Community Adjustment and Economic Diversification Planning Program; Special Purpose Grants; Final Rule DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SUMMARY: This rule implements a new program of planning grants for

community adjustment and economic diversification activities needed as

the result of the effects on localities of certain Department of

Defense (DoD) related actions, such as base closings or contract

cancellations. Section 801(c)(2) of the Housing and Community

Development Act of 1992 added a new Section 107(b)(6) to the Housing

and Community Development Act of 1974 to authorize these special

purpose planning grants to units of general government in

nonentitlement areas.

EFFECTIVE DATE: April 29, 1994.

FOR FURTHER INFORMATION CONTACT: James Selvaggi, Deputy Director,

Office of Technical Assistance, room 7168, Department of Housing and

Urban Development, 451 Seventh Street, SW., Washington, DC 20410;

telephone: (202) 708-2090 or (TDD) (202) 708-4594. (These are not toll

free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection requirements contained in this rule have

been approved under the Paperwork Reduction Act of 1980 (44 U.S.C.

3501-3520) by the Office of Management and Budget (OMB) and have been

assigned OMB control number 2535-0084.

Background

Congressional Initiative

On October 28, 1992, the President signed into law the Housing and

Community Development Act of 1992 (Pub. L. 102-550) (HCD Act of 1992).

In section 801(c)(2) of this law, Congress added a section 107(b)(6) to

the Housing and Community Development Act of 1974 (42 U.S.C.

5307(b)(6)) (HCD Act of 1974) to authorize grants for planning

community adjustments and economic diversification activities under any

of four criteria: (1) The proposed or actual establishment, realignment

or closing of a military installation, (2) the cancellation or

termination of a Department of Defense (DoD) contract or the failure to

proceed with an approved major weapon system program, (3) a publicly

announced planned major reduction in DoD spending that would directly

and adversely affect a unit of general government, and will result in

the loss of 1,000 or more full-time DoD and contractor employee

positions over a five-year period in the unit of general government and

the surrounding area, or (4) the Secretary (in consultation with the

Secretary of Defense) determines that an action described in 1, 2, or 3

is likely to have a direct and significant adverse consequence on the

unit of general local government.

The statutory features of this program are: (1) The provision of

assistance for planning, but not for implementation, of community

adjustments and economic diversification activities, (2) limitation of

assistance to units of general government in nonentitlement areas;

i.e., in an area which is not a metropolitan city or part of an urban

county and does not include Indian Tribes, under Title I of the Housing

and Community Development Act of 1974, as amended, and (3) the four

defined criteria that trigger eligibility for assistance. These

criteria closely parallel the criteria in 10 U.S.C. 2391, Military Base

Reuse Studies and Community Planning Assistance, which trigger

assistance available from the DoD for both advance adjustment planning

and implementation of adjustment and economic diversification

activities.

With respect to funding for this program, HUD anticipates

allocation of up to about two million dollars for FY 1994 from funds

available under section 107 of the HCD Act of 1974.

Replication With DoD Adjustment Planning Assistance

After consultation with DoD's Office of Economic Adjustment, HUD

confirmed that its new planning grant program, although limited to

assisting nonentitlement communities, closely replicates the community

adjustment planning assistance available from DoD under 10 U.S.C.

2391(b). (Section 2391(b)). Under that program, DoD may award grants to

States and local governments to plan community adjustments and economic

diversification activities.

Section 2391(b) was amended by section 4301 of the National Defense

Authorization Act for Fiscal Year 1993 (Pub. L. 102-484, approved

October 10, 1992) to add a fifth criterion to four others, any of which

trigger eligibility to apply for adjustment planning grants: (1) The

proposed or actual establishment, realignment, or closure of a military

installation; (2) cancellation or termination of a DoD contract, (3) a

publicly announced planned major reduction in DoD spending that would

directly and adversely affect a community, (4) encroachment by a

civilian community on a military installation, or (5) closure or

significantly reduced operations of a defense facility as the result of

the merger, acquisition, or consolidation of the defense contractor

operating the defense facility. DoD criteria 1, 2, and 3 are identical

to HUD's criteria 1, 2, and 3.

With respect to funding for the DoD section 2391(b) adjustment

planning program, HUD understands that extensive DoD funding is

currently available. DoD also indicates: (1) That it awards planning

adjustment grants within the context of extensive on-site visitation;

extensive community, State, and private sector consultation; and

thorough DoD review and analysis, and (2) that this process may extend

over several years, depending on the complexity of the DoD-generated

impacts and the community's ability to develop capacity to plan for, as

distinguished from adjusting to, these impacts.

Federal Interagency Coordination

HUD will administer the section 107(b)(6) planning grant program in

coordination with long-standing and extensive Federal agency programs

and arrangements in support of DoD-impacted communities.

The President's Economic Adjustment Committee (EAC), established in

1970 and amended most recently by Executive Order 12788 of January 15,

1992, is composed of 23 Federal agencies, including HUD, and is chaired

by the Secretary of Defense. The EAC coordinates Federal interagency

policy with respect to assisting communities to develop strategies and

take actions to adjust to DoD-generated impacts and to diversify local

economies.

The EAC has focused on coordinating Federal assistance to the

communities affected by the 1993, 1991, and 1989 base closures and

adjustments.

Under the aegis of the EAC, the DoD's Office of Economic Adjustment

(DoD-OEA) administers numerous assistance programs: Military Base Reuse

Studies (Section 2391(a)); Community Adjustment Planning (Section

2391(b)); Adjustment for Employees (Section 4201); Defense Conversion

Adjustment (Section 4203); and Export Financing for Firms Formerly

Engaged in Defense Production (Section 4303).

DoD coordinates closely with the Department of Commerce's Economic

Development Administration (DoC-EDA). DoD appropriations Acts often

provide for the transfer of funds to DoC-EDA to implement adjustment

projects and economic diversification activities, after they have been

planned. Pursuant to the January 27, 1992, Memorandum of Understanding

between DoD-OEA and DoC-EDA, DoD is responsible for providing

adjustment planning assistance and DoC-EDA is responsible for funding

projects that implement community adjustment and economic

diversification. The agencies coordinate fully in reviewing

applications for planning and implementation assistance.

DoD and the Small Business Administration also coordinate on the

provision of small business loans and export financing in support of

community adjustment and economic diversification.

HUD Administrative Policy for Section 107(b)(6) Planning Assistance

In order to provide clear guidance to eligible nonentitlement area

applicants, to distinguish the type of planning assistance available

from HUD and from DoD, and to minimize waste of public funds through

duplicative projects, HUD will award section 107(b)(6) planning

assistance according to the following policies:

1. Recognizing the extensive, multi-year process used by DoD to

develop local capacity to plan before it makes grants for full-scale

planning, HUD will give priority to applicants seeking to undertake

start-up or ``initial'' planning activities that will enable the

applicants to qualify more speedily for DoD full-scale planning

assistance.

2. HUD will fund site planning, architectural and engineering

studies, feasibility and cost analyses and similar planning for

specific projects, but only as a last resort, because assistance for

such project planning is normally available from EDA pursuant to its

memo of understanding with DoD dated January 27, 1992.

3. HUD will encourage applicants for its planning grants to give

appropriate local priority to planning for housing, including shelter

for the homeless, and for adjusting to economic or fiscal impacts on

the community. These types of planning will often complement, or fill

in, the full range of planning topics usually funded by DoD.

4. HUD will encourage applicants to coordinate fully any planning

assisted under this program with the strategies and activities of

relevant State designated enterprise zones, and of Federal empowerment

zones and enterprise communities, when selected and announced.

5. HUD will not fund Base Re-use Studies or demonstration planning

activities intended to evolve new planning techniques for impacted

communities because assistance is available from DoD for these

purposes.

6. Consistent with Executive Order 12788 of January 15, 1992

governing the President's Economic Adjustment Committee, HUD will

secure advisory reviews of all section 107(b)(6) applications by DoD's

Office of Economic Assistance.

7. In view of the high dollar-volume of prior planning assistance

awarded by DoD to impacted communities, the current availability of DoD

planning assistance, and the statutory limitation to assist only

nonentitlement areas, HUD plans to allocate initially up to $2 million

for section 107(b)(6) grants. Assuming a grant range of $75,000 to

$100,000 for start-up planning, an estimated 20-30 awards would be

made. HUD will issue future notices annually announcing the amount of

funding available for this program.

8. Since these grants are to provide initial planning assistance to

address promptly the circumstances facing affected localities but

beyond their control, HUD will award section 107(b)(6) assistance on a

noncompetitive basis. This rule (a) provides for open submission of

applications, or referrals from DoD, throughout the fiscal year; and

(b) specifies the submission requirements and the factors HUD will use

to qualify applicants for funding.

HUD considered, but discarded, two other administrative approaches.

First, operating a routine competitive program yearly, or even

quarterly, would impose unnecessary delay on communities needing to

respond quickly to suddenly announced DoD or defense facility actions,

such as contract cancellations or plant closings. Second, transferring

program responsibility and/or funds to DoD from HUD would not be

responsive to congressional intent. HUD therefore will administer the

program, on a noncompetitive basis, but closely coordinated with DoD,

in order to be fully responsive to potential applicants.

HUD will assess the initial year of program experience and

applicant demand, and then determine whether to continue this approach,

including the level of funding, or to develop other approaches more

beneficial to potential applicants.

Public Comments Received on Proposed Rule

On August 17, 1993, at 58 FR 43764, the Department published a

proposed rule for public comment. The comment period, which was 30

days, ended on September 16, 1993. Two late comments were received from

two local government agencies. These comments are summarized below,

along with the Department's responses.

One county community development agency requested that the proposed

community planning adjustment assistance be made available to

communities within urban counties, instead of being limited to non-

entitlement communities only. The Congress, however, authorized this

program solely for non-entitlement communities, i.e., for units of

general local government, excluding units of general local government

that are entitlement cities or are included in an urban county.

The other commenter, a county housing authority, requested that

assistance under this program should be available for these types of

planning: Planning for housing of the homeless component of the

community adjustment effort; economic development activities to assist

the homeless to become self-sufficient; economic development activities

such as small business incubators, which would tie into any Federal

enterprise zone; modifying current plans for shelter for the homeless,

for transportation or other physical infrastructure; and identification

of and coordination with Federal, State, and local entities and

establishment of appropriate local committees concerned with community

adjustment. All of these types of planning were eligible under the

proposed rule and remain eligible in the final rule.

This commenter also recommended that eligible activities should

include project-specific planning, such as site planning, architectural

and engineering studies, feasibility studies and cost analyses. The

proposed rule indicated that such planning would not be eligible,

because assistance for such projects is available from the Economic

Development Administration and the Department of Defense. Recognizing

that there may be rare circumstances wherein no planning assistance is

available from other Federal sources, HUD has modified the final rule

to indicate that Community Adjustment Planning Assistance may be

awarded, as a last resort of funding, for project-specific planning

activities.

Finally, this commenter recommended that environmental studies

related to base-reuse be considered an eligible activity. In order to

avoid duplication of effort with environmental studies funded by the

Department of Defense, as well as to conserve the limited HUD funds

available under this program, neither the proposed rule nor the final

rule provides for funding environmental studies.

Other Matters

Executive Order 12606, The Family

The General Counsel, as the Designated Officer under Executive

Order 12606, The Family, has determined that this rule does not have

potential for significant impact on family formation, maintenance, and

general well-being, and, thus, is not subject to review under the

Order. The rule involves assistance for units of general local

government in nonentitlement areas for planning community adjustments

and economic diversification as a result of DoD-generated impacts, and

should have no direct effect on family-related issues and concerns.

Executive Order 12612, Federalism

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612, Federalism, has determined that the policies

contained in this rule will not have substantial direct effects on

States or their political subdivisions, or the relationships between

the federal government and the States, or on the distribution of power

and responsibilities among the various levels of government. While this

rule provides funding directly to units of general local government in

nonentitlement areas, the Department believes that there exists ample

access by State and local governments to make their views known to the

Department in a timely and effective manner. The rule provides for

State coordination by units of general local government in

nonentitlement areas on eligible community adjustment and economic

diversification activities planning.

Environmental and Intergovernmental Review

A Finding of No Significant Impact with regard to the environment

has been made in accordance with HUD regulations in 24 CFR part 50,

which implement section 102(2)(C) of the National Environment Policy

Act of 1969, 42 U.S.C. 4321. The Finding of No Significant Impact is

available for public inspection between 7:30 a.m. and 5:30 p.m.

weekdays in the Office of the Rules Docket Clerk, room 10276, 451

Seventh Street, SW., Washington, DC 20510.

The intergovernmental review set forth in Executive Order 12372

shall be accomplished by the units of general local government in

nonentitlement areas through State coordination of each proposed

activity.

Regulatory Flexibility Act

The Secretary, in accordance with the Regulatory Flexibility Act (5

U.S.C. 605(b)), has reviewed this rule before publication and by

approving it certifies that this rule will not have a significant

economic impact on a substantial number of small entities. The planning

assistance awards that will be based on this rule will be used by units

of general local government in nonentitlement areas for community

adjustment and economic diversification activities planning as a result

of military base closures, or contract cancellations.

Semiannual Agenda

This rule was listed as item 1591 in the Department's Semiannual

Agenda of Regulations published on October 25, 1993 (58 FR 56402,

56440) pursuant to Executive Order 12291 and the Regulatory Flexibility

Act.

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, Lead poisoning, Loan

programs--housing and community development, Low and moderate income

housing, New communities, Northern Mariana Islands, Pacific Islands

Trust Territory, Pockets of poverty, Puerto Rico, Reporting and

recordkeeping requirements, Small cities, Student aid, Virgin Islands.

For the reasons set out in the preamble, the Department amends 24

CFR part 570 as follows:

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

1. The authority citation for part 570 continues to read as

follows:

Authority: 42 U.S.C. 3535(d) and 5300-5320.

2. Section 570.401 is added to subpart E, to read as follows:

Sec. 570.401 Community adjustment and economic diversification

planning assistance.

(a) General--(1) Purpose. The purpose of this program is to assist

units of general local government in nonentitlement areas to undertake

the planning of community adjustments and economic diversification

activities, in response to physical, social, economic or governmental

impacts on the communities generated by the actions of the Department

of Defense (DoD) defined in paragraph (a)(2) of this section.

(2) Impacts. Funding under this section is available only to

communities affected by one or more of the following DoD-related

impacts:

(i) The proposed or actual establishment, realignment, or closure

of a military installation;

(ii) The cancellation or termination of a DoD contract or the

failure to proceed with an approved major weapon system program;

(iii) A publicly announced planned major reduction in DoD spending

that would directly and adversely affect a unit of general local

government and result in the loss of 1,000 or more full-time DoD and

contractor employee positions over a five-year period in the unit of

general local government and the surrounding area; or

(iv) The Secretary of HUD (in consultation with the Secretary of

DoD) determines that an action described in paragraphs (a)(2)(i-iii) of

this section is likely to have a direct and significant adverse

consequence on the unit of general local government.

(3) Form of awards. Planning assistance will be awarded in the form

of grants.

(4) Program administration. HUD will publish in the Federal

Register early in each fiscal year the amount of funds to be available

for that fiscal year for awards under this section. HUD will accept

applications throughout the fiscal year, and will review and consider

for funding each application according to the threshold and qualifying

factors in paragraphs (f) and (g) of this section.

(b) Definitions. In addition to the definitions in Section 570.3 of

this part, the following definitions apply to this section: (1)

Adjustment planning. Generally, developing plans and proposals in

direct response to contraction or expansion of the local economy, or

changes in the physical development or the social conditions of the

community, resulting from a DoD-generated impact. Typically, this

planning includes one or more of the following tasks: Collecting,

updating, and analyzing data; identifying problems; formulating

solutions; proposing long- and short-term policies; recommending

public- and private-sector actions to implement community adjustments

and economic diversification activities; securing citizen involvement;

and coordinating with Federal, State, and local entities with respect

to the DoD-related impacts.

(2) Community adjustment. Any proposed action to change the

physical, economic, or social infrastructure within the jurisdiction or

surrounding area, directly and appropriately in response to the DoD-

generated impact.

(3) Contract. (i) Any defense contract in an amount not less than

$5 million (without regard to the date on which the contract was

awarded); and

(ii) Any subcontract that is entered into in connection with a

contract (without regard to the effective date of the subcontract) and

involves not less than $500,000.

(4) Defense facility. Any private facility producing goods or

services pursuant to a defense contract.

(5) DoD. The Department of Defense.

(6) Economic diversification activities. Any public or private

sector actions to change the local mix of industrial, commercial, and

service sectors, or the mix of business ventures within a sector, that

are intended to mitigate decline in the local economy resulting from

DoD-generated impacts or, in the case of expansion of a military

installation or a defense facility, that are intended to respond to new

economic growth spawned by that expansion.

(7) Military installation. Any camp, post, station, base, yard, or

other jurisdiction of a military department that is located within any

of the several States, the District of Columbia, the Commonwealth of

Puerto Rico, or Guam.

(8) Realignment. Any action that both reduces and relocates

functions and civilian personnel positions, but does not include a

reduction in force resulting from workload adjustments, reduced

personnel or funding levels, or skill imbalances.

(9) Section 107 means section 107 of the Housing and Community

Development Act of 1974, 42 U.S.C. 5307. Section 107(b)(6) was added by

section 801 of the Housing and Community Development Act of 1992 (Pub.

L. 102-550, approved October 28, 1992).

(10) Section 2391(b). The Department of Defense adjustment planning

program as set out in 10 U.S.D. 2391(b).

(11) Small Cities CDBG Program. The Community Development Block

Grant program for nonentitlement areas in which the States have elected

not to administer available program funds. The regulations governing

this program are set out in subpart F of this part.

(12) Surrounding area. The labor market area as defined by the

Bureau of Labor Statistics that: (i) Includes all or part of the

applicant's jurisdictions; and

(ii) Includes additional areas outside the jurisdiction.

(c) Eligible applicants. Any unit of general local government,

excluding units of general government that are entitlement cities or

are included in an urban county, and which does not include Indian

Tribes.

(d) Eligible activities. Activities eligible for adjustment

planning assistance include, generally: (1) Initial assessments and

quick studies of physical, social, economic, and fiscal impacts on the

community;

(2) Preliminary identification of potential public and private

sector actions needed for the community to initiate its response;

(3) If timely, modification of the applicant's current

comprehensive plan or any functional plan, such as for housing,

including shelter for the homeless, or for transportation or other

physical infrastructure;

(4) If timely, modification of the applicant's current economic

plans and programs, such as for business development, job training, or

industrial or commercial development;

(5) Preparation for and conduct of initial community outreach

activities to begin involving local citizens and the private sector in

planning for adjustment and diversification;

(6) Environmental reviews related to DoD-related impacts;

(7) Initial identification of and coordination with Federal, State

and local entities that may be expected to assist in the community's

adjustment and economic development; and with State-designated

enterprise zones, and Federal empowerment zones and enterprise

communities when selected and announced.

(8) Any other planning activity that may enable the community to

organize itself, establish a start-up capacity to plan, propose

specific plans and programs, coordinate with appropriate public or

private entities, or qualify more quickly for the more substantial

planning assistance available from DoD.

(e) Ineligible activities. Activities ineligible for adjustment

planning assistance are: (1) Base re-use planning.

(2) Site planning, architectural and engineering studies,

feasibility and cost analyses and similar planning for specific

projects to implement community adjustment or economic diversification,

unless as last resort funding for those applicants which are unable to

obtain planning assistance from other sources.

(3) Planning by communities which are encroaching on military

installations.

(4) Demonstration planning activities intended to evolve new

planning techniques for impacted communities.

(5) Any planning activity proposed to supplement or replace

planning that has been or is being assisted by the DoD Sec. 2391(b)

adjustment planning program.

(6) Any other planning activity the purpose of which is not

demonstrably in direct response to a DOD-related impact triggered by

one or more of the four criteria specified in paragraph (a)(2) of this

section.

(f) Threshold requirements. No application will qualify for funding

unless it meets the following requirements: (1) Verification by HUD

that the applicant is a unit of general government in a nonentitlement

area.

(2) Verification by HUD and DoD that a triggering event described

in paragraph (a)(2) of this section has occurred or will occur.

(3) With respect to communities affected by the 49 base closings

and 28 realignments listed by the 1991 Base Closure and Realignment

Commission, verification by DoD that it has provided no prior funding

and that the applicant may benefit from start-up planning assistance

from HUD.

(4) Determination by HUD that the proposed planning activities are

eligible.

(5) Determination by HUD that the submission requirements in

paragraph (h) of this section have been satisfied.

(g) Qualifying factors. HUD will make funding decisions on

qualified applications on the basis of the factors listed below, in the

order of such applications received, while program funds remain

available. HUD will also request and consider advise from DoD's Office

of Economic Assistance concerning the relative merits of each

application.

(1) The adequacy of the applicant's initial assessment of actual or

probable impacts on the community and the surrounding area;

(2) The adequacy and appropriateness of the start-up planning

envisioned by the applicant in response to the impacts;

(3) The type, extent, and adequacy of coordination that the

applicant has achieved, or plans to achieve, in order to undertake

planning for community adjustment and economic diversification.

(4) The cost-effectiveness of the proposed budget to carry out the

planning work envisioned by the applicant; (5) The capability of the

organization the applicant proposes to do the planning;

(6) The credentials and experience of the key staff the applicant

proposes to do the planning;

(7) The presence of significant private sector impact, as measured

by the extent to which the DoD-generated impact is projected to

decrease or increase the employment base by 10% or more;

(8) The presence of significant public sector impact, as measured

by the extent to which the DoD-generated impact is projected to

decrease or increase the applicant's capital and operating budgets for

the next fiscal year by 10% or more;

(9) The degree of urgency, to the extent that a suddenly announced

action, e.g. a plant closing, is officially scheduled to occur within a

year of the date of application.

(h) Submission requirements. Applicants may submit applications at

any time to: Director, Office of Technical Assistance, room 7214, 451

Seventh Street, SW., Washington, DC 20410. Each application (an

original and three copies) shall include the following: (1) The

Standard Form SF-424 as a face sheet, signed and dated by a person

authorized to represent and contractually or otherwise commit the

applicant;

(2) A concise title and brief abstract of the proposed planning

work, including the total cost;

(3) A narrative that: (i) Documents one or more of the triggering

events described in paragraph (a)(2) of this section that qualifies the

applicant to apply for planning assistance for community adjustments

and economic diversification;

(ii) Provides an initial assessment of actual or probable impacts

on the applicant community and the surrounding area;

(iii) Provides an initial assessment of the type and extent of

start-up planning envisioned by the applicant in response to the DoD-

generated impact; and

(iv) Describes the measures by which the applicant has already

coordinated, or plans to coordinate, with the DoD Office of Economic

Assistance, the Economic Development Administration of the Department

of Commerce, the Department of Labor, any military department, or any

other appropriate Federal agency; appropriate State agencies,

specifically including the agency administering the Small Cities CDBG

Program; appropriate State-designated enterprise zones; appropriate

Federal empowerment zones and enterprise communities, when selected and

announced; appropriate other units of general local government in the

nonentitlement area; appropriate businesses, corporations, and defense

facilities concerned with impacts on the applicant community; and

homeless nonprofit organizations, with respect to title V of the

Stewart B. McKinney Act (42 U.S.C. 11411-11412), requiring the Federal

property be considered for use in assisting the homeless.

(4) A Statement of Work describing the specific project tasks

proposed to be undertaken in order to plan for community adjustment and

economic diversification activities;

(5) A proposed budget showing the estimated costs and person-days

of effort for each task, by cost categories, with supporting

documentation of costs and a justification of the person-days of

effort;

(6) A description of the qualifications of the proposed technical

staff, including their names and resumes;

(7) A work plan that describes the schedule for accomplishing the

tasks described in the Statement of Work, the time needed to do each

task, and the elapsed time needed for all the tasks; and

(8) Other materials, as prescribed in the application kit; these

materials will include required certifications dealing with: Drug-Free

Workplace Requirements; Disclosure Regarding Payments to Influence

Certain Federal Transactions; and Prohibition Regarding Excessive

Force.

(i) Approval procedures--(1) Acceptance. HUD's acceptance of an

application meeting the threshold requirements of paragraph (f) does

not assure a commitment to provide funding or to provide the full

amount requested. HUD may elect to negotiate both proposed tasks and

budgets in order to promote more cost-effective planning.

(2) Notification. HUD will provide notification about whether a

project will be funded, rejected, or held for further consideration by

HUD and DoD.

(3) Form of award. HUD will award funds in the form of grants.

(4) Administration. Project administration will be governed by the

terms of individual awards and by the following provisions of this

part: (i) Subpart A, sec. 570.5;

(ii) Subpart E, secs. 570.400(d), (e), (f), and (g);

(iii) Subpart J, secs. 570.500(c), 570.501, 570.502, 570.503, and

570.509;

(iv) Subpart K, secs. 570.601, 570.602, 570.609, 570.610, and

570.611

The environmental review requirements of 24 CFR part 58 do not apply.

(Approved by the Office of Management and Budget under control

number 2535-0084)

Dated: March 14, 1994.

Andrew Cuomo,

Assistant Secretary for Community Planning and Development.

[FR Doc. 94-7504 Filed 3-29-94; 8:45 am]

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