Notice of Modifications to U.S. Commitments Under the World Trade Organization Government Procurement Agreement To Implement Agreement With Canada Regarding Section 1605 of the Recovery Act (Buy American Requirement) Applicable to Public Housing Capital Fund Recovery Formula and Competitive Grant Programs, 16825 [2010-7490]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 75, Number 63 (Friday, April 2, 2010)]
[Notices]
[Page 16825]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7490]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5400-N-01]


Notice of Modifications to U.S. Commitments Under the World Trade 
Organization Government Procurement Agreement To Implement Agreement 
With Canada Regarding Section 1605 of the Recovery Act (Buy American 
Requirement) Applicable to Public Housing Capital Fund Recovery Formula 
and Competitive Grant Programs

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

ACTION: Notice.

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DATES: Effective Date: February 16, 2010 through September 30, 2011.
SUMMARY: The domestic purchasing requirement of section 1605(a) of the 
American Reinvestment and Recovery Act of 2009 (Recovery Act) will not 
be applied as a condition of Recovery Act financing in Public Housing 
Capital Fund Recovery Formula and Competitive Grant Programs (Capital 
Fund Recovery Program) with respect to Canadian iron, steel, and 
manufactured products in procurement above $7,804,000 for construction 
services through September 30, 2011.

FOR FURTHER INFORMATION CONTACT: For Public Housing Capital Fund 
Recovery Formula and Competitive Grants: Dominique G. Blom, Deputy 
Assistant Secretary for Public Housing Investments, Office of Public 
Housing Investments, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 451 7th Street, SW., Room 4210, 
Washington, DC 20410-4000, telephone 202-402-8500 (this is not a toll-
free number). Persons with hearing- or speech-impairments may access 
this number through TTY by calling the toll-free Federal Information 
Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: 
    The Recovery Act appropriated $4,000,000,000 for Capital Fund 
Recovery Program grants to public housing authorities (PHAs) to carry 
out eligible activities on an expedited basis. Section 1605(a) of the 
Recovery Act, the ``Buy American'' provision, states that for Recovery 
Act funds used for a project for the construction, alteration, 
maintenance, or repair of a public building or public work, all of the 
iron, steel, and manufactured goods used in the project must be 
produced in the United States. Interim final guidance (2 CFR Part 176) 
for implementing the Buy American provision was issued by the Office of 
Management and Budget (OMB) on April 23, 2009 at 74 Federal Register 
18449, and applies to the Capital Fund Recovery Program. HUD issued Buy 
American guidance in Public Housing Notice 2009-31, issued August 21, 
2009, see https://www.hud.gov/offices/adm/hudclips/notices/pih/09pihnotices.cfm. OMB is issuing Amendments of Interim Final Guidance 
to reflect changes with respect to U.S. international obligations.
    Section 1605(d) of the Recovery Act provides that the Buy American 
requirement in section 1605 shall be applied in a manner consistent 
with U.S. obligations under international agreements. The OMB guidance 
provides that the Buy American requirement shall not be applied where 
the iron, steel, or manufactured goods used in the project are from a 
Party to an international agreement, listed in 2 CFR 176.90(b) and the 
recipient is required under an international agreement, described in 
the Appendix to Subpart B of 2 CFR 176, to treat the goods and services 
of that Party the same as domestic goods and services. As of January 1, 
2010, this obligation shall only apply to projects with an estimated 
value of $7,804,000 or more and projects that are not specifically 
excluded from the application of those agreements. Based on the 
recently concluded Agreement between the Government of the United 
States of America and the Government of Canada on Government 
Procurement (Canada-U.S. Agreement), the Buy American requirement in 
section 1605(a) of the Recovery Act will not be applied as a condition 
of Recovery Act financing in the Capital Fund Recovery Program with 
respect to Canadian iron, steel, or manufactured goods in projects 
above $7,804,000. This is effective February 16, 2010 through September 
30, 2011. This means that with respect to PHAs in the Capital Fund 
Recovery Program, Canadian iron, steel, or manufactured goods in 
procurement above the $7,804,000 threshold for construction projects 
shall be treated the same as U.S. iron, steel, or manufactured goods 
for purposes of the Buy American requirement of section 1605 of the 
Recovery Act.
    The United States is not undertaking any other commitments with 
respect to Capital Fund Recovery Program grants, which means that the 
PHAs can continue to apply their procurement procedures that are 
consistent with HUD's Recovery Act. PHAs receiving Capital Fund 
Recovery Program grant assistance must continue to follow all other 
requirements including obligation and expenditure requirements. In 
summary, if a PHA has a construction project involving a public work/
building, and is using Capital Fund Recovery Program grant assistance 
as a source of funding for this construction project, and the total 
construction project has an estimated value of more than $7,804,000, 
Canadian-sourced iron, steel and manufactured goods may be used and no 
additional HUD exception will be required.

    Dated: March 5, 2010.
Sandra B. Henriquez,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 2010-7490 Filed 4-1-10; 8:45 am]
BILLING CODE 4210-67-P