters strike. This 
will allow USDA to target limited funds to the most devastated 
communities/counties in rural areas. The revisions will allow USDA to 
increase potential funding for several essential community facilities 
in rural communities already designated as a Presidential disaster 
area.

DATES: This rule will be effective on March 17, 2008.
    Written comments on the interim final rule must be submitted on or 
before May 16, 2008.

ADDRESSES: You may submit comments to this rule by any of the following 
methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Submit written comments via the U.S. Postal Service 
to the Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, STOP 0742, 1400 Independence Avenue, SW., 
Washington, DC 20250-0742.
     Hand Delivery/Courier: Submit written comments via Federal 
Express Mail or other courier service requiring a street address to the 
Branch Chief, Regulations and Paperwork Management Branch, U.S. 
Department of Agriculture, 300 7th Street, SW., 7th Floor, Washington, 
DC 20024.

FOR FURTHER INFORMATION CONTACT: Chad Parker, Director, Direct Loan and 
Grant Division, Community Programs; USDA Rural Development, United 
States Department of Agriculture, STOP 0787, 1400 Independence Avenue, 
SW., Washington, DC 20250; telephone (202) 720-1502; e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    This rule has been determined to be not significant under Executive 
Order 12866 and, therefore, has not been reviewed by the Office of 
Management and Budget.

Regulatory Flexibility Act

    This rule is not subject to the Regulatory Flexibility Act since 
the Rural Housing Service is not required to publish a notice of 
proposed rulemaking for this rule.

Environmental Review

    The environmental impacts of this rule have been considered in 
accordance with the provisions of the National Environmental Policy Act 
of 1969 (NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), the Rural Housing 
Service regulations for compliance with NEPA at 7 CFR part 1940, 
subpart G. The regulatory changes were determined to have no potential 
impact upon the human and natural environment because the changes only 
impact the amount of funding that a potential project is eligible for, 
not the selection for funding or the establishment of an essential 
community facility.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372. The Community Facilities Grant program is not listed as a 
participating in the intergovernmental review process as delineated in 
RD Instruction 1940, Subpart J, Sec.  1940.453.

Executive Order 13132

    This rule does not have Federalism implications that warrant the 
preparation of a Federalism Assessment. This rule will not have a 
substantial direct effect on States or their political subdivisions or 
on the distribution of power and responsibilities among the various 
levels of government.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988. This interim rule is not retroactive and it does not pre-empt 
State law.

Unfunded Mandates Reform Act

    This rule contains no Federal mandates under the regulatory 
provisions of Title II of the UMRA for State, local, and tribal 
government or the private sector. Therefore, this rule is not subject 
to the requirements of sections 202 and 205 of the UMRA.

Programs Affected

    The affected program is listed in the Catalog of Federal Domestic 
Assistance under Number 10.766, Community Facilities Loans and Grants.

Paperwork Reduction Act

    There are no new requirements associated with this rule. USDA Rural 
Development does not expect to receive any additional applications due 
to this regulatory change. Applications that would have been eligible 
for a certain percentage of the project through Community Facilities 
grants will now be able to apply for a higher percentage if the 
community has been impacted by a Presidentially declared disaster and 
has had a 60 percent loss of the communities population.

E-Government Act Compliance

    USDA Rural Development is committed to complying with the E-
Government Act to promote the use of the Internet and other information 
technologies to provide increased opportunities for citizen access to 
Government information and services, and for other purposes. For 
information pertinent to E-GOV compliance related to this rule, please 
contact Chad Parker, Director, Direct Loan and Grant Division, 
Community Programs; USDA Rural Development, United States Department of 
Agriculture, STOP 0787, 1400 Independence Avenue, SW., Washington, DC 
20250; telephone (202) 720-1502; e-mail: [email protected].

Discussion of Interim Rule

    The rule is effective immediately because Federal Emergency 
Management Agency (FEMA) requirements that plan for use of FEMA funds 
must be submitted within one year after a disaster has occurred. 
Several disasters have occurred in the past year and the eligible 
timeframe for project submission to FEMA for these disaster areas will 
close in the near future. Community Facilities Grant funds are needed 
as part of the total funding package to complete several of these 
essential community facilities.
    This interim final rule implements regulatory changes for the 
Community Facilities Grant program. The present USDA regulation 
requires that data from the most recent decennial Census of the United 
States be used to determine the percentage of grant funds that a 
project is eligible for in a particular rural community. If there is 
reason to believe that the census data is not an accurate 
representation of the present conditions within the area to be served, 
this will be documented and reliable data from local, regional, State, 
or Federal sources or from a survey conducted by a reliable impartial 
source may be used. USDA has found that often rural communities 
impacted by a Presidential declared disaster, where a 60 percent 
decline in the rural community's population occurs, do not have the 
resources or employees to develop the survey data with so many other 
immediate concerns. The regulatory change will allow USDA to look at 
population loss,

[[Page 14173]]

a much more readily available figure to more quickly ascertain the 
extent of the damage to the economic well-being of the rural community.
    The interim final rule will only impact projects in communities 
that were already eligible for Community Facilities funding. The only 
communities affected by the rule are communities impacted by a 
Presidentially declared disaster with a 60 percent loss in population. 
The interim final rule will allow USDA to consider the impact of such a 
disaster and increase the percentage of grant funds available to 
projects in the impacted rural communities. Under the interim final 
rule, communities impacted by a disaster that has resulted in a loss of 
60 percent of the community's population and is located in a rural 
community designated as a major disaster area by the President will be 
eligible for up to 60 percent of eligible project cost under the 
Community Facilities Grant program.

List of Subjects for 7 CFR Part 3570

    Accounting, Administrative practice and procedure, Conflicts of 
interests, Environmental impact statements, Fair housing and civil 
rights laws, Grant programs--Housing and community development, Loan 
programs--Housing and community development, Rural areas, Subsidies.

0
Therefore, chapter XXXV, title 7, Code of Federal Regulations, is 
amended as follows.

PART 3570--COMMUNITY PROGRAMS

0
1. The authority citation for part 3570 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989.

Subpart B--Community Facilities Grant Program

0
2. Section 3570.63 is amended by redesignating paragraph (b)(5) as 
paragraph (b)(6), adding a new paragraph (b)(5), and revising newly 
designated paragraph (b)(6) to read as follows:


Sec.  3570.63  Grant limitations.

* * * * *
    (b) * * *
    (5) 60 percent when the proposed project is:
    (i) Located in a rural community having a population of 20,000 or 
less; and
    (ii) The median household income of the population to be served by 
the proposed facility is below the higher of the poverty line or 90 
percent of the State non-metropolitan median household income. The 60 
percent grants are only available to communities impacted by a disaster 
that has resulted in a loss of 60 percent of the community's population 
and is located in a rural community designated as a major disaster area 
by the President.
    (6) Grant assistance cannot exceed the higher of the applicable 
percentages contained in this section which the applicant is eligible 
to receive and may be further limited due to availability of funds or 
by the maximum grant assistance allowable determined in accordance with 
Sec.  3570.66.

    Dated: March 10, 2008.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. E8-5271 Filed 3-14-08; 8:45 am]
BILLING CODE 3410-XV-P