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Extension of Minimum Funding Under the Indian Housing Block Grant Program
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[Federal Register: October 19, 2006 (Volume 71, Number 202)]
[Rules and Regulations]
[Page 61865-61868]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19oc06-15]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 1000
[Docket No. FR-5093-I-01]
RIN 2577-AC69
Extension of 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 provides authority for Indian tribes to
receive a minimum grant amount under the need component of the Indian
Housing Block Grant (IHBG) Formula for Fiscal Year (FY) 2007. The
minimum funding provision currently in effect in HUD's regulations
limited authority for receipt of a minimum grant amount to FY2006. HUD
and Indian tribes, through negotiated rulemaking procedures, developed
and published a proposed rule to address ways to improve and clarify
the IHBG Formula regulations, including the minimum funding provisions.
The reinstatement of the authority for minimum grant amounts in FY2007
will avoid hardship to the affected tribes until the revised minimum
funding provisions contained in the negotiated rule are issued as a
final rule and become effective.
DATES: Effective Date: November 20, 2006.
Comment Due Date: December 18, 2006.
ADDRESSES: Interested persons are invited to submit comments regarding
this rule to the Regulations Division, Office of General Counsel,
Department of Housing and Urban Development, 451 Seventh Street, SW.,
Room 10276, Washington, DC 20410-0500. Interested persons also may
submit comments electronically through The Federal eRulemaking Portal
at http://www.regulations.gov. HUD strongly encourages commenters to
submit comments electronically in order to make them immediately
available to the public. Commenters should follow the instructions
provided on that site to submit comments electronically. Facsimile
(FAX) comments are not acceptable. In all cases, communications must
refer to the docket number and title. All comments and communications
submitted to HUD will be available for public inspection and copying
between 8 a.m. and 5 p.m. weekdays at the above address. Due to
security measures at the HUD Headquarters building, an advance
appointment to review the public comments must be scheduled by calling
the Regulations Division at (202) 708-3055 (this is not a toll-free
number). Copies of all comments submitted are available for inspection
and downloading at http://www.regulations.gov.
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
through TTY by calling the toll-free Federal Information Relay Service
at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4101 et seq.) (NAHASDA) streamlined the way that
housing assistance is provided to Native Americans. NAHASDA eliminated
several separate assistance programs and replaced them with a single
block grant program, known as the Indian Housing Block Grant (IHBG)
Program. In addition to simplifying the process of providing housing
assistance, the purpose of NAHASDA is to provide Federal assistance for
Indian tribes in a manner that recognizes the right of Indian self-
determination and tribal self-governance.
The regulations governing the IHBG Program are found in part 1000
of HUD's regulations in title 24 of the Code of Federal Regulations.
The part 1000 regulations were established as part of a March 12, 1998,
final rule implementing NAHASDA. In accordance with section 106 of
NAHASDA, HUD developed the March 12, 1998, final rule with active
tribal participation and using the procedures of the Negotiated
Rulemaking Act of 1990 (5 U.S.C. 561-570).
Under the IHBG Program, HUD makes assistance available to tribes
for Indian housing activities. The amount of assistance made available
to each Indian tribe is determined using a formula (IHBG Formula) that
was developed as part of the NAHASDA negotiated rulemaking process. A
regulatory description of the IHBG Formula is located in subpart D of
24 CFR part 1000 (Sec. Sec. 1000.301-1000.340). The IHBG Formula
consists of two components: (1) Need and (2) formula current assisted
stock (FCAS). Generally, the amount of funding for a tribe is the sum
of the need component and the FCAS component, subject to a minimum
funding amount authorized by Sec. 1000.328.
The minimum funding provision at Sec. 1000.328 provides that 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. In
subsequent fiscal years, 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. As originally adopted by
the negotiated rulemaking committee and reflected in the March 12,
1998, final rule, Sec. 1000.328 provided that minimum funding under
the need component would not extend beyond Fiscal Year 2002.
Section 1000.328 also specifies that the need for the minimum
funding provisions will be reviewed in accordance with Sec. 1000.306.
Section 1000.306 provides that the IHBG Formula be reviewed within five
years after promulgation to determine whether any changes are needed.
The negotiated rulemaking committee intended that the IHBG Formula
would be reviewed before expiration of the minimum funding provision.
In accordance with Sec. 1000.306, HUD established a negotiated
rulemaking committee for the purposes of reviewing and developing
changes to the regulations governing the IHBG Formula, including the
minimum funding provisions. However, the work of the committee
continued beyond FY2002 and the expiration of the minimum funding
provisions. Accordingly, on June 24, 2003 (68 FR 37660), HUD published
an interim rule extending the minimum funding under the need component
through FY2003 in order to avoid hardship to the affected Indian
tribes. The interim rule provided for a 60-day public comment period.
HUD received no comments in response to the interim rule. Due to the
ongoing work of the negotiated rulemaking committee, the minimum
funding provisions were again extended through FY2006 (see the interim
rules published on June 17, 2004 (69 FR 34020) and January 27, 2005 (70
FR 4000)).
On February 25, 2005 (70 FR 9490), HUD published the proposed rule
that was developed by the negotiated rulemaking committee. However,
because the final rule implementing these regulatory changes has not
yet been published and made effective, HUD has determined that an
additional extension is required for the minimum
[[Page 61867]]
funding provision of Sec. 1000.328. If action is not taken now to
extend the minimum funding provision, Indian tribes, especially small
Indian tribes, would be affected by the lapse of the minimum funding
provision.
II. This Interim Rule
The interim rule authorizes for FY2007 the provision in Sec.
1000.328 with respect to the minimum funding amount under the need
component of the IHBG for tribes returning for their second or
subsequent year's grant. The provision with respect to the $50,000 an
Indian tribe receives in its first year of funding under the IHBG
Program is not revised by this interim rule. That provision, unlike the
minimum funding amount for returning Indian tribes, has no expiration
date. Accordingly, this rule applies only to the minimum grant amount
that returning Indian tribes may receive.
The reinstatement of the authority for minimum grant amounts in
FY2007 will avoid unnecessary hardship to the many Indian tribes until
the revised minimum funding provisions contained in the negotiated
proposed rule are issued as a final rule and become effective. Once
effective, the minimum funding provisions established by the negotiated
final rule will supersede the current regulations. In the interim,
affected tribes will not suffer a financial loss because of the
expiration of the minimum funding provision in the current regulation.
III. Justification for Interim Rulemaking
Generally, HUD 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 HUD 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.''
HUD 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 significant reduction
in funds. The funding meets a critical need of many tribes, which would
go unmet during the time that it otherwise would take to publish a rule
for effect. Further, as noted above in this preamble, this interim rule
follows publication of other HUD interim rules, which similarly
extended the IHBG minimum funding provisions. The rules were non-
controversial and welcomed by Indian tribes. Although the previous
interim rules invited public comments, HUD did not receive any public
comments opposed to the extension of the minimum funding provisions.
HUD, however, solicits public comment on this rule.
IV. Findings and Certifications
Executive Order 13132
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 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 Executive Order.
Unfunded Mandates Reform Act
Title II of 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 the private sector. This interim rule does not
impose any Federal mandate on any State, local, or tribal government or
the private sector within the meaning of UMRA.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
was made for the June 24, 2003, interim rule, 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(2)(C)). That
finding remains applicable to this interim rule and is available for
public inspection between the hours of 8 a.m. and 5 p.m. weekdays in
the Regulations Division, Office of General Counsel, Department of
Housing and Urban Development, 451 Seventh Street, SW., Room 10276,
Washington, DC 20410-0500. Due to security measures at the HUD
Headquarters building, an advance appointment to review the public
comments must be scheduled by calling the Regulations Division at (202)
708-3055 (this is not a toll-free number).
Impact on Small Entities
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 interim rule does not impose any new or modify existing regulatory
requirements. Rather, the rule is exclusively concerned with extending
the minimum funding provisions under the need component of the IHBG
Formula. To the extent the interim rule has any impact on small
entities, it will be to the benefit of small Indian tribes that are the
primary beneficiaries of the minimum funding provisions. Accordingly,
the undersigned certifies that this rule will not have a significant
economic impact on a substantial number of small entities.
Notwithstanding HUD's determination that this rule will not have a
significant economic impact on a substantial number of small entities,
HUD specifically invites comments regarding 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 for the IHBG
Program 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
[[Page 61868]]
adjusted to $50,000. The 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 2007, 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: September 20, 2006.
Orlando J. Cabrera,
Assistant Secretary for Public and Indian Housing.
[FR Doc. E6-17518 Filed 10-18-06; 8:45 am]
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