[Federal Register Volume 74, Number 204 (Friday, October 23, 2009)]
[Proposed Rules]
[Pages 54886-54888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25569]



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Part II





Department of Housing and Urban Development





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24 CFR Part 1003



Regulatory Reporting Requirements for the Indian Community Development 
Block Grant Program; Proposed Rule

  Federal Register / Vol. 74 , No. 204 / Friday, October 23, 2009 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 1003

[Docket No. FR-5232-P-01]
RIN 2577-AC79


Regulatory Reporting Requirements for the Indian Community 
Development Block Grant Program

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise the reporting requirements for 
the Indian Community Development Block Grant (ICDBG) program. First, 
the rule would provide for submission of a single annual report on the 
hiring of minority business enterprises, due to HUD each October. 
Currently, ICDBG grantees are required to report on these activities on 
a semi-annual basis, with reports being due to HUD on April 10 and 
October 10 of each year. Second, the proposed rule would require ICDBG 
grantees to use the Logic Model form developed as part of HUD's Notice 
of Funding Availability (NOFA) process. Requiring use of the Logic 
Model would conform ICDBG reporting requirements to those of other HUD 
competitive funding programs and would help ensure uniformity in the 
information provided by ICDBG grantees on performance goals, thereby 
facilitating the evaluation of grantee performance.

DATES: Comment Due Date: December 22, 2009.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street, 
SW., Room 10276, Washington, DC 20410-0500. Communications must refer 
to the above docket number and title. There are two methods for 
submitting public comments. All submissions must refer to the above 
docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street, SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
hwww.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note:  To receive consideration as public comments, comments 
must be submitted through one of the two methods specified above. 
Again, all submissions must refer to the docket number and title of 
the rule.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments must be 
scheduled by calling the Regulations Division at 202-708-3055 (this is 
not a toll-free number). Individuals with speech or hearing impairments 
may access this number through TTY by calling the Federal Information 
Relay Service, toll free, at 800-877-8339. Copies of all comments 
submitted are available for inspection and downloading at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Deborah Lalancette, Director, Office 
of Grants Management, Office of Native American Programs, Department of 
Housing and Urban Development, 1670 Broadway, 23rd Floor, Denver, CO 
80202, telephone number 303-675-1600 (this is not a toll-free number). 
Hearing- or speech-impaired individuals may access this number through 
TTY by calling the Federal Information Relay Service, toll free, at 
800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

A. The Indian Community Development Block Grant Program

    Title I of the Housing and Community Development Act of 1974, as 
amended, (42 U.S.C. 5301-5320) (HCD Act) establishes the statutory 
framework for the Community Development Block Grant (CDBG) program. 
Section 106(a)(1) of the 1974 HCD Act authorizes grants to Indian 
tribes for the Indian CDBG (ICDBG) program. The purpose of the ICDBG 
program is the development of viable Indian and Alaska Native 
communities, including the creation of decent housing, suitable living 
environments, and economic opportunities primarily for persons with low 
and moderate incomes.
    HUD's regulations implementing the ICDBG program are located at 24 
CFR part 1003 (entitled ``Community Development Block Grants for Indian 
Tribes and Alaska Native Villages''). Section 1003.506 of the ICDBG 
program regulations establishes several reporting requirements for 
ICDBG grantees. Specifically, grantees are required to submit an annual 
status and evaluation report (ASER) on previously funded open grants 45 
days after the end of the fiscal year (FY) and upon grant closeout 
(Sec.  1003.506(a)). As more fully described below, ICDBG grantees are 
also required to submit two minority business enterprise reports each 
year (Sec.  1003.506(b)).

B. Minority Business Enterprise Reports

    The governmentwide administrative requirements for grants and 
cooperative agreements to state, local, and federally recognized Indian 
tribal governments, codified by HUD at 24 CFR part 85, require that 
grantees and subgrantees ``take all necessary affirmative steps to 
assure that minority firms, women's business enterprises, and labor 
surplus area firms are used whenever possible'' (Sec.  85.36(e)). 
Consistent with these regulations, Sec.  1003.506(b) requires that 
ICDBG grantees report on these activities on a semiannual basis, with 
reports being due to HUD on April 10 and October 10 of each year. Upon 
reconsideration, HUD believes that a single report would be less 
burdensome for grantees to prepare and suffice for HUD to monitor 
compliance with the minority business enterprise requirements of 24 CFR 
85.36(e). This proposed rule would, therefore, revise Sec.  1003.506(b) 
to provide for a single annual report to be due each year by October 
10.

C. NOFA Logic Model

    HUD announces the availability of competitive grant funding through 
issuance of NOFAs. The most recent ICDBG NOFA, announcing the 
availability of ICDBG funding for FY2009, was issued on May 29, 2009, 
with an application deadline of August 7, 2009 (see http://www.hud.gov/offices/adm/grants/nofa09/icdbgsec.pdf).
    HUD's FY2004 NOFA process introduced a new planning form known as 
the Logic Model (form HUD-96010). Most grantees are required to submit 
a Logic Model form that identifies the problem or need that the grant 
will

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address, the services or activities to be provided with grant funding, 
and the reporting tools that will be used to measure results achieved. 
As noted above, ICDBG grantees are required to report on performance 
outputs and outcomes as part of their ASER; however, Indian tribes have 
not been required to use the Logic Model form. Nevertheless, several 
ICDBG grantees have chosen to use the Logic Model form.
    This exemption for Indian tribes was based on HUD's desire to 
consult with Indian tribes before making the form HUD-96010 a mandatory 
reporting requirement for ICDBG grant funding. As more fully described 
in section II of this preamble, entitled ``Tribal Consultation,'' HUD 
undertook consultation with Indian tribes on the Logic Model form. 
After consideration of the views and opinions expressed during the 
consultation process, HUD is announcing its intent, through publication 
of this proposed rule, to require use of the Logic Model as an ICDBG 
program requirement. HUD received only three comments in response to 
its first request for comments on this subject. The proposed rule 
continues HUD's process of developing the regulatory changes with 
active tribal participation, by soliciting additional comments from 
Indian tribes on the mandatory use of the Logic Model in the ICDBG 
program.
    As noted, several Indian tribes already use form HUD-96010. The 
required use of the Logic Model form would help ensure uniformity in 
the information provided by ICDBG grantees on performance goals, and, 
thereby, facilitate the evaluation of grantee performance. The use of 
the Logic Model would also conform ICDBG program requirements to those 
of other HUD competitive funding programs, bringing greater consistency 
and uniformity in the administration of HUD grants.
    The Logic Model would be included as part of the ASER requirement, 
which is codified at Sec.  1003.506(a). Specifically, the proposed rule 
would add a new paragraph (a)(3) to Sec.  1003.506 requiring that the 
ASER report contain ``data on program outputs and outcomes in a form 
prescribed by HUD'' (i.e., the Logic Model form HUD-96010). The current 
Sec.  1003.506(a)(3) concerning the required grantee assessment of the 
effectiveness of a completed project would be redesignated as paragraph 
(a)(4) of Sec.  1003.506.

II. Tribal Consultation

    It is HUD's policy to consult with Indian tribes on matters that 
have substantial direct effects on Indian tribal governments. 
Accordingly, on September 7, 2007, HUD sent letters to all eligible 
funding recipients under the ICDBG program informing them of the nature 
of the forthcoming rule and soliciting comments. The proposed changes 
did not generate significant interest among Indian tribes. HUD received 
three responses to the September 7, 2007, letter. One of the tribes 
expressed full support for the changes to the ICDBG reporting 
requirements. A second tribe expressed support for the change to the 
minority enterprise business reports, but objected to the required use 
of the Logic Model. The third Indian tribe wrote that the Logic Model 
requirement would impose a burden on small tribes.
    HUD appreciates the responses received on the September 7, 2007, 
consultation letter. The Department has considered the issues raised by 
the tribes and, for the reasons discussed above in this preamble, 
continues to believe that the proposed changes would help ensure 
uniformity in the information provided by ICDBG grantees on performance 
goals and facilitate the accurate evaluation of grant performance. HUD 
is issuing this proposed rule to provide Indian tribes with an 
additional opportunity to comment on the required use of the Logic 
Model in the ICDBG program. HUD welcomes such comment, and all comments 
will be considered in the development of the final rule.

III. Findings and Certifications

Paperwork Reduction Act

    The information collection requirements for the ICDBG program have 
been approved by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB 
control numbers 2535-0117 and 2535-0114. In accordance with the 
Paperwork Reduction Act, an agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information, 
unless the collection displays a currently valid OMB control number.
    The burden of the information collections in this proposed rule is 
estimated as follows:

                                       Reporting and Recordkeeping Burden
----------------------------------------------------------------------------------------------------------------
                                                    Response
    Information collection        Number of        frequency       Total annual    Burden hours    Total annual
                                 respondents       (average)         responses     per response        hours
----------------------------------------------------------------------------------------------------------------
Minority Business Enterprise              240  annually.........             240               1             240
 Report.
Logic Model Report...........             200  annually.........             200            5.75           1,150
----------------------------------------------------------------------------------------------------------------

    Total estimated burden hours: 1,390.
    In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments 
from members of the public and affected agencies concerning this 
collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize, for those who are to respond, the burden of the 
collection of information, through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses.
    Interested persons are invited to submit comments regarding the 
information collection requirements in this rule. Comments must refer 
to the proposal by name and docket number (FR-5232) and must be sent 
to:

HUD Desk Officer, Office of Management and Budget, New Executive Office 
Building, Washington, DC 20503, Fax: 202-395-6947

 and

Reports Liaison Officer, Office of the Assistant Secretary for Public 
and Indian Housing, Department of Housing and Urban Development, 451 
7th Street, SW., Room 4116, Washington, DC 20410.

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Regulatory Flexibility Act

    The Regulatory Flexibility Act (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.
    The proposed rule would not impose any economic burdens on small 
entities. Rather, the proposed regulatory amendments would simplify and 
reduce the reporting requirements for ICDBG program grantees. As 
discussed above in this preamble, the proposed rule would reduce the 
number of required small business enterprise reports from two to one, 
submitted each October. The proposed rule would also require the use of 
the Logic Model form in the preparation of the ASER, which ICDBG 
grantees already are required by regulation to submit to HUD.
    As noted, several grantees already are using the Logic Model, which 
has been a familiar part of the NOFA process since FY2004. The required 
use of the Logic Model would conform the ICDBG reporting requirements 
to those of other HUD competitive funding programs. This proposed 
change will help ensure uniformity in the information provided by ICDBG 
grantees on performance goals, and, thereby, facilitate the evaluation 
of grantee performance.
    Notwithstanding HUD's determination that this rule does not have a 
significant economic impact on a substantial number of small entities, 
HUD specifically invites comment regarding any less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in the preamble.

Environmental Impact

    This proposed 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. Accordingly, under 24 CFR 50.19(c)(1), this rule 
is categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

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 Executive Order. This proposed rule does not have 
federalism implications and does not impose substantial direct 
compliance costs on state and local governments nor preempt state law 
within the meaning of the Executive Order.

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 on the private sector. This proposed rule does 
not impose any federal mandates on any state, local, or tribal 
governments, or on the private sector, within the meaning of UMRA.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for the ICDBG 
program is 14.862.

List of Subjects in 24 CFR Part 1003

    Alaska, Community development block grants, Grant programs--housing 
and community development, Grant programs--Indians, Indians, Reporting 
and recordkeeping requirements.

    For the reasons stated in the preamble, HUD proposes to amend 24 
CFR part 1003 to read as follows:

PART 1003--COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND 
ALASKA NATIVE VILLAGES

    1. The authority citation for part 1003 continues to read as 
follows:

    Authority:  42 U.S.C. 3535(d) and 5301 et seq.

    2. In Sec.  1003.506, redesignate paragraph (a)(3) as paragraph 
(a)(4), add a new paragraph (a)(3), and revise paragraph (b), to read 
as follows:


Sec.  1003.506  Reports.

    (a) * * *
    (3) Program performance. Data on program outputs and outcomes, in a 
form prescribed by HUD.
* * * * *
    (b) Minority business enterprise reports. Grantees shall submit to 
HUD, for receipt by October 10 of each year, a report on contract and 
subcontract activity during the fiscal year.

    Dated: September 23, 2009.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian Housing.
[FR Doc. E9-25569 Filed 10-22-09; 8:45 am]
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