Affirmatively Furthering Fair Housing: Re-Opening Public Comment Period on Subject of Later First AFH Submission Date for Certain Entities, 2062-2064 [2015-00468]
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Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Proposed Rules
rljohnson on DSK3VPTVN1PROD with PROPOSALS
site during open comment periods at:
https://egrpra.ffiec.gov/submit-comment/
submit-comment-index.html. Further
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until all seats are filled, whichever is
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view the live-stream broadcast.
Further details about the first
outreach meeting, including the agenda,
are published on the EGRPRA Web site
at https://egrpra.ffiec.gov/outreach/
outreach-index.html.
Additional Background on EGRPRA
Section 2222 of EGRPRA directs the
Agencies, along with the Council, to
conduct a review of their regulations not
less frequently than once every ten years
to identify outdated or otherwise
unnecessary regulatory requirements
imposed on insured depository
institutions. In conducting this review,
the Agencies are required to categorize
their regulations by type and, at regular
intervals, provide notice and solicit
public comment on categories of
regulations, requesting commenters to
identify areas of regulations that are
outdated, unnecessary, or unduly
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Register a summary of the comments
received, identifying significant issues
raised and commenting on these issues.
The statute also directs the Agencies to
eliminate unnecessary regulations to the
extent that such action is appropriate.
Finally, section 2222 requires the
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members, to submit a report to Congress
that summarizes any significant issues
raised in the public comments and the
relative merits of such issues. The report
also must include an analysis of
whether the Agencies are able to
address the regulatory burdens
associated with such issues by
regulation or whether these burdens
must be addressed by legislative action.
For purposes of this review, the
Agencies have grouped our combined
regulations into 12 categories:
Applications and Reporting; Banking
Operations; Capital; Community
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Jkt 235001
Reinvestment Act; Consumer Protection;
Directors, Officers and Employees;
International Operations; Money
Laundering; Powers and Activities;
Rules of Procedure; Safety and
Soundness; and Securities. On June 4,
2014, we published a Federal Register
notice asking for public comment on
three of these categories—Applications
and Reporting, Powers and Activities,
and International Operations
regulations.3 We also published a chart
listing all of the regulations included in
the EGRPRA review. Over the next year,
we will publish additional notices,
seeking comment on the remaining
categories.
Dated: January 8, 2015.
Thomas J. Curry,
Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System, January 9, 2015.
Robert deV. Frierson,
Secretary of the Board.
Dated: January 8, 2015.
Federal Deposit Insurance Corporation by,
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015–00516 Filed 1–14–15; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Part 5
[Docket No. FR–5173–N–03]
Affirmatively Furthering Fair Housing:
Re-Opening Public Comment Period
on Subject of Later First AFH
Submission Date for Certain Entities
AGENCY:
Office of General Counsel,
HUD.
Proposed rule; re-opening of
comment period for a specific topic.
ACTION:
On July 19, 2013, HUD
published a proposed rule on
Affirmatively Furthering Fair Housing.
The comment period for the proposed
rule closed on September 17, 2013. HUD
received over 1,000 public comments in
response to the proposed rule. While
many commenters expressed outright
support for HUD’s proposal, and other
commenters expressed outright
opposition, the majority of the
commenters provided valuable feedback
and suggestions on HUD’s proposal.
One area of concern expressed by
many commenters was the ability of
program participants, those that are
SUMMARY:
3 79
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FR 32172.
Frm 00026
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small or those that receive small grants
or allocations of HUD funds, to prepare
and submit the Assessment of Fair
Housing (AFH) in accordance with the
process set out in HUD’s proposed rule,
and by the proposed submission
deadline. Commenters comprised of
State jurisdictions or their
representatives also expressed concern
about the ability to complete an AFH,
which they commented did not take
into consideration the unique role of
States. These commenters stated that
HUD’s proposed AFH was tailored to
entitlement jurisdictions.
In response to these comments, HUD
is considering providing certain HUD
program participants—States, Insular
Areas, qualified PHAs, jurisdictions
receiving a small Community
Development Block (CDBG) grant
(which is based on a percentage of the
CDBG formula appropriation, as
described in this notice)—with the
option of submitting their first AFH at
a date later than would otherwise be
required for program participants that
are not States or Insular Areas, not
qualified PHAs, and are not grantees
receiving a small CDBG grant, as
proposed to be defined in this notice.
This supplemental notice of proposed
rulemaking therefore re-opens the
public comment period on the
Affirmatively Furthering Fair Housing
proposed rule for an additional 30 days
solely to seek comment on these specific
issues. HUD is not soliciting comment
on any other issues related to HUD’s
July 19, 2013, proposed rule.
DATES: The comment period for a
specific topic in the proposed rule
published on July 19, 2013 (78 FR
43709), is re-opened. The due date for
comments discussed in this
supplemental notice of proposed
rulemaking is February 17, 2015.
ADDRESSES: Interested persons are
invited to submit comments responsive
to this request for information to the
Regulations Division, Office of General
Counsel, Department of Housing and
Urban Development, 451 7th Street SW.,
Room 10276, Washington, DC 20410–
7000. Communications must refer to the
above docket number and title and
should contain the information
specified in the ‘‘Request for
Comments’’ of this supplemental notice
of proposed rulemaking.
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
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Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Proposed Rules
commenter maximum time to prepare
and submit a comment, ensures timely
receipt by HUD, and enables HUD to
make them immediately available to the
public. Comments submitted
electronically through the https://
www.regulations.gov Web site can be
viewed by interested members of the
public. Commenters should follow
instructions provided on that site to
submit comments electronically.
Submission of Hard Copy Comments.
Comments may be submitted by mail or
hand delivery. To ensure that the
information is fully considered by all of
the reviewers, each commenter
submitting hard copy comments, by
mail or hand delivery, should submit
comments or requests to the address
above, addressed to the attention of the
Regulations Division. Due to security
measures at all federal agencies,
submission of comments or requests by
mail often result in delayed delivery. To
ensure timely receipt of comments,
HUD recommends that any comments
submitted by mail be submitted at least
2 weeks in advance of the public
comment deadline. All hard copy
comments received by mail or hand
delivery are a part of the public record
and will be posted to https://
www.regulations.gov without change.
rljohnson on DSK3VPTVN1PROD with PROPOSALS
Note: To receive consideration as public
comments, comments must be submitted
through one of the two methods specified
above. Again, all submissions must refer to
the docket number and title of this
supplemental notice of proposed rulemaking.
No Facsimile Comments. Facsimile
(FAX) comments are not acceptable.
Public Inspection of Comments. All
comments submitted to HUD regarding
this supplemental notice of proposed
rulemaking 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 documents
must be scheduled by calling the
Regulation Division at 202–708–3055
(this is not a toll-free number). Copies
of all comments submitted will also be
available for inspection and
downloading at https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Camille Acevedo, Associate General
Counsel for Legislation and Regulations,
Office of General Counsel, Department
of Housing and Urban Development,
451 7th Street SW., Room 10282,
Washington, DC 20410; telephone
number 202–708–1793 (this is not a tollfree number). Individuals with hearingor speech-impairments may access this
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Jkt 235001
number via TTY by calling the toll-free
Federal Relay Service during working
hours at 1–800–877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
On July 19, 2013, at 78 FR 43709,
HUD published in the Federal Register
rulemaking that proposed a new fair
housing planning process to assist
program participants in carrying out
their duty to affirmatively further fair
housing, a duty required under the
authority of the Fair Housing Act (title
VIII of the Civil Rights Act of 1968, 42
U.S.C. 3601–3619).1 Section 808(e)(5) of
the Fair Housing Act (42 U.S.C.
3608(e)(5)) requires that HUD programs
and activities be administered in a
manner that affirmatively furthers the
policies of the Fair Housing Act. The
proposed rule presented a proposed
definition of the term ‘‘affirmatively
furthering fair housing’’ for purposes of
program participants’ planning
processes and an approach to fair
housing planning that HUD believes
would better aid program participants
fulfill their statutory obligation to
affirmatively further fair housing in
accordance with Fair Housing Act
requirements.
As noted in the Summary of this
supplemental notice of proposed
rulemaking, HUD received over 1,000
comments in response to the proposed
rule.2 While HUD continues to review
and consider the helpful and thoughtful
questions, recommendations, and
concerns raised by the public
commenters, this document seeks
comment on the limited issue of a
delayed submission of the first AFH for
certain entities.
As more fully discussed below, HUD
is considering providing a later
submission date for the first AFH to be
completed by qualified PHAs, and
entitlement jurisdictions that receive
small CDBG grants (as defined below),
States, and Insular Areas.
In the July 19, 2013, proposed rule,
HUD specifically sought public
comment on issues pertaining to the
subject matter of this document.
Question 12 of the proposed rule, at 78
FR 43724, solicited comment on
whether there are any AFH
requirements that should be modified
for States. Question 13 of the proposed
rule, at 78 FR 43724, solicited comment
on whether there are any AFH
1 The July 19, 2013, proposed rule can be found
at https://www.gpo.gov/fdsys/pkg/FR-2013-07-19/
pdf/2013-16751.pdf.
2 All public comments on HUD’s July 19, 2013,
proposed rule can be found at https://
www.regulations.gov/#!docketDetail;D=HUD-20130066.
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2063
requirements that should be modified
for small program participants, such as
small units of general local government
and small public housing agencies
(PHAs).
HUD appreciates the comments
specifically directed to these issues, and
solicits further comment on these issues
as modified and elaborated upon in this
supplemental notice of proposed
rulemaking.
II. Specific Requests for Comment—
Later AFH Submission Date for Certain
Entities
HUD takes the opportunity in this
document to assure all program
participants that HUD intends to
provide all program participants with
sufficient time to prepare and submit
their first AFH. HUD agrees with
commenters that not all program
participants are the same; that they vary
in such aspects as size, capacity, the
amount of HUD resources generally
received annually, the scope of
responsibilities under various HUD
programs; and any or all of such aspects
may factor in their ability to timely
respond to new regulatory requirements.
To address this concern, HUD is
considering providing the following
categories of program participants with
a later submission date for their first
AFH.
Along with the consideration to
provide certain entities additional time
to complete their AFHs, as described in
this supplemental notice of proposed
rulemaking, HUD is considering a
staggered AFH submission approach, as
recommended by many commenters.
States and Insular Areas: HUD
acknowledges the comments stating that
the AFH process proposed in the July
19, 2013, rulemaking is better suited for
local jurisdictions, and not States and
Insular Areas. In the 60-day notice on
the AFFH Assessment Tool that HUD
published in the Federal Register on
September 26, 2014, at 79 FR 57949, in
accordance with the Paperwork
Reduction Act, HUD advised that the
Assessment Tool that is the subject of
the 60-day notice is primarily designed
for use by entitlement jurisdictions,
other than States, and for joint
submissions by entitlement jurisdictions
and public housing agencies (PHAs).
(See 79 FR 57950–57951.) 3 The notice
also stated that HUD is considering
developing program participant-specific
Assessment Tools, such as one
specifically for States and Insular Areas,
3 HUD’s proposed Assessment Tool can be found
at https://www.gpo.gov/fdsys/pkg/FR-2014-09-26/
pdf/2014-22956.pdf, and the public comments can
be found at https://www.regulations.gov/
#!docketDetail;D=HUD-2014-0080.
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and that: ‘‘It is HUD’s intention to have
any program-participant-specific
Assessment Tools developed by HUD
available for public comment at the 30day notice required under the
Paperwork Reduction Act.’’
Upon further consideration, HUD has
decided to design a separate Assessment
Tool for States and Insular Areas. HUD
believes that a separate Assessment Tool
for States and Insular Areas would
address commenters’ concerns about the
AFH approach being better suited for
entitlement jurisdictions. This separate
Assessment Tool will not be provided
for public comment as part of the 30-day
notice for the Assessment Tool
presented in the September 26, 2014,
notice. Rather, HUD will have the
Assessment Tool for States and Insular
Areas separately undergo the full notice
and comment process (a 60-day notice
and a 30-day notice) under the
Paperwork Reduction Act.
Specific solicitation of comment #1:
HUD welcomes public comment on the
proposal to delay submission of the first
AFH for States and Insular Areas.
Qualified PHAs: HUD is also
considering delaying the date of
submission of the first AFH for PHAs
that meet the criteria of a ‘‘qualified
PHA,’’ as defined in section 2702 of title
VII of the Housing and Economic
Recovery Act (HERA).4 Section 2702 of
HERA defines ‘‘qualified PHA’’ as a
PHA: (1) For which the sum of (i) the
number of public housing dwelling
units administered by PHA, and (ii) the
number of vouchers under section 8(o)
of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)) administered
by the PHA is 550 or fewer; and (2) that
is not designated under section 6(j)(2) of
the United States Housing Act as a
troubled PHA, and does not have a
failing score under the Section 8
Management Assessment Program
during the prior 12 months. HUD
codified this statutory definition in its
regulations on Public Housing Agency
Plans at 24 CFR part 903, and the
definition of ‘‘qualified PHA’’ is found
at § 903.3(c).
HERA defined qualified PHAs to
exempt such PHAs, which are small
PHAs, from the burden of preparing and
submitting an annual PHA Plan. Given
that Congress has determined that
qualified PHAs should have reduced
administrative burdens, HUD believes it
is appropriate to provide these agencies
with more time to submit their first
AFH.
Specific solicitation of comment #2:
HUD seeks comment on a delayed
4 Public Law 110–289, 122 Stat. 2654, approved
July 30, 2008, see 122 Stat 2863.
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submission date of the first AFH due for
qualified PHAs.
Entitlement Jurisdictions Receiving
Small CDBG Grants (Grants of
Approximately $350,000 or Less): In
addition to recognizing the burdens
faced by small entities, such as small
PHAs, HUD recognizes that the amount
of HUD funding that many entitlement
jurisdictions receive is not substantial.
HUD has discussed the challenges faced
by entitlement jurisdictions receiving
small CDBG grants in HUD’s
Congressional Justifications (CJ)
provided for Fiscal Years 2014 and
2013.5
In the two CJs, HUD discussed that
the median CDBG grant size for
entitlement communities in FY 2012
was just under $800,000, but that almost
15 percent of CDBG entitlement grantees
received an allocation of less than
$300,000 in 2012. HUD advised that
given the very limited amount of money
the grantees can use for planning and
administrative costs ($60,000 for a
$300,000 grant), HUD expressed
concern about the ability of grantees to
effectively sustain their programs with
such small dollar-amount grants. In
response to such concern and in order
to assist entitlement jurisdictions
receiving small CDBG grants, in October
4, 2012, HUD hosted a webinar for
‘‘Small Grantees (CDBG Grantee <
$350,000 Per Year).’’ The purpose of the
webinar was to invite small CDBG
grantees to express their concerns, and
to address certain topics posed by
HUD.6
Although the focus in the CJs and the
webinar have been on dollar amounts in
the range of $300,000 to $350,000, HUD
proposes that delineation of which
entitlement jurisdictions are defined as
those receiving small CDBG grants
should be based on a percentage of the
CDBG formula appropriation, and HUD
proposed such delineation in the FY
2014 CJ. HUD proposed to establish a
minimum grant threshold of 0.0125
percent of the CDBG formula
appropriation amount in order for a
jurisdiction to receive a direct CDBG
entitlement allocation. HUD stated that
based on the requested funding level of
$2.798 billion in FY 2014, and
jurisdictions that received fiscal year
2012 CDBG entitlement allocations,
HUD estimated that 239 local
governments would fall below the
0.0125 percent minimum grant
threshold ($348,875). The percentage
proposed by HUD in the FY 2014 CJ,
reaches the same result as a dollar
threshold, approximately $350,000, but
is a better measure of a small grant that
a strict dollar amount threshold.
Accordingly, HUD is proposing that
entitlement jurisdictions receiving a
grant of 0.0125 of the CDBG formula
appropriation or less are designated as
small CDBG grantees and, similar to
qualified PHAs, HUD would delay the
submission date of the first AFFH by
small CDBG grantees.
Specific solicitation of comment #3:
HUD seeks comment on whether the
proposed percentage of 0.0125 of the
CDBG formula appropriation is an
appropriate threshold to set for
entitlement jurisdictions that would be
provided a later first AFH submission
date. HUD welcomes any alternative
thresholds that would better capture
those entitlement jurisdictions that have
capacity challenges. HUD asks that
commenters offering alternative
thresholds explain the basis for any
alternative threshold suggested.
III. Solicitation of Comment Only on
Delayed Submission of First AFH
This solicitation of public comment is
solely on the specific questions
pertaining to whether there should be a
delayed submission date for certain
entities as provided in this
supplemental notice of proposed
rulemaking. This notice is not reopening public comment on any other
issues related to HUD’s July 19, 2013,
proposed rule, and HUD will not review
or consider public comments that
address issues other than the specific
questions in this document directed to
delayed submission of the first AFH.
Dated: January 9, 2015.
Camille E. Acevedo,
Associate General Counsel for Legislation and
Regulations.
[FR Doc. 2015–00468 Filed 1–14–15; 8:45 am]
BILLING CODE 4210–67–P
5 See pages P–15 and P–16 for FY 2013 CJ at
https://portal.hud.gov/hudportal/documents/
huddoc?id=CommunityDevelopmentFund.pdf; and
page Q24 of the FY 2014 CJ at https://portal.hud.gov/
hudportal/documents/
huddoc?id=COMDEVFUND.pdf.
6 See https://www.hudexchange.info/trainingevents/courses/moving-cdbg-forward-smallgrantees-cdbg-grant—350-000-per-year-webinar/.
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Agencies
[Federal Register Volume 80, Number 10 (Thursday, January 15, 2015)]
[Proposed Rules]
[Pages 2062-2064]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-00468]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 5
[Docket No. FR-5173-N-03]
Affirmatively Furthering Fair Housing: Re-Opening Public Comment
Period on Subject of Later First AFH Submission Date for Certain
Entities
AGENCY: Office of General Counsel, HUD.
ACTION: Proposed rule; re-opening of comment period for a specific
topic.
-----------------------------------------------------------------------
SUMMARY: On July 19, 2013, HUD published a proposed rule on
Affirmatively Furthering Fair Housing. The comment period for the
proposed rule closed on September 17, 2013. HUD received over 1,000
public comments in response to the proposed rule. While many commenters
expressed outright support for HUD's proposal, and other commenters
expressed outright opposition, the majority of the commenters provided
valuable feedback and suggestions on HUD's proposal.
One area of concern expressed by many commenters was the ability of
program participants, those that are small or those that receive small
grants or allocations of HUD funds, to prepare and submit the
Assessment of Fair Housing (AFH) in accordance with the process set out
in HUD's proposed rule, and by the proposed submission deadline.
Commenters comprised of State jurisdictions or their representatives
also expressed concern about the ability to complete an AFH, which they
commented did not take into consideration the unique role of States.
These commenters stated that HUD's proposed AFH was tailored to
entitlement jurisdictions.
In response to these comments, HUD is considering providing certain
HUD program participants--States, Insular Areas, qualified PHAs,
jurisdictions receiving a small Community Development Block (CDBG)
grant (which is based on a percentage of the CDBG formula
appropriation, as described in this notice)--with the option of
submitting their first AFH at a date later than would otherwise be
required for program participants that are not States or Insular Areas,
not qualified PHAs, and are not grantees receiving a small CDBG grant,
as proposed to be defined in this notice.
This supplemental notice of proposed rulemaking therefore re-opens
the public comment period on the Affirmatively Furthering Fair Housing
proposed rule for an additional 30 days solely to seek comment on these
specific issues. HUD is not soliciting comment on any other issues
related to HUD's July 19, 2013, proposed rule.
DATES: The comment period for a specific topic in the proposed rule
published on July 19, 2013 (78 FR 43709), is re-opened. The due date
for comments discussed in this supplemental notice of proposed
rulemaking is February 17, 2015.
ADDRESSES: Interested persons are invited to submit comments responsive
to this request for information to the Regulations Division, Office of
General Counsel, Department of Housing and Urban Development, 451 7th
Street SW., Room 10276, Washington, DC 20410-7000. Communications must
refer to the above docket number and title and should contain the
information specified in the ``Request for Comments'' of this
supplemental notice of proposed rulemaking.
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
[[Page 2063]]
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make them immediately available to
the public. Comments submitted electronically through the https://www.regulations.gov Web site can be viewed by interested members of the
public. Commenters should follow instructions provided on that site to
submit comments electronically.
Submission of Hard Copy Comments. Comments may be submitted by mail
or hand delivery. To ensure that the information is fully considered by
all of the reviewers, each commenter submitting hard copy comments, by
mail or hand delivery, should submit comments or requests to the
address above, addressed to the attention of the Regulations Division.
Due to security measures at all federal agencies, submission of
comments or requests by mail often result in delayed delivery. To
ensure timely receipt of comments, HUD recommends that any comments
submitted by mail be submitted at least 2 weeks in advance of the
public comment deadline. All hard copy comments received by mail or
hand delivery are a part of the public record and will be posted to
https://www.regulations.gov without change.
Note: To receive consideration as public comments, comments
must be submitted through one of the two methods specified above.
Again, all submissions must refer to the docket number and title of
this supplemental notice of proposed rulemaking.
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
Public Inspection of Comments. All comments submitted to HUD
regarding this supplemental notice of proposed rulemaking 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
documents must be scheduled by calling the Regulation Division at 202-
708-3055 (this is not a toll-free number). Copies of all comments
submitted will also be available for inspection and downloading at
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Camille Acevedo, Associate General
Counsel for Legislation and Regulations, Office of General Counsel,
Department of Housing and Urban Development, 451 7th Street SW., Room
10282, Washington, DC 20410; telephone number 202-708-1793 (this is not
a toll-free number). Individuals with hearing- or speech-impairments
may access this number via TTY by calling the toll-free Federal Relay
Service during working hours at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On July 19, 2013, at 78 FR 43709, HUD published in the Federal
Register rulemaking that proposed a new fair housing planning process
to assist program participants in carrying out their duty to
affirmatively further fair housing, a duty required under the authority
of the Fair Housing Act (title VIII of the Civil Rights Act of 1968, 42
U.S.C. 3601-3619).\1\ Section 808(e)(5) of the Fair Housing Act (42
U.S.C. 3608(e)(5)) requires that HUD programs and activities be
administered in a manner that affirmatively furthers the policies of
the Fair Housing Act. The proposed rule presented a proposed definition
of the term ``affirmatively furthering fair housing'' for purposes of
program participants' planning processes and an approach to fair
housing planning that HUD believes would better aid program
participants fulfill their statutory obligation to affirmatively
further fair housing in accordance with Fair Housing Act requirements.
---------------------------------------------------------------------------
\1\ The July 19, 2013, proposed rule can be found at https://www.gpo.gov/fdsys/pkg/FR-2013-07-19/pdf/2013-16751.pdf.
---------------------------------------------------------------------------
As noted in the Summary of this supplemental notice of proposed
rulemaking, HUD received over 1,000 comments in response to the
proposed rule.\2\ While HUD continues to review and consider the
helpful and thoughtful questions, recommendations, and concerns raised
by the public commenters, this document seeks comment on the limited
issue of a delayed submission of the first AFH for certain entities.
---------------------------------------------------------------------------
\2\ All public comments on HUD's July 19, 2013, proposed rule
can be found at https://www.regulations.gov/#!docketDetail;D=HUD-
2013-0066.
---------------------------------------------------------------------------
As more fully discussed below, HUD is considering providing a later
submission date for the first AFH to be completed by qualified PHAs,
and entitlement jurisdictions that receive small CDBG grants (as
defined below), States, and Insular Areas.
In the July 19, 2013, proposed rule, HUD specifically sought public
comment on issues pertaining to the subject matter of this document.
Question 12 of the proposed rule, at 78 FR 43724, solicited comment on
whether there are any AFH requirements that should be modified for
States. Question 13 of the proposed rule, at 78 FR 43724, solicited
comment on whether there are any AFH requirements that should be
modified for small program participants, such as small units of general
local government and small public housing agencies (PHAs).
HUD appreciates the comments specifically directed to these issues,
and solicits further comment on these issues as modified and elaborated
upon in this supplemental notice of proposed rulemaking.
II. Specific Requests for Comment--Later AFH Submission Date for
Certain Entities
HUD takes the opportunity in this document to assure all program
participants that HUD intends to provide all program participants with
sufficient time to prepare and submit their first AFH. HUD agrees with
commenters that not all program participants are the same; that they
vary in such aspects as size, capacity, the amount of HUD resources
generally received annually, the scope of responsibilities under
various HUD programs; and any or all of such aspects may factor in
their ability to timely respond to new regulatory requirements. To
address this concern, HUD is considering providing the following
categories of program participants with a later submission date for
their first AFH.
Along with the consideration to provide certain entities additional
time to complete their AFHs, as described in this supplemental notice
of proposed rulemaking, HUD is considering a staggered AFH submission
approach, as recommended by many commenters.
States and Insular Areas: HUD acknowledges the comments stating
that the AFH process proposed in the July 19, 2013, rulemaking is
better suited for local jurisdictions, and not States and Insular
Areas. In the 60-day notice on the AFFH Assessment Tool that HUD
published in the Federal Register on September 26, 2014, at 79 FR
57949, in accordance with the Paperwork Reduction Act, HUD advised that
the Assessment Tool that is the subject of the 60-day notice is
primarily designed for use by entitlement jurisdictions, other than
States, and for joint submissions by entitlement jurisdictions and
public housing agencies (PHAs). (See 79 FR 57950-57951.) \3\ The notice
also stated that HUD is considering developing program participant-
specific Assessment Tools, such as one specifically for States and
Insular Areas,
[[Page 2064]]
and that: ``It is HUD's intention to have any program-participant-
specific Assessment Tools developed by HUD available for public comment
at the 30-day notice required under the Paperwork Reduction Act.''
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\3\ HUD's proposed Assessment Tool can be found at https://www.gpo.gov/fdsys/pkg/FR-2014-09-26/pdf/2014-22956.pdf, and the
public comments can be found at https://www.regulations.gov/#!docketDetail;D=HUD-2014-0080.
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Upon further consideration, HUD has decided to design a separate
Assessment Tool for States and Insular Areas. HUD believes that a
separate Assessment Tool for States and Insular Areas would address
commenters' concerns about the AFH approach being better suited for
entitlement jurisdictions. This separate Assessment Tool will not be
provided for public comment as part of the 30-day notice for the
Assessment Tool presented in the September 26, 2014, notice. Rather,
HUD will have the Assessment Tool for States and Insular Areas
separately undergo the full notice and comment process (a 60-day notice
and a 30-day notice) under the Paperwork Reduction Act.
Specific solicitation of comment #1: HUD welcomes public comment on
the proposal to delay submission of the first AFH for States and
Insular Areas.
Qualified PHAs: HUD is also considering delaying the date of
submission of the first AFH for PHAs that meet the criteria of a
``qualified PHA,'' as defined in section 2702 of title VII of the
Housing and Economic Recovery Act (HERA).\4\ Section 2702 of HERA
defines ``qualified PHA'' as a PHA: (1) For which the sum of (i) the
number of public housing dwelling units administered by PHA, and (ii)
the number of vouchers under section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)) administered by the PHA is 550 or
fewer; and (2) that is not designated under section 6(j)(2) of the
United States Housing Act as a troubled PHA, and does not have a
failing score under the Section 8 Management Assessment Program during
the prior 12 months. HUD codified this statutory definition in its
regulations on Public Housing Agency Plans at 24 CFR part 903, and the
definition of ``qualified PHA'' is found at Sec. 903.3(c).
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\4\ Public Law 110-289, 122 Stat. 2654, approved July 30, 2008,
see 122 Stat 2863.
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HERA defined qualified PHAs to exempt such PHAs, which are small
PHAs, from the burden of preparing and submitting an annual PHA Plan.
Given that Congress has determined that qualified PHAs should have
reduced administrative burdens, HUD believes it is appropriate to
provide these agencies with more time to submit their first AFH.
Specific solicitation of comment #2: HUD seeks comment on a delayed
submission date of the first AFH due for qualified PHAs.
Entitlement Jurisdictions Receiving Small CDBG Grants (Grants of
Approximately $350,000 or Less): In addition to recognizing the burdens
faced by small entities, such as small PHAs, HUD recognizes that the
amount of HUD funding that many entitlement jurisdictions receive is
not substantial. HUD has discussed the challenges faced by entitlement
jurisdictions receiving small CDBG grants in HUD's Congressional
Justifications (CJ) provided for Fiscal Years 2014 and 2013.\5\
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\5\ See pages P-15 and P-16 for FY 2013 CJ at https://portal.hud.gov/hudportal/documents/huddoc?id=CommunityDevelopmentFund.pdf; and page Q24 of the FY 2014
CJ at https://portal.hud.gov/hudportal/documents/huddoc?id=COMDEVFUND.pdf.
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In the two CJs, HUD discussed that the median CDBG grant size for
entitlement communities in FY 2012 was just under $800,000, but that
almost 15 percent of CDBG entitlement grantees received an allocation
of less than $300,000 in 2012. HUD advised that given the very limited
amount of money the grantees can use for planning and administrative
costs ($60,000 for a $300,000 grant), HUD expressed concern about the
ability of grantees to effectively sustain their programs with such
small dollar-amount grants. In response to such concern and in order to
assist entitlement jurisdictions receiving small CDBG grants, in
October 4, 2012, HUD hosted a webinar for ``Small Grantees (CDBG
Grantee < $350,000 Per Year).'' The purpose of the webinar was to
invite small CDBG grantees to express their concerns, and to address
certain topics posed by HUD.\6\
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\6\ See https://www.hudexchange.info/training-events/courses/
moving-cdbg-forward-small-grantees-cdbg-grant--350-000-per-year-
webinar/.
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Although the focus in the CJs and the webinar have been on dollar
amounts in the range of $300,000 to $350,000, HUD proposes that
delineation of which entitlement jurisdictions are defined as those
receiving small CDBG grants should be based on a percentage of the CDBG
formula appropriation, and HUD proposed such delineation in the FY 2014
CJ. HUD proposed to establish a minimum grant threshold of 0.0125
percent of the CDBG formula appropriation amount in order for a
jurisdiction to receive a direct CDBG entitlement allocation. HUD
stated that based on the requested funding level of $2.798 billion in
FY 2014, and jurisdictions that received fiscal year 2012 CDBG
entitlement allocations, HUD estimated that 239 local governments would
fall below the 0.0125 percent minimum grant threshold ($348,875). The
percentage proposed by HUD in the FY 2014 CJ, reaches the same result
as a dollar threshold, approximately $350,000, but is a better measure
of a small grant that a strict dollar amount threshold. Accordingly,
HUD is proposing that entitlement jurisdictions receiving a grant of
0.0125 of the CDBG formula appropriation or less are designated as
small CDBG grantees and, similar to qualified PHAs, HUD would delay the
submission date of the first AFFH by small CDBG grantees.
Specific solicitation of comment #3: HUD seeks comment on whether
the proposed percentage of 0.0125 of the CDBG formula appropriation is
an appropriate threshold to set for entitlement jurisdictions that
would be provided a later first AFH submission date. HUD welcomes any
alternative thresholds that would better capture those entitlement
jurisdictions that have capacity challenges. HUD asks that commenters
offering alternative thresholds explain the basis for any alternative
threshold suggested.
III. Solicitation of Comment Only on Delayed Submission of First AFH
This solicitation of public comment is solely on the specific
questions pertaining to whether there should be a delayed submission
date for certain entities as provided in this supplemental notice of
proposed rulemaking. This notice is not re-opening public comment on
any other issues related to HUD's July 19, 2013, proposed rule, and HUD
will not review or consider public comments that address issues other
than the specific questions in this document directed to delayed
submission of the first AFH.
Dated: January 9, 2015.
Camille E. Acevedo,
Associate General Counsel for Legislation and Regulations.
[FR Doc. 2015-00468 Filed 1-14-15; 8:45 am]
BILLING CODE 4210-67-P