Thursday, March 15, 2007 Part III Department of Housing and Urban Development 24 CFR Parts 91 and 570 Timeliness Expenditure Standards for the Insular Areas Program; Final Rule VerDate Aug<31>2005 14:40 Mar 14, 2007 Jkt 211001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\15MRR3.SGM 15MRR3 rmajette on PROD1PC67 with RULES3 12534 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations DEPARTMENT OF HOUSING AND assistance sought from HUD, instead of Insular Area grantee be untimely 60 URBAN DEVELOPMENT a full consolidated plan. The proposed days prior to the conclusion of its FY rule also sought to make technical and 2006 and FY 2007 program years. 24 CFR Parts 91 and 570 conforming changes to the regulations. Additionally, HUD proposed to add a [Docket No. FR–5012–F–02] The Insular Areas program is a provision that would allow funds to be component of the Community reallocated to the remaining eligible RIN 2501–AD15 Development Block Grant (CDBG) Insular Areas on a pro rata basis should program, authorized by the Housing and an Insular Area grantee have its funding Timeliness Expenditure Standards for Community Development Act of 1974 reduced for failing to submit a final the Insular Areas Program (HCD Act) (42 U.S.C. 5301, et seq.). statement for CDBG funds. The AGENCY: Office of the Assistant Under the CDBG program, Insular Area proposed rule also addressed the issue Secretary for Community Planning and grantees are provided flexible funding to of Insular Area grantees’ submission of Development, HUD. develop and implement community and abbreviated consolidated plans. economic development strategies that ACTION: Final rule. Abbreviated consolidated plans primarily benefit low- and moderate- submitted by Insular Areas grantees will SUMMARY: This final rule implements income individuals. be considered to be full consolidated regulatory timeliness standards for the The August 7, 2006, rule proposed plans, provided the Insular Area grantee Insular Areas Program, as established by timeliness standards for the Insular complies with the submissions, the Housing and Community Areas Program. Under the proposed certifications, amendments, and Development Act of 1974. The standards, the amount of grant funds performance reports requirements of expenditure standards will ensure that available but undisbursed 60 days prior § 570.440 and citizen participation grantees carry out their programs in a to the conclusion of the Insular Area requirements of § 570.441. However, if timely manner. The standards take into grantee’s most recent program year must submission of a full consolidated plan consideration and reflect the unique be no more than two times the amount would help a grantee integrate its CDBG, circumstances faced by Insular Area of the Insular Area grantee’s most recent HOME and Emergency Shelter Grant grantees in their ability to expend CDBG grant. If the grantee fails to demonstrate programs, the grantee should strongly allocations. The final rule provides that to HUD’s satisfaction that the lack of consider submitting a full consolidated an Insular Area grantee may submit an timeliness has resulted from factors plan. Various technical changes were abbreviated consolidated plan rather beyond the grantee’s reasonable control, proposed to reflect statutory than a full consolidated plan. This final the grantee shall be deemed to be amendments, remove outdated cross- rule also makes technical and untimely. A grantee that has less than references, and delete provisions that conforming changes to the Insular Areas two times its most recent grant in its are no longer required or applicable. CDBG line of credit 60 days prior to the program. The final rule follows For more detailed information conclusion of its most recent program publication of an August 7, 2006, regarding the regulatory changes, please year shall also be deemed to be proposed rule on which HUD did not refer to the preamble of the August 7, untimely if the amount of CDBG receive any public comments. 2006, proposed rule. Accordingly, HUD is adopting the program income the recipient has on August 7, 2006, proposed rule without hand at that time, together with the II. This Final Rule change. amount of funds in its CDBG line of This final rule follows the publication credit, exceeds twice the amount of the of the August 7, 2006, proposed rule. DATES: Effective Date: April 16, 2007. grantee’s most recent grant, unless the FOR FURTHER INFORMATION CONTACT: The public comment period on the grantee is able to demonstrate to HUD’s proposed rule closed on October 6, Stephen Rhodeside, Senior Program satisfaction that the lack of timeliness 2006. HUD did not receive any public Officer, State and Small Cities Division, has resulted from factors beyond the comments on the proposed rule. HUD, Office of Block Grant Assistance, Office grantee’s reasonable control. of Community Planning and In determining the corrective action therefore, is issuing this final rule Development, Department of Housing for untimely expenditure, HUD will without change from the proposed rule. and Urban Development, 451 Seventh consider the likelihood that the III. Findings and Certifications Street, SW., Room 7184, Washington, recipient will expend a sufficient DC 20410–7000, telephone (202) 708– amount of funds over the next program Unfunded Mandates Reform Act 1322 (this is not a toll-free number). year to bring the grantee into Title II of the Unfunded Mandates Individuals with speech or hearing compliance with the timeliness Reform Act of 1995 (2 U.S.C. 1531– impairments may access this number requirements. The first timeliness 1538) (UMRA) establishes requirements through TTY by calling the toll-free review under these standards will take for federal agencies to assess the effects Federal Information Relay Service at place 60 days prior to the conclusion of of their regulatory actions on state, (800) 877–8339. the 2006 funding year, which would local, and tribal governments and the SUPPLEMENTARY INFORMATION: take place on August 2, 2007, for Insular private sector. This final rule does not Area grantees that do not change their impose any federal mandates on any I. Background program year start dates. Failure to meet state, local, or tribal government or the On August 7, 2006, HUD published a the standards may cause HUD to reduce private sector within the meaning of proposed rule (71 FR 44860) for public the next grant by 100 percent of the UMRA. comment to establish timeliness amount in excess of twice the Insular standards and procedures for the Area grantee’s most recent CDBG grant, Executive Order 13132, Federalism reallocation of funds for the Insular unless HUD determines that the Executive Order 13132 (entitled Areas Program. In addition, the August untimeliness resulted from factors ‘‘Federalism’’) prohibits, to the extent 7, 2006, rule proposed to provide that outside of the grantee’s reasonable practicable and permitted by law, an an Insular Area grantee may submit an control. The earliest that HUD will agency from promulgating a regulation abbreviated consolidated plan that is reduce grants under this final rule will that has federalism implications and appropriate to the types and amounts of be in Fiscal Year (FY) 2008, should an either imposes substantial direct VerDate Aug<31>2005 14:40 Mar 14, 2007 Jkt 211001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\15MRR3.SGM 15MRR3 rmajette on PROD1PC67 with RULES3 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 12535 compliance costs on state and local Catalog of Federal Domestic Assistance the CDBG program, an abbreviated plan governments and is not required by The Catalog of Federal Domestic may be submitted for the HUD- statute, or preempts state law, unless the Assistance number for the Insular Areas administered Small Cities program relevant requirements of section 6 of the Program is 14.225. (except that an abbreviated plan may executive order are met. This rule does not be submitted for the HUD- not have federalism implications and List of Subjects administered Small Cities program in does not impose substantial direct 24 CFR Part 91 the state of Hawaii), and for Insular Area grantees pursuant to 24 CFR 570.440. compliance costs on state and local Aged, Grant programs-housing and governments or preempt state law (c) * * * community development, Homeless, (4) Submissions, Certifications, within the meaning of the executive Individuals with disabilities, Low and order. Amendments, and Performance Reports. moderate income housing, Reporting An Insular Area grantee that submits an Regulatory Flexibility Act and recordkeeping requirements. abbreviated consolidated plan under 24 CFR Part 570 this section must comply with the The Regulatory Flexibility Act (RFA) submission, certification, amendment, (5 U.S.C. 601 et seq.) generally requires Administrative practice and and performance report requirements of an agency to conduct regulatory procedure, American Samoa, 24 CFR 570.440. This includes flexibility analysis of any rule subject to Community development block grants, certification that the grantee will notice and comment rulemaking Grant programs—education, Grant affirmatively further fair housing, which requirements, unless the agency certifies programs—housing and community means it will conduct an analysis of that the rule will not have a significant development, Guam, Indians, Lead impediments to fair housing choice and economic impact on a substantial poisoning, Loan programs—housing and undertake other activities required for number of small entities. This rule will community development, Low and fair housing planning, in accordance not have a significant economic impact moderate income housing, New with 24 CFR 91.225(a)(1) and on a substantial number of small entities communities, Northern Mariana Islands, 570.601(a)(2). Pacific Islands Trust Territory, Pockets because the rule only codifies in HUD’s of poverty, Puerto Rico, Reporting and * * * * * regulations procedures that will enable recordkeeping requirements, Small (e) Citizen Participation.