Submission of Proposed Information Collection to OMB

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. N-94-3768]

Submission of Proposed Information Collection to OMB

AGENCY: Office of Administration, HUD.

ACTION: Notice.

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SUMMARY: The proposed information collection requirement described

below has been submitted to the Office of Management and Budget (OMB)

as required by the Paperwork Reduction Act for expedited review. The

Department is soliciting public comments on the subject proposal.

DATES: Comments due date: May 26, 1994.

ADDRESSES: Interested persons are invited to submit comments regarding

this proposal. Comments must be received within ten (10) days from the

date of this Notice. Comments should refer to the proposal by name and

should be sent to: Joseph F. Lackey, Jr., OMB Desk Officer, Office of

Management and Budget, New Executive Office Building, Washington, DC

20503.

FOR FURTHER INFORMATION CONTACT:

Kay F. Weaver, Reports Management Officer, Department of Housing and

Urban Development, 451 7th Street, Southwest, Washington, DC 20410.

Copies of the proposed forms and other available documents submitted to

OMB may be obtained from Ms. Weaver.

SUPPLEMENTARY INFORMATION: This Notice informs the public that the

Department of Housing and Urban Development has submitted to OMB, for

expedited processing, a form to be used to report annual

accomplishments regarding employment, training, and contracting

opportunities under Section 3, and a (complaint) form for filing with

the Department allegations of non-compliance with section 3. HUD is

requesting a 10-day OMB review of the documents.

The Department has submitted the proposal for the collection of

information as described below, to OMB for review, as required by the

Paperwork Reduction Act (44 U.S.C. chapter 35):

(1) The title of the information collection proposal;

(2) The Office of the agency to collect the information;

(3) The description of the need for the information and its

proposed use;

(4) The agency form number, if applicable;

(5) What members of the public will be affected by the proposal;

(6) How often information submission will be required;

(7) An estimate of the total number of hours needed to prepare the

information submission including number of respondents, frequency of

response, and hours for preparing the response;

(8) Whether the proposal is new or an extension, reinstatement, or

revision of an information collection requirement; and

(9) The name and telephone numbers of an agency official familiar

with the proposal and of the OMB Desk Officer for the Department.

Authority: Section 3507 of the Paperwork Reduction Act of, 44

U.S.C. 3507; Section 7(d) of the Department of Housing and Urban

Development Act, 42 U.S.C. 3535(d).

Dated: May 2, 1994.

Roberta Achtenberg,

Assistant Secretary for Fair Housing and Equal Opportunity.

Notice of Submission of Proposed Information Collection to OMB

Proposal: Information Collection for Part 135--Employment Opportunities

for Low and Very Low-Income Persons

Office: Office of Economic Opportunity, EPE Assistant Secretary for

Fair Housing and Equal Opportunity

Description of the Need for the Information and its Proposed Use: This

information collection will facilitate the collection of Section 3

information to assess the impact of HUD-assisted activities on

enhancing the employment opportunities for lower income persons and the

use of businesses that provide economic opportunities to them.

Form Number: Form HUD 958 and Form HUD 60002

Respondents: HUD recipients and their contractors and subcontractors

Frequency of Submission: Annually

Reporting Burden: Form Hud-60002

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Number Hours

Number of respondents of per Total

reports report hours

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58,403 (recipients)...................... 1 2 116,806

75,000 (contractors and subcontractors).. 1 2 150,000

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Form HUD-958

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Hours

Number of respondents Number of per Total

responses response hours

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100 complainants......................... 100 1 100

100 respondents.......................... 90 4 360

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Total Estimated Burden Hours: 534,072

Status: Revision of a currently approved collection

Contact: Maxine B. Cunningham, HUD (202) 708-2251, Joseph F. Lackey,

Jr., OMB (202) 395-6880

Date: May 2, 1994

Supporting Statement

1. Need for Information and Legal Requirements

Section 3 Reporting Form

Section 3 of the Housing and Urban Development Act of 1968

(Section 3) mandates that the Department ensure that employment and

other economic opportunities generated by its housing and community

development assistance programs are, to the greatest extent

feasible, directed toward low- and very low-income persons,

particularly those who are recipients of government assistance for

housing.

The Housing and Community Development Act (HCDA) of 1992

requires the Secretary of Housing and Urban Development (HUD) to

submit to the Congress, not later than one year after the date of

enactment, a report describing (1) the Secretary's efforts to

enforce Section 3; (2) barriers to full implementation of Section 3;

(3) the anticipated costs and benefits of full implementation of

Section 3; and (4) recommendations for legislative changes to

enhance the effectiveness of Section 3.

Congressional actions support the need for a data collection

instrument to assess Section 3's impact. Responding to a directive

in the Conference Report on the Housing and Community Development

Act of 1987, the Department in FY 1991 issued a report to Congress.

This report assessed the impact of HUD-assisted activities on

enhancing the employment opportunities for lower income persons and

the use of businesses located in the area of assisted projects.

Further, the Fair Housing Act, as amended in 1988, at Section

808(e)(6) requires the Secretary of HUD to report annually to

Congress, and make available to the public, data on beneficiaries of

HUD-assisted programs pursuant to Section 3. In addition, Section

562 paragraph (a) of the Housing and Community Development Act of

1987 requires HUD to collect data and report annually to Congress on

the racial and ethnic characteristics of persons eligible for,

assisted by or otherwise benefiting from each community development

and housing assistance program administered by HUD. Since the

provisions of Section 3 apply to community development and housing

assistance programs, Section 562 authorizes the Secretary to collect

information determined to be necessary and appropriate in order to

complete this report. In spite of these numerous reporting

requirements, no data is collected on Section 3 which allows the

Department to determine the potential or to evaluate the impact of

the statute in meeting its objectives.

Congress, as well as the Department's Office of Inspector

General, have admonished the Department in failing to systematically

implement Section 3. The primary impediment is the absence of a

regulation which conforms to the statute and applies to all Section

3 covered assistance.

The regulations governing Section 3 at 24 CFR Part 135 have been

revised to incorporate the statutory amendments in the Housing and

Community Development Act of 1992; reflect certain changes in the

Department's programs that are subject to the Section 3 regulations;

clarify the obligations of individuals and entities subject to the

requirements of Section 3; and simplify the Department's

administration of Section 3 requirements. The revised regulations

include recordkeeping and reporting requirements.

The section 3 proposed rule was published on October 8, 1993 for

public comment. As a result of comments received, the Department

made a number of changes to the rule. Accordingly, the previously

approved section 3 reporting form, OMB No. 2529-0043, was revised to

reflect the changes made in the rule.

Changes in the rule affecting the recordkeeping and reporting

requirements are the establishment of numerical goals to be reported

in staff hours for training and employment and numerical goals to be

reported in percentages for contracting opportunities. The section 3

reporting form, OMB No. 2529-0043, requested that data be reported

on the number of section 3 residents hired in available positions

and the total dollar amount of contracts awarded to section 3

business concerns. Based on revisions to the rule, the data

collection will reflect staff hours for new hires and section 3

positions, and a percentage of the total dollar amount of contracts

awarded to section 3 business concerns. These are elements needed

for an effective program performance measurement system as required

under the Government Performance and Results Act of 1993.

In addition, we are adding a Complaint Register which will be

used to file section 3 complaints for your approval. Although the

regulations implementing section 3, since 1973 have provided for HUD

processing of allegations of non-compliance, this is the first

request for OMB approval of a formal complaint form for this

requirement.

The Department is seeking a three year approval of the revised

section 3 reporting form, OMB No. 2529-0043; and the section 3

complaint form.

Complaint Register

The Complaint Register for section 3 of the Housing and Urban

Development Act of 1968 (Section 3 Compliant Form) is necessary for

the collection of information relative to the investigation of

allegations of noncompliance pursuant to Section 3 of the Housing

and Urban Development Act of 1968, as amended (Section 3). Section 3

requires that the Department, to the greatest extent feasible,

provide: (1) job and training opportunities for lower income persons

within that unit of local government or the metropolitan area (or

nonmetropolitan county) where the project is located; and (2)

business opportunities for firms located or owned in substantial

part by persons in the same metropolitan area (or nonmetropolitan

county) as the project. The regulation at 24 CFR part 135 provides

that Section 3 residents and business concerns may file a complaint

alleging noncompliance with Section 3 by a recipient, contractor or

subcontractor. The complaint must be filed within 180 days of the

alleged violation.

It is anticipated that the Section 3 Complaint Form will help to

expedite the acceptance of complaints because the form guides the

complainants to include all necessary components of the complaint,

thereby saving costs associated with staff time that would otherwise

be spent securing additional information that would be necessary to

complete a complaint.

Statutory Authority

The authorization for the information collection on the Section

3 Reporting Form is Section 3 of the Housing and Urban Development

Act of 1968, as amended, 12 U.S.C. 1701u. The implementing

regulations are found at 24 CFR Part 135 Subpart F--Recordkeeping

and Reporting.

The authorization for Section 3 Complaint Form is Section 3 of

the Housing and Urban Development Act of 1968, as amended, 12 U.S.C.

1701u. The implementing regulations are found at 24 CFR Part 135

Subpart D--Complaint and Compliance Review. The Section 3 Complaint

Form was developed to provide for uniformity in the information

that, by regulation, must be included in a complaint and for the

convenience of the public. The Section 3 regulation (24 CFR Part

135) states what each complaint should contain. For purposes of

meeting the time requirement for filing complaints (180 days),

initially these complaints do not have to be submitted on the form

that HUD provides.

2. Use of Information

The Section 3 Reporting Form will be used by the Department to

monitor program recipients' compliance with Section 3. HUD

Headquarters will use the information to assess the results of the

Department's efforts to meet the statutory objectives of Section 3.

Also, the data collected will be used by recipients as a self-

monitoring tool. If the information is not collected, HUD will be

unable to prepare the mandatory reports to Congress or to assess the

effectiveness of Section 3.

The Section 3 Complaint Form will be used by a complainant to

provide the necessary information to file a complaint. A complaint

may be filed by mail, in person or by telephone with the Office of

Fair Housing And Equal Opportunity (FHEO), Department of Housing and

Urban Development. FHEO staff will use the information provided by

this form as the basis for the Department's determination of

jurisdiction over a complainants' allegations.

3. Improved Technology To Reduce Burden

This issue is not applicable to the Section 3 Reporting Form.

The collection of data on the Section 3 Complaint Form is

consistent with the use of improved technology as the Department

prepares to convert their form to a direct electronic input source.

This electronic input source will reduce the burden of completing

the form manually before the information is stored on to an

electronic media for use in the Department's automated tracking

system.

4. Duplication

The Section 3 Reporting Form does not duplicate any other

reporting requirement in the Department.

The Section 3 Complaint Form does not duplicate any other

information collection process. HUD is the only Federal agency with

responsibility for administration of Section 3. This form is unique

to the processing of a allegation of noncompliance with the Section

3 statute or implementing regulations.

5. No Similar Information

No similar information is available to HUD with respect to the

Section 3 Reporting Form.

6. Small Business Burden

The collection of information by the Section 3 Reporting Form

involves recipients, contractors, and subcontractors receiving

Federal financial assistance for housing and community development

programs covered by Section 3. To minimize the burden, the

Department has attempted to provide clear guidance on the required

information collection. This guidance will prevent the recipient

from collecting and submitting unnecessary or duplicative

information. The Section 3 regulations apply to any Public and

Indian Housing programs that receive: (1) Development assistance

pursuant to Section 5 of the U.S. Housing Act of 1937; (2) operating

assistance pursuant to Section 9 of the U.S. Housing Act of 1937; or

(3) modernization grants pursuant to Section 14 of the U.S. Housing

Act of 1937. The regulations also apply to other housing and

community development assistance expended for: (1) housing

rehabilitation (including reduction and abatement of lead-based

paint hazards); (2) housing construction; (3) other public

construction projects; and (4) housing and community development

assistance for which the HUD share of the project cost (as defined

in Sec. 135.5) for such activity exceeds $100,000, or the amount of

any subcontract awarded in connection with the covered activity

exceeds $50,000.

Recipients and contractors subject to Section 3 requirements

must maintain appropriate documentation to establish that, at a

minimum, a good faith effort was made to provide economic

opportunities resulting from financial assistance for housing and

community development programs to low- and very low-income

residents. Each recipient who receives Section 3 covered assistance

from HUD shall submit to the Assistant Secretary for Fair Housing

and Equal Opportunity an annual report in such form and with such

information as the Assistant Secretary may request, for the purpose

of determining the results of Section 3 activities.

These results are used to assess the impact of the law, to

target monitoring and compliance reviews, and to prepare reports to

Congress.

A Section 3 complaint may be filed by an individual representing

the interests of a small business. The information required on the

Section 3 Complaint Form, is the same type of information

voluntarily provided by a person representing an individual.

Complainants are individuals or businesses who chose to submit this

form to HUD, and by electing to do so, are required to only submit

it once. No reporting of any kind is required, nor are respondents

remunerated by HUD for this effort.

7. Reporting Cycle

Section 3 Reporting Form information will be collected annually.

The report may be submitted on the same cycle as the performance

report required by the program under which Section 3 covered

assistance is provided. Where a performance report is not required,

the Section 3 report is due to the local HUD (Category A) Office

within ten (10) days after the end of the reporting period indicated

in Block 8 of form HUD-60002 or at the completion of the project if

sooner. Also, an annual reporting cycle will assist HUD in meeting

its reporting requirements under Section 808(e)(6) of the Fair

Housing Act, Section 561 of the HCDA of 1987 and Section 916 of the

HCDA of 1992. This report also will assist the Department in

evaluating and managing program performance.

The Section 3 Complaint Form mandates no specific requirements

with respect to the frequency of collection of information. The

Section 3 Compliant Form is made available to the public for use by

individuals or businesses who wish to file a Section 3 compliant

with HUD. Complaints are individuals who chose to submit this form

to HUD, and by electing to do so, are required to only submit it

once. No remunerated by HUD for this effort.

8. Consistency With 5 CFR 1320.6

Use of the Section 3 Reporting Form is consistent with 24 CFR

part 1320.6.

Use of the Section 3 Complaint Form is consistent with 24 CFR

part 1320.6.

9. Outside Consultation

Pursuant to statutory requirements, staff from the Departments

of Labor and Commerce, and the Small Business Administration have

been contacted regarding the Section 3 Reporting Form. The attached

Section 3 Reporting Form--Economic Opportunities for Low- and Very

Low-Income Persons, Housing and Urban Development Act of 1968, has

been developed by the Section 3 Compliance Division for collecting

Section 3 data. Form HUD-2516 is modified to collect Section 3

contracting data from public and Indian housing programs and all

community development programs except those administered by States.

Form HUD-60002 is designed to collect Section 3 contracting data

from all other Section 3 covered programs and to collect training

and employment data on all Section 3 covered programs. These data

collection forms are the only instruments that collect Section 3

employment, training and contracting information.

No one was consulted outside the Department with respect to the

Section 3 Complaint Form. The instructions are specific, and the

information provided by the complainant is unique on each form.

10. Confidentiality

An assurance of confidentiality is not applicable to the Section

3 Reporting Form. The form will be filed with HUD's Office of Fair

Housing and Equal Opportunity. The Privacy Act of 1974 and OMB

Circular A-108 are not applicable.

All information collected by the Section 3 Complaint Form

complies with the Privacy Act of 1974 and OMB Circular A-108,

``Responsibilities for Maintenance of Records About Individuals by

Federal Agencies''. Each respondent is apprised of the filing of a

Section 3 Complaint against them. However, information obtained

during the investigation is held in confidence and may not be

divulged while the investigation is in progress.

11. Sensitive Questions

The Section 3 Reporting Form reporting requirements do not

contain sensitive questions. The information requested deals with

the results of the recipient's good faith efforts to provide

opportunities for lower income residents to receive job training and

employment and for local businesses to receive contracts in

connection with HUD assisted programs. Data is cumulative and

personal identifying information is not included.

The Section 3 Complaint Form does not request information of a

sensitive nature such as sexual behavior and attitudes, religious

beliefs and other matters that are commonly considered private.

Section 3 is racially neutral and as such the complaint form does

not request information regarding the complainants' race, color,

sex, or national origin because these areas are not protected

classes or issues which determine beneficiaries of Section 3. The

information provided on this complaint form is given voluntarily and

provides the basis for HUD's investigation of the complaint to

determine if the allegations of noncompliance are valid.

12. Estimate of Costs

For HUD Section 3 Reporting Form--Preparing the Report

FHEO:

GS-13 to compile and analyze the information at $25.18 per

hour for approximately 8 hours........................... $201.44

GS-15 to review and approve at $35 per hour for

approximately 3 hours.................................... 105.00

GS-7 to type, copy, and prepare report for mailing at

$11.94 per hour for approximately 8 hours................ 95.52

Mailing costs for first class for 58,403 packages per

recipient @ $1 per report. (33,000 PHI recipients, 403

Housing recipients, & 25,000 CPD recipients)............. 58,403.00

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Total................................................. 58.804.96

For Respondents--Recordkeeping and Reporting Recipients

One professional staff at $25 per hour for approximately 3

hours...................................................... 75.00

One secretary to type, copy, and prepare report for mailing

at $11 per hour for approximately 12 hours................. 132.00

Mailing costs for first class for 1 package @ $1 per report. 1.00

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Total................................................. 208.00

Contractors

One professional staff at $25 per hour for approximately 1\1/

2\ hours................................................... 37.50

One secretary to type, copy, and prepare report for mailing

at $11 per hour for approximately 4 hours.................. 44.00

Mailing costs for first class for one package @ $1 per

report..................................................... 1.00

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Total................................................. 82.50

For HUD--Reviewing the Section 3 Complaint Form

FHEO:

GS-12 to review each Section 3 Complaint Form at $19 per

hour for \1/3\hour.......................................

HUD anticipates a receipt of 100 complaints annually. 100

complaints x .33 minutes = 33 hrs........................

33 hrs x $19 per hour..................................... 627.00

10 % overhead............................................. 62.70

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Total................................................. 689.70

For Complainants--Completion of Section 3 Complaint Form

This form is voluntarily filled out by a Section 3

Complainant in one hour. There is no financial investment

required or expected

For Respondents--Completion of Section 3 Complaint Form

A Respondent does not complete the Section 3 Complaint Form.

However, the respondent is required to respond and/or

resolve the allegations identified on the Section 3

Complaint Form. The estimated time for response is four (4)

hours. The estimated cost for this response time is as

follows:

One professional staff (attorney) at $75 per hour for

approximately 3 hours.................................... 225.00

One secretary to type, copy, and prepare response for

mailing at $11 per hour for approximately 1 hour......... 11.00

Mailing costs for first class for one package @ $1 per

response................................................. 1.00

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Total................................................. 237.00

13. Estimate of Collection Burden

For the Section 3 Reporting Form the total universe of potential

respondents, including recipients, prime contractors and

subcontractors, is approximately 133,403. We anticipate that about

58,403 respondents (HUD recipients) will submit summary reports to

HUD. Prime contractors and subcontractors will submit reports, as

requested, to the recipients. The required summary report from the

recipients is submitted to HUD annually, 10 days after the end of

the designated reporting period. The information is generated by the

recipient through maintaining documentation that summarizes efforts

made, and the results of those efforts, to provide opportunities for

training and employment arising from HUD assistance to low- and very

low-income residents. The data will be recorded on the Section 3

reporting form (form HUD-60002, Economic Opportunities for Low- and

Very Low-Income Persons). It is estimated that two hours per

reporting period will be required of the recipients, contractors and

subcontractors to prepare the Section 3 report. We estimate that the

burden will not vary significantly among the respondents.

Form HUD-60002

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Number Hours

Number of respondents of per Total

reports report hours

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58,403 (recipients)....................... 1 2 116,806

75,000 (contractors and subcontractors)... 1 2 150,000

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For the Section 3 Complaint Form, the Department estimates that

during the course of a year approximately 100 Section 3 complaints

will be filed. It is anticipated that it will take the complainant

approximately one (1) hour to complete the complaint form. It is

anticipated that it will take the respondent approximately four

hours to respond to the allegations of the complaint. Of the 100

complaints anticipated for receipt, HUD does not expect to require

or receive a response from each respondent. About 10% of the

complaints received will be administratively closed for lack of

jurisdiction prior to the notification of the respondent. Therefore,

the number of responses by the respondent has been lessened by 10%

(to 90 responses) resulting in 360 total response hours for a

respondent.

The total number of burden hours for the Section 3 Complaint

Form is 460 hours calculated as follows:

Section 3 Complaint Form

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Hours

Number of per Total

Number of respondents responses response hours

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100 complainants......................... 100 1 100

100 respondents.......................... 90 4 360

Recordkeeping:

133,403 recipients, contractors &

subcontractors........................ 1 4 266,806

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14. Change in Burden

The Section 3 Reporting Form is revised to reflect public

comments to the proposed rule.

This is the first time that the Section 3 Complaint Form

information has been requested.

15. Publication of Data

There are no existing plans for the tabulation and publication

of Section 3 Reporting Form data.

There are no existing plans for the tabulation and publication of

Section 3 Complaint Form data.

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[FR Doc. 94-11837 Filed 5-13-94; 8:45 am]

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