Allocation of Budget Authority for Housing Assistance

SUMMARY: This final rule amends HUD's regulations for the allocation of

budget authority for housing assistance. In an effort to comply with

the President's regulatory reform initiatives, this rule streamlines

the regulations by eliminating provisions that are redundant of

statutes or are otherwise unnecessary, making them clearer and more

concise.

In addition, this rule revises the regulations to reflect

organizational initiatives within Headquarters, as well as the

Department's reinvention of the field office structure in Fiscal Year

1994, which eliminated the regional office management layer and

delegated the authority to the State and Area offices.

EFFECTIVE DATE: April 15, 1996.

FOR FURTHER INFORMATION CONTACT: For the Public and Indian Housing

programs, and the Section 8 voucher, certificate, and moderate

rehabilitation programs: Nanci E. Gelb, Director, PIH Budget Division,

Room 4230, Department of Housing and Urban Development, 451 Seventh

Street, SW, Washington, DC 20410-0500. Telephone: (202) 708-0614.

Hearing- or speech-impaired individuals may call HUD's TDD number (202)

708-0850.

For other assisted housing programs: Karen Daly, Acting Director,

Office of Policy, Assistant Secretary for Housing, Room 9220,

Department of Housing and Urban Development, 451 Seventh Street, SW.,

Washington, DC 20410-8000. Telephone: (202) 708-4135. Hearing- or

speech-impaired individuals may call HUD's TDD number (202) 755-4594.

(These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION On March 4, 1995, President Clinton issued a

memorandum to all Federal departments and agencies regarding regulatory

reinvention. In response to this memorandum, the Department of Housing

and Urban Development conducted a page-by-page review of its

regulations to determine which can be eliminated, consolidated, or

otherwise improved. HUD has determined that the regulations for the

``Allocation of Budget Authority for Housing Assistance'' can be

improved and streamlined by eliminating unnecessary provisions.

Some provisions in the regulations are now obsolete. For instance,

this rule removes Subpart B which contains obsolete regulations

regarding the Housing Assistance Plan (HAP). The HAP has been

superseded by the comprehensive affordability strategy (and

consolidated plan). Moreover, the Department now uses a grant mechanism

for the Section 202 program as a result of statutory changes in 1990;

hence, references in the regulations to loan authority for the Section

202 program, and in general, have been deleted.

Finally, some provisions in the regulations are not statutory

requirements. Section 791.403(a) included a statement that the

Assistant Secretaries for Housing and for Public and Indian Housing

would confer to determine how the available budget authority should be

allocated. Given recent appropriations treatment of the Section 8

programs, such consultation is no longer needed. Therefore, this

provision has been eliminated.

Justification for Final Rulemaking

HUD generally publishes a rule for public comment before issuing a

rule for effect, in accordance with its own regulations on rulemaking

in 24 CFR part 10. However, part 10 provides for exceptions to the

general rule if the agency finds good cause to omit advance notice and

public participation. The good cause requirement is satisfied when

prior public procedure is ``impracticable, unnecessary, or contrary to

the public interest'' (24 CFR 10.1). HUD finds that good cause exists

to publish this rule for effect without first soliciting public

comment. This rule merely removes unnecessary regulatory provisions and

does not establish or affect substantive policy. Therefore, prior

public comment is unnecessary.

Other Matters

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 does not have a significant

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

revises existing procedures for the allocation of housing assistance

funds and for local government and HUD review of applications for

housing assistance, but makes no change in the economic impact of these

procedures on small entities.

Environmental Impact

In accordance with 40 CFR 1508.4 of the regulations of the Council

on Environmental Quality and 24 CFR 50.20(k) of the HUD regulations,

the policies and procedures contained in this rule relate only to

internal administrative procedures whose content does not constitute a

development decision nor affect the physical condition of project areas

or building sites, and therefore, are categorically excluded from the

requirements of the National Environmental Policy Act.

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 relationship between the

Federal Government and the States, or on the distribution of power and

responsibilities among the various levels of government. Specifically,

this rule will not substantially alter the established roles of HUD and

the States and local governments, including PHAs, in administering the

affected programs. As a result, the rule is not subject to review under

the Order.

Executive Order 12606, The Family

The General Counsel, as the Designated Official 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. No significant change in existing HUD policies or programs will

result from promulgation of this rule, as those policies and programs

relate to family concerns.

List of Subjects in 24 CFR Part 791

Grant programs--housing and community development, Indians,

Intergovernmental relations, Public housing, Rent subsidies.

Accordingly, pursuant to the Secretary's authority under 42 U.S.C.

3535(d), 24 CFR part 791 is revised as follows:

[[Page 10849]]

PART 791--REVIEW OF APPLICATIONS FOR HOUSING ASSISTANCE AND

ALLOCATIONS OF HOUSING ASSISTANCE FUNDS

Subpart A--General Provisions

Sec.

791.101 Applicability and scope.

791.102 Definitions.

Subpart B--[Reserved]

Subpart C--Applications for Housing Assistance

791.301 General.

791.302 Finding of need for housing assistance.

791.303 Notification of local government.

791.304 Review and comment period.

791.305 HUD review of applications for housing assistance.

Subpart D--Allocation of Budget Authority for Housing Assistance

791.401 General.

791.402 Determination of low-income housing needs.

791.403 Allocation of housing assistance.

791.404 Field Office allocation planning.

791.405 Reallocations of budget authority.

791.406 Competition.

791.407 Headquarters Reserve.

Authority: 42 U.S.C. 1439 and 3535(d).

Subpart A--General Provisions

Sec. 791.101 Applicability and scope.

This part describes the roles and responsibilities of HUD and local

governments under section 213 of the Housing and Community Development

Act of 1974 (42 U.S.C. 1437). It applies to the allocation of budget

authority, and the review and approval of applications for housing

assistance under the United States Housing Act of 1937 (42 U.S.C. 1437-

1437q), section 101 of the Housing and Urban Development Act of 1965

(12 U.S.C. 1701s), and with respect to subpart D only, section 202 of

the Housing Act of 1959 (12 U.S.C. 1710q), except as follows:

(a) This part does not apply to programs for public housing

operating subsidy, public housing modernization, or rental

rehabilitation grant assistance under section 9, 14, or 17 of the

United States Housing Act of 1937; and

(b) Subpart D of this part does not apply to the allocation of

budget authority for housing development grant assistance under section

17 of the U.S. Housing Act of 1937.

Sec. 791.102 Definitions.

Act. The Housing and Community Development Act of 1974 (42 U.S.D.

1437), as amended.

Allocation area. A municipality, county, or group of municipalities

or counties or Indian areas identified by the HUD field office for the

purpose of allocating housing assistance.

Application for housing assistance. The first submission to HUD for

housing assistance under one of the programs identified in

Sec. 791.101(a). For the purposes of this part, the term includes an

application, a preliminary proposal, or a proposal, so long as it meets

the applicable program regulations. For the public housing program, the

first application identifying a project site will be considered the

application for housing assistance.

Assistant Secretary. The Assistant Secretary for Housing or the

Assistant Secretary for Public and Indian Housing, as appropriate to

the housing assistance under consideration.

Budget authority. The maximum amount authorized by the Congress for

payments over the term of assistance contracts.

Chief executive officer. The elected official or legally designated

official who has the primary responsibility for conducting the

governmental affairs of a unit of general local government. Examples of

the ``chief executive officer'' include: the elected mayor of a

municipality; the elected county executive of a county; the presiding

officer of a county commission or board in a county that has no elected

county executive; the official designated by the governing body of the

local government pursuant to law (e.g., the city manager or city

administrator); and the chairman, governor, chief or president of an

Indian tribe or Alaskan native village.

Fiscal year. The official operating period of the Federal

government, beginning on October 1 and ending on September 30.

Household type. The three household types are: elderly, small

family, and large family. References to household type shall mean the

household type within the appropriate tenure type.

Housing type. The three housing types are:

(1) New construction;

(2) Rehabilitation; and

(3) Existing housing.

Local government. Any city, county, town, township, parish, village

or other unit of general local government which is a general purpose

political subdivision of a State or the Commonwealth of Puerto Rico;

Guam, the Commonwealth of the Northern Marianas, the Virgin Islands and

American Samoa, or a general purpose political subdivision thereof; a

combination of such political subdivisions recognized by the Secretary

of HUD: the District of Columbia; the former Trust Territories of the

Pacific Islands, as applicable ; Indian tribes, bands, groups and

nations, including Alaska Indians, Aleuts and Eskimos; and any Alaskan

native village of the United States. The term also includes a State or

local public body or agency, community association, or other entity

which is approved by HUD to provide public facilities or services to a

new community meeting the requirements of Title IV of the Housing and

Urban Development Act of 1968 (42 U.S.C. 3901) or Title VII of the

Housing and Urban Development Act of 1970 (42 U.S.C. 4501).

Metropolitan area. See MSA.

MSA. A metropolitan statistical area established by the Office of

Management and Budget. The term also includes primary metropolitan

statistical areas (PMSAs), which are the component parts of larger

urbanized areas designated as consolidated metropolitan statistical

areas (CMSAs). Where an MSA is divided among two or more field offices,

references to an MSA mean the portion of the MSA within the State/Area

Office jurisdiction.

Public housing agency. Any State, county, municipality, or other

governmental entity or public body (or agency or instrumentality

thereof) which is authorized to engage in or assist in the development

or operation of housing for low-income families.

Tenure type. The two tenure types are owners and renters.

Urban county. Any county within a metropolitan area which is

authorized under State law to undertake essential community development

and housing assistance activities in its unincorporated areas, and

which meets the other requirements of 24 CFR 570.307 for qualification

as an urban county.

Subpart B--[Reserved]

Subpart C--Applications for Housing Assistance

Sec. 791.301 General.

This subpart C establishes the policies and procedures governing

reviews and determinations, pursuant to section 213(c) of the Act, with

respect to applications for housing assistance, under the programs

identified in Sec. 791.101(a).

Sec. 791.302 Finding of need for housing assistance.

With respect to each application for housing assistance, the field

office is required to make a determination as to whether there is a

need for such housing and whether the public facilities and services

available in the area will be adequate to serve the proposed housing.

[[Page 10850]]

(a) The initial determination of need for housing assistance within

an allocation area is made as part of the allocation process in

Sec. 791.404. In making this determination, the field office shall give

consideration to the contents of any applicable State or areawide

housing plan proposing housing assistance in the area, as well as

generally available data on population, poverty, housing overcrowding,

housing vacancies, amount of substandard housing, or other objectively

measurable conditions pertaining to low-income housing needs.

(b) Prior to making a determination with regard to a specific

application, the field office shall give the local government in which

the proposed assistance is to be provided an opportunity to provide

comments, during a 30-calendar-day period, concerning the need for

housing assistance and the adequacy of public facilities and services.

If the local government finding is negative, it must be accompanied by

supporting evidence.

Sec. 791.303 Notification of local government.

(a) The field office shall notify the chief executive officer no

later than 10 working days after receipt (or completion of any

preliminary review and determination that the application is acceptable

for further processing) that an application for housing assistance to

be provided in that jurisdiction has been received and is under

consideration.

(1) When the application is for housing assistance in newly

constructed or rehabilitated housing within the overlapping

jurisdictions of more than one local government (e.g., a municipality

which is also within a county), the field office shall notify the chief

executive officer of each local government.

(2) When the application is for housing assistance in newly

constructed or rehabilitated housing within several nonoverlapping

political jurisdictions (e.g., a scattered site project), the field

office shall notify the chief executive officer of each local

government where housing assistance is proposed.

(3) For a Section 8 existing housing, moderate rehabilitation, or

housing voucher application submitted in accordance with 24 CFR part

982, the field office shall notify the chief executive officers of the

localities that are identified in the application as:

(i) Primary areas from which households to be assisted under the

existing housing program will be drawn; or

(ii) Primary areas in which units will be rehabilitated under the

moderate rehabilitation program.

(b) The notification to the chief executive officer shall:

(1) Indicate that the field office has received and is considering

an application for housing assistance, and identify the housing

program, the housing type, the number of units by bedroom size and

household type, and the proposed location(s).

(2) Invite the submission, within a period of 30 calendar days from

the date of the field office letter, of a statement on behalf of the

local government concerning the need for housing assistance and the

adequacy of public facilities and services and any other comments which

are relevant to a determination by the field office concerning the

proposed housing assistance (e.g., comments on the site; whether the

project is approvable under local codes and zoning ordinances).

Sec. 791.304 Review and comment period.

The chief executive officer shall have a 30-calendar day comment

period, beginning on the date of the notification letter described in

Sec. 791.303, to submit written comments relevant to a determination by

the field office concerning the approval of an application for housing

assistance. The field office shall consider the comment period closed

when the written comments are received. In no case shall the Program

Office Director in the field office be obligated to consider subsequent

or revised comments unless the initial response indicated that

additional comments would be provided and such comments are received

prior to the expiration of the 30-day comment period. As an alternative

to this process, the chief executive officer may submit any comments on

the application with the application at the time it is submitted to

HUD. Such early comment shall state whether such comment is intended to

be the final comment, notwithstanding the 30-day period otherwise

provided under this paragraph.

Sec. 791.305 HUD review of applications for housing assistance.

(a) The field office shall not approve an application for housing

assistance prior to either:

(1) Receipt of comments pursuant to Sec. 791.304; or

(2) Expiration of the 30-day comment period, whichever occurs

earlier.

(b) In determining whether an application will be approved, the

field office shall consider the comments provided by the local

government including comments submitted by the chief executive officer

on behalf of the local government. The field office shall make an

independent determination as to whether there is a need for housing

assistance and whether facilities and services are adequate before

approving the application.

(c) The field office shall promptly notify both the chief executive

officer and the applicant of the HUD determination with respect to the

approval or disapproval of the application for housing assistance.

Subpart D--Allocation of Budget Authority for Housing Assistance

Sec. 791.401 General.

This subpart D establishes the procedures for allocating budget

authority under section 213(d) of the Act for the programs identified

in Sec. 791.101(a). It describes the allocation of budget authority by

the appropriate Assistant Secretary to the applicable Program Office

Director in the HUD field office, and by the Program Office Director to

allocation areas within their jurisdiction.

Sec. 791.402 Determination of low-income housing needs.

(a) Before budget authority is allocated, the Assistant Secretary

for Policy Development and Research shall determine the relative need

for low-income housing assistance in each HUD field office

jurisdiction. This determination shall be based upon data from the most

recent, available decennial census and, where appropriate, upon more

recent data from the Bureau of the Census or other Federal agencies, or

from the American Housing Survey.

(b) Except for paragraph (c) of this section, the factors used to

determine the relative need for assistance shall be based upon the

following criteria:

(1) Population. The renter population;

(2) Poverty. The number of renter households with annual incomes at

or below the poverty level, as defined by the Bureau of the Census;

(3) Housing overcrowding. The number of renter-occupied housing

units with an occupancy ratio of 1.01 or more persons per room;

(4) Housing vacancies. The number of renter housing units that

would be required to maintain vacancies at levels typical of balanced

market conditions;

(5) Substandard housing. The number of housing units built before

1940 and occupied by renter households with annual incomes at or below

the poverty level, as defined by the Bureau of the Census; and

[[Page 10851]]

(6) Other objectively measurable conditions. Data indicating

potential need for rental housing assistance, such as the number of

renter households with incomes below specified levels and paying a

gross rent of more than 30 percent of household income.

(c)(1) For the section 202 elderly program, the data used shall

reflect relevant characteristics of the elderly population. The data

shall use the criteria specified in paragraph (b)(1) and (6) of this

section, as modified to apply specifically to the needs of the elderly

population.

(2) Budget authority for the Indian housing program under 24 CFR

part 905 shall be allocated on the basis of the relative housing needs

of the Indian tribal population, as measured by the Bureau of Indian

Affairs, and by data for non-BIA recognized groups served by the Indian

housing program.

(d) Based on the criteria in paragraphs (b) and (c)(1) of this

section, the Assistant Secretary for Policy Development and Research

shall establish housing needs factors for each county and independent

city in the field office jurisdiction, and shall aggregate the factors

into metropolitan and nonmetropolitan totals for the field office. The

field office total for each metropolitan and nonmetropolitan factor is

then divided by the respective national total for that factor. The

resulting housing needs ratios under paragraph (b) of this section are

then weighted to provide metropolitan and nonmetropolitan housing needs

percentages for each field office, using the following weights:

Population, 20 percent; poverty, 20 percent; housing overcrowding, 10

percent; housing vacancies, 10 percent; substandard housing, 20

percent; other objectively measurable conditions, 20 percent. For the

section 202 elderly program, the two criteria described in paragraph

(c)(1) of this section are weighted equally.

(e) The Assistant Secretary for Policy Development and Research

shall adjust the housing needs percentages derived in paragraph (d) of

this section to reflect the relative cost of providing housing among

the field office jurisdictions.

Sec. 791.403 Allocation of housing assistance.

(a) The total budget authority available for any fiscal year shall

be determined by adding any available, unreserved budget authority from

prior fiscal years to any newly appropriated budget authority for each

housing program. On a nationwide basis, at least 20 percent, but not

more than 25 percent, of the total budget authority available for any

fiscal year, which is allocated pursuant to paragraph (b)(2) of this

section and any amounts which are retained pursuant to Sec. 791.407,

shall be allocated for use in nonmetropolitan areas.

(b) Budget authority available for the fiscal year, except for that

retained pursuant to Sec. 791.407, shall be allocated to the field

offices as follows:

(1) Budget authority shall be allocated as needed for uses that the

Secretary determines are incapable of geographic allocation by formula,

including--

(i) Amendments of existing contracts, renewal of assistance

contracts, assistance to families that would otherwise lose assistance

due to the decision of the project owner to prepay the project mortgage

or not to renew the assistance contract, assistance to prevent

displacement or to provide replacement housing in connection with the

demolition or disposition of public and Indian housing, assistance in

support of the property disposition and loan management functions of

the Secretary;

(ii) Assistance which is--

(A) The subject of a line item identification in the HUD

appropriations law, or in the table customarily included in the

Conference Report on the appropriation for the Fiscal Year in which the

funds are to be allocated;

(B) Reported in the Operating Plan submitted by HUD to the

Committees on Appropriations; or

(C) Included in an authorization statute where the nature of the

assistance, such as a prescribed set-aside, is, in the determination of

the Secretary, incapable of geographic allocation by formula,

(iii) Assistance determined by the Secretary to be necessary in

carrying out the following programs authorized by the Cranston-Gonzalez

National Affordable Housing Act: the Homeownership and Opportunity

Through HOPE Act under title IV and HOPE for Elderly Independence under

section 803.

(2) Budget authority remaining after carrying out allocation steps

outlined in paragraph (b)(1) of this section shall be allocated in

accordance with the housing needs percentages calculated under

paragraphs (b), (c), (d), and (e) of Sec. 791.402. HUD may allocate

assistance under this paragraph in such a manner that each State shall

receive not less than one-half of one percent of the amount of funds

available for each program referred to in Sec. 791.101(a) in each

fiscal year. If the budget authority for a particular program is

insufficient to fund feasible projects, or to promote meaningful

competition, at the field office level, budget authority may be

allocated among the ten geographic areas of the country. The funds so

allocated will be assigned by Headquarters to the field office(s) with

the highest ranked applications within the ten geographic areas.

(c) At least annually HUD will publish a notice in the Federal

Register informing the public of all allocations under

Sec. 791.403(b)(2).

Sec. 791.404 Field Office allocation planning.

(a) General objective. The allocation planning process should

provide for the equitable distribution of available budget authority,

consistent with the relative housing needs of each allocation area

within the field office jurisdiction.

(b) Establishing allocation areas. Allocation areas, consisting of

one or more counties or independent cities, shall be established by the

field office in accordance with the following criteria:

(1) Each allocation shall be to the smallest practicable area, but

of sufficient size so that at least three eligible entities are viable

competitors for funds in the allocation area, and so that all

applicable statutory requirements can be met. (It is expected that in

many instances individual MSAs will be established as metropolitan

allocation areas.) For the section 202 program for the elderly, the

allocation area must include sufficient units to promote a meaningful

competition among disparate types of providers of such housing (e.g.,

local as well as national sponsors, minority as well as non-minority

sponsors). The preceding sentence shall not apply to projects acquired

from the Resolution Trust Corporation under section 21A(c) of the

Federal Home Loan Bank Act.

(2) Each allocation area shall also be of sufficient size, in terms

of population and housing need, that the amount of budget authority

being allocated to the area will support at least one feasible program

or project.

(3) In establishing allocation areas, counties and independent

cities within MSAs should not be combined with counties that are not in

MSAs.

(c) Determining the amount of budget authority. Where the field

office establishes more than one allocation area, it shall determine

the amount of budget authority to be allocated to each allocation area,

based upon a housing needs percentage which represents the needs of

that area relative to the needs of the metropolitan or nonmetropolitan

portion of the field office jurisdiction, whichever is appropriate. For

each program, a composite housing needs percentage developed under

Sec. 791.402

[[Page 10852]]

for those counties and independent cities comprising the allocation

area shall be aggregated into allocation area totals.

(d) Planning for the allocation. The field office should develop an

allocation plan which reflects the amount of budget authority

determined for each allocation area in paragraph (c). The plan should

include a map or maps clearly showing the allocation areas within the

field office jurisdiction. The relative share of budget authority by

individual program type need not be the same for each allocation area,

so long as the total amount of budget authority made available to the

allocation area is not significantly reduced.

Sec. 791.405 Reallocations of budget authority.

(a) The field office shall make every reasonable effort to use the

budget authority made available for each allocation area within such

area. If the Program Office Director determines that not all of the

budget authority allocated for a particular allocation area is likely

to be used during the fiscal year, the remaining authority may be

allocated to other allocation areas where it is likely to be used

during that fiscal year.

(b) If the Assistant Secretary determines that not all of the

budget authority allocated to a field office is likely to be used

during the fiscal year, the remaining authority may be reallocated to

another field office where it is likely to be used during that fiscal

year.

(c) Any reallocations of budget authority among allocation areas or

field offices shall be consistent with the assignment of budget

authority for the specific program type and established set-asides.

(d) Notwithstanding the requirements of paragraphs (a) through (c)

of this section, budget authority shall not be reallocated for use in

another State unless the Program Office Director or the Assistant

Secretary has determined that other allocation areas within the same

State cannot use the available authority during the fiscal year.

Sec. 791.406 Competition.

(a) All budget authority allocated pursuant to Sec. 791.403(b)(2)

shall be reserved and obligated pursuant to a competition. Any such

competition shall be conducted pursuant to specific criteria for the

selection of recipients of assistance. These criteria shall be

contained in a regulation promulgated after notice and public comment

or, to the extent authorized by law, a notice published in the Federal

Register.

(b) This section shall not apply to assistance referred to in

Secs. 791.403(b)(1) and 791.407.

Sec. 791.407 Headquarters Reserve.

(a) A portion of the budget authority available for the housing

programs listed in Sec. 791.101(a), not to exceed an amount equal to

five percent of the total amount of budget authority available for the

fiscal year for programs under the United States Housing Act of 1937

listed in Sec. 791.101(a), may be retained by the Assistant Secretary

for subsequent allocation to specific areas and communities, and may

only be used for:

(1) Unforeseen housing needs resulting from natural and other

disasters, including hurricanes, tornadoes, storms, high water, wind

driven water, tidal waves, tsunamis, earthquakes, volcanic eruptions,

landslides, mudslides, snowstorms, drought, fires, floods, or

explosions, which in the determination of the Secretary cause damage of

sufficient severity and magnitude to warrant Federal housing

assistance;

(2) Housing needs resulting from emergencies, as certified by the

Secretary, other than disasters described in paragraph (a)(1) of this

section. Emergency housing needs that can be certified are only those

that result from unpredictable and sudden circumstances causing housing

deprivation (such as physical displacement, loss of Federal rental

assistance, or substandard housing conditions) or causing an unforeseen

and significant increase in low-income housing demand in a housing

market (such as influx of refugees or plant closings);

(3) Housing needs resulting from the settlement of litigation; and

(4) Housing in support of desegregation efforts.

(b) Applications for funds retained under paragraph (a) of this

section shall be made to the field office, which will make

recommendations to Headquarters for approval or rejection of the

application. Applications generally will be considered for funding on a

first-come, first-served basis. Specific instructions governing access

to the Headquarters Reserve shall be published by notice in the Federal

Register, as necessary.

(c) Any amounts retained in any fiscal year under paragraph (a) of

this section that are not reserved by the end of such fiscal year shall

remain available for the following fiscal year in the program under

Sec. 791.101(a) from which the amount was retained. Such amounts shall

be allocated pursuant to Sec. 791.403(b)(2).

Dated: March 7, 1996.

Henry G. Cisneros,

Secretary.

[FR Doc. 96-6162 Filed 3-14-96; 8:45 am]

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