Community Development Block Grant Program; Small Cities Program; Proposed Rule, 62-66 [E6-22502]
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Federal Register / Vol. 72, No. 1 / Wednesday, January 3, 2007 / Proposed Rules
Dated: December 27, 2006.
Lee Lohman,
Deputy Assistant Secretary for
Administration, Department of State.
[FR Doc. E6–22487 Filed 12–29–06; 8:45 am]
BILLING CODE 4710–24–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Part 570
[Docket No. FR–5013–P–01]
[RIN 2506–AC19]
Community Development Block Grant
Program; Small Cities Program;
Proposed Rule
Office of the Assistant
Secretary for Community Planning and
Development, HUD.
ACTION: Proposed rule.
AGENCY:
SUMMARY: This proposed rule would
amend HUD’s regulations governing the
Community Development Block Grant
(CDBG) program for non-entitlement
areas in the state of Hawaii. Pursuant to
statutory authority, the state of Hawaii
has elected not to administer funds to
units of general local governments
located in non-entitlement areas within
the state. The statute provides that if
Hawaii opts to not assume
responsibility for the program, then the
Secretary of HUD will make grants to
the units of general local government
located in Hawaii’s non-entitlement
areas, employing the same distribution
formula as was used under prior
regulations. This proposed rule would
modify HUD’s regulations to clarify how
the CDBG program will be implemented
in the non-entitlement areas of Hawaii.
HUD has also taken the opportunity
afforded by this proposed rule to update
and streamline the subpart F
regulations, particularly with regard to
the HUD-administered Small Cities
program in New York, which awarded
its last competitive grant in Fiscal Year
(FY) 1999.
DATES: Comments Due Date: March 5,
2007.
Interested persons are
invited to submit comments regarding
this proposed rule to the Office of the
General Counsel, Rules Docket Clerk,
Department of Housing and Urban
Development, 451 Seventh Street, SW.,
Room 10276, Washington, DC 20410–
0001. Communications should refer to
the above docket number and title and
should contain the information
specified in the ‘‘Request for
Comments’’ section.
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ADDRESSES:
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Electronic Submission of Comments.
Interested persons may submit
comments electronically through the
Federal eRulemaking Portal at https://
www.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 comments immediately available
to the public. Comments submitted
electronically through the https://
www.regulations.gov Web site can be
viewed by other commenters and by
members of the public. Commenters
should follow the instructions provided
on that site to submit comments
electronically.
No Facsimile Comments. Facsimile
(FAX) comments are not acceptable. In
all cases, communications must refer to
the docket number and title.
Public Inspection of Public
Comments. All comments and
communications submitted to HUD will
be available, without charge, 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 hearing or speech
impairments may access this telephone
number via TTY by calling the Federal
Information Relay Service at (800) 877–
8339. Copies of all comments submitted
are available for inspection and
downloading at https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Stephen Rhodeside, Senior Program
Officer, State and Small Cities Division,
Office of Block Grant Assistance, Office
of Community Planning and
Development, Department of Housing
and Urban Development, 451 Seventh
Street, SW., Room 7184, Washington,
DC 20410–7000; telephone (202) 708–
1322 (this is not a toll-free number).
Individuals with speech or hearing
impairments may access this telephone
number via TTY by calling the toll-free
Federal Information Relay Service at
(800) 877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
The CDBG program is authorized
under the Housing and Community
Development Act of 1974 (42 U.S.C.
5301 et seq.) (HCD Act). Under the
CDBG program, HUD allocates funds by
formula among eligible state and local
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governments for activities that
principally benefit low- and moderateincome persons, aid in the elimination
of slums or blighting conditions, or meet
other community development needs
having a particular urgency.
Section 106 of Title I of the HCD Act
permits states to elect to assume
administrative responsibility for the
CDBG program for non-entitlement
areas within their jurisdiction. The HCD
Act defines a non-entitlement area as an
area that is not a metropolitan city or
part of an urban county and does not
include federally or state-recognized
Indian tribes. In the event that a state
elects not to administer the CDBG
program, Section 106 provides that HUD
will administer the CDBG program for
non-entitlement areas within the state.
HUD’s regulations at 24 CFR part 570,
subpart F describe the policies and
procedures for HUD’s administration of
the CDBG program in non-entitlement
areas.
Section 218 of the Consolidated
Appropriations Act, 2004, (Pub. L. 108–
199, approved January 23, 2003)
required that, by July 31, 2004, the state
of Hawaii had to elect if it would
distribute funds under section 106(d)(2)
of the HCD Act to units of general local
government located in its nonentitlement areas. On August 5, 2004,
the Governor of Hawaii notified HUD
that the state had elected not to take
over the CDBG program in the nonentitlement areas within its jurisdiction.
In accordance with the Consolidated
Appropriations Act, 2004, the Secretary
of HUD permanently assumed
administrative responsibility for making
grants to the units of general local
government located in Hawaii’s nonentitlement areas (Hawaii, Kauai, and
Maui counties) for all future fiscal years,
beginning in 2005.
Section 218 of the Consolidated
Appropriations Act, 2004, requires the
Secretary of HUD to allocate CDBG
funds to the units of local government
located in Hawaii’s non-entitlement
areas based upon the same distribution
formula currently used to compute their
grant funds. The formula takes into
consideration population, poverty, and
housing overcrowding in these areas.
HUD uses the factors to compute a
weighted ratio (the extent of poverty is
accorded twice as much significance as
the population and housing
overcrowding factors), which then
determines the allocation of funds.
II. This Proposed Rule
This proposed rule would implement
section 218 of the Consolidated
Appropriations Act, 2004, by amending
HUD’s regulations at 24 CFR part 570 to
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set forth the policies and procedures
applicable to grants for non-entitlement
areas in states that have not elected to
administer the CDBG program. On
December 27, 1994, the Hawaii Small
Cities regulations were amended, by a
final rule (59 FR 66594) that became
effective on January 26, 1995, to treat
the three non-entitlement counties of
Hawaii similar to entitlement grantees,
to the greatest extent allowable under
statute. As a result, the regulatory
changes that are being made in this
proposed rule are relatively minor in
scope, and are described below.
HUD has also taken the opportunity
afforded by this proposed rule to update
and streamline the subpart F
regulations, particularly with regard to
the HUD-administered Small Cities
program in New York. The final
competitive grants made under this
program were awarded in FY 1999, and
almost all New York Small Cities
projects expended their funds by the
close of FY 2006. The subpart F
regulations contain outdated provisions
regarding the New York Small Cities
program that are no longer necessary
and, therefore, would be removed by
this rule. These regulatory changes are
also described below.
A. Proposed Revisions to 24 CFR Part
570, Subpart F
Title of Subpart F. In order to clarify
and differentiate the programs
contained within the regulations, the
title of subpart F would be amended to
read, ‘‘Small Cities, Non-entitlement
CDBG Grants in Hawaii and Insular
Areas.’’
Section 570.420. Since the three
Hawaii non-entitlement counties will be
treated as entitlement grantees,
§ 570.420, which establishes the general
requirements for HUD administration of
non-entitlement grants, would be
amended to remove all references to the
HUD-administered small cities program
in Hawaii. Section 570.420 will apply
only to the Insular Areas program and
the HUD-administered Small Cities
program in New York for grants made
prior to FY 2000. Section 570.420(c),
which governs public notification
requirements for competitive grants
under the HUD-administered Small
Cities program, would also be removed.
This provision is obsolete, since the
final award of such competitive grants
were made in FY 1999.
Section 570.427. Amendments made
to New York Small Cities projects that
involve new activities or alteration of
existing activities that will significantly
change the scope, location, or objectives
of approved activities or beneficiaries
require HUD approval. Section
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570.427(a) of the regulations would be
amended to provide that HUD approval
would be granted if the activity meets
all of the applicable requirements of the
regulations. As noted above, almost all
of the New York Small Cities projects
expended all of their funds by
September 30, 2006. This regulatory
change would allow HUD to approve
amendments for post-closeout activities
that will be funded with program
income, without having to re-rank the
amended project against the original
Small Cities rating criteria. Since the
original intent of the projects has
already been completed, this
amendment will allow units of general
local government the flexibility to target
projects funded with program income to
the needs of their citizens, without
burdening the Department to re-rate
proposed program amendments against
criteria that are no longer relevant.
Section 570.429. Section 570.429
governs the general requirements and
grant requirements pertaining to the
state of Hawaii. This section will be
modified to reflect the changes required
by section 218 of the Consolidated
Appropriation Act, 2004. The proposed
revisions also stress HUD’s policy of
treating the non-entitlement areas as
entitlement areas to the greatest extent
that is statutorily permissible.
Section 570.429(a) would be amended
to state that the non-entitlement
counties in Hawaii are to be treated as
entitlement grantees, with the exception
of: (1) How allocations are calculated,
and (2) the source of their CDBG
funding. Section 570.429(b) will be
amended to state that the Hawaii nonentitlement counties will be governed
by Subpart D of the part 570 regulations
in the grant submission and approval
process. (Subpart D establishes the
policies and procedures governing
entitlement grants.)
HUD proposes to remove § 570.429(d),
entitled ‘‘Adjustment to Grants.’’ In
keeping with the intent of the statutory
change, grant adjustments for the nonentitlement counties in Hawaii will be
handled under the procedures for
entitlement grantees under 24 CFR part
570, subpart O (entitled, ‘‘Performance
Reviews’’). HUD also proposes to
remove the following paragraphs of
§ 570.429 as unnecessary due to the
treatment of Hawaii’s non-entitlement
areas under the procedures governing
entitlement grantees: Paragraph (f)
(regarding required submissions),
paragraph (g) (regarding application
approval), paragraph (h) (regarding grant
agreements), and paragraph (i)
(regarding conditional grants).
Section 570.430. The regulation at
§ 570.430 establishes requirements for
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Hawaii program grants made prior to FY
1995. Because all of the funds for pre1995 grants have been expended, this
provision will be removed and the nonentitled counties will follow entitlement
rules for the administration of their
existing grants and all future grants.
Section 570.432. Section 570.432,
which governs the use of Small Cities
grants to repay Section 108 loans, will
be removed because there will be no
future competitively awarded Small
Cities grants that can be used to pay
Section 108 debt obligations. The nonentitlement counties in Hawaii will
follow the requirements of Subpart M of
the regulations with regard to
repayment of Section 108 loan
guarantees.
B. Other Proposed Regulatory Changes
Use of the term ‘‘Non-entitlement
CDBG Grants in Hawaii.’’ The term
‘‘Non-entitlement CDBG Grants in
Hawaii’’ has been inserted into various
provisions of 24 CFR part 570 to refer
to either the HUD-administered program
or to the program’s recipients. The
provisions where the proposed term has
either been substituted or added include
§§ 570.200, 570.300, 570.429, and
570.902. By utilizing this term, HUD
intends to avoid confusion with the
competitively awarded HUDadministered Small Cities program,
which made its last new grant in FY
1999, virtually all of which was
expended by September 30, 2006, and
which has operated only in New York
state.
Section 570.208. Section 570.208,
which describes the criteria for CDBG
national objectives, would be revised to
state that the three non-entitled Hawaii
counties cannot use the exception
criteria, since they do not meet the
definition of a metropolitan city or
urban county in Section 102(a) of the
HCD Act.
Section 570.209. Section
570.209(b)(2)(i) will be revised to
include non-entitlement CDBG grants in
Hawaii. Non-entitlement CDBG grantees
in Hawaii would now apply aggregate
standards for evaluating public benefit
to all applicable activities for which
CDBG funds are obligated for each
program year.
Section 570.300. (Section 570.300 will
be revised to clarify that §§ 570.307
(Urban Counties) and 570.308 (Joint
Requests) do not apply to nonentitlement CDBG grants in Hawaii.
Section 570.901. Section 570.901 will
be revised to move the compliance
requirements for non-entitlement CDBG
grants in Hawaii from § 570.901(e) to
§ 570.901(d).
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Section 570.902. Section 570.902 will
be changed to treat non-entitlement
CDBG grants in Hawaii in the same
manner as entitlements in determining
if activities are being implemented in a
timely manner.
Section 570.911. Section 570.911 will
be revised to treat non-entitlement
CDBG grants in Hawaii in the same
manner as entitlements with regard to
grant reductions.
III. Findings and Certifications
Regulatory Planning and Review
The Office of Management and Budget
(OMB) reviewed this proposed rule
under Executive Order 12866 (entitled
‘‘Regulatory Planning and Review’’).
OMB determined that this rule is a
‘‘significant regulatory action,’’ as
defined in section 3(f) of the Order
(although not economically significant,
as provided in section 3(f)(1) of the
Order). The docket file is available for
public inspection between the hours of
8 a.m. and 5 p.m. in the Office of
Regulations, Department of Housing and
Urban Development, 451 Seventh Street,
SW., Room 10276, Washington, DC
20410. 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).
Hearing- and speech-impaired persons
may access the telephone number listed
above via TTY by calling the Federal
Information Relay Service at (800) 877–
8339.
Information Collection Requirements
The information collection
requirements contained in this proposed
rule have been approved by OMB under
the Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520) and assigned
OMB Control Number 2506–0020. The
amendments proposed by this rule do
not revise the information collection
requirements as originally approved by
OMB. In accordance with the Paperwork
Reduction Act, HUD 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.
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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 the
private sector. This proposed rule does
not impose any federal mandates on any
state, local, or tribal government or the
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private sector within the meaning of
UMRA.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits, to the extent
practicable and permitted by law, an
agency from promulgating a regulation
that has federalism implications and
either imposes substantial direct
compliance costs on state and local
governments and is not required by
statute, or preempts state law, unless the
relevant requirements of section 6 of the
executive order are met. This rule does
not have federalism implications and
does not impose substantial direct
compliance costs on state and local
governments or preempt state law
within the meaning of the executive
order.
Impact on Small Entities
The Secretary, in accordance with the
Regulatory Flexibility Act (5 U.S.C.
605(b)), has reviewed and approved this
proposed rule and in so doing certifies
that this rule will not have a significant
economic impact on a substantial
number of small entities for the
following reasons. This rule only
codifies, in HUD’s regulations,
procedures that will enable the
Department to treat the three nonentitled Hawaii counties as entitlement
grantees. Since the non-entitled
counties previously were funded
annually by formula and were treated as
entitlement grantees as much as
statutorily possible, the rule does not
significantly differ from the current
status in terms of the impact on the
number of entities, the amount of
funding, or the governing requirements
applicable.
Notwithstanding HUD’s
determination that this rule will not
have a significant economic impact on
a substantial number of small entities,
HUD specifically invites comments
regarding any less burdensome
alternatives to this rule that will meet
HUD’s objectives as described in this
preamble.
Environmental Impact
A Finding of No Significant Impact
with respect to the environment has
been made in accordance with HUD
regulations at 24 CFR part 50, which
implement section 102(2)(C) of the
National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)). The
Finding of No Significant Impact is
available for public inspection between
the hours of 8 a.m. and 5 p.m. weekdays
in the Regulations Division, Office of
General Counsel, Department of
Housing and Urban Development, 451
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Seventh Street, SW., Room 10276,
Washington, DC 20410–0500. Due to
security measures at the HUD
Headquarters building, an advance
appointment to review the finding must
be scheduled by calling the Regulations
Divisions at (202) 708–3055 (this is not
a toll-free number). Hearing- and
speech-impaired persons may access the
telephone number listed above via TTY
by calling the Federal Information Relay
Service at (800) 877–8339.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance number for the CDBG Small
Cities program is 14.219, and the
number for the CDBG Entitlement
program is 14.218.
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, for the reasons described
in the preamble, HUD proposes to
amend 24 CFR parts 570 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 5301–
5320.
2. Revise § 570.200(a)(3) introductory
text to read as follows:
§ 570.200
General Policies.
(a) * * *
(3) Compliance with the primary
objective. The primary objective of the
Act is described in section 101(c) of the
Act. Consistent with this objective,
entitlement recipients, non-entitlement
CDBG grantees in Hawaii, and
recipients of insular area funds under
section 106 of the Act must ensure that
over a period of time specified in their
certification not to exceed three years,
not less than 70 percent of the aggregate
of CDBG fund expenditures shall be for
activities meeting the criteria under
§ 570.208(a) or under § 570.208(d)(5) or
(6) for benefiting low- and moderateincome persons. For grants under
section 107 of the Act, insular area
recipients must meet this requirement
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for each separate grant. See
§ 570.420(d)(3) for additional discussion
of the primary objective requirement for
insular areas funded under section 106
of the Act. The requirements for the
HUD-administered Small Cities program
in New York are at § 570.420(d)(2). In
determining the percentage of funds
expended for such activities:
*
*
*
*
*
3. Revise § 570.208(a)(1)(ii)
introductory text to read as follows:
§ 570.208
Criteria for national objectives.
*
*
*
*
*
(a) * * *
(1) * * *
(ii) For metropolitan cities and urban
counties, an activity that would
otherwise qualify under
§ 570.208(a)(1)(i), except that the area
served contains less than 51 percent
low- and moderate-income residents,
will also be considered to meet the
objective of benefiting low- and
moderate-income persons where the
proportion of such persons in the area
is within the highest quartile of all areas
in the recipient’s jurisdiction in terms of
the degree of concentration of such
persons. This exception is inapplicable
to non-entitlement CDBG grants in
Hawaii. In applying this exception,
HUD will determine the lowest
proportion a recipient may use to
qualify an area for this purpose, as
follows:
*
*
*
*
*
4. § 570.209(b)(2)(i) is to be revised to
read as follows:
§ 570.209 Guidelines for evaluating and
selecting economic development projects.
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*
*
*
*
*
(b) * * *
(2) Applying the aggregate standards.
(i) A metropolitan city, an urban county,
or a non-entitlement CDBG grantee in
Hawaii shall apply the aggregate
standards under paragraph (b)(1) of this
section to all applicable activities for
which CDBG funds are first obligated
within each single CDBG program year,
without regard to the source year of the
funds used for the activities. A grantee
under the HUD-administered Small
Cities or Insular Areas CDBG programs
shall apply the aggregate standards
under paragraph (b)(1) of this section to
all funds obligated for applicable
activities from a given grant; program
income obligated for applicable
activities will, for these purposes, be
aggregated with the most recent open
grant. For any time period in which a
community has no open HUDadministered or Insular Areas grants,
the aggregate standards shall be applied
to all applicable activities for which
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program income is obligated during that
period.
*
*
*
*
*
5. Revise § 570.300 to read as follows:
§ 570.300
General.
This subpart describes the policies
and procedures governing the making of
community development block grants to
entitlement communities and to nonentitlement counties in the state of
Hawaii. The policies and procedures set
forth in subparts A, C, J, K, and O of this
part also apply to entitlement grantees
and to non-entitlement grantees in the
state of Hawaii. Sections 570.307 and
570.308 of this subpart do not apply to
the Hawaii non-entitlement grantees.
6. Revise the heading of Subpart F to
read as follows:
Subpart F—Small Cities, NonEntitlement CDBG Grants in Hawaii
and Insular Areas Programs
7. In § 570.420:
a. Revise paragraphs (a)(1) and (b)(1);
b. Remove § 570.420(c);
c. Redesignate paragraphs (d), (e), and
(f) as paragraphs §§ 570.420 (c), (d), and
(e), respectively; and
d. Revise the newly designated
paragraph (e) to read as follows:
§ 570.420
General.
(a) Administration of Non-entitlement
CDBG funds by HUD or Insular Areas—
(1) Small cities. The Act permits each
state to elect to administer all aspects of
the CDBG program annual fund
allocation for the non-entitlement areas
within its jurisdiction. All states except
Hawaii have elected to administer the
CDBG program for non-entitlement
areas within their jurisdiction. This
section is applicable to active HUDadministered small cities grants in New
York. The requirements for the nonentitlement CDBG grants in Hawaii are
set forth in § 570.429 of this subpart.
States that elected to administer the
program after the close of Fiscal Year
1984 cannot return administration of the
program to HUD. A decision by a state
to discontinue administration of the
program would result in the loss of
CDBG funds for non-entitlement areas
in that state and the reallocation of
those funds to all states in the
succeeding fiscal year.
*
*
*
*
*
(b) Scope and applicability. (1) This
subpart describes the policies and
procedures of the Small Cities program
that apply to non-entitlement areas in
states where HUD administers the CDBG
program. HUD currently administers the
Small Cities program in only two
states—New York (for grants prior to FY
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65
2000) and Hawaii. The Small Cities
portion of this subpart addresses the
requirements for New York Small Cities
grants in §§ 570.421, 570.426, 570.427,
and 570.431. Section 570.429 identifies
special procedures applicable to Hawaii.
*
*
*
*
*
(e) Allocation of funds—The
allocation of appropriated funds for
insular areas under section 106 of the
Act shall be governed by the policies
and procedures described in section
106(a)(2) of the Act and §§ 570.440 and
570.441 of this subpart. The annual
appropriations described in this section
shall be distributed to insular areas on
the basis of the ratio of the population
of each insular area to the population of
all insular areas.
8. Revise § 570.427(a) to read as
follows:
§ 570.427
Program Amendments.
(a) HUD approval of certain program
amendments. Grantees shall request
prior HUD approval for all program
amendments involving new activities or
alteration of existing activities that will
significantly change the scope, location,
or objectives of the approved activities
or beneficiaries. Approval is subject to
the amended activities meeting the
requirements of this part, and being able
to be completed promptly.
*
*
*
*
*
9. In § 570.429:
a. Revise paragraphs (a) and (b);
b. Remove paragraphs (d), (f), (g), (h),
and (i);
c. Redesignate paragraph (e) as a new
paragraph (d); and
d. Revise newly designated paragraph
(d) to read as follows:
§ 570.429 Hawaii general and grant
requirements.
(a) General. This section applies to
non-entitlement CDBG grants in Hawaii.
The non-entitlement counties in the
state of Hawaii will be treated as
entitlement grantees except for the
calculation of allocations, and the
source of their funding, which will be
from Section 106(d) of the Act.
(b) Scope and applicability. Except as
modified or limited under the
provisions thereof or this subpart, the
policies and procedures outlined in
subparts A, C, D, J, K, and O of this part
apply to non-entitlement CDBG grants
in Hawaii.
*
*
*
*
*
(d) Reallocation. (1) Any amounts that
become available as a result of any
reductions under subpart O of this part
shall be reallocated in the same or
future fiscal year to any remaining
eligible applicants on a pro rata basis.
E:\FR\FM\03JAP1.SGM
03JAP1
66
Federal Register / Vol. 72, No. 1 / Wednesday, January 3, 2007 / Proposed Rules
§ 570.911 Reduction, withdrawal, or
adjustment of a grant or other appropriate
action.
(2) Any formula grant amounts
reserved for an applicant that chooses
not to submit an application shall be
reallocated to any remaining eligible
applicants on a pro rata basis.
(3) No amounts shall be reallocated
under paragraph (d) of this section in
any fiscal year to any applicant whose
grant amount was reduced under
subpart O of this part.
§§ 570.430 and 570.432
*
[Removed]
10. Remove §§ 570.430 and 570.432.
11. In § 570.901, revise paragraphs (d)
and (e) to read as follows:
§ 570.901 Review for compliance with the
primary and national objectives and other
program requirements.
*
*
*
*
*
(d) For entitlement grants and nonentitlement CDBG grants in Hawaii, the
submission requirements of 24 CFR part
91 and the displacement policy
requirements at § 570.606;
(e) For HUD-administered Small
Cities grants in New York, the citizen
participation requirements at § 570.431,
the amendment requirements at
§ 570.427, and the displacement policy
requirements of § 570.606;
*
*
*
*
*
12. In § 570.902:
a. Revise the heading of paragraph (a);
b. Revise the introductory paragraph
of paragraph (a)(1); and
c. Revise paragraph (b) to read as
follows:
§ 570.902 Review to determine if CDBG—
funded activities are being carried out in a
timely manner.
sroberts on PROD1PC70 with PROPOSALS
*
*
*
*
*
(a) Entitlement recipients and Nonentitlement CDBG Grantees in Hawaii.
(1) Before the funding of the next annual
grant and absent contrary evidence
satisfactory to HUD, HUD will consider
an entitlement recipient or a nonentitlement CDBG grantee in Hawaii to
be failing to carry out its CDBG
activities in a timely manner if:
*
*
*
*
*
(b) HUD-administered Small Cities
program in New York. The Department
will, absent substantial evidence to the
contrary, deem a HUD-administered
Small Cities recipient in New York to be
carrying out its CDBG-funded activities
in a timely manner if the schedule for
carrying out its activities, as contained
in the approved application (including
any subsequent amendment(s), is being
substantially met.
13. Revise § 570.911(b) to read as
follows:
VerDate Aug<31>2005
19:33 Dec 29, 2006
Jkt 211001
*
*
*
*
(b) Entitlement grants and Nonentitlement CDBG Grantees in Hawaii.
Consistent with the procedures
described in § 570.900(b), the Secretary
may make a reduction in the CDBG
grant amount either for the succeeding
program year or, if the grant had been
conditioned, up to the amount that had
been conditioned. The amount of the
reduction shall be based on the severity
of the deficiency and may be for the
entire grant amount.
*
*
*
*
*
Dated: November 13, 2006.
´
Nelson R. Bregon,
General Deputy Assistant Secretary for
Community Planning and Development.
[FR Doc. E6–22502 Filed 12–29–06; 8:45 am]
BILLING CODE 4210–67–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2005–CA–0011, FRL–8259–
8]
Revisions to the California State
Implementation Plan, Imperial County
Air Pollution Control District
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA is proposing to approve
revisions to the Imperial County Air
Pollution Control District (ICAPCD)
portion of the California State
Implementation Plan (SIP). These
revisions concern the permitting of air
pollution sources. We are proposing to
approve local rules under the Clean Air
Act as amended in 1990 (CAA or the
Act).
DATES: Any comments on this proposal
must arrive by February 2, 2007.
ADDRESSES: Submit comments,
identified by docket number EPA–R09–
OAR–2005–CA–0011, by one of the
following methods
• Federal eRulemaking Portal:
www.regulations.gov. Follow the on-line
instructions.
• E-mail: R9airpermits@epa.gov.
• Mail or deliver: Gerardo Rios (Air3), U.S. Environmental Protection
Agency Region IX, 75 Hawthorne Street,
San Francisco, CA 94105.
Instructions: All comments will be
included in the public docket without
change and may be made available
online at www.regulations.gov,
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
including any personal information
provided, unless the comment includes
Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute. Information that
you consider CBI or otherwise protected
should be clearly identified as such and
should not be submitted through
www.regulations.gov or e-mail.
www.regulations.gov is an ‘‘anonymous
access’’ system, and EPA will not know
your identity or contact information
unless you provide it in the body of
your comment. If you send e-mail
directly to EPA, your e-mail address
will be automatically captured and
included as part of the public comment.
If EPA cannot read your comment due
to technical difficulties and cannot
contact you for clarification, EPA may
not be able to consider your comment.
Docket: The index to the docket for
this action is available electronically at
www.regulations.gov and in hard copy
at EPA Region IX, 75 Hawthorne Street,
San Francisco, California. While all
documents in the docket are listed in
the index, some information may be
publicly available only at the hard copy
location (e.g., copyrighted material), and
some may not be publicly available in
either location (e.g., CBI). To inspect the
hard copy materials, please schedule an
appointment during normal business
hours with the contact listed in the FOR
FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT:
Manny Aquitania, Permits Office (AIR–
3), U.S. Environmental Protection
Agency, Region IX, (415) 972–3977,
aquitania.manny@epa.gov.
SUPPLEMENTARY INFORMATION: This
proposal addresses the approval of local
ICAPCD Rules 201, 203, 205, 206, and
208. In the Rules and Regulations
section of this Federal Register, we are
approving these local rules in a direct
final action without prior proposal
because we believe this SIP revision is
not controversial. If we receive adverse
comments, however, we will publish a
timely withdrawal of the direct final
rule and address the comments in
subsequent action based on this
proposed rule. Please note that if EPA
receives adverse comment on an
amendment, paragraph, or section of
this direct final rule and if that
provision may be severed from the
remainder of the rule, EPA may adopt
as final those provisions of the rule that
are not the subject of an adverse
comment.
We do not plan to open a second
comment period, so anyone interested
in commenting should do so at this
time. If we do not receive adverse
comments, no further activity is
E:\FR\FM\03JAP1.SGM
03JAP1
]]>Agencies
[Federal Register Volume 72, Number 1 (Wednesday, January 3, 2007)]
[Proposed Rules]
[Pages 62-66]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22502]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 570
[Docket No. FR-5013-P-01]
[RIN 2506-AC19]
Community Development Block Grant Program; Small Cities Program;
Proposed Rule
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would amend HUD's regulations governing the
Community Development Block Grant (CDBG) program for non-entitlement
areas in the state of Hawaii. Pursuant to statutory authority, the
state of Hawaii has elected not to administer funds to units of general
local governments located in non-entitlement areas within the state.
The statute provides that if Hawaii opts to not assume responsibility
for the program, then the Secretary of HUD will make grants to the
units of general local government located in Hawaii's non-entitlement
areas, employing the same distribution formula as was used under prior
regulations. This proposed rule would modify HUD's regulations to
clarify how the CDBG program will be implemented in the non-entitlement
areas of Hawaii. HUD has also taken the opportunity afforded by this
proposed rule to update and streamline the subpart F regulations,
particularly with regard to the HUD-administered Small Cities program
in New York, which awarded its last competitive grant in Fiscal Year
(FY) 1999.
DATES: Comments Due Date: March 5, 2007.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule to the Office of the General Counsel, Rules Docket
Clerk, Department of Housing and Urban Development, 451 Seventh Street,
SW., Room 10276, Washington, DC 20410-0001. Communications should refer
to the above docket number and title and should contain the information
specified in the ``Request for Comments'' section.
Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
https://www.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 comments
immediately available to the public. Comments submitted electronically
through the https://www.regulations.gov Web site can be viewed by other
commenters and by members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
In all cases, communications must refer to the docket number and title.
Public Inspection of Public Comments. All comments and
communications submitted to HUD will be available, without charge, 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 hearing or speech
impairments may access this telephone number via TTY by calling the
Federal Information Relay Service at (800) 877-8339. Copies of all
comments submitted are available for inspection and downloading at
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Stephen Rhodeside, Senior Program
Officer, State and Small Cities Division, Office of Block Grant
Assistance, Office of Community Planning and Development, Department of
Housing and Urban Development, 451 Seventh Street, SW., Room 7184,
Washington, DC 20410-7000; telephone (202) 708-1322 (this is not a
toll-free number). Individuals with speech or hearing impairments may
access this telephone number via TTY by calling the toll-free Federal
Information Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The CDBG program is authorized under the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCD Act). Under the
CDBG program, HUD allocates funds by formula among eligible state and
local governments for activities that principally benefit low- and
moderate-income persons, aid in the elimination of slums or blighting
conditions, or meet other community development needs having a
particular urgency.
Section 106 of Title I of the HCD Act permits states to elect to
assume administrative responsibility for the CDBG program for non-
entitlement areas within their jurisdiction. The HCD Act defines a non-
entitlement area as an area that is not a metropolitan city or part of
an urban county and does not include federally or state-recognized
Indian tribes. In the event that a state elects not to administer the
CDBG program, Section 106 provides that HUD will administer the CDBG
program for non-entitlement areas within the state. HUD's regulations
at 24 CFR part 570, subpart F describe the policies and procedures for
HUD's administration of the CDBG program in non-entitlement areas.
Section 218 of the Consolidated Appropriations Act, 2004, (Pub. L.
108-199, approved January 23, 2003) required that, by July 31, 2004,
the state of Hawaii had to elect if it would distribute funds under
section 106(d)(2) of the HCD Act to units of general local government
located in its non-entitlement areas. On August 5, 2004, the Governor
of Hawaii notified HUD that the state had elected not to take over the
CDBG program in the non-entitlement areas within its jurisdiction. In
accordance with the Consolidated Appropriations Act, 2004, the
Secretary of HUD permanently assumed administrative responsibility for
making grants to the units of general local government located in
Hawaii's non-entitlement areas (Hawaii, Kauai, and Maui counties) for
all future fiscal years, beginning in 2005.
Section 218 of the Consolidated Appropriations Act, 2004, requires
the Secretary of HUD to allocate CDBG funds to the units of local
government located in Hawaii's non-entitlement areas based upon the
same distribution formula currently used to compute their grant funds.
The formula takes into consideration population, poverty, and housing
overcrowding in these areas. HUD uses the factors to compute a weighted
ratio (the extent of poverty is accorded twice as much significance as
the population and housing overcrowding factors), which then determines
the allocation of funds.
II. This Proposed Rule
This proposed rule would implement section 218 of the Consolidated
Appropriations Act, 2004, by amending HUD's regulations at 24 CFR part
570 to
[[Page 63]]
set forth the policies and procedures applicable to grants for non-
entitlement areas in states that have not elected to administer the
CDBG program. On December 27, 1994, the Hawaii Small Cities regulations
were amended, by a final rule (59 FR 66594) that became effective on
January 26, 1995, to treat the three non-entitlement counties of Hawaii
similar to entitlement grantees, to the greatest extent allowable under
statute. As a result, the regulatory changes that are being made in
this proposed rule are relatively minor in scope, and are described
below.
HUD has also taken the opportunity afforded by this proposed rule
to update and streamline the subpart F regulations, particularly with
regard to the HUD-administered Small Cities program in New York. The
final competitive grants made under this program were awarded in FY
1999, and almost all New York Small Cities projects expended their
funds by the close of FY 2006. The subpart F regulations contain
outdated provisions regarding the New York Small Cities program that
are no longer necessary and, therefore, would be removed by this rule.
These regulatory changes are also described below.
A. Proposed Revisions to 24 CFR Part 570, Subpart F
Title of Subpart F. In order to clarify and differentiate the
programs contained within the regulations, the title of subpart F would
be amended to read, ``Small Cities, Non-entitlement CDBG Grants in
Hawaii and Insular Areas.''
Section 570.420. Since the three Hawaii non-entitlement counties
will be treated as entitlement grantees, Sec. 570.420, which
establishes the general requirements for HUD administration of non-
entitlement grants, would be amended to remove all references to the
HUD-administered small cities program in Hawaii. Section 570.420 will
apply only to the Insular Areas program and the HUD-administered Small
Cities program in New York for grants made prior to FY 2000. Section
570.420(c), which governs public notification requirements for
competitive grants under the HUD-administered Small Cities program,
would also be removed. This provision is obsolete, since the final
award of such competitive grants were made in FY 1999.
Section 570.427. Amendments made to New York Small Cities projects
that involve new activities or alteration of existing activities that
will significantly change the scope, location, or objectives of
approved activities or beneficiaries require HUD approval. Section
570.427(a) of the regulations would be amended to provide that HUD
approval would be granted if the activity meets all of the applicable
requirements of the regulations. As noted above, almost all of the New
York Small Cities projects expended all of their funds by September 30,
2006. This regulatory change would allow HUD to approve amendments for
post-closeout activities that will be funded with program income,
without having to re-rank the amended project against the original
Small Cities rating criteria. Since the original intent of the projects
has already been completed, this amendment will allow units of general
local government the flexibility to target projects funded with program
income to the needs of their citizens, without burdening the Department
to re-rate proposed program amendments against criteria that are no
longer relevant.
Section 570.429. Section 570.429 governs the general requirements
and grant requirements pertaining to the state of Hawaii. This section
will be modified to reflect the changes required by section 218 of the
Consolidated Appropriation Act, 2004. The proposed revisions also
stress HUD's policy of treating the non-entitlement areas as
entitlement areas to the greatest extent that is statutorily
permissible.
Section 570.429(a) would be amended to state that the non-
entitlement counties in Hawaii are to be treated as entitlement
grantees, with the exception of: (1) How allocations are calculated,
and (2) the source of their CDBG funding. Section 570.429(b) will be
amended to state that the Hawaii non-entitlement counties will be
governed by Subpart D of the part 570 regulations in the grant
submission and approval process. (Subpart D establishes the policies
and procedures governing entitlement grants.)
HUD proposes to remove Sec. 570.429(d), entitled ``Adjustment to
Grants.'' In keeping with the intent of the statutory change, grant
adjustments for the non-entitlement counties in Hawaii will be handled
under the procedures for entitlement grantees under 24 CFR part 570,
subpart O (entitled, ``Performance Reviews''). HUD also proposes to
remove the following paragraphs of Sec. 570.429 as unnecessary due to
the treatment of Hawaii's non-entitlement areas under the procedures
governing entitlement grantees: Paragraph (f) (regarding required
submissions), paragraph (g) (regarding application approval), paragraph
(h) (regarding grant agreements), and paragraph (i) (regarding
conditional grants).
Section 570.430. The regulation at Sec. 570.430 establishes
requirements for Hawaii program grants made prior to FY 1995. Because
all of the funds for pre-1995 grants have been expended, this provision
will be removed and the non-entitled counties will follow entitlement
rules for the administration of their existing grants and all future
grants.
Section 570.432. Section 570.432, which governs the use of Small
Cities grants to repay Section 108 loans, will be removed because there
will be no future competitively awarded Small Cities grants that can be
used to pay Section 108 debt obligations. The non-entitlement counties
in Hawaii will follow the requirements of Subpart M of the regulations
with regard to repayment of Section 108 loan guarantees.
B. Other Proposed Regulatory Changes
Use of the term ``Non-entitlement CDBG Grants in Hawaii.'' The term
``Non-entitlement CDBG Grants in Hawaii'' has been inserted into
various provisions of 24 CFR part 570 to refer to either the HUD-
administered program or to the program's recipients. The provisions
where the proposed term has either been substituted or added include
Sec. Sec. 570.200, 570.300, 570.429, and 570.902. By utilizing this
term, HUD intends to avoid confusion with the competitively awarded
HUD-administered Small Cities program, which made its last new grant in
FY 1999, virtually all of which was expended by September 30, 2006, and
which has operated only in New York state.
Section 570.208. Section 570.208, which describes the criteria for
CDBG national objectives, would be revised to state that the three non-
entitled Hawaii counties cannot use the exception criteria, since they
do not meet the definition of a metropolitan city or urban county in
Section 102(a) of the HCD Act.
Section 570.209. Section 570.209(b)(2)(i) will be revised to
include non-entitlement CDBG grants in Hawaii. Non-entitlement CDBG
grantees in Hawaii would now apply aggregate standards for evaluating
public benefit to all applicable activities for which CDBG funds are
obligated for each program year.
Section 570.300. (Section 570.300 will be revised to clarify that
Sec. Sec. 570.307 (Urban Counties) and 570.308 (Joint Requests) do not
apply to non-entitlement CDBG grants in Hawaii.
Section 570.901. Section 570.901 will be revised to move the
compliance requirements for non-entitlement CDBG grants in Hawaii from
Sec. 570.901(e) to Sec. 570.901(d).
[[Page 64]]
Section 570.902. Section 570.902 will be changed to treat non-
entitlement CDBG grants in Hawaii in the same manner as entitlements in
determining if activities are being implemented in a timely manner.
Section 570.911. Section 570.911 will be revised to treat non-
entitlement CDBG grants in Hawaii in the same manner as entitlements
with regard to grant reductions.
III. Findings and Certifications
Regulatory Planning and Review
The Office of Management and Budget (OMB) reviewed this proposed
rule under Executive Order 12866 (entitled ``Regulatory Planning and
Review''). OMB determined that this rule is a ``significant regulatory
action,'' as defined in section 3(f) of the Order (although not
economically significant, as provided in section 3(f)(1) of the Order).
The docket file is available for public inspection between the hours of
8 a.m. and 5 p.m. in the Office of Regulations, Department of Housing
and Urban Development, 451 Seventh Street, SW., Room 10276, Washington,
DC 20410. 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). Hearing- and speech-impaired persons may access the
telephone number listed above via TTY by calling the Federal
Information Relay Service at (800) 877-8339.
Information Collection Requirements
The information collection requirements contained in this proposed
rule have been approved by OMB under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2506-0020.
The amendments proposed by this rule do not revise the information
collection requirements as originally approved by OMB. In accordance
with the Paperwork Reduction Act, HUD 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.
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 the private sector. This proposed rule does not
impose any federal mandates on any state, local, or tribal government
or the private sector within the meaning of UMRA.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from promulgating a
regulation that has federalism implications and either imposes
substantial direct compliance costs on state and local governments and
is not required by statute, or preempts state law, unless the relevant
requirements of section 6 of the executive order are met. This rule
does not have federalism implications and does not impose substantial
direct compliance costs on state and local governments or preempt state
law within the meaning of the executive order.
Impact on Small Entities
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this proposed rule and in so
doing certifies that this rule will not have a significant economic
impact on a substantial number of small entities for the following
reasons. This rule only codifies, in HUD's regulations, procedures that
will enable the Department to treat the three non-entitled Hawaii
counties as entitlement grantees. Since the non-entitled counties
previously were funded annually by formula and were treated as
entitlement grantees as much as statutorily possible, the rule does not
significantly differ from the current status in terms of the impact on
the number of entities, the amount of funding, or the governing
requirements applicable.
Notwithstanding HUD's determination that this rule will not have a
significant economic impact on a substantial number of small entities,
HUD specifically invites comments regarding any less burdensome
alternatives to this rule that will meet HUD's objectives as described
in this preamble.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant
Impact is available for public inspection between the hours of 8 a.m.
and 5 p.m. weekdays in the Regulations Division, Office of General
Counsel, Department of Housing and Urban Development, 451 Seventh
Street, SW., Room 10276, Washington, DC 20410-0500. Due to security
measures at the HUD Headquarters building, an advance appointment to
review the finding must be scheduled by calling the Regulations
Divisions at (202) 708-3055 (this is not a toll-free number). Hearing-
and speech-impaired persons may access the telephone number listed
above via TTY by calling the Federal Information Relay Service at (800)
877-8339.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for the CDBG
Small Cities program is 14.219, and the number for the CDBG Entitlement
program is 14.218.
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, for the reasons described in the preamble, HUD
proposes to amend 24 CFR parts 570 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 5301-5320.
2. Revise Sec. 570.200(a)(3) introductory text to read as follows:
Sec. 570.200 General Policies.
(a) * * *
(3) Compliance with the primary objective. The primary objective of
the Act is described in section 101(c) of the Act. Consistent with this
objective, entitlement recipients, non-entitlement CDBG grantees in
Hawaii, and recipients of insular area funds under section 106 of the
Act must ensure that over a period of time specified in their
certification not to exceed three years, not less than 70 percent of
the aggregate of CDBG fund expenditures shall be for activities meeting
the criteria under Sec. 570.208(a) or under Sec. 570.208(d)(5) or (6)
for benefiting low- and moderate-income persons. For grants under
section 107 of the Act, insular area recipients must meet this
requirement
[[Page 65]]
for each separate grant. See Sec. 570.420(d)(3) for additional
discussion of the primary objective requirement for insular areas
funded under section 106 of the Act. The requirements for the HUD-
administered Small Cities program in New York are at Sec.
570.420(d)(2). In determining the percentage of funds expended for such
activities:
* * * * *
3. Revise Sec. 570.208(a)(1)(ii) introductory text to read as
follows:
Sec. 570.208 Criteria for national objectives.
* * * * *
(a) * * *
(1) * * *
(ii) For metropolitan cities and urban counties, an activity that
would otherwise qualify under Sec. 570.208(a)(1)(i), except that the
area served contains less than 51 percent low- and moderate-income
residents, will also be considered to meet the objective of benefiting
low- and moderate-income persons where the proportion of such persons
in the area is within the highest quartile of all areas in the
recipient's jurisdiction in terms of the degree of concentration of
such persons. This exception is inapplicable to non-entitlement CDBG
grants in Hawaii. In applying this exception, HUD will determine the
lowest proportion a recipient may use to qualify an area for this
purpose, as follows:
* * * * *
4. Sec. 570.209(b)(2)(i) is to be revised to read as follows:
Sec. 570.209 Guidelines for evaluating and selecting economic
development projects.
* * * * *
(b) * * *
(2) Applying the aggregate standards. (i) A metropolitan city, an
urban county, or a non-entitlement CDBG grantee in Hawaii shall apply
the aggregate standards under paragraph (b)(1) of this section to all
applicable activities for which CDBG funds are first obligated within
each single CDBG program year, without regard to the source year of the
funds used for the activities. A grantee under the HUD-administered
Small Cities or Insular Areas CDBG programs shall apply the aggregate
standards under paragraph (b)(1) of this section to all funds obligated
for applicable activities from a given grant; program income obligated
for applicable activities will, for these purposes, be aggregated with
the most recent open grant. For any time period in which a community
has no open HUD-administered or Insular Areas grants, the aggregate
standards shall be applied to all applicable activities for which
program income is obligated during that period.
* * * * *
5. Revise Sec. 570.300 to read as follows:
Sec. 570.300 General.
This subpart describes the policies and procedures governing the
making of community development block grants to entitlement communities
and to non-entitlement counties in the state of Hawaii. The policies
and procedures set forth in subparts A, C, J, K, and O of this part
also apply to entitlement grantees and to non-entitlement grantees in
the state of Hawaii. Sections 570.307 and 570.308 of this subpart do
not apply to the Hawaii non-entitlement grantees.
6. Revise the heading of Subpart F to read as follows:
Subpart F--Small Cities, Non-Entitlement CDBG Grants in Hawaii and
Insular Areas Programs
7. In Sec. 570.420:
a. Revise paragraphs (a)(1) and (b)(1);
b. Remove Sec. 570.420(c);
c. Redesignate paragraphs (d), (e), and (f) as paragraphs
Sec. Sec. 570.420 (c), (d), and (e), respectively; and
d. Revise the newly designated paragraph (e) to read as follows:
Sec. 570.420 General.
(a) Administration of Non-entitlement CDBG funds by HUD or Insular
Areas--(1) Small cities. The Act permits each state to elect to
administer all aspects of the CDBG program annual fund allocation for
the non-entitlement areas within its jurisdiction. All states except
Hawaii have elected to administer the CDBG program for non-entitlement
areas within their jurisdiction. This section is applicable to active
HUD-administered small cities grants in New York. The requirements for
the non-entitlement CDBG grants in Hawaii are set forth in Sec.
570.429 of this subpart. States that elected to administer the program
after the close of Fiscal Year 1984 cannot return administration of the
program to HUD. A decision by a state to discontinue administration of
the program would result in the loss of CDBG funds for non-entitlement
areas in that state and the reallocation of those funds to all states
in the succeeding fiscal year.
* * * * *
(b) Scope and applicability. (1) This subpart describes the
policies and procedures of the Small Cities program that apply to non-
entitlement areas in states where HUD administers the CDBG program. HUD
currently administers the Small Cities program in only two states--New
York (for grants prior to FY 2000) and Hawaii. The Small Cities portion
of this subpart addresses the requirements for New York Small Cities
grants in Sec. Sec. 570.421, 570.426, 570.427, and 570.431. Section
570.429 identifies special procedures applicable to Hawaii.
* * * * *
(e) Allocation of funds--The allocation of appropriated funds for
insular areas under section 106 of the Act shall be governed by the
policies and procedures described in section 106(a)(2) of the Act and
Sec. Sec. 570.440 and 570.441 of this subpart. The annual
appropriations described in this section shall be distributed to
insular areas on the basis of the ratio of the population of each
insular area to the population of all insular areas.
8. Revise Sec. 570.427(a) to read as follows:
Sec. 570.427 Program Amendments.
(a) HUD approval of certain program amendments. Grantees shall
request prior HUD approval for all program amendments involving new
activities or alteration of existing activities that will significantly
change the scope, location, or objectives of the approved activities or
beneficiaries. Approval is subject to the amended activities meeting
the requirements of this part, and being able to be completed promptly.
* * * * *
9. In Sec. 570.429:
a. Revise paragraphs (a) and (b);
b. Remove paragraphs (d), (f), (g), (h), and (i);
c. Redesignate paragraph (e) as a new paragraph (d); and
d. Revise newly designated paragraph (d) to read as follows:
Sec. 570.429 Hawaii general and grant requirements.
(a) General. This section applies to non-entitlement CDBG grants in
Hawaii. The non-entitlement counties in the state of Hawaii will be
treated as entitlement grantees except for the calculation of
allocations, and the source of their funding, which will be from
Section 106(d) of the Act.
(b) Scope and applicability. Except as modified or limited under
the provisions thereof or this subpart, the policies and procedures
outlined in subparts A, C, D, J, K, and O of this part apply to non-
entitlement CDBG grants in Hawaii.
* * * * *
(d) Reallocation. (1) Any amounts that become available as a result
of any reductions under subpart O of this part shall be reallocated in
the same or future fiscal year to any remaining eligible applicants on
a pro rata basis.
[[Page 66]]
(2) Any formula grant amounts reserved for an applicant that
chooses not to submit an application shall be reallocated to any
remaining eligible applicants on a pro rata basis.
(3) No amounts shall be reallocated under paragraph (d) of this
section in any fiscal year to any applicant whose grant amount was
reduced under subpart O of this part.
Sec. Sec. 570.430 and 570.432 [Removed]
10. Remove Sec. Sec. 570.430 and 570.432.
11. In Sec. 570.901, revise paragraphs (d) and (e) to read as
follows:
Sec. 570.901 Review for compliance with the primary and national
objectives and other program requirements.
* * * * *
(d) For entitlement grants and non-entitlement CDBG grants in
Hawaii, the submission requirements of 24 CFR part 91 and the
displacement policy requirements at Sec. 570.606;
(e) For HUD-administered Small Cities grants in New York, the
citizen participation requirements at Sec. 570.431, the amendment
requirements at Sec. 570.427, and the displacement policy requirements
of Sec. 570.606;
* * * * *
12. In Sec. 570.902:
a. Revise the heading of paragraph (a);
b. Revise the introductory paragraph of paragraph (a)(1); and
c. Revise paragraph (b) to read as follows:
Sec. 570.902 Review to determine if CDBG--funded activities are being
carried out in a timely manner.
* * * * *
(a) Entitlement recipients and Non-entitlement CDBG Grantees in
Hawaii. (1) Before the funding of the next annual grant and absent
contrary evidence satisfactory to HUD, HUD will consider an entitlement
recipient or a non-entitlement CDBG grantee in Hawaii to be failing to
carry out its CDBG activities in a timely manner if:
* * * * *
(b) HUD-administered Small Cities program in New York. The
Department will, absent substantial evidence to the contrary, deem a
HUD-administered Small Cities recipient in New York to be carrying out
its CDBG-funded activities in a timely manner if the schedule for
carrying out its activities, as contained in the approved application
(including any subsequent amendment(s), is being substantially met.
13. Revise Sec. 570.911(b) to read as follows:
Sec. 570.911 Reduction, withdrawal, or adjustment of a grant or other
appropriate action.
* * * * *
(b) Entitlement grants and Non-entitlement CDBG Grantees in Hawaii.
Consistent with the procedures described in Sec. 570.900(b), the
Secretary may make a reduction in the CDBG grant amount either for the
succeeding program year or, if the grant had been conditioned, up to
the amount that had been conditioned. The amount of the reduction shall
be based on the severity of the deficiency and may be for the entire
grant amount.
* * * * *
Dated: November 13, 2006.
Nelson R. Breg[oacute]n,
General Deputy Assistant Secretary for Community Planning and
Development.
[FR Doc. E6-22502 Filed 12-29-06; 8:45 am]
BILLING CODE 4210-67-P
