[Federal Register Volume 75, Number 65 (Tuesday, April 6, 2010)]
[Rules and Regulations]
[Pages 17303-17304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7767]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 570
[Docket No. 5326-F-02]
RIN 2506-AC28
Section 108 Community Development Loan Guarantee Program:
Participation of States as Borrowers Pursuant to Section 222 of the
Omnibus Appropriations Act, 2009
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Final rule.
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SUMMARY: This final rule follows publication of a July 22, 2009,
interim rule that implemented section 222 in Division I of the Omnibus
Appropriations Act, 2009. Section 222 authorizes HUD, to the extent of
its Fiscal Year (FY) 2009 loan guarantee authority, to provide
community development loan guarantees, under section 108 of the Housing
and Community Development Act of 1974, to States borrowing on behalf of
local governments in nonentitlement areas (governments that do not
receive annual Community Development Block Grants (CDBGs) from HUD).
Section 108 authorizes HUD to guarantee notes issued by such
nonentitlement local governments or their designated public agencies
supported by the respective State's pledge of its CDBG funds. Prior to
the enactment of section 222, HUD lacked authority to guarantee notes
issued by States on behalf of local governments in nonentitlement
areas. HUD received a single public comment on the July 22, 2009,
interim rule, which expressed support for the interim regulatory
amendments. HUD is adopting the interim rule without change.
DATES: Effective Date: May 6, 2010.
FOR FURTHER INFORMATION CONTACT: Paul Webster, Director, Financial
Management Division, Office of Community Planning and Development,
Department of Housing and Urban Development, 451 7th Street, SW., Room
7186, Washington, DC 20410; telephone number 202-708-1871 (this is not
a toll-free number). Individuals with speech or hearing impairments may
access this number through TTY by calling the toll-free Federal
Information Relay Service at 800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On July 22, 2009, at 74 FR 36384, HUD published an interim rule to
implement section 222 in Division I of the Omnibus Appropriations Act,
2009, (Pub. L. 111-8) (2009 Appropriations Act). Section 222 authorizes
expanded loan guarantee authority under section 108 of the Housing and
Community Development Act of 1974 (HCD Act) for Fiscal Year (FY) 2009.
Section 108 of the HCD Act provides local governments with access
to long-term (up to 20-year) fixed-rate loans at relatively low
interest rates to finance certain categories of eligible CDBG projects.
Historically, section 108 guarantee authority has been limited to units
of general local government and their public agencies. States have
participated in the section 108 program by supporting loan guarantee
applications of local governments in nonentitlement areas (governments
that do not receive annual CDBG funds from HUD) and by pledging the
State's CDBG allocations to secure the obligations issued by the local
governments. However, States have not been able to participate in the
program as issuers of obligations. One of the administrative provisions
of the 2009 Appropriations Act, section 222, authorizes HUD, to the
extent allowed under FY 2009 loan guarantee authority, to provide
section 108 community development loan
[[Page 17304]]
guarantees to States borrowing on behalf of local governments in
nonentitlement areas.
The July 22, 2009, interim rule implemented the expansion of
section 108 loan guarantee authority provided by the 2009
Appropriations Act. HUD's authority to issue loan guarantee commitments
under section 222 will expire on September 30, 2010 (and could be fully
utilized by other borrowers before that date), unless the provision
continues to be included in future appropriations acts. The July 22,
2009, interim rule, however, contained language that will continue the
applicability of the provisions implementing this new authority, in the
event that provisions equivalent to section 222 are included in future
appropriations acts. Because the provisions of section 222 expand,
rather than replace, existing section 108 authority, HUD will also
continue to accept State-supported applications from nonentitlement-
area local governments so that they can receive loan guarantee
commitments under the HCD Act. Interested readers should refer to the
preamble of the July 22, 2009, interim rule for additional background
and details regarding the regulatory changes implementing section 222.
As provided at 24 CFR 570.711, the additional requirements and
alternative application procedures in this rule shall also apply to
guarantees of debt obligations under section 108, pursuant to the
equivalent authority provided in the 2010 Appropriations Act (Pub. L.
111-117).
II. This Final Rule
This final rule follows publication of the July 22, 2009, interim
rule. The public comment period on the interim rule closed on August
21, 2009. HUD received a single public comment, expressing support for
the interim regulatory changes and urging HUD to make the changes
permanent. HUD is adopting the interim rule without change.
III. Findings and Certifications
Environmental Review
A Finding of No Significant Impact (FONSI) with respect to the
environment was made at the interim rule stage 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)). The
Finding of No Significant Impact remains applicable to this final 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 7th Street, SW., Room
10276, Washington, DC 20410. Due to security measures at the HUD
Headquarters building, please schedule an appointment to review the
FONSI by calling the Regulations Division at 202-708-3055 (this is not
a toll-free number). Individuals with speech or hearing impairments may
access this number via TTY by calling the Federal Information Relay
Service at 800-877-8339.
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 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 on the private sector. This rule does not
impose any Federal mandates on any State, local, or Tribal governments,
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 final rule adopts, without change, an interim rule that
implemented new statutory authority to provide an additional,
alternative route for States and their nonentitlement-area local
governments to obtain financing for eligible community development
projects. Specifically, the final rule authorizes HUD to provide
community development loan guarantees to States borrowing on behalf of
local governments in nonentitlement areas. Therefore, the primary focus
of the regulatory amendments is on the States, which are relatively
large jurisdictions. Further, and as detailed in the preamble to the
July 22, 2009, interim rule, the regulatory amendments track the
language of the authorizing statute to the greatest extent possible.
Accordingly, the regulatory text reflects statutorily mandated
requirements that HUD does not have discretion to modify. Where HUD has
been granted the discretion to elaborate on the statutory requirements,
it has built upon the existing requirements for section 108 loan
guarantees, which are familiar to States and localities. Moreover,
these amendments are technical, and procedural, relating to the
distribution of funds to local governments and the procedures to be
followed by States in applying for the loan guarantees authorized by
the provision. Therefore, it is HUD's determination that these
revisions impose no significant economic impact on a substantial number
of small entities. Accordingly, undersigned certifies that this rule
will not have a significant impact on a substantial number of small
entities.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance (CFDA) program number
for the State CDBG program is 14.228, and the CDFA program number for
the section 108 loan guarantee program is 14.248.
List of Subjects in 24 CFR Part 570
Administrative practice and procedure, American Samoa, Community
Development Block Grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Loan programs--
housing and community development, Low and moderate income housing,
Northern Mariana Islands, Pacific Islands Trust Territory, Puerto Rico,
Reporting and recordkeeping requirements, Student aid, Virgin Islands.
0
Accordingly, the interim rule amending 24 CFR part 570, which was
published at 74 FR 36384 on July 22, 2009, is adopted as a final rule
without change.
Dated: March 9, 2010.
Mercedes M[aacute]rquez,
Assistant Secretary for Community Planning and Development.
[FR Doc. 2010-7767 Filed 4-5-10; 8:45 am]
BILLING CODE 4210-67-P