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Department of Housing and Urban Development 24 CFR Part 92 Et Al Tuesday, September 30, 2003 Part IV Department of Housing and Urban Development 24 CFR Part 92 et al. Participation in HUD Programs by Faith- Based Organizations; Providing for Equal Treatment of all HUD Program Participants; Final Rule VerDate jul<14>2003 19:12 Sep 29, 2003 Jkt 200001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\30SER3.SGM 30SER3 56396 Federal Register / Vol. 68, No. 189 / Tuesday, September 30, 2003 / Rules and Regulations DEPARTMENT OF HOUSING AND Programs, (202) 708–4300. (These 4. Housing Opportunities for Persons URBAN DEVELOPMENT numbers are not toll-free numbers.) With AIDS (HOPWA) (24 CFR part 574); Hearing- or speech-impaired individuals 5. Emergency Shelter Grants (ESG) (24 24 CFR Parts 92, 570, 572, 574, 576, may access these telephone numbers CFR part 576); 582, 583, and 585 through TTY by calling the toll-free 6. Shelter Plus Care (24 CFR part 582); 7. Supportive Housing (24 CFR part [Docket No. FR–4782–F–02] Federal Information Relay Service at 1– 800–877–8339. 583); and RIN 2501–AC89 SUPPLEMENTARY INFORMATION: 8. Youthbuild (24 CFR part 585). The January 6, 2003, rule proposed to Participation in HUD Programs by I. Background—The January 6, 2003, amend each set of program regulations Faith-Based Organizations; Providing Proposed Rule to achieve the following objectives: for Equal Treatment of all HUD On January 6, 2003 (68 FR 648), HUD 1. Clarify that organizations are Program Participants published a proposed rule to amend eligible to participate in HUD programs without regard to their religious AGENCY: Office of the Secretary, HUD. certain HUD regulations that imposed (or appeared to impose) unwarranted character or affiliation. The proposed ACTION: Final rule. barriers to the participation of faith- amendments clarified that faith-based SUMMARY: This final rule revises HUD based organizations in HUD programs. organizations are eligible to compete for regulations to remove barriers to the HUD recognizes that faith-based funding on the same basis and under the participation of faith-based organizations are an important part of same eligibility requirements as all organizations in certain HUD programs. the social services network of the other nonprofit organizations. The fact In general, no group of applicants United States, offering a multitude of that an organization is a faith-based competing for HUD funds should be social services to those in need. These organization is not a basis for exclusion subject, as a matter of HUD’s discretion, organizations frequently have the from a competition for HUD funds. The to greater or fewer requirements than experience that HUD seeks to Federal government, as well as State other organizations solely because of administer social services to and local governments administering their religious character or affiliation, or beneficiaries under HUD programs. funds under HUD programs, are absence of religious character or Consistent with the President’s prohibited from discriminating against affiliation. Applicants for HUD funds Executive Order 13198 (Agency organizations on the basis of religion or and those applicants selected to receive Responsibilities with Respect to Faith- their religious character. HUD funding should generally be Based and Community Initiatives), 2. Clearly delineate eligible and subject to the same requirements. The issued January 31, 2001 (66 FR 8497), ineligible uses of HUD funds for all purpose of the revisions made by this HUD undertook a comprehensive program participants. The proposed rule is to ensure that faith-based review of its program requirements and rule provided that eligible and ineligible organizations are able to compete on an regulations, particularly those that uses of HUD funds are applicable to all equal footing with other organizations would be expected to attract interest recipients of HUD funds. The proposed for HUD funding. This final rule follows and participation by nonprofit rule provided that a recipient publication of a January 6, 2003, organizations. Executive Order 13198 organization may not use direct HUD proposed rule and takes into directed five agencies, including HUD, funds to support inherently religious consideration the public comments to undertake this review and to take activities, such as worship, religious received on the proposed rule. steps to ensure that Federal policy and instruction, or proselytization. If the participating organization engages in DATES: Effective Date: October 30, 2003. programs are fully open to faith-based community groups in a manner that is these activities, the activities must be FOR FURTHER INFORMATION CONTACT: offered separately, in time or location, Ryan Streeter, Director, Center for Faith- consistent with the Constitution. In response to the directive of the from the programs or services directly Based and Community Initiatives, President’s Executive Order, HUD funded with HUD assistance, and Department of Housing and Urban identified regulations for eight programs participation must be voluntary for the Development, Room 10184, 451 Seventh administered by HUD’s Office of beneficiaries of the HUD-funded Street, SW., Washington, DC 20410, Community Planning and Development programs or services. This requirement telephone: (202) 708–2404 (this is not a that imposed (or appeared to impose) ensures that HUD funds provided toll-free number). Hearing- or speech- barriers to participation of faith-based directly to any recipient are not used to impaired individuals may access this organizations in these programs. HUD’s support inherently religious activities. telephone number through TTY by proposed rule of January 6, 2003, was This restriction does not mean that an calling the toll-free Federal Information designed to eliminate these barriers and organization that receives HUD funds Relay Service at 1–800–877–8339. to ensure that these HUD programs are cannot engage in inherently religious For program specific information, open to all qualified organizations, activities. It means that an organization contact the following offices in HUD’s regardless of their religious character. cannot pay for these activities with Office of Community Planning and The January 6, 2003, rule proposed to direct HUD funds. Development: For the HOME Program amend the regulations for the following 3. Clarify that faith-based and the HOPE for Homeownership of HUD programs: organizations will retain their Single Family Homes (HOPE 3) 1. HOME Investment Partnerships (24 independence. The proposed rule Program, Virginia Sardone, Director, CFR part 92); clarified that a faith-based organization Program Policy Division, Office of 2. Community Development Block that participates in HUD programs will Affordable Housing Programs, (202) Grants (CDBG) (24 CFR part 570); 708–2864; for the Community 3. Hope for Homeownership of Single remain in place to provide regulatory guidance to Development Block Grants Program, Family Homes (HOPE 3) (24 CFR part existing HOPE 3 grantees. The regulations in part Robert Duncan, Office of Block Grant 1 572 are included within the scope of this rule to 572) reflect the regulatory revisions applicable to faith- Assistance, (202) 708–3587; and for the based participation and ensure their consistency remaining programs, John Garrity, 1 Funds are no longer being appropriated for the with the similar regulations in the other parts Office of Special Needs Assistance HOPE 3 program; however, the part 572 regulations covered by this final rule. VerDate jul<14>2003 19:12 Sep 29, 2003 Jkt 200001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\30SER3.SGM 30SER3 Federal Register / Vol. 68, No. 189 / Tuesday, September 30, 2003 / Rules and Regulations 56397 retain its independence and may that any other applicant or recipient is uses as its principal place of worship, continue to carry out its mission, required to provide. All organizations however, may qualify for such including the practice and expression of that participate in HUD programs, assistance to the extent that they are its religious beliefs, provided that it including faith-based organizations, used for eligible, HUD-funded activities. does not use direct HUD funds to must carry out eligible activities in This final rule also clarifies the rules support any inherently religious accordance with all program governing disposition of HUD-improved activities, such as worship, religious requirements and other applicable real property after the term of the grant instruction, or proselytization. Among requirements governing the conduct of and where there is a change in the use other things, faith-based organizations HUD-funded activities, including those of the property. The following provide may use space in their facilities to prohibiting the use of direct HUD funds examples of application of the revised provide HUD-funded services, without to engage in inherently religious rule: removing religious art, icons, scriptures, activities. In addition, to the extent that Example 1. A one-room church applies for or other religious symbols. In addition, HUD’s regulations may have CDBG funds to make several necessary a faith-based organization participating disqualified faith-based organizations or repairs. On Sunday morning, the church in a HUD program may retain religious indicated that faith-based organizations serves as a place for congregational worship. terms in its organization’s name, select could be disqualified from participating During weekdays, the church is used to operate a ‘‘soup kitchen’’ for homeless its
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