[Federal Register Volume 63, Number 111 (Wednesday, June 10, 1998)]
[Rules and Regulations]
[Pages 31868-31869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15477]
[[Page 31867]]
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Part IV
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 570
Community Development Work Study Program; Repayment Requirements; Final
Rule
Federal Register / Vol. 63, No. 111 / Wednesday, June 10, 1998 /
Rules and Regulations
[[Page 31868]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 570
[Docket No. FR-4324-F-01]
RIN 2528-AA08
Community Development Work Study Program; Repayment Requirements
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Final rule.
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SUMMARY: On July 10, 1996, HUD published a Final Rule making various
amendments to the Community Development Work Study Program (CDWSP),
including the removal of requirements that students who are terminated
from the CDWSP repay the tuition and additional assistance to the grant
recipient, and that the grant recipient repay those funds to HUD. HUD
has determined to extend this relief to all open grants, including
those entered into before the effective date of the July 10 final rule.
DATES: Effective date: July 10, 1998.
FOR FURTHER INFORMATION CONTACT: John M. Hartung, Office of University
Partnerships, Department of Housing and Urban Development, Room 8130,
451 Seventh Street, SW, Washington, D.C. 20410, telephone (202) 708-
1537. Hearing or speech-impaired individuals may call HUD's TTY number
(202) 708-0770, or 1-800-877-8399 (Federal Information Relay Service
TTY). (Other than the ``800'' number, these are not toll-free numbers.)
SUPPLEMENTARY INFORMATION:
I. Background
Section 501(b)(2) of the Housing and Community Development Act of
1987 (Pub. L. 100-242, approved February 5, 1988), added a new section
107(c) to the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.), authorizing the Community Development Work Study Program
(CDWSP). Under the CDWSP, HUD is authorized to award grants to
institutions of higher education, either directly or through areawide
planning organizations (APOs) or States, for the purpose of providing
assistance to economically disadvantaged and minority students who
participate in a community development work study program while
enrolled in a full-time graduate or undergraduate Community Development
Academic Program.
On June 27, 1989, HUD published a final rule (45 FR 27128)
implementing section 107(c) at 24 CFR 570.415. Based on its experience
in administering the CDWSP over many years, HUD made several amendments
to 24 CFR 570.415 on July 10, 1996 (61 FR 36456) so that the CDWSP
could more effectively and efficiently meet its program objectives.
Among other revisions, the July 10, 1996 final rule: (1) Limited the
number of students assisted under the CDWSP to five students per
participating institution of higher education; (2) limited the CDWSP to
graduate level programs; (3) permitted institutions of higher education
to apply individually or through APOs; (4) streamlined the selection
factors used to select grantees; and (5) eliminated the requirement
that students who are terminated from the CDWSP repay tuition and
additional assistance and that the grant recipient repay those funds to
HUD.
In eliminating the repayment requirement, the Department found,
among other considerations, that the requirement was both a
disincentive to prospective students and imposed substantial
administrative burdens on institutions of higher education. Public
comment submitted in response to the proposed rule for removing the
repayment requirement strongly favored removal. In addition, HUD is not
aware of any adverse consequences following the removal of the
repayment requirement. HUD has therefore determined to eliminate the
repayment requirement entirely with respect to all open CDWSP grants,
including those executed before the effective date of the June 10, 1996
final rule, to the extent that HUD has not received repayment.
This rule amends 24 CFR 570.415(k)(3)(ii) to provide that there is
no requirement, with respect to any grant and regardless of date of
grant award, for students who are terminated from the CDWSP to repay
tuition and additional assistance or for the grant recipient to repay
such funds to HUD. Of course, the funds must still be otherwise
expended consistent with CDWSP regulations and the grant agreement, or
repayment may be required under Sec. 570.415(k)(3)(iii).
II. Findings and Certifications
Justification for Final Rulemaking
In general, the Department 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. However, part 10 does
provide for exceptions from that general rule where the agency finds
good cause to omit advance notice and public participation. The good
cause requirement is satisfied when prior public procedure is
``impracticable, unnecessary, or contrary to the public interest.'' (24
CFR 10.1) The Department finds that good cause exists to publish this
rule for effect without first soliciting public comment. Prior public
procedure is unnecessary because public comment on the very issue
addressed by this rule, removal of repayment requirements, was
solicited in a previous, directly related rulemaking (which resulted in
the July 10, 1996 final rule), and was unanimously favorable. This rule
only expands the scope of that previous rulemaking to cover any
remaining open grants executed before its August 9, 1996 effective
date.
Paperwork Reduction Act Statement
The information collection requirements for the Community
Development Work Study Program have been approved by the Office of
Management and Budget in accordance with the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3520), and assigned OMB control number 2528-0175.
This rule does not contain additional information collection
requirements. 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 valid control number.
Unfunded Mandates Reform Act
The Secretary has reviewed this rule before publication and by
approving it certifies, in accordance with the Unfunded Mandates Reform
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal
mandate that will result in the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this rule, and in so doing
certifies that this final rule will not have a significant economic
impact on a substantial number of small entities. This rule only
affects applicants and participants in HUD's Community Development Work
Study Program, and will not have any meaningful economic impact on any
entity.
Environmental Impact
In accordance with 40 CFR 1508.4 of the regulations of the Council
on Environmental Quality and 24 CFR 50.19(c)(2) of the HUD regulations,
the policies and procedures in this document are not subject to the
individual compliance requirements of
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the authorities cited in 24 CFR 50.4, and, therefore, are categorically
excluded from the requirements of the National Environmental Policy Act
of 1969, although this document amends a previous document which as a
whole does not fall within the exemption. Accordingly, a Finding of No
Significant Impact is not required.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this rule
will not have substantial direct effects on States or their political
subdivisions, or the relationship between the Federal Government and
the States, or on the distribution of power and responsibilities among
the various levels of Government. Specifically, the requirements of
this final rule are directed toward applicants and participants in
HUD's Community Development Work Study Program (CDWSP). It effects no
changes in the current relationships between the Federal government,
the States and their political subdivisions in connection with CDWSP.
Executive Order 13045, Protection of Children from Environmental Health
Risks and Safety Risks
This rule will not pose an environmental health risk or safety risk
to children.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance program number is
14.234.
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.
Accordingly, 24 CFR part 570 is amended as follows:
PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS
1. The authority citation for part 570 continues to read as
follows:
Authority: 42 U.S.C. 3535(d) and 5300-5320.
2. Section 570.415 is amended by revising paragraph (k)(3)(ii) to
read as follows:
Sec. 570.415 Community Development Work Study Program.
* * * * *
(k) * * *
(3) * * *
(ii) If a student's participation in CDWSP is terminated before the
completion of the two-year term of the student's program, the recipient
may substitute another student to complete the two-year term of a
student whose participation has terminated. The substituted student
must have a sufficient number of academic credits to complete the
degree program within the remaining portion of the terminated student's
two-year term. With respect to any CDWSP grant, there is no
requirement, regardless of the date of grant award, for students who
are terminated from the CDWSP to repay tuition and additional
assistance or for the grant recipient to repay such funds to HUD. Funds
must still be otherwise expended consistent with CDWSP regulations and
the grant agreement, or repayment may be required under paragraph
(k)(3)(iii) of this section.
* * * * *
Dated: June 4, 1998.
Paul A. Leonard,
Deputy Assistant, Secretary for Policy Development and Research.
[FR Doc. 98-15477 Filed 6-9-98; 8:45 am]
BILLING CODE 4210-62-P
