[Federal Register Volume 61, Number 83 (Monday, April 29, 1996)]
[Rules and Regulations]
[Pages 18672-18674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10240]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 570
[Docket No. FR-2905-C-03]
RIN 2506-AB24
Office of the Assistant Secretary for Community Planning and
Development; Community Development Block Grant Program; Correction of
Identified Deficiencies and Updates; Technical Correction
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Technical correction.
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SUMMARY: On November 9, 1995 (60 FR 56892), HUD published in the
Federal Register a final rule that corrected identified deficiencies in
the Community Development Block (CDBG) program, implemented relevant
portions of the Cranston-Gonzalez National Affordable Housing Act,
amended the CDBG conflict of interest provisions, implemented statutory
changes from the Housing and community Development Act of 1987 and the
Appropriations Act of 1989, and provided criteria for performance
reviews and timely expenditure of funds under the CDBG program. This
document corrects minor errors in that final rule.
EFFECTIVE DATE: December 11, 1995.
FOR FURTHER INFORMATION CONTACT: Deirdre Maguire-Zinni, Director,
Entitlement Communities Division, Room 7282, Department of Housing and
Urban Development, 451 Seventh Street SW., Washington, DC 20410,
telephone number (202) 708-1577. (This telephone number is not toll-
free.) Hearing- or speech-impaired persons may access this number via
TTY by calling the Federal Information Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Corrections to November 9, 1995 Final Rule
On November 9, 1995 (60 FR 56812), HUD published a final rule in
the
[[Page 18673]]
Federal Register that amended the regulations for the Community
Development Block Grant (CDBG) program in 24 CFR part 570. As described
in the preamble (60 FR 65892), the November 9, 1995 final rule
represented the final rulemaking for several prior rules, and it
reflected the President's regulatory reinvention efforts by updating
the regulations to conform with significant statutory changes to the
CDBG program. More specifically, the November 9, 1995 final rule
corrected identified deficiencies in the CDBG program, implemented
relevant portions of the Cranston-Gonzalez National Affordable Housing
Act, amended the CDBG conflict of interest provisions, implemented
statutory changes from the Housing and Community Development Act of
1987 and the Appropriations Act of 1989, and provided criteria for
performance reviews and timely expenditure of funds under the CDBG
program. In reviewing this final rule in preparation for its
codification in the Code of Federal Regulations (CFR), HUD discovered
several minor errors.
In the November 9, 1995 final rule (60 FR 56912), HUD amended
Sec. 570.208 by adding and redesignating certain paragraphs. However,
the rule inadvertently did not make the necessary conforming change to
the definition of ``Income'' in Sec. 570.3, which contains a reference
to the CDBG regulations on resident income surveys (60 FR 56909). The
definition incorrectly refers to Sec. 570.208(a)(1)(iv) for those
regulations, but the November 9, 1995 rule redesignated this paragraph
as paragraph (a)(1)(vi). Therefore, this document corrects the
definition of ``Income'' in Sec. 570.3 to refer correctly to
Sec. 570.208(a)(1)(vi).
Similarly, the first sentence of the newly redesignated
Sec. 570.208(a)(1)(vi) contains an internal reference to paragraph
(a)(1)(v). However, the November 9, 1995 rule redesignated paragraph
(a)(1)(v) as (a)(1)(vii). Therefore, this document corrects
Sec. 570.208(a)(1)(vi) to refer correctly to paragraph (a)(1)(vii).
The November 9, 1995 final rule removed the obsolete reference in
Sec. 570.200(d)(1) to a compensation level of General Schedule (GS)-18,
replacing it with a correct reference to Level IV of the Executive
Schedule (60 FR 56910). The General Schedule and the Executive Schedule
indicate certain levels of compensation for Federal employees. However,
while the November 9, 1995 final rule updated Sec. 570.200(d)(1), it
inadvertently failed to update paragraph (d)(2) of that section.
Therefore, this document corrects Sec. 570.200(d)(2) regarding the
correct level of consultant compensation.
In a proposed rule published on March 28, 1990 (55 FR 11556), HUD
proposed to add a new paragraph (f) to Sec. 570.202 that would
implement section 510 of the Housing and Community Development Act of
1987 (Pub. L. 100-242, approved February 5, 1988), authorizing the
substantial reconstruction of housing owned and occupied by low- and
moderate-income persons under certain circumstances. However, in the
November 9, 1995 final rule (60 FR 56902), HUD explained that it would
not be finalizing the proposed Sec. 570.202(f) at that time due to
pending legislative proposals that would make this change unnecessary.
Instead, the November 9, 1995 final rule used paragraph (f) to contain
the authority for evaluating and reducing lead-based paint hazards.
However, HUD failed to remove two incorrect references, in
Secs. 570.200(e) and 570.506(c), to paragraph (f) as it had been
proposed for substantial reconstruction. This document removes those
incorrect references.
This document also removes two references to ``enumeration
districts,'' replacing them with the correct term ``block numbering
areas.'' The Census Bureau now uses the term ``block numbering area,''
and HUD recognized the use of this term in its CDBG economic
development final rule (January 5, 1995; 60 FR 1922, 1946) in
Sec. 570.208(a)(4)(iv). However, HUD used the incorrect term
``enumeration districts'' in Sec. 570.208(a)(1)(iii) (B) and (D) of its
November 9, 1995 final rule. therefore, this document corrects these
paragraphs.
The effective date of this correction, December 11, 1995, reflects
the effective date of the November 9, 1995 final rule (60 FR 56892).
II. Housing Opportunity Program Extension Act of 1996
The November 9, 1995 final rule updated Sec. 570.201(n), by
providing that CDBG funds could be used to provide direct homeownership
assistance to low- and moderate-income households until October 1, 1995
(60 FR 56911). Although the eligibility for this activity had expired
by the date the Department published the final rule, the Department
maintained the provision in Sec. 570.201(n), hoping that Congress would
respond to the Department's request to reinstate the activity's
eligibility (60 FR 56905).
This document corrects Sec. 570.201(n) by removing the obsolete
reference to the expiration date. Section 3(a) of the Housing
Opportunity Program Extension Act of 1996 (Pub. L. 104-120; approved
March 28, 1996) renewed the eligibility of using CDBG funds to provide
direct homeownership assistance during Fiscal Year 1996 (October 1,
1995 through September 30, 1996). However, rather than simply changing
the date, which will again become obsolete and require additional
regulatory amendments, this document corrects the section to provide
that direct homeownership assistance is eligible ``subject to statutory
authority.'' In an effort to keep grantees informed, the Department
will attempt to publish a notice in the Federal Register as quickly as
possible if Congress does not reinstate this authority.
III. Other Corrections and Conforming Changes
The Department has also discovered several technical corrections
and changes to other sections of the regulations that it should have
included in the November 9, 1995 final rule. The Department will
publish a separate technical amendment to correct these sections. The
Department cannot include such corrections and changes in this
technical correction document, because they involve sections that the
Department did not otherwise amend in the November 9, 1995 final rule.
IV. Clarification Regarding ``Extent of Growth Lag''
The November 9, 1995 final rule revised the definition of ``Extent
of growth lag'' in Sec. 570.3 in an effort to reflect an amendment to
section 102(a)(12) of the Housing and Community Development Act of 1974
(the Act). This amendment, in section 904 of the Cranston-Gonzalez
National Affordable Housing Act (Pub. L. 101-625, approved November 28,
1990), provides instructions on adjusting population in the event of
annexation. In the November 9, 1995 final rule, the Department referred
to the 1990 Census in the erroneous belief that the Act requires the
most recent census data available when adjusting the ``extent of growth
lag'' calculation (see 60 FR 56905).
However, the Department has reconsidered its interpretation of the
Act and concludes that the Act's definition of ``Extent of growth lag''
requires the use of data from the 1980 Census, not the most recent
census data available, in cases where boundaries have changed as a
result of annexation. No further changes to the regulations are
necessary, however, since the Department already removed the incorrect
language from the definition in the CDBG Streamlining final rule,
[[Page 18674]]
published on March 20, 1996 (61 FR 11474). Section 570.3 now refers
directly to section 102(a)(12) of the Act for the definition of
``Extent of growth lag''.
Accordingly, FR Doc. 95-27488, a final rule published in the
Federal Register on November 9, 1995 (60 FR 56892), is corrected to
read as follows:
1. On page 56909, in the third column, in Sec. 570.3, the second
sentence of the definition of the term ``Income'' is corrected to read
as follows.
Sec. 570.3 Definitions.
* * * * *
Income. * * * The option to choose a definition does not apply to
activities that qualify under Sec. 570.208(a)(1) (Area benefit
activities), except when the recipient carries out a survey under
Sec. 570.208(a)(1)(vi). * * *
* * * * *
2. On page 56910, in the third column, in Sec. 570.200, paragraph
(d)(2) is corrected, and the third sentence of paragraph (e) is
corrected, to read as follows:
Sec. 570.200 General policies.
* * * * *
(d) * * *
(2) Independent contractor relationship. Consultant services
provided under an independent contractor relationship are governed by
the procurement requirements in 24 CFR 85.36, and are not subject to
the compensation limitation of Level IV of the Executive Schedule.
(e) * * * A written determination is required for any activity
carried out under the authority of Secs. 570.201(f), 570.201(i)(2),
570.201(p), 570.201(q), 570.202(b)(3), 570.206(f), 570.209, and
570.309.
* * * * *
2a. On page 56911, in the second column, in instruction paragraph
8., the words ``the introductory text of paragraph (n)'' are corrected
to read ``paragraph (n)''.
3. On page 56911, in the third column, in Sec. 570.201, paragraph
(n) is corrected to read as follows:
Sec. 570.201 Basic eligible activities.
* * * * *
(n) Homeownership assistance. Subject to statutory authority, CDBG
funds may be used to provide direct homeownership assistance to low-
and moderate-income households, as provided in section 105(a)(25) of
the Act.
* * * * *
4. On page 56912, in the second and third columns, in Sec. 570.208,
the second sentence of paragraph (a)(1)(iii)(B), the second sentence of
paragraph (a)(1)(iii)(D), and the first sentence of paragraph
(a)(1)(vi) are corrected to read as follows:
Sec. 570.208 Ineligible activities.
(a) * * *
(1) * * *
(iii) * * *
(B) * * * As available, the recipient must provide information that
identifies the total number of calls actually received over the
preceding 12-month period for each of the emergency services to be
covered by the emergency telephone number system and relates those
calls to the geographic segment (expressed as nearly as possible in
terms of census tracts, block numbering areas, block groups, or
combinations thereof that are contained within the segment) of the
service area from which the calls were generated. * * *
* * * * *
(D) * * * For this purpose, the recipient must include a
description of the boundaries of the service area of the emergency
telephone number system, the census divisions that fall within the
boundaries of the service area (census tracts or block numbering
areas), the total number of persons and the total number of low- and
moderate-income persons within each census division, the percentage of
low- and moderate-income persons within the service area, and the total
cost of the system.
* * * * *
(vi) In determining whether there is a sufficiently large
percentage of low- and moderate-income persons residing in the area
served by an activity to qualify under paragraphs (a)(1) (i), (ii), or
(vii) of this section, the most recently available decennial census
information must be used to the fullest extent feasible, together with
the section 8 income limits that would have applied at the time the
income information was collected by the Census Bureau. * * *
* * * * *
5. On page 56916, in the first column, in Sec. 570.506, paragraph
(c) is corrected to read as follows:
Sec. 570.506 Records to be maintained.
* * * * *
(c) Records that demonstrate that the recipient has made the
determinations required as a condition of eligibility of certain
activities, as prescribed in Secs. 570.201(f), 570.201(i)(2),
570.201(p), 570.201(q), 570.202(b)(3), 570.206(f), 570.209, and
570.309.
* * * * *
Dated: April 18, 1996.
Camille E. Acevedo,
Assistant General Counsel for Regulations.
[FR Doc. 96-10240 Filed 4-26-96; 8:45 am]
BILLING CODE 4210-29-M
