Implementing Executive Order 13992, Revocation of Certain Executive Orders Concerning Federal Regulation, 35391-35396 [2021-14019]
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Federal Register / Vol. 86, No. 126 / Tuesday, July 6, 2021 / Rules and Regulations
PART 744—[AMENDED]
1. The authority citation for 15 CFR
part 744 continues to read as follows:
■
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201
et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR
20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994
Comp., p. 950; E.O. 13026, 61 FR 58767, 3
Country
CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR
45167, 3 CFR, 1998 Comp., p. 208; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001
Comp., p. 786; Notice of September 18, 2020,
85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November
13, 2020).
2. Supplement No. 4 to part 744 is
amended under BURMA by:
■ a. Adding in alphabetical order an
entry for ‘‘King Royal Technologies Co.,
Ltd.’’;
■
License
requirement
Entity
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BURMA ............
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Corner of Ahlone Road and Strand
Road, Ahlone Township, Yangon,
Burma.
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Myanmar Wanbao Mining Copper, Ltd.,
Yangon Office 70 (I)Bo Chein Street
Pyay
Road,
Hlaing
Township,
Yangon, Burma.
Myanmar Yang Tse Copper, Ltd., 70/I,
Bo Chein St., Ward (11), Hlaing,
Yangon, Burma.
Wanbao Mining, Ltd., 70 Bo Chain Ln,
Yangon, Burma.
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Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 2021–14367 Filed 7–2–21; 8:45 am]
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All items subject to the
EAR. (See § 744.11 of
the EAR).
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86 FR [INSERT FR PAGE
NUMBER AND July 6,
2021].
All items subject to the
EAR. (See § 744.11 of
the EAR).
All items subject to the
EAR. (See § 744.11 of
the EAR).
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24 CFR Part 11
[Docket No. FR–6192–F–02]
Office of General Counsel,
Final rule.
On November 10, 2020, the
U.S. Department of Housing and Urban
Development (HUD, or the Department)
published an interim final rule that
implemented Executive Order 13891,
‘‘Promoting the Rule of Law Through
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86 FR 13180, 3/8/2021.
86 FR [INSERT FR
PAGE NUMBER AND
July 6, 2021].
SUMMARY:
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Federal Register
citation
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HUD.
17:33 Jul 02, 2021
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For all items subject to
the EAR. (See § 744.11
of the EAR).
Implementing Executive Order 13992,
Revocation of Certain Executive
Orders Concerning Federal Regulation
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86 FR [INSERT FR PAGE
NUMBER AND July 6,
2021].
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
ACTION:
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Presumption of denial ......
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AGENCY:
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RIN 2501–AD93
BILLING CODE 3510–33–P
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All items subject to the
EAR. (See § 744.11 of
the EAR).
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Supplement No. 4 to Part 744—Entity
List
License review policy
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King Royal Technologies Co., Ltd.,
a.k.a., the following one alias:
—KRT.
4, Min Dhama Rd., Shwe Gabar 6th St,
Shwe Gabar Housing, Mayangone,
Yangon , Burma; and
Room 4 Shwe Gabar 6th Yangon,
Burma.
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Myanmar Economic Corporation, a.k.a.,
the following one alias:
—MEC.
b. Revising the listing for ‘‘Myanmar
Economic Corporation’’; and
■ c. Adding in alphabetical order entries
for ‘‘Myanmar Wanbao Mining Copper,
Ltd.,’’ ‘‘Myanmar Yang Tse Copper,
Ltd.,’’ and ‘‘Wanbao Mining, Ltd.’’.
The additions and revision read as
follows:
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Improved Agency Guidance
Documents.’’ This order required
Federal agencies to publish regulations
to codify processes and procedures for
issuing guidance documents. HUD
created new regulations that outlined
HUD policy and procedures for issuing
guidance documents. On January 20,
2021, President Biden issued Executive
Order 13992, ‘‘Revocation of Certain
Executive Orders Concerning Federal
Regulation’’ which, among other things,
revoked Executive Order 13891. After
considering the public comments HUD
received in response to its interim final
rule and given the revocation of
Executive Order 13891, this final rule
removes the regulations HUD created in
January.
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DATES:
Federal Register / Vol. 86, No. 126 / Tuesday, July 6, 2021 / Rules and Regulations
Effective August 5, 2021.
FOR FURTHER INFORMATION CONTACT:
Aaron Santa Anna, Associate General
Counsel, Office of Legislation and
Regulations, Office of General Counsel,
Department of Housing and Urban
Development, 451 Seventh Street SW,
Room 10282, Washington, DC 20410–
5000; telephone (202) 402–5300 (this is
not a toll-free telephone number).
Persons with hearing or speech
impairments may access this number
via TTY by calling the toll-free Federal
Information Relay Service at 1–800–
877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
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A. Executive Order 13891 on Promoting
the Rule of Law Through Improved
Agency Guidance Documents
On October 9, 2019 (84 FR 55235), the
President issued Executive Order (E.O.)
13891, ‘‘Promoting the Rule of Law
Through Improved Agency Guidance
Documents.’’ E.O. 13891 recognized that
the Administrative Procedure Act (5
U.S.C. 551–559) (APA) exempts
‘‘interpretive rules, general statements
of policy, or rules of agency
organization, procedure or practice,’’
except when required by statute, from
the notice and comment requirements
for rulemaking. (5 U.S.C. 553(b)). E.O.
13891 stated, however, that, in the view
of the last administration, agencies have
sometimes used this authority to issue
guidance documents that regulate the
public without following the notice and
comment rulemaking procedures of the
APA. As a result, E.O. 13891 required
Federal agencies to issue regulations to
codify processes and procedures for
issuing guidance documents. Among
other things, E.O. 13891 required that
agency regulations establish procedures
for modifying, withdrawing, and using
guidance documents, including
requiring notice and comment for
significant guidance documents, and
taking and responding to petitions from
the public for withdrawal or
modification of a particular guidance
document.
B. HUD’s Interim Final Rule
In response to E.O. 13891, HUD
published an interim final rule on
November 10, 2020 (85 FR 71537) that
established a new part 11 in title 24 of
the CFR. The new part 11 required HUD
to follow certain procedures in issuing
guidance documents. These procedures
included: Establishing a single agency
website where the public can find all
HUD guidance in effect; OMB review of
significant guidance; public comment
on significant guidance; and a
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procedure for the public to request
withdrawal or modification of a
guidance document. In issuing its
interim final rule, HUD determined that
good cause existed to omit advanced
public comment because the rule was
limited to internal HUD procedures and
did not impose new requirements on
members of the public. The rule took
effect on December 10, 2020.
Although HUD determined that good
cause existed to publish its interim final
rule prior to soliciting public comment,
HUD provided for a 60-day public
comment period. In response to its
interim final rule, HUD received seven
public comments which were mostly
critical of, or recommended significant
changes to, the interim final rule. A
summary of these comments and HUD’s
responses to them are provided in
Section III of this document.
C. Executive Order on Revocation of
Certain Executive Orders Concerning
Federal Regulation of January 20, 2021
On January 20, 2021, President Biden
issued E.O. 13992, ‘‘Executive Order on
Revocation of Certain Executive Orders
Concerning Federal Regulation,’’ which
among other things, revoked E.O. 13891.
E.O. 13992 also directed agencies to
promptly take steps to rescind any
orders, rules, regulations, guidelines, or
policies, or portions thereof that
implemented or enforced the Executive
Orders revoked. E.O. 13992 states, ‘‘It is
the policy of [the] Administration to use
available tools to confront the urgent
challenges facing the Nation, including
the coronavirus disease 2019 (COVID–
19) pandemic, economic recovery, racial
justice, and climate change. To tackle
these challenges effectively, executive
departments and agencies (agencies)
must be equipped with the flexibility to
use robust regulatory action to address
national priorities. This order revokes
harmful policies and directives that
threaten to frustrate the Federal
Government’s ability to confront these
problems and empowers agencies to use
appropriate regulatory tools to achieve
these goals.’’
II. This Final Rule
Given the revocation of E.O. 13891,
and after considering the public
comments HUD received in response to
the interim final rule, HUD has decided
to remove 24 CFR part 11. In reaching
this conclusion, HUD concluded that
the interim final rule deprives HUD of
necessary flexibility to determine when
and how to best issue guidance
documents based on particular facts and
circumstances, and unduly restricts
HUD’s ability to provide timely
guidance on which the public can
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confidently rely. Notwithstanding this
determination, HUD takes the
opportunity in this rule to respond to
public comments received in response
to its interim final rule.
III. The Public Comments
The comment period for HUD’s
interim final rule closed on January 11,
2021. HUD received seven public
comments from various housing policy
and legal interest groups, a law firm,
and two public housing agencies
(PHAs). HUD appreciates the time that
commenters took to review its interim
final rule and provide helpful
information and valuable comments and
recommendations.
The Comments Generally
Most commenters opposed the
interim final rule and urged HUD to
withdraw or rescind the rule and
‘‘abandon’’ codification of 24 CFR part
11. Most commenters stated that HUD
should encourage the facilitation and
dissemination of guidance, particularly
given the urgent need for federal
response to current crises, such as the
COVID–19 pandemic and lack of
affordable housing, and housing
discrimination. These commenters
stated that the rule would make it more
difficult for HUD to quickly respond to
these crises and fulfill its mission of
creating strong, sustainable, inclusive
communities.
A majority of the commenters also
thought that the rule would create
confusion among HUD stakeholders and
the public. Commenters stated that the
interim final rule ‘‘would have a
negative impact on the successful
administration of HUD’s programs,’’ and
would ‘‘significantly delay each
program office’s ability to be responsive
to emergencies and emerging questions
and issues and increase the workload
for HUD.’’ Commenters also warned that
the burdens and delays imposed by the
interim final rule would negatively
impact the ability of stakeholders such
as PHAs, tenants, and advocacy groups
to carry out their respective missions
and may subject their programs to
litigation.
Two commenters generally supported
the interim final rule but offered
recommendations for significant
changes, such as expanding it to provide
the public an opportunity to request the
issuance of new guidance or the
reinstatement of rescinded guidance.
One commenter recommended that
HUD include an explicit judicial review
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provision to make it clear when review
of a document becomes final to permit
an interested party to seek redress from
the courts.
Comment: The Interim final rule’s
procedural requirements will delay the
issuance of guidance and limit HUD’s
flexibility in issuing guidance.
Commenters expressed concern with
the review of HUD guidance by the
Office of Information and Regulatory
Affairs (OIRA) and the need for HUD to
receive and review public comments on
significant guidance. One commenter
stated that OIRA is a small office with
a heavy workload that is slow to
formally review proposed and final
rules submitted by HUD. The
commenter stated that adding the
review of many HUD guidance
documents to OIRA’s workload would
cause significant delays in the issuance
of both HUD’s guidance documents and
its rules issued under the
Administrative Procedure Act. Another
commenter stated that ‘‘applying such
procedures to sub-regulatory guidance
creates unnecessary and burdensome
bureaucracy.’’ Other commenters said
that the review, approval, and signature
process for significant guidance ‘‘would
hamper [HUD’s] ability to act nimbly to
issue guidance on key issues.’’ Finally,
one commenter noted that the rule
would not only delay, but ultimately
prevent, the dissemination of guidance.
Commenters also stated that allowing
petitions to modify or rescind guidance
documents and the requirement for
HUD to respond to each petition in
writing, would drain scarce agency
resources and hamper HUD’s ability to
issue important guidance. One
commenter stated that the process of
permitting HUD to issue a coordinated
response to similar petitions is
insufficient to address delay issues. The
commenter further said that HUD would
be ‘‘doing the work’’ for petitioners with
inadequate submissions ‘‘by laying out
a roadmap and effectively crafting
arguments for petitioners to have their
petitions successfully adjudicated.’’
Another commenter added that the
‘‘petition mechanism will likely confuse
funding recipients,’’ which in turn
would create more work for HUD staff
and delay day-to-day programmatic
decision-making. The commenter also
noted that ‘‘the interim final rule will
strip authority from the career experts
who normally develop guidance . . .
and place day-to-day decisions directly
into the hands of non-experts’’.
HUD Response: HUD agrees that the
timely dissemination of guidance
documents is important to the
successful administration and
consistent implementation of its
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programs. In support of this policy,
HUD must have flexibility to quickly
issue guidance to further the
implementation of HUD’s programs
without additional barriers. As
commenters noted, applying the notice
and comment process to significant
guidance documents would
unnecessarily detract from HUD’s
ability to respond to the needs of its
stakeholders and adversely impact its
ability to issue regulations under the
APA by diverting HUD and OMB
resources away from rulemaking
processes. In addition, HUD currently
seeks input from the public on many of
its guidance documents and often issues
guidance documents in response to such
input and frequently asked questions.
Similarly, HUD agrees that the petition
process would cause delay in HUD’s
ability to disseminate guidance
documents. Furthermore, HUD agrees
that there is no need to codify such a
requirement because HUD can and does
already receive requests from the public
which it considers when issuing,
updating, and rescinding guidance.
Comment: The ambiguity of the terms
used in the interim final rule make the
scope of the rule unclear.
Commenters stated that the interim
final rule lacks clarity, uses ambiguous
terms, and creates general
implementation issues. Many
commenters stated that the interim final
rule does not provide clear definitions
and does not clarify which types of
communication are subject to the rule.
For example, commenters noted that the
interim final rule’s definition of what
constitutes ‘‘guidance’’ is vague and
makes the scope of the rule unclear. One
commenter noted that the definition of
‘‘guidance’’ could be read broadly
enough to include ‘‘virtually all written
communications HUD delivers to
stakeholders.’’
One commenter found the definition
of guidance lacking and recommended
that legal opinions directed to parties
about circumstance-specific questions
and Notices of Funding Availability
(NOFAs) 1 be added to the definition of
guidance documents. The commenter
suggested that legal opinions are helpful
to more than a single PHA facing similar
factual scenarios.
Commenters also stated that the
definition of ‘‘significant guidance’’ is
1 HUD currently uses the term Notices of Funding
Opportunity or ‘‘NOFO’’ for documents that would
previously have been referred to as NOFAs. This
change is based on the terminology used in Office
of Management and Budget Management in its
Guidance for Grants and Agreements (85 FR 49506,
August 13, 2020). However, following the
terminology used in the public comments, this
document uses the term ‘‘NOFA’’ throughout.
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unclear, overly broad, and susceptible to
variance. One commenter stated that
terms used in the definition of
‘‘significant guidance,’’ such as ‘‘serious
inconsistency’’ or ‘‘interference’’ with
another agency, are so vague that ‘‘if
[the interim final rule is] interpreted
broadly, nearly every piece of guidance
not explicitly exempted from being
considered significant guidance will be
subject to the burdensome OIRA review
and public comment process.’’ The
commenter also noted the lack of
explanation for how economic impact
analyses would be conducted for
significant guidance, and the apparent
lack of public access to such analyses.
HUD Response: HUD agrees that the
terms and definitions used by the
interim final rule lack clarity and could
lead to confusion and inconsistent
implementation of HUD’s programs.
HUD appreciates the commenters’
recommendations regarding legal
opinions, but each legal opinion is
party- and fact-specific, and HUD does
not believe that they can be made
generally applicable to other similarly
situated parties. As for the NOFA
process, PHAs and other entities are
permitted to follow-up with HUD with
questions regarding NOFAs and provide
feedback for future NOFAs regardless of
the language in part 11.
Lastly, HUD agrees with public
commenters that the definitions of
‘‘guidance’’ and ‘‘significant guidance’’
could be interpreted broadly and doing
so would make issuing guidance
challenging. HUD notes that the
definition of ‘‘significant guidance’’
incorporated in the interim final rule
mirrors the definition in E.O. 12866
(Regulatory Planning and Review) for
‘‘significant regulatory action’’ and
includes ‘‘novel legal or policy issues’’
which challenges articulating a specific
definition. Notwithstanding, the
requirement that HUD provide an
economic analysis for guidance that
rises to the level of ‘‘significant
regulatory action’’ creates additional
challenges to the Department’s ability to
timely issue guidance and outweighs
any benefit resulting from the interim
final rule.
Comment: The interim final rule
creates uncertainty.
Commenters stated that the
uncertainty created by the interim final
rule would negatively affect HUD
constituencies that routinely rely on
HUD guidance, including tenants,
advocates, owners, vulnerable
populations, and PHAs. One commenter
stated that HUD guidance is
undermined by the provision noting
that ‘‘the authority is nonbinding and
unenforceable.’’ The commenter stated
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that the interim final rule would
ultimately lead to inconsistent
interpretations of HUD guidance
because the provision negates the
purpose of issued guidance ‘‘by inviting
PHAs and owners to ignore it.’’ Another
commenter stated that if a guidance
document, which PHAs have routinely
incorporated into their policies for
decades, is determined to have no legal
effect or rescinded, PHAs will find
themselves ‘‘in limbo’’ with no new
replacement guidance.
One commenter stated that the
interim final rule may adversely impact
vulnerable populations and encourage
discriminatory policies. For example,
survivors of domestic violence, sexual
assault, and stalking would be left
without access to certain remedies and
procedures established under guidance
(but not mentioned in statutes or
regulations). According to the
commenter, ignoring guidance on
emergency transfers leaves ‘‘survivors
without a clear path to obtaining an
emergency transfer, leaving them in
unsafe situations for longer periods of
time.’’ The commenter also stated, by
way of example, that ‘‘people with
disabilities rely on HUD guidance to
determine where they can live with
their assistance or emotional support
animals’’ and provide people with
disabilities a ‘‘greater security when
confronting housing discrimination.’’ A
commenter further asserted that ‘‘by
suggesting that PHAs or owners ignore
HUD guidance, HUD encourages
discriminatory policies against tenants
with disabilities who need
accommodations.’’
Several commenters stated that the
process for public petition would
reduce reliance on guidance documents
because it permits repeated requests for
recission of certain documents, and
‘‘create[s] a constant and ongoing state
of uncertainty about whether the
guidance will continue in effect or be
withdrawn or modified pursuant to a
petition from the public.’’ Other
commenters stated that it is not clear
how the review of a petition would
operate or what remedies would be
available if the public disagrees with a
determination made by HUD in
response to a petition.
One commenter focused on several
other aspects of the interim final rule
that the commenter said are unclear,
including the ‘‘description of the public
participation requirement;’’ whether any
exceptions to OIRA review under § 11.8
apply; how these exceptions interact
with § 11.3(b); and the implications of
the interim final rule on joint agency
guidance. For the public participation
requirement, the commenter referred to
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§ 11.6(b), and stated that stakeholders
cannot discern ‘‘when HUD is soliciting
public input on potential significant
guidance.’’ Another commenter stated
that the applicability of the good cause
exception is unclear.
One commenter stated that under the
interim final rule, it is unclear how
HUD would notify the public when
significant guidance documents are
available for comment, for example,
whether HUD would publish the
significant guidance documents in the
Federal Register or post an open letter
on its website. The commenter
requested that HUD explain how it
would choose between outreach
methods.
Commenters also stated that the
interim final rule lacked clarity as to
whether it applies to guidance
retroactively and sought clarification on
whether existing guidance documents
remain in effect. One commenter
recommended that the scope of the
interim final rule be limited to future
guidance and allow current guidance to
remain in place until the issuance of
newly issued guidance documents.
HUD Response: HUD agrees that the
processes outlined in the interim final
rule lack clarity and would likely lead
to the inconsistent application of HUD’s
programs. HUD also agrees that the use
of guidance is helpful to supplement
regulatory and statutory requirements
and that HUD does not want to suggest,
as a commenter stated, that guidance
documents can be ignored. HUD agrees
that HUD guidance documents that aim
to prohibit and prevent discrimination
against persons with disabilities and
other protected classes should be
reasonably relied on by stakeholders.
As for the ambiguity pointed out by
commenters on procedures and
processes for public petitions,
identification of significant guidance for
public comment, and retroactivity of the
rule, HUD agrees that the rule provided
minimal guidance to the public on how
HUD would address those provisions
and believes this further supports the
determination to remove 24 CFR part
11.
Comment: The new indexed website
portal is misguided.
One commenter supported HUD’s use
of the indexed guidance portal, but
many had questions about it. A
commenter questioned whether HUD
has the operational capacity to establish
and maintain a ‘‘single, searchable,
indexed website’’ as required by the
interim final rule. The commenter stated
that although the interim final rule went
into effect on December 10, 2020, ‘‘it
appears no such guidance website has
been established.’’ The commenter also
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asked what HUD intends to do with the
guidance documents not posted on this
new guidance website, or what will
happen with guidance documents that
are removed from the website.
Other commenters questioned
whether the guidance portal will
achieve the goal of making program
policies more transparent. One
commenter specifically noted that
separating guidance documents from
other types of documents (such as,
NOFAs, legal briefs, and opinions)
makes program administration and
policies less transparent, especially
since it is not clear what a guidance
document is under the interim final
rule. The commenter also questioned
what HUD meant by describing the
guidance portal as ‘‘a single, accessible
source of information’’ for HUD
programs and policies. The commenter
recommended that ‘‘it would be better
to organize relevant documents of all
types by program and subject matter,
rather than by document type.’’
Another commenter asked whether
PHAs or members of the public could
challenge HUD’s decision to include or
not include a guidance document on its
website. The commenter noted that
stakeholders ‘‘should have a formal
opportunity to inform HUD if
previously-issued helpful guidance has
been omitted from the guidance
website.’’ The commenter also
recommended that HUD include on the
portal cross-references to other federal
agencies’ guidance documents which
potentially impact PHAs, such as, the
Federal Highway Administration’s
guidance on relocation under the
Uniform Relocation Assistance and Real
Property Acquisition Act.
HUD Response: HUD will continue to
disseminate and provide guidance
documents pertaining to specific
programs and agrees that continuing to
organize documents by program type
and subject matter may be helpful to
PHAs and others using HUD programs.
At the same time, it will continue to
pursue ways to make its guidance
documents more accessible to the
public.
Comment: HUD lacked good cause to
bypass the APA’s notice-and-comment
procedures.
Several commenters questioned
HUD’s authority to publish the interim
final rule without first seeking public
comment, noting that HUD did not
adequately establish good cause to issue
the rule. Commenters stated that no
emergency or exigency existed to justify
application of the good cause exception.
These commenters said the fact that
HUD issued its interim final rule more
than a year after the issuance of E.O.
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13891 undercuts HUD’s justification to
omit prior public comment.
Commenters also stated that ‘‘the
approach taken by HUD in this
rulemaking is wholly inconsistent with
the value of public input.’’ Some
commenters stated that if HUD goes on
to implement regulations on guidance,
HUD should follow normal notice-andcomment procedure beginning with a
proposed rule and should better involve
stakeholders, such as PHAs.
HUD Response: HUD’s authority to
issue the interim final rule without the
public notice period relied on both the
APA and 24 CFR part 10 authority to
issue rules regarding internal
procedures prior to receiving public
comment. HUD appreciates and
understands the commenters’ concerns,
but HUD maintains that the interim
final rule was procedural rather than
substantive, because it affected only
HUD internal procedures and imposed
no obligations on parties outside the
federal government. Specifically, the
regulation required HUD to issue and
maintain guidance documents in a
certain manner but did not create any
new obligations for parties other than
HUD itself. HUD also notes that while
it issued the interim final rule for
immediate effect, it provided the
opportunity for public comment that
HUD has considered in issuing this final
rule.
Comment: Changes could improve the
interim final rule.
Some commenters generally
supported the interim final rule but
made recommendations for significant
changes. One commenter supported the
interim final rule’s provision that
provided the public a procedure to
challenge the agency’s issuance of
guidance but recommended that the
interim final rule also provide for
‘‘judicial review after the final
disposition of a petition for withdrawal
or modification of guidance
documents.’’ The commenter reasoned
that without additional procedure,
regulated entities would have difficulty
establishing that an agency’s
determination on a challenged guidance
document is a ‘‘final agency action’’
subject to APA review. The commenter
recommended revising § 11.6, by adding
a paragraph that would provide, ‘‘[a]ny
agency pronouncement, response, or
failure to respond pursuant to this
section shall constitute final agency
action under 5 U.S.C. 704 and shall be
subject to review pursuant to 5 U.S.C.
702.’’
Other commenters offered revisions to
§ 11.6, including adding provisions for
the public to request clarification of
existing guidance, reinstatement of old
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guidance, or creation of new guidance,
and establishing a mechanism for
expediting guidance when necessary.
Another commenter stated that the rule
does not explain how new procedures,
namely the petition process, will be
accessible to people with disabilities
and emphasized the importance of
‘‘ensuring that people with disabilities
are afforded equal opportunity to
comment during public notice and
comment periods.’’ One commenter
recommended extending the comment
period for significant guidance to 60
days, instead of the existing 30 days,
because significant guidance documents
‘‘are likely to be complex in subject
matter and scope.’’
HUD Response: HUD disagrees with
these recommendations. Providing for
‘‘judicial review after the final
disposition of a petition for withdrawal
or modification of guidance documents’’
would create additional hurdles for
HUD’s issuance of guidance documents.
Similarly, providing the public a formal
opportunity to request the issuance of
new guidance or the reinstatement of
rescinded guidance would be extremely
time consuming, require the use of
limited HUD resources, and impede
HUD’s ability to provide timely
guidance, particularly in times of crisis.
Moreover, HUD believes that
stakeholders already can and do
question or request the revision of
existing guidance, reinstatement of old
guidance, or creation of new guidance.
HUD believes that engagement with the
public in this informal manner
effectively addresses the needs of HUD
stakeholders without the additional
burden of creating a formal process as
proposed.
President Biden’s ‘‘Executive Order
on Revocation of Certain Executive
Orders Concerning Federal Regulation,’’
of January 20, 2021, revoking E.O. 13891
provides HUD the opportunity to
remove 24 CFR part 11. Consideration of
the comments received from the public
provide HUD an additional basis for
removing 24 CFR part 11.
IV. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under E.O. 12866 (Regulatory
Planning and Review), a determination
must be made regarding whether a
regulatory action is significant and,
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
order. E.O. 13563 (Improving
Regulations and Regulatory Review)
directs executive agencies to analyze
regulations that are ‘‘outmoded,
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Fmt 4700
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35395
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned.’’ E.O.
13563 also directs that, where relevant,
feasible, and consistent with regulatory
objectives, and to the extent permitted
by law, agencies are to identify and
consider regulatory approaches that
reduce burdens and maintain flexibility
and freedom of choice for the public.
This rule was determined not to be a
‘‘significant regulatory action,’’ under
section 3(f) of E.O. 12866 and therefore
was not reviewed by OMB. This rule is
also not a major rule under the
Congressional Review Act (5 U.S.C. 801
et seq.), as designated by the Office of
Information and Regulatory Affairs
(OIRA).
Environmental Impact
The rule does not direct, provide for
assistance or loan and mortgage
insurance for, or otherwise govern or
regulate, real property acquisition,
disposition, leasing, rehabilitation,
alteration, demolition, or new
construction, or establish, revise, or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this rule is
categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
Unfunded Mandates Reform Act
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 on the private
sector. This rule does not impose a
Federal mandate on any state, local, or
tribal government, or on the private
sector, within the meaning of UMRA.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.), generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. This rule
removes 24 CFR part 11 which would
have required that HUD follow certain
internal procedures in issuing guidance
documents. These procedures included
establishing a single agency website
where the public can find all HUD
guidance in effect; OMB review of
significant guidance; public comment
on significant guidance; and a
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06JYR1
35396
Federal Register / Vol. 86, No. 126 / Tuesday, July 6, 2021 / Rules and Regulations
procedure for the public to request
withdrawal or modification of a
guidance document. Removal of these
procedures imposes no significant
economic impact on a substantial
number of small entities. Therefore, the
undersigned certifies that this rule will
not have a significant impact on a
substantial number of small entities.
Executive Order 13132, Federalism
E.O. 13132 (entitled ‘‘Federalism’’)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either: (1) Imposes substantial
direct compliance costs on State and
local governments and is not required
by statute, or (2) preempts State law,
unless the agency meets the
consultation and funding requirements
of Section 6 of the E.O. This Interim
final rule does not have federalism
implications and does not impose
substantial direct compliance costs on
State and local governments nor
preempt state law within the meaning of
the E.O.
List of Subjects in 24 CFR Part 11
Administrative practice and
procedure.
PART 11 [REMOVED]
Accordingly, for the reasons described
in the preamble and under the authority
of 42 U.S.C. 3535(d), the U.S.
Department of Housing and Urban
Development removes 24 CFR part 11.
■
Dated: June 24, 2021.
Marcia L. Fudge,
Secretary.
[FR Doc. 2021–14019 Filed 7–2–21; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE TREASURY
Office of the Secretary
31 CFR Part 1
RIN 1505–AC73
Privacy Act; Special Inspector General
for Pandemic Recovery
Departmental Offices,
Department of the Treasury.
ACTION: Final rule.
AGENCY:
In accordance with the
requirements of the Privacy Act of 1974,
as amended, the Department of the
Treasury, Departmental Offices (DO), is
issuing a final rule to amend its
regulations to exempt portion of the
following new systems of records
maintained by the Special Inspector
General for Pandemic Recovery (SIGPR)
jbell on DSKJLSW7X2PROD with RULES
SUMMARY:
VerDate Sep<11>2014
16:11 Jul 02, 2021
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from certain provisions of the Privacy
Act. The exemption is intended to
comply with the legal prohibitions
against the disclosure of certain kinds of
information and to protect certain
information maintained in this system
of records.
DATES: Effective July 6, 2021.
FOR FURTHER INFORMATION CONTACT: For
questions about this notice and privacy
issues, contact: Deputy Assistant
Secretary for Privacy, Transparency, and
Records at U.S. Department of the
Treasury, 1500 Pennsylvania Avenue
NW, Washington, DC 20220; telephone:
(202) 622–5710.
SUPPLEMENTARY INFORMATION:
Background
SIGPR was established by the
Coronavirus Aid, Relief, and Economic
Security (CARES) Act of 2020. SIGPR
has the duty to conduct, supervise, and
coordinate audits, evaluations, and
investigations of the making, purchase,
management, and sale of loans, loan
guarantees, and other investments made
by the Secretary of the Treasury under
programs established by the Secretary,
as authorized by Section 4018(c) of the
CARES Act, and the management by the
Secretary of programs, as authorized by
Section 4018(c) of the CARES Act.
SIGPR’s duties and responsibilities are
set forth in Section 4018 of the CARES
Act, and in the Inspector General Act of
1978, 5 U.S.C. app. 3. SIGPR plans to
create these systems of records to
facilitate SIGPR’s audits, evaluations,
investigations, and other operations to
(1) promote economy, efficiency, and
effectiveness in the administration of
such programs; (2) prevent and detect
fraud and abuse in the programs and
operations within its jurisdiction; and
(3) keep the head of the establishment
and the Congress fully informed about
problems and deficiencies relating to
the administration of such programs and
operations and the necessity for and
progress of corrective action. Treasury is
publishing separately the notice of the
new system of records to be maintained
by SIGPR.
Under 5 U.S.C. 552a(j)(2) and (k)(2),
the head of a federal agency may
promulgate rules to exempt a system of
records from certain provisions of 5
U.S.C. 552a if the system of records
contains investigatory materials
compiled for law enforcement purposes.
Pursuant to these provisions, Treasury
exempts the following system of records
from 5 U.S.C. 552a (c)(3), (c)(4), (d)(1),
(d)(2), (d)(3), (d)(4), (e)(1), (e)(2), (e)(3),
(e)(4)(G), (e)(4)(H), (e)(4)(I), (e)(5), (e)(8),
(f), and (g) of the Privacy Act:
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SIGPR .420—Audit and Evaluations
Records
SIGPR .421—Case Management System
and Investigative Records
SIGPR .423—Legal Records
The following are the reasons the
investigatory materials contained in the
above-referenced systems of records
maintained by SIGPR may be exempted
from various provisions of the Privacy
Act pursuant to 5 U.S.C. 552a(j)(2) and
(k)(2):
(1) Exempted from 5 U.S.C.
552a(e)(4)(G) and (f)(l) (Agency
Requirements and Rules) because
release would give individuals an
opportunity to learn whether they have
been identified as suspects or subjects of
investigation. As further described in
the following paragraph, access to such
knowledge may impair the ability of the
Department of the Treasury and SIGPR
(the Department/SIGPR) to carry out its
respective missions, since individuals
could:
(i) Take steps to avoid detection;
(ii) Inform associates that an
investigation is in progress;
(iii) Learn the nature of the
investigation;
(iv) Learn whether they are suspects
or, instead, have been identified as
alleged law violators;
(v) Begin, continue, or resume illegal
conduct upon learning that they are not
identified in the system of records; or
(vi) Destroy evidence needed to prove
the violation.
(2) Exempted from 5 U.S.C.
552a(d)(1), (e)(4)(H) and (f)(2), (3) and
(5) (Access to Records and Agency
Requirements and Rules) because
release might compromise the
Department’s/SIGPR’s ability to provide
useful tactical and strategic information
to law enforcement agencies by:
(i) Permitting access to records
contained in the systems of records such
that it might provide information
concerning the nature of current
investigations and enable possible
violators to avoid detection or
apprehension by:
(A) Allowing the discovery of facts
that could form the basis for violators’
arrests;
(B) Enabling violators to destroy or
alter evidence of alleged criminal
conduct that could form the basis for
arrest; and
(C) Using knowledge of the status of
criminal investigations to delay the
commission of a crime or commit a
crime at a location that might not be
under surveillance.
(ii) Permitting access to either ongoing or closed investigative files might
also reveal investigative techniques and
E:\FR\FM\06JYR1.SGM
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Agencies
[Federal Register Volume 86, Number 126 (Tuesday, July 6, 2021)]
[Rules and Regulations]
[Pages 35391-35396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14019]
=======================================================================
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 11
[Docket No. FR-6192-F-02]
RIN 2501-AD93
Implementing Executive Order 13992, Revocation of Certain
Executive Orders Concerning Federal Regulation
AGENCY: Office of General Counsel, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: On November 10, 2020, the U.S. Department of Housing and Urban
Development (HUD, or the Department) published an interim final rule
that implemented Executive Order 13891, ``Promoting the Rule of Law
Through Improved Agency Guidance Documents.'' This order required
Federal agencies to publish regulations to codify processes and
procedures for issuing guidance documents. HUD created new regulations
that outlined HUD policy and procedures for issuing guidance documents.
On January 20, 2021, President Biden issued Executive Order 13992,
``Revocation of Certain Executive Orders Concerning Federal
Regulation'' which, among other things, revoked Executive Order 13891.
After considering the public comments HUD received in response to its
interim final rule and given the revocation of Executive Order 13891,
this final rule removes the regulations HUD created in January.
[[Page 35392]]
DATES: Effective August 5, 2021.
FOR FURTHER INFORMATION CONTACT: Aaron Santa Anna, Associate General
Counsel, Office of Legislation and Regulations, Office of General
Counsel, Department of Housing and Urban Development, 451 Seventh
Street SW, Room 10282, Washington, DC 20410-5000; telephone (202) 402-
5300 (this is not a toll-free telephone number). Persons with hearing
or speech impairments may access this number via TTY by calling the
toll-free Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
A. Executive Order 13891 on Promoting the Rule of Law Through Improved
Agency Guidance Documents
On October 9, 2019 (84 FR 55235), the President issued Executive
Order (E.O.) 13891, ``Promoting the Rule of Law Through Improved Agency
Guidance Documents.'' E.O. 13891 recognized that the Administrative
Procedure Act (5 U.S.C. 551-559) (APA) exempts ``interpretive rules,
general statements of policy, or rules of agency organization,
procedure or practice,'' except when required by statute, from the
notice and comment requirements for rulemaking. (5 U.S.C. 553(b)). E.O.
13891 stated, however, that, in the view of the last administration,
agencies have sometimes used this authority to issue guidance documents
that regulate the public without following the notice and comment
rulemaking procedures of the APA. As a result, E.O. 13891 required
Federal agencies to issue regulations to codify processes and
procedures for issuing guidance documents. Among other things, E.O.
13891 required that agency regulations establish procedures for
modifying, withdrawing, and using guidance documents, including
requiring notice and comment for significant guidance documents, and
taking and responding to petitions from the public for withdrawal or
modification of a particular guidance document.
B. HUD's Interim Final Rule
In response to E.O. 13891, HUD published an interim final rule on
November 10, 2020 (85 FR 71537) that established a new part 11 in title
24 of the CFR. The new part 11 required HUD to follow certain
procedures in issuing guidance documents. These procedures included:
Establishing a single agency website where the public can find all HUD
guidance in effect; OMB review of significant guidance; public comment
on significant guidance; and a procedure for the public to request
withdrawal or modification of a guidance document. In issuing its
interim final rule, HUD determined that good cause existed to omit
advanced public comment because the rule was limited to internal HUD
procedures and did not impose new requirements on members of the
public. The rule took effect on December 10, 2020.
Although HUD determined that good cause existed to publish its
interim final rule prior to soliciting public comment, HUD provided for
a 60-day public comment period. In response to its interim final rule,
HUD received seven public comments which were mostly critical of, or
recommended significant changes to, the interim final rule. A summary
of these comments and HUD's responses to them are provided in Section
III of this document.
C. Executive Order on Revocation of Certain Executive Orders Concerning
Federal Regulation of January 20, 2021
On January 20, 2021, President Biden issued E.O. 13992, ``Executive
Order on Revocation of Certain Executive Orders Concerning Federal
Regulation,'' which among other things, revoked E.O. 13891. E.O. 13992
also directed agencies to promptly take steps to rescind any orders,
rules, regulations, guidelines, or policies, or portions thereof that
implemented or enforced the Executive Orders revoked. E.O. 13992
states, ``It is the policy of [the] Administration to use available
tools to confront the urgent challenges facing the Nation, including
the coronavirus disease 2019 (COVID-19) pandemic, economic recovery,
racial justice, and climate change. To tackle these challenges
effectively, executive departments and agencies (agencies) must be
equipped with the flexibility to use robust regulatory action to
address national priorities. This order revokes harmful policies and
directives that threaten to frustrate the Federal Government's ability
to confront these problems and empowers agencies to use appropriate
regulatory tools to achieve these goals.''
II. This Final Rule
Given the revocation of E.O. 13891, and after considering the
public comments HUD received in response to the interim final rule, HUD
has decided to remove 24 CFR part 11. In reaching this conclusion, HUD
concluded that the interim final rule deprives HUD of necessary
flexibility to determine when and how to best issue guidance documents
based on particular facts and circumstances, and unduly restricts HUD's
ability to provide timely guidance on which the public can confidently
rely. Notwithstanding this determination, HUD takes the opportunity in
this rule to respond to public comments received in response to its
interim final rule.
III. The Public Comments
The comment period for HUD's interim final rule closed on January
11, 2021. HUD received seven public comments from various housing
policy and legal interest groups, a law firm, and two public housing
agencies (PHAs). HUD appreciates the time that commenters took to
review its interim final rule and provide helpful information and
valuable comments and recommendations.
The Comments Generally
Most commenters opposed the interim final rule and urged HUD to
withdraw or rescind the rule and ``abandon'' codification of 24 CFR
part 11. Most commenters stated that HUD should encourage the
facilitation and dissemination of guidance, particularly given the
urgent need for federal response to current crises, such as the COVID-
19 pandemic and lack of affordable housing, and housing discrimination.
These commenters stated that the rule would make it more difficult for
HUD to quickly respond to these crises and fulfill its mission of
creating strong, sustainable, inclusive communities.
A majority of the commenters also thought that the rule would
create confusion among HUD stakeholders and the public. Commenters
stated that the interim final rule ``would have a negative impact on
the successful administration of HUD's programs,'' and would
``significantly delay each program office's ability to be responsive to
emergencies and emerging questions and issues and increase the workload
for HUD.'' Commenters also warned that the burdens and delays imposed
by the interim final rule would negatively impact the ability of
stakeholders such as PHAs, tenants, and advocacy groups to carry out
their respective missions and may subject their programs to litigation.
Two commenters generally supported the interim final rule but
offered recommendations for significant changes, such as expanding it
to provide the public an opportunity to request the issuance of new
guidance or the reinstatement of rescinded guidance. One commenter
recommended that HUD include an explicit judicial review
[[Page 35393]]
provision to make it clear when review of a document becomes final to
permit an interested party to seek redress from the courts.
Comment: The Interim final rule's procedural requirements will
delay the issuance of guidance and limit HUD's flexibility in issuing
guidance.
Commenters expressed concern with the review of HUD guidance by the
Office of Information and Regulatory Affairs (OIRA) and the need for
HUD to receive and review public comments on significant guidance. One
commenter stated that OIRA is a small office with a heavy workload that
is slow to formally review proposed and final rules submitted by HUD.
The commenter stated that adding the review of many HUD guidance
documents to OIRA's workload would cause significant delays in the
issuance of both HUD's guidance documents and its rules issued under
the Administrative Procedure Act. Another commenter stated that
``applying such procedures to sub-regulatory guidance creates
unnecessary and burdensome bureaucracy.'' Other commenters said that
the review, approval, and signature process for significant guidance
``would hamper [HUD's] ability to act nimbly to issue guidance on key
issues.'' Finally, one commenter noted that the rule would not only
delay, but ultimately prevent, the dissemination of guidance.
Commenters also stated that allowing petitions to modify or rescind
guidance documents and the requirement for HUD to respond to each
petition in writing, would drain scarce agency resources and hamper
HUD's ability to issue important guidance. One commenter stated that
the process of permitting HUD to issue a coordinated response to
similar petitions is insufficient to address delay issues. The
commenter further said that HUD would be ``doing the work'' for
petitioners with inadequate submissions ``by laying out a roadmap and
effectively crafting arguments for petitioners to have their petitions
successfully adjudicated.'' Another commenter added that the ``petition
mechanism will likely confuse funding recipients,'' which in turn would
create more work for HUD staff and delay day-to-day programmatic
decision-making. The commenter also noted that ``the interim final rule
will strip authority from the career experts who normally develop
guidance . . . and place day-to-day decisions directly into the hands
of non-experts''.
HUD Response: HUD agrees that the timely dissemination of guidance
documents is important to the successful administration and consistent
implementation of its programs. In support of this policy, HUD must
have flexibility to quickly issue guidance to further the
implementation of HUD's programs without additional barriers. As
commenters noted, applying the notice and comment process to
significant guidance documents would unnecessarily detract from HUD's
ability to respond to the needs of its stakeholders and adversely
impact its ability to issue regulations under the APA by diverting HUD
and OMB resources away from rulemaking processes. In addition, HUD
currently seeks input from the public on many of its guidance documents
and often issues guidance documents in response to such input and
frequently asked questions. Similarly, HUD agrees that the petition
process would cause delay in HUD's ability to disseminate guidance
documents. Furthermore, HUD agrees that there is no need to codify such
a requirement because HUD can and does already receive requests from
the public which it considers when issuing, updating, and rescinding
guidance.
Comment: The ambiguity of the terms used in the interim final rule
make the scope of the rule unclear.
Commenters stated that the interim final rule lacks clarity, uses
ambiguous terms, and creates general implementation issues. Many
commenters stated that the interim final rule does not provide clear
definitions and does not clarify which types of communication are
subject to the rule. For example, commenters noted that the interim
final rule's definition of what constitutes ``guidance'' is vague and
makes the scope of the rule unclear. One commenter noted that the
definition of ``guidance'' could be read broadly enough to include
``virtually all written communications HUD delivers to stakeholders.''
One commenter found the definition of guidance lacking and
recommended that legal opinions directed to parties about circumstance-
specific questions and Notices of Funding Availability (NOFAs) \1\ be
added to the definition of guidance documents. The commenter suggested
that legal opinions are helpful to more than a single PHA facing
similar factual scenarios.
---------------------------------------------------------------------------
\1\ HUD currently uses the term Notices of Funding Opportunity
or ``NOFO'' for documents that would previously have been referred
to as NOFAs. This change is based on the terminology used in Office
of Management and Budget Management in its Guidance for Grants and
Agreements (85 FR 49506, August 13, 2020). However, following the
terminology used in the public comments, this document uses the term
``NOFA'' throughout.
---------------------------------------------------------------------------
Commenters also stated that the definition of ``significant
guidance'' is unclear, overly broad, and susceptible to variance. One
commenter stated that terms used in the definition of ``significant
guidance,'' such as ``serious inconsistency'' or ``interference'' with
another agency, are so vague that ``if [the interim final rule is]
interpreted broadly, nearly every piece of guidance not explicitly
exempted from being considered significant guidance will be subject to
the burdensome OIRA review and public comment process.'' The commenter
also noted the lack of explanation for how economic impact analyses
would be conducted for significant guidance, and the apparent lack of
public access to such analyses.
HUD Response: HUD agrees that the terms and definitions used by the
interim final rule lack clarity and could lead to confusion and
inconsistent implementation of HUD's programs. HUD appreciates the
commenters' recommendations regarding legal opinions, but each legal
opinion is party- and fact-specific, and HUD does not believe that they
can be made generally applicable to other similarly situated parties.
As for the NOFA process, PHAs and other entities are permitted to
follow-up with HUD with questions regarding NOFAs and provide feedback
for future NOFAs regardless of the language in part 11.
Lastly, HUD agrees with public commenters that the definitions of
``guidance'' and ``significant guidance'' could be interpreted broadly
and doing so would make issuing guidance challenging. HUD notes that
the definition of ``significant guidance'' incorporated in the interim
final rule mirrors the definition in E.O. 12866 (Regulatory Planning
and Review) for ``significant regulatory action'' and includes ``novel
legal or policy issues'' which challenges articulating a specific
definition. Notwithstanding, the requirement that HUD provide an
economic analysis for guidance that rises to the level of ``significant
regulatory action'' creates additional challenges to the Department's
ability to timely issue guidance and outweighs any benefit resulting
from the interim final rule.
Comment: The interim final rule creates uncertainty.
Commenters stated that the uncertainty created by the interim final
rule would negatively affect HUD constituencies that routinely rely on
HUD guidance, including tenants, advocates, owners, vulnerable
populations, and PHAs. One commenter stated that HUD guidance is
undermined by the provision noting that ``the authority is nonbinding
and unenforceable.'' The commenter stated
[[Page 35394]]
that the interim final rule would ultimately lead to inconsistent
interpretations of HUD guidance because the provision negates the
purpose of issued guidance ``by inviting PHAs and owners to ignore
it.'' Another commenter stated that if a guidance document, which PHAs
have routinely incorporated into their policies for decades, is
determined to have no legal effect or rescinded, PHAs will find
themselves ``in limbo'' with no new replacement guidance.
One commenter stated that the interim final rule may adversely
impact vulnerable populations and encourage discriminatory policies.
For example, survivors of domestic violence, sexual assault, and
stalking would be left without access to certain remedies and
procedures established under guidance (but not mentioned in statutes or
regulations). According to the commenter, ignoring guidance on
emergency transfers leaves ``survivors without a clear path to
obtaining an emergency transfer, leaving them in unsafe situations for
longer periods of time.'' The commenter also stated, by way of example,
that ``people with disabilities rely on HUD guidance to determine where
they can live with their assistance or emotional support animals'' and
provide people with disabilities a ``greater security when confronting
housing discrimination.'' A commenter further asserted that ``by
suggesting that PHAs or owners ignore HUD guidance, HUD encourages
discriminatory policies against tenants with disabilities who need
accommodations.''
Several commenters stated that the process for public petition
would reduce reliance on guidance documents because it permits repeated
requests for recission of certain documents, and ``create[s] a constant
and ongoing state of uncertainty about whether the guidance will
continue in effect or be withdrawn or modified pursuant to a petition
from the public.'' Other commenters stated that it is not clear how the
review of a petition would operate or what remedies would be available
if the public disagrees with a determination made by HUD in response to
a petition.
One commenter focused on several other aspects of the interim final
rule that the commenter said are unclear, including the ``description
of the public participation requirement;'' whether any exceptions to
OIRA review under Sec. 11.8 apply; how these exceptions interact with
Sec. 11.3(b); and the implications of the interim final rule on joint
agency guidance. For the public participation requirement, the
commenter referred to Sec. 11.6(b), and stated that stakeholders
cannot discern ``when HUD is soliciting public input on potential
significant guidance.'' Another commenter stated that the applicability
of the good cause exception is unclear.
One commenter stated that under the interim final rule, it is
unclear how HUD would notify the public when significant guidance
documents are available for comment, for example, whether HUD would
publish the significant guidance documents in the Federal Register or
post an open letter on its website. The commenter requested that HUD
explain how it would choose between outreach methods.
Commenters also stated that the interim final rule lacked clarity
as to whether it applies to guidance retroactively and sought
clarification on whether existing guidance documents remain in effect.
One commenter recommended that the scope of the interim final rule be
limited to future guidance and allow current guidance to remain in
place until the issuance of newly issued guidance documents.
HUD Response: HUD agrees that the processes outlined in the interim
final rule lack clarity and would likely lead to the inconsistent
application of HUD's programs. HUD also agrees that the use of guidance
is helpful to supplement regulatory and statutory requirements and that
HUD does not want to suggest, as a commenter stated, that guidance
documents can be ignored. HUD agrees that HUD guidance documents that
aim to prohibit and prevent discrimination against persons with
disabilities and other protected classes should be reasonably relied on
by stakeholders.
As for the ambiguity pointed out by commenters on procedures and
processes for public petitions, identification of significant guidance
for public comment, and retroactivity of the rule, HUD agrees that the
rule provided minimal guidance to the public on how HUD would address
those provisions and believes this further supports the determination
to remove 24 CFR part 11.
Comment: The new indexed website portal is misguided.
One commenter supported HUD's use of the indexed guidance portal,
but many had questions about it. A commenter questioned whether HUD has
the operational capacity to establish and maintain a ``single,
searchable, indexed website'' as required by the interim final rule.
The commenter stated that although the interim final rule went into
effect on December 10, 2020, ``it appears no such guidance website has
been established.'' The commenter also asked what HUD intends to do
with the guidance documents not posted on this new guidance website, or
what will happen with guidance documents that are removed from the
website.
Other commenters questioned whether the guidance portal will
achieve the goal of making program policies more transparent. One
commenter specifically noted that separating guidance documents from
other types of documents (such as, NOFAs, legal briefs, and opinions)
makes program administration and policies less transparent, especially
since it is not clear what a guidance document is under the interim
final rule. The commenter also questioned what HUD meant by describing
the guidance portal as ``a single, accessible source of information''
for HUD programs and policies. The commenter recommended that ``it
would be better to organize relevant documents of all types by program
and subject matter, rather than by document type.''
Another commenter asked whether PHAs or members of the public could
challenge HUD's decision to include or not include a guidance document
on its website. The commenter noted that stakeholders ``should have a
formal opportunity to inform HUD if previously-issued helpful guidance
has been omitted from the guidance website.'' The commenter also
recommended that HUD include on the portal cross-references to other
federal agencies' guidance documents which potentially impact PHAs,
such as, the Federal Highway Administration's guidance on relocation
under the Uniform Relocation Assistance and Real Property Acquisition
Act.
HUD Response: HUD will continue to disseminate and provide guidance
documents pertaining to specific programs and agrees that continuing to
organize documents by program type and subject matter may be helpful to
PHAs and others using HUD programs. At the same time, it will continue
to pursue ways to make its guidance documents more accessible to the
public.
Comment: HUD lacked good cause to bypass the APA's notice-and-
comment procedures.
Several commenters questioned HUD's authority to publish the
interim final rule without first seeking public comment, noting that
HUD did not adequately establish good cause to issue the rule.
Commenters stated that no emergency or exigency existed to justify
application of the good cause exception. These commenters said the fact
that HUD issued its interim final rule more than a year after the
issuance of E.O.
[[Page 35395]]
13891 undercuts HUD's justification to omit prior public comment.
Commenters also stated that ``the approach taken by HUD in this
rulemaking is wholly inconsistent with the value of public input.''
Some commenters stated that if HUD goes on to implement regulations on
guidance, HUD should follow normal notice-and-comment procedure
beginning with a proposed rule and should better involve stakeholders,
such as PHAs.
HUD Response: HUD's authority to issue the interim final rule
without the public notice period relied on both the APA and 24 CFR part
10 authority to issue rules regarding internal procedures prior to
receiving public comment. HUD appreciates and understands the
commenters' concerns, but HUD maintains that the interim final rule was
procedural rather than substantive, because it affected only HUD
internal procedures and imposed no obligations on parties outside the
federal government. Specifically, the regulation required HUD to issue
and maintain guidance documents in a certain manner but did not create
any new obligations for parties other than HUD itself. HUD also notes
that while it issued the interim final rule for immediate effect, it
provided the opportunity for public comment that HUD has considered in
issuing this final rule.
Comment: Changes could improve the interim final rule.
Some commenters generally supported the interim final rule but made
recommendations for significant changes. One commenter supported the
interim final rule's provision that provided the public a procedure to
challenge the agency's issuance of guidance but recommended that the
interim final rule also provide for ``judicial review after the final
disposition of a petition for withdrawal or modification of guidance
documents.'' The commenter reasoned that without additional procedure,
regulated entities would have difficulty establishing that an agency's
determination on a challenged guidance document is a ``final agency
action'' subject to APA review. The commenter recommended revising
Sec. 11.6, by adding a paragraph that would provide, ``[a]ny agency
pronouncement, response, or failure to respond pursuant to this section
shall constitute final agency action under 5 U.S.C. 704 and shall be
subject to review pursuant to 5 U.S.C. 702.''
Other commenters offered revisions to Sec. 11.6, including adding
provisions for the public to request clarification of existing
guidance, reinstatement of old guidance, or creation of new guidance,
and establishing a mechanism for expediting guidance when necessary.
Another commenter stated that the rule does not explain how new
procedures, namely the petition process, will be accessible to people
with disabilities and emphasized the importance of ``ensuring that
people with disabilities are afforded equal opportunity to comment
during public notice and comment periods.'' One commenter recommended
extending the comment period for significant guidance to 60 days,
instead of the existing 30 days, because significant guidance documents
``are likely to be complex in subject matter and scope.''
HUD Response: HUD disagrees with these recommendations. Providing
for ``judicial review after the final disposition of a petition for
withdrawal or modification of guidance documents'' would create
additional hurdles for HUD's issuance of guidance documents. Similarly,
providing the public a formal opportunity to request the issuance of
new guidance or the reinstatement of rescinded guidance would be
extremely time consuming, require the use of limited HUD resources, and
impede HUD's ability to provide timely guidance, particularly in times
of crisis. Moreover, HUD believes that stakeholders already can and do
question or request the revision of existing guidance, reinstatement of
old guidance, or creation of new guidance. HUD believes that engagement
with the public in this informal manner effectively addresses the needs
of HUD stakeholders without the additional burden of creating a formal
process as proposed.
President Biden's ``Executive Order on Revocation of Certain
Executive Orders Concerning Federal Regulation,'' of January 20, 2021,
revoking E.O. 13891 provides HUD the opportunity to remove 24 CFR part
11. Consideration of the comments received from the public provide HUD
an additional basis for removing 24 CFR part 11.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under E.O. 12866 (Regulatory Planning and Review), a determination
must be made regarding whether a regulatory action is significant and,
therefore, subject to review by the Office of Management and Budget
(OMB) in accordance with the requirements of the order. E.O. 13563
(Improving Regulations and Regulatory Review) directs executive
agencies to analyze regulations that are ``outmoded, ineffective,
insufficient, or excessively burdensome, and to modify, streamline,
expand, or repeal them in accordance with what has been learned.'' E.O.
13563 also directs that, where relevant, feasible, and consistent with
regulatory objectives, and to the extent permitted by law, agencies are
to identify and consider regulatory approaches that reduce burdens and
maintain flexibility and freedom of choice for the public.
This rule was determined not to be a ``significant regulatory
action,'' under section 3(f) of E.O. 12866 and therefore was not
reviewed by OMB. This rule is also not a major rule under the
Congressional Review Act (5 U.S.C. 801 et seq.), as designated by the
Office of Information and Regulatory Affairs (OIRA).
Environmental Impact
The rule does not direct, provide for assistance or loan and
mortgage insurance for, or otherwise govern or regulate, real property
acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule
is categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321).
Unfunded Mandates Reform Act
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 on the private sector. This rule does not impose a
Federal mandate on any state, local, or tribal government, or on the
private sector, within the meaning of UMRA.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.),
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
This rule removes 24 CFR part 11 which would have required that HUD
follow certain internal procedures in issuing guidance documents. These
procedures included establishing a single agency website where the
public can find all HUD guidance in effect; OMB review of significant
guidance; public comment on significant guidance; and a
[[Page 35396]]
procedure for the public to request withdrawal or modification of a
guidance document. Removal of these procedures imposes no significant
economic impact on a substantial number of small entities. Therefore,
the undersigned certifies that this rule will not have a significant
impact on a substantial number of small entities.
Executive Order 13132, Federalism
E.O. 13132 (entitled ``Federalism'') prohibits an agency from
publishing any rule that has federalism implications if the rule
either: (1) Imposes substantial direct compliance costs on State and
local governments and is not required by statute, or (2) preempts State
law, unless the agency meets the consultation and funding requirements
of Section 6 of the E.O. This Interim final rule does not have
federalism implications and does not impose substantial direct
compliance costs on State and local governments nor preempt state law
within the meaning of the E.O.
List of Subjects in 24 CFR Part 11
Administrative practice and procedure.
PART 11 [REMOVED]
0
Accordingly, for the reasons described in the preamble and under the
authority of 42 U.S.C. 3535(d), the U.S. Department of Housing and
Urban Development removes 24 CFR part 11.
Dated: June 24, 2021.
Marcia L. Fudge,
Secretary.
[FR Doc. 2021-14019 Filed 7-2-21; 8:45 am]
BILLING CODE 4210-67-P