[Federal Register Volume 62, Number 121 (Tuesday, June 24, 1997)]
[Rules and Regulations]
[Pages 34144-34145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16507]
[[Page 34143]]
_______________________________________________________________________
Part III
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 572
Streamlining of Homeownership of Single Family Homes Program (HOPE 3)
Regulations; Final Rule
Federal Register / Vol. 62, No. 121 / Tuesday, June 24, 1997 / Rules
and Regulations
[[Page 34144]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 572
[Docket No. FR-3857-F-05]
RIN 2506-AB71
Homeownership of Single Family Homes Program (HOPE 3);
Streamlining Rule
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Final rule.
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SUMMARY: In compliance with the President's regulatory reform
initiatives, this rule further streamlines HUD's regulations for the
HOPE for Homeownership of Single Family Homes Program (HOPE 3) by
eliminating remaining provisions that are unnecessarily expansive in
light of existing statutory requirements.
EFFECTIVE DATE: July 24, 1997.
FOR FURTHER INFORMATION CONTACT: Gordon McKay, Director, Office of
Affordable Housing Programs, Room 7168, Department of Housing and Urban
Development, 451 7th Street, SW, Washington, DC 20410, telephone number
(202) 708-2685 (this is not a toll-free number). For hearing-and
speech-impaired persons, this number may be accessed via TTY (text
telephone) by calling the Federal Information Relay Service at 1-800-
877-8339.
SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a
memorandum to all Federal departments and agencies regarding regulatory
reinvention. In response to this memorandum, the Department of Housing
and Urban Development conducted a page-by-page review of its
regulations to determine which can be eliminated, consolidated, or
otherwise improved. HUD determined that the regulations for the HOPE
for Homeownership of Single Family Homes program (HOPE 3) could be
improved and streamlined. On September 16, 1996 (61 FR 48796), HUD
published in the Federal Register a final rule that completed a
previous rulemaking process on the HOPE 3 program regulations and made
streamlining changes to those regulations for which prior notice and
comment were not required.
On October 10, 1996 (61 FR 53276), HUD published a proposed rule
containing further streamlining amendments for which prior notice and
comment were required. In that rule, HUD noted that because of recent
statutory amendments, direct homeownership assistance is now a
permanent eligible activity under both the HOME Investment Partnerships
and Community Development Block Grant programs. As a result, families
that might have been assisted by the HOPE 3 program may instead be
eligible for homeownership assistance through those programs. The
availability of other assistance makes future HOPE 3 appropriations and
competitions less likely. Therefore, the HOPE 3 regulations on
applications for funding include outdated references and are
unnecessarily lengthy and prescriptive. The October 10, 1996 proposed
rule sought to preserve those regulations only to the extent necessary
to ensure HUD's ability to conduct future competitions in the event
funds become available to make awards under the program.
Specifically, the October 10, 1996 rule proposed to remove most of
the requirements relating to competitive distributions of HOPE 3 funds.
In making such distributions, HUD is required to comply with section
102 of the Department of Housing and Urban Development Reform Act (HUD
Reform Act) (42 U.S.C. 3545). The requirements of section 102 are
binding, whether HUD maintains implementing provisions in regulatory
text in the CFR or in separate published notices announcing
competitions for funding. Therefore, it is unnecessary to maintain all
of those requirements in the HOPE 3 regulations.
The October 10, 1996 rule also proposed to remove lengthy
provisions explaining the Cash and Management Information System that
is used to disburse HOPE 3 grant funds (see Sec. 572.230). This
information is contained in other guidance material and does not need
to be codified.
The deadline for submitting public comments on the October 10, 1996
proposed rule was December 9, 1996. HUD has not received any comments
on the proposed rule. Therefore, today's rule adopts the provisions of
the proposed rule as final, eliminating approximately 5 pages of
unnecessary regulations from the Code of Federal Regulations (CFR).
Findings and Certifications
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 rule will not have a significant economic impact on
a substantial number of small entities. This rule merely recognizes
administrative changes in HUD's structure and streamlines regulations
by removing unnecessary provisions. The rule will have no adverse or
disproportionate economic impact on small businesses.
Environmental Impact
In accordance with 24 CFR 50.19(c)(1), published in the Federal
Register on September 27, 1996 (61 FR 50914), this final rule does not
direct, provide for assistance or loan and mortgage insurance for, or
otherwise govern or regulate, real property acquisition, disposition,
leasing (other than tenant-based rental assistance), rehabilitation,
alteration, demolition, or new construction. This rule merely
streamlines the HOPE 3 regulations by removing unnecessary provisions.
Therefore, this final rule is categorically excluded from the
requirements of the National Environmental Policy Act and the related
Federal authorities in 24 CFR 50.4.
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. No programmatic or policy changes
will result from this rule that would affect the relationship between
the Federal Government and State and local governments. As a result,
the rule is not subject to review under the Order.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (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 rule does
not impose any Federal mandates on any State, local, or tribal
governments, or on the private sector, within the meaning of the UMRA.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for this program
is 14.240.
List of Subjects in 24 CFR Part 572
Condominiums, Cooperatives, Fair housing, Government property,
Grant
[[Page 34145]]
programs--housing and community development, Low and moderate income
housing, Nonprofit organizations, Reporting and recordkeeping
requirements.
Accordingly, for the reasons set out in the preamble, part 572 of
title 24 of the Code of Federal Regulations is amended as follows:
PART 572--HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM
(HOPE 3)
1. The authority citation for part 572 continues to read as
follows:
Authority: 42 U.S.C. 3535(d) and 12891.
2. Section 572.5 is amended by revising the definition of Program
income to read as follows:
Sec. 572.5 Definitions.
* * * * *
Program income means income earned from the program as described in
parts 84 and 85 of this title, as applicable, except that program
income does not include proceeds from the sale and resale of
properties. Such sale and resale proceeds, and interest earned by the
recipient or its designee on those proceeds, are governed by
Sec. 572.135 (a) through (c).
* * * * *
Sec. 572.100 [Amended]
3. Section 572.100 is amended by removing the second sentence of
paragraph (a)(2).
4. Section 572.135 is amended by revising paragraph (d) to read as
follows:
Sec. 572.135 Use of proceeds from sales to eligible families, resale
proceeds, and program income.
* * * * *
(d) Program income. Any program income, as defined in Sec. 572.5,
received by the recipient may be added to the funds committed to the
grant agreement by HUD and the recipient, in accordance with the
requirements of parts 84 and 85 of this title, as applicable.
5. Section 572.210 is revised to read as follows:
Sec. 572.210 Implementation grants.
(a) General authority. Any implementation grants for the purpose of
carrying out homeownership programs approved under this part will be
awarded using a selection process and selection criteria to be
published in a NOFA.
(b) Deadline for completion. A recipient must spend all
implementation grant amounts within 4 years from the effective date of
the grant agreement. The appropriate HUD field office may approve a
request to extend the deadline when it determines that an extension is
warranted. A previously approved grant amount may not be amended to
increase the grant amount.
(c) Program closeout. Recipients will comply with closeout
procedures as issued by HUD.
6. Section 572.230 is revised to read as follows:
Sec. 572.230 Cash and Management Information (C/MI) System.
Disbursement of HOPE 3 grant funds is managed through HUD's Cash
and Management Information (C/MI) System for the HOPE 3 program. Funds
that may be disbursed through the C/MI System include funds awarded to
the recipient and obligated through the grant approval letter issued by
HUD. HOPE 3 funds are drawn down by the recipient or its authorized
designee from a United States Treasury account for the program, using
the Treasury Automated Clearinghouse (ACH) System. Any drawdown of HOPE
3 funds from the United States Treasury account is conditioned upon the
submission of satisfactory information about the program and compliance
with other procedures specified by HUD in HUD's forms and issuances
concerning the C/MI System.
7. Section 572.300 is revised to read as follows:
Sec. 572.300 Notices of funding availability (NOFAs); grant
applications.
When funds are made available for planning grants or implementation
grants under this part, HUD will publish a NOFA in the Federal
Register, in accordance with the requirements of part 4 of this title,
and will select applications for funding on a competitive basis as
provided in the applicable NOFA.
Secs. 572.305, 572.310, and 572.320 [Removed]
8. Sections 572.305, 572.310, and 572.320 are removed.
9. Section 572.420 is amended by revising the second sentence of
paragraph (a)(1) to read as follows:
Sec. 572.420 Miscellaneous requirements.
(a) * * *
(1) * * * Part 84 of this title (Grants and Agreements with
Institutions of Higher Education, Hospitals, and Other Nonprofit
Organizations) and OMB Circular Nos. A-122 (Cost Principles Applicable
to Grants, Contract and Other Agreements with Nonprofit Institutions)
and, as applicable, A-21 (Cost Principles for Educational Institutions)
apply to the acceptance and use of assistance under this part by
covered organizations, except where inconsistent with the provisions of
Federal statutes or this part. * * *
* * * * *
Dated: June 16, 1997.
Jacquie Lawing,
General Deputy Assistant, Secretary for Community Planning and
Development.
[FR Doc. 97-16507 Filed 6-23-97; 8:45 am]
BILLING CODE 4210-29-P
