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Minimum Funding Under the Indian Housing Block Grant Program
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[Federal Register: June 24, 2003 (Volume 68, Number 121)]
[Rules and Regulations]
[Page 37659-37661]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24jn03-16]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 1000
[Docket No. FR-4825-I-01]
RIN 2577-AC43
Minimum Funding Under the Indian Housing Block Grant Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule revises the current regulation to extend the
period for which an Indian tribe, after its first year of funding, may
receive a minimum grant amount under the need component of the Indian
Housing Block Grant (IHBG) formula. The minimum funding provision in
the regulation for returning tribes expired on September 30, 2002. This
interim rule authorizes the extension of the minimum funding provision
under the need component through Fiscal Year 2003 to avoid hardship to
the affected tribes.
DATES: Effective Date: July 24, 2003.
Comment Due Date: August 25, 2003.
ADDRESSES: Interested persons are invited to submit comments regarding
this rule to the Regulations Division, Office of General Counsel, Room
10276, Department of Housing and Urban Development, 451 Seventh Street,
SW., Washington, DC 20410-0500. Comments should refer to the above
docket number and title. A copy of each communication submitted will be
available for public inspection and copying during regular business
hours (weekdays 7:30 a.m. to 5:30 p.m. eastern time) at the above
address. Facsimile (FAX) comments are not acceptable.
FOR FURTHER INFORMATION CONTACT: Rodger Boyd, Deputy Assistant
Secretary for Native American Programs, Department of Housing and Urban
Development, 451 Seventh Street, SW., Room 4126, Washington, DC 20410-
0001; telephone (202) 401-7914 (this is not a toll-free 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:
Background
HUD issued regulations at 24 CFR part 1000 to implement certain
provisions of the Native American Housing Assistance and Self-
Determination Act of 1996 (NAHASDA) (25 U.S.C. 4101 et seq.).
Specifically, pursuant to section 302 of NAHASDA (25 U.S.C. 4152), a
formula was established to allocate funding for block grants among
Indian tribes. In accordance with section 302, the formula was based on
enumerated factors that reflected the need of the Indian tribes. The
formula, as required by section 106 of NAHASDA, was developed through
negotiated rulemaking. The final rule published on March 12, 1998 (63
FR 12349), provided, at 24 CFR 1000.328, for the minimum funding amount
a tribe could receive under the need component of the formula. Section
1000.328 also provided that the minimum funding would not ``extend
beyond Federal Fiscal Year 2002.'' A further provision in Sec.
1000.328 specified that ``[T]he need for Sec. 1000.328 will be
reviewed in accordance with Sec. 1000.306.''
As indicated above, Sec. 1000.328 contains a sunset provision with
respect to the minimum funding amount, that is, funding would not
``extend beyond Federal Fiscal Year 2002.'' Section 1000.306
(referenced in Sec. 1000.328) provides for a review within five years
of the promulgation of the rule to determine the need for the subsidy.
It is clear, therefore, that the regulation when adopted intended that
the IHBG formula would be reviewed before expiration of the minimum
funding provision.
The negotiated rulemaking committee that will review the formula
met on April 29, 2003. Resolving the issue of minimum funding by the
negotiated rulemaking committee, however, may not be reached for
several months. Consequently, because the minimum funding provision has
expired and some time may elapse before the resolution of this issue by
the negotiated rulemaking committee, if no action is taken now to
extend the minimum funding provision, small tribes especially would be
affected by the lapse in the funding provision.
This Interim Rule
This interim rule extends to Federal Fiscal Year 2003 the provision
in Sec. 1000.328 with respect to the minimum funding amount for
returning tribes under the need component of the IHBG. The provision
with respect to the minimum grant amount, i.e., $50,000, a tribe may
receive in its first year of funding remains unchanged in this rule.
That provision, unlike the minimum funding amount for returning tribes,
has no expiration date. Accordingly, this rule applies only to the
minimum grant amount that returning tribes may receive.
The Department believes that enlarging the time to Federal Fiscal
Year 2003 for returning tribes to receive the minimum grant amount
would avoid unnecessary hardship to many tribes. Additionally, adoption
of this rule allows more time for the negotiated rulemaking committee
to meet to review the IHBG formula, including the issue of minimum
funding. In the interim, the affected tribes will not suffer a
financial loss because of the expiration of the provision in the
current regulation.
Findings and Certifications
Justification for Interim Rulemaking
In general, the Department publishes a rule for public comment
before issuing a rule for effect, in accordance with its own
regulations on rulemaking at 24 CFR part 10. Part 10, however, does
provide in Sec. 10.1 for exceptions from that general rule where the
Department finds good cause to omit advance notice and public
participation. The good cause requirement is satisfied when the prior
public procedure is ``impracticable, unnecessary, or contrary to the
public interest.''
The Department finds that good cause exists to publish this interim
rule for effect without first soliciting public comment. The rule will
allow a minimum amount of funding to continue to Indian tribes without
a significant lapse in time during which the tribes would be foreclosed
from receiving funds entirely or would receive a harmful reduction. The
funding meets a critical need of many tribes, which will go unmet
during the time that it otherwise would take to publish a rule for
effect. The Department is still, however, soliciting public comment on
this rule. Any comments received on this rule will be considered in
adopting the final rule.
Regulatory Planning and Review
The Office of Management and Budget (OMB) reviewed this rule under
Executive Order 12866 (entitled ``Regulatory Planning and Review'').
OMB determined that this rule is a ``significant regulatory action'' as
defined in section 3(f) of the Order (although not economically
significant, as provided in section 3(f)(1) of the Order). Any changes
made to the rule subsequent to its submission to OMB are identified in
the docket file, which is available for public inspection in the
Regulations Division, Room 10276, Office of General Counsel, Department
of Housing and Urban Development, 451 Seventh Street, SW., Washington,
DC 20410-0500.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-
[[Page 37661]]
1538) establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This interim rule does not impose
any Federal mandates on any State, local, or tribal governments or the
private sector within the meaning of the Unfunded Mandates Reform Act
of 1995.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on State and local
governments and is not required by statute, or the rule preempts State
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive Order. This interim rule does not have
federalism implications and does not impose substantial direct
compliance costs on State and local governments or preempt State law
within the meaning of the Executive Order.
Environmental Impact
A finding of no significant impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332). The finding of no significant impact is
available for public inspection between the hours of 7:30 a.m. and 5:30
p.m. weekdays in the Regulations Division, Office of General Counsel,
Room 10276, Department of Housing and Urban Development, 451 Seventh
Street, SW., Washington, DC 20410-0500.
Impact on Small Entities
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this interim rule and in so
doing certifies that this rule will not have a significant economic
impact on a substantial number of small entities. Although HUD has
determined that this interim rule does not have a significant economic
impact on a substantial number of small entities, HUD invites comments
regarding any less burdensome alternatives to this rule that will meet
HUD's objectives as described in this preamble.
Catalog of Federal Domestic Assistance Numbers
The Catalog of Federal Domestic Assistance Number is 14.867.
List of Subjects in 24 CFR Part 1000
Aged, Community development block grants, Grant programs--housing
and community development, Grant programs--Indians, Indians,
Individuals with disabilities, Public housing, Reporting and
recordkeeping requirements.
? Accordingly, HUD amends 24 CFR part 1000 to read as follows:
PART 1000--NATIVE AMERICAN HOUSING ACTIVITIES
? 1. The authority citation for 24 CFR part 1000 continues to read as
follows:
Authority: 25 U.S.C. 4101 et seq.; 42 U.S.C. 3535(d).
? 2. Revise Sec. 1000.328 to read as follows:
Sec. 1000.328 What is the minimum amount an Indian tribe can receive
under the need component of the formula?
In the first year of NAHASDA participation, an Indian tribe whose
allocation is less than $50,000 under the need component of the formula
shall have its need component of the grant adjusted to $50,000. An
Indian tribe's IHP shall contain a certification of the need for the
$50,000 funding. In subsequent years, but not to extend beyond Federal
Fiscal Year 2003, an Indian tribe whose allocation is less than $25,000
under the need component of the formula shall have its need component
of the grant adjusted to $25,000. The need for this section will be
reviewed in accordance with Sec. 1000.306.
Dated: May 30, 2003.
Michael M. Liu,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 03-15817 Filed 6-23-03; 8:45 am]
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