Base Closure Community Redevelopment and Homeless Assistance

SUMMARY: This rule amends the Revitalizing Base Closure Communities and

Community Assistance--Community Redevelopment and Homeless Assistance

interim regulation of the Department of Housing and Urban Development

published on August 17, 1995. The Department of Defense (DoD) made an

identical publication on August 8, 1995. It establishes policies and

procedures, developed by both DoD and HUD, to take into account Section

2838 of the National Defense Authorization Act for FY 96 and comments

received from the public on the interim rule.

DATES: Effective: August 11, 1997.

FOR FURTHER INFORMATION CONTACT: Bill Poythress, Base Redevelopment

Team, Office of the Assistant Secretary for Community Planning and

Development, Department of Housing and Urban Development, 75 Spring

Street, SW, Atlanta, GA 30303-3388, (404) 331-5001, ext. 2546, or, TTY

number for hearing and speech-impaired, 1-800-877-8391, or Patrick

O'Brien, Base Closure and Community Reinvestment Office, Department of

Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202, (703)

604-5844 (except for the 800 number, these telephone numbers are not

toll-free).

SUPPLEMENTARY INFORMATION:

Regulatory History and Background Information

DoD and HUD published interim final rules on August 8, 1995, (60 FR

40277) and August 17, 1995, (60 FR 42972), respectively, implementing

the Base Closure Community Redevelopment and Homeless Assistance Act,

Public Law 103-421, (the ``Redevelopment Act''). Public comments were

accepted until October 16, 1995. Comments were received from six

different sources including State and local entities and non-profit

organizations.

On February 10, 1996, the President signed the National Defense

Authorization Act for FY 96 (Public Law 104-106) which, in section

2838, amended the Redevelopment Act. This final rule addresses both the

comments received on the interim rules during the public comment

period, and the amendments to the Redevelopment Act contained in Public

Law 104-106. HUD's final rule is identical to DoD's final rule,

published on July 1, 1997 (62 FR 35343). Readers are referred to the

preamble of the DoD final rule for a full discussion of the public

comments and statutory changes that affect this rule.

Extent of Changes to the Rule

DoD and HUD believe that the process created in the interim final

rule requires few changes as evidenced by the limited number of

comments received on the rule, the ease with which LRAs have been

complying with the requirements set out in the rule, and most

importantly, by the content of the applications that have been

submitted to HUD for approval. The redevelopment plans contained in the

applications that have been submitted have, for the most part, balanced

the economic redevelopment and other development needs of the

communities in the vicinity of the installation with the needs of the

homeless in those communities in an appropriate manner. As a result,

extensive changes based on public comments have not been made. However,

changes stemming from the recent amendments to the Redevelopment Act

have been incorporated.

HUD's Review Process

Since the publication of the interim final rule, the area that has

raised the most questions has been the process HUD uses to review

applications. In accordance with the procedures outlined in the

Redevelopment Act, the LRA must submit to HUD and DoD an application

which includes a copy of the redevelopment plan and a homeless

assistance submission. HUD reviews these applications and notifies DoD

and the LRA of its findings. The review criteria used by HUD are

outlined in Sec. 586.35(b) of this rule.

To help facilitate the completion of approvable applications, HUD

works with LRAs, the affected communities, and representatives of the

homeless throughout the development of the redevelopment plan and

application. HUD is available to provide assistance to LRAs throughout

the planning process. Such assistance includes attending LRA workshops

held under Sec. 586.20(c)(3) and meeting with LRAs at their request to

discuss specific issues.

HUD must receive the LRA's application no later than 270 days from

the deadline for receipt of notices of interest. HUD's headquarters

Base Redevelopment Team, and the local HUD Field Office will jointly

review the applications and approve or disapprove the LRA's submission.

This evaluation includes a completeness review to determine if all the

required elements have been submitted by the LRA. The HUD Field Office

will contact the LRA regarding any elements that were omitted. Next,

HUD evaluates if the redevelopment plan balances the economic

redevelopment and other development needs of the communities in the

vicinity of the installation with the needs of the homeless in those

communities in an appropriate manner. Finally, HUD evaluates the

legally binding agreements to ensure that the terms and conditions are

clearly articulated.

To assist LRAs with completing their applications and to provide

more information to interested parties about the Redevelopment Act

process, including HUD's review process, HUD has developed a

publication called the ``Guidebook on Military Base Reuse and Homeless

Assistance.'' To obtain a copy write the Department of Housing and

Urban Development, Base Redevelopment Team, 75 Spring Street, SW,

Atlanta, GA 30303-3388 or call (404) 331-5001 x2546. The Guidebook is

also available on the World Wide Web at: http://www.hud.gov/cpd/

milbase.

I. Findings and Certifications

Paperwork Reduction Act

The information collection requirements contained in Secs. 586.20

and 586.30 of this rule have been approved by the Office of Management

and Budget in accordance with the Paperwork Reduction Act of 1995 (44

U.S.C. Chapter 35), and assigned OMB control number 2506-0154. An

agency may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless the collection displays

a valid control number.

Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 establishes

requirements for Federal agencies to assess the effects of their

regulatory actions on State, local, local and tribal governments and

the private sector. This rule does not impose any Federal mandates on

any State, local or tribal governments or the private sector within the

meaning of the Unfunded Mandates Reform Act of 1995.

[[Page 37479]]

Impact on the Environment

For the interim rule published for this part, HUD made a Finding of

No Significant Impact with respect to the environment in accordance

with HUD regulations in 24 CFR part 50, which implement Section

102(2)(C) of the National Environmental Policy Act of 1969, 42 U.S.C.

4332. The changes made in the text of the final rule do not

substantively affect the Finding of No Significant Impact prepared for

the interim rule, and it remains applicable. That Finding of No

Significant Impact is available for public inspection and copying

between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules

Docket Clerk, Room 10276, 451 Seventh Street, S.W., Washington, D.C.

20410.

Executive Order 13045, Protection of Children From Environmental Health

Risks and Safety Risks

This rule will not pose an environmental health risk or safety risk

on children.

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 would not have a significant

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

only states the Department's criteria and procedures for reviewing

applications submitted by local redevelopment authorities (LRAs).

Federalism Impact

The General Counsel of HUD, as the Designated Official under

Executive Order 12612, Federalism, has determined that the policies

contained in this rule would not have any impact under the Order. The

rule states HUD's review criteria and procedures for reviewing

applications submitted by the LRA for balancing homeless, community and

economic redevelopment and other development needs of the communities

in the vicinity of the installation.

List of Subjects in 24 CFR Part 586

Government property, Homeless, Housing, Intergovernmental

relations, Surplus government property.

Accordingly, for the reasons set forth in the preamble, part 586 of

title 24 of the Code of Federal Regulations is revised to read as

follows:

PART 586--REVITALIZING BASE CLOSURE COMMUNITIES AND COMMUNITY

ASSISTANCE--COMMUNITY REDEVELOPMENT AND HOMELESS ASSISTANCE

Sec.

586.1 Purpose.

586.5 Definitions.

586.10 Applicability.

586.15 Waivers and extensions of deadlines.

586.20 Overview of the process.

586.25 HUD's negotiations and consultations with the LRA.

586.30 LRA application.

586.35 HUD's review of the application.

586.40 Adverse determinations.

586.45 Disposal of buildings and property.

Authority: 10 U.S.C. 2687 note; 42 U.S.C. 3535(d).

Sec. 586.1 Purpose.

This part implements the Base Closure Community Redevelopment and

Homeless Assistance Act, as amended (10 U.S.C. 2687 note), which

instituted a new community-based process for addressing the needs of

the homeless at base closure and realignment sites. In this process,

Local Redevelopment Authorities (LRAs) identify interest from homeless

providers in installation property and develop a redevelopment plan for

the installation that balances the economic redevelopment and other

development needs of the communities in the vicinity of the

installation with the needs of the homeless in those communities. The

Department of Housing and Urban Development (HUD) reviews the LRA's

plan to see that an appropriate balance is achieved. This part also

implements the process for identifying interest from State and local

entities for property under a public benefit transfer. The LRA is

responsible for concurrently identifying interest from homeless

providers and State and local entities interested in property under a

public benefit transfer.

Sec. 586.5 Definitions.

As used in this part:

CERCLA. Comprehensive Environmental Response, Compensation, and

Liability Act (42 U.S.C. 9601 et seq.).

Communities in the vicinity of the installation. The communities

that constitute the political jurisdictions (other than the State in

which the installation is located) that comprise the LRA for the

installation. If no LRA is formed at the local level, and the State is

serving in that capacity, the communities in the vicinity of the

installation are deemed to be those political jurisdiction(s) (other

than the State) in which the installation is located.

Consolidated Plan. The plan prepared in accordance with the

requirements of 24 CFR part 91.

Continuum of care system.

(1) A comprehensive homeless assistance system that includes:

(i) A system of outreach and assessment for determining the needs

and condition of an individual or family who is homeless, or whether

assistance is necessary to prevent an individual or family from

becoming homeless;

(ii) Emergency shelters with appropriate supportive services to

help ensure that homeless individuals and families receive adequate

emergency shelter and referral to necessary service providers or

housing finders;

(iii) Transitional housing with appropriate supportive services to

help those homeless individuals and families who are not prepared to

make the transition to independent living;

(iv) Housing with or without supportive services that has no

established limitation on the amount of time of residence to help meet

long-term needs of homeless individuals and families; and

(v) Any other activity that clearly meets an identified need of the

homeless and fills a gap in the continuum of care.

(2) Supportive services are services that enable homeless persons

and families to move through the continuum of care toward independent

living. These services include, but are not limited to, case

management, housing counseling, job training and placement, primary

health care, mental health services, substance abuse treatment, child

care, transportation, emergency food and clothing, family violence

services, education services, moving services, assistance in obtaining

entitlements, and referral to veterans services and legal services.

Day. One calendar day including weekends and holidays.

DoD. Department of Defense.

HHS. Department of Health and Human Services.

Homeless person. (1) An individual or family who lacks a fixed,

regular, and adequate nighttime residence; and

(2) An individual or family who has a primary nighttime residence

that is:

(i) A supervised publicly or privately operated shelter designed to

provide temporary living accommodations (including welfare hotels,

congregate shelters and transitional housing for the mentally ill);

(ii) An institution that provides a temporary residence for

individuals intended to be institutionalized; or

[[Page 37480]]

(iii) A public or private place not designed for, or ordinarily

used as, a regular sleeping accommodation for human beings.

(3) This term does not include any individual imprisoned or

otherwise detained under an Act of the Congress or a State law.

HUD. Department of Housing and Urban Development.

Installation. A base, camp, post, station, yard, center, homeport

facility for any ship or other activity under the jurisdiction of DoD,

including any leased facility, that is approved for closure or

realignment under the Base Closure and Realignment Act of 1988 (Pub. L.

100-526), as amended, or the Defense Base Closure and Realignment Act

of 1990 (Pub. L. 101-510), as amended (both at 10 U.S.C. 2687, note).

Local redevelopment authority (LRA). Any authority or

instrumentality established by State or local government and recognized

by the Secretary of Defense, through the Office of Economic Adjustment,

as the entity responsible for developing the redevelopment plan with

respect to the installation or for directing implementation of the

plan.

NEPA. National Environmental Policy Act of 1969 (42 U.S.C. 4320).

OEA. Office of Economic Adjustment, Department of Defense.

Private nonprofit organization. An organization, no part of the net

earnings of which inures to the benefit of any member, founder,

contributor, or individual; that has a voluntary board; that has an

accounting system or has designated an entity that will maintain a

functioning accounting system for the organization in accordance with

generally accepted accounting procedures; and that practices

nondiscrimination in the provision of assistance.

Public benefit transfer. The transfer of surplus military property

for a specified public purpose at up to a 100 percent discount in

accordance with 40 U.S.C. 471 et seq., or 49 U.S.C. 47151-47153.

Redevelopment plan. A plan that is agreed to by the LRA with

respect to the installation and provides for the reuse or redevelopment

of the real property and personal property of the installation that is

available for such reuse and redevelopment as a result of the closure

of the installation.

Representative(s) of the homeless. A State or local government

agency or private nonprofit organization, including a homeless

assistance planning board, that provides or proposes to provide

services to the homeless.

Substantially equivalent. Property that is functionally suitable to

substitute for property referred to in an approved Title V application.

For example, if the representative of the homeless had an approved

Title V application for a building that would accommodate 100 homeless

persons in an emergency shelter, the replacement facility would also

have to accommodate 100 at a comparable cost for renovation.

Substantially equivalent funding. Sufficient funding to acquire a

substantially equivalent facility.

Surplus property. Any excess property not required for the needs

and the discharge of the responsibilities of all Federal Agencies.

Authority to make this determination, after screening with all Federal

Agencies, rests with the Military Departments.

Title V. Title V of the Stewart B. McKinney Homeless Assistance Act

of 1987 (42 U.S.C 11411) as amended by the National Defense

Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).

Urban county. A county within a metropolitan area as defined at 24

CFR 570.3.

Sec. 586.10 Applicability.

(a) General. This part applies to all installations that are

approved for closure/realignment by the President and Congress under

Pub. L. 101-510 after October 25, 1994.

(b) Request for inclusion under this process. This part also

applies to installations that were approved for closure/realignment

under either Public Law 100-526 or Public Law 101-510 prior to October

25, 1994 and for which an LRA submitted a request for inclusion under

this part to DoD by December 24, 1994. A list of such requests was

published in the Federal Register on May 30, 1995 (60 FR 28089).

(1) For installations with Title V applications pending but not

approved before October 25, 1994, the LRA shall consider and

specifically address any application for use of buildings and property

to assist the homeless that were received by HHS prior to October 25,

1994, and were pending with the Secretary of HHS on that date. These

pending requests shall be addressed in the LRA's homeless assistance

submission.

(2) For installations with Title V applications approved before

October 25, 1994 where there is an approved Title V application, but

property has not been assigned or otherwise disposed of by the Military

Department, the LRA must ensure that its homeless assistance submission

provides the Title V applicant with:

(i) The property requested;

(ii) Properties, on or off the installation, that are substantially

equivalent to those requested;

(iii) Sufficient funding to acquire such substantially equivalent

properties;

(iv) Services and activities that meet the needs identified in the

application; or

(v) A combination of the properties, funding, and services and

activities described in Sec. 586.10(b)(2)(i) through (iv).

(c) Revised Title V process. All other installations approved for

closure or realignment under either Public Law 100-526 or Public Law

101-510 prior to October 25, 1994, for which there was no request for

consideration under this part, are covered by the process stipulated

under Title V. Buildings or property that were transferred or leased

for homeless use under Title V prior to October 25, 1994, may not be

reconsidered under this part.

Sec. 586.15 Waivers and extensions of deadlines.

(a) After consultation with the LRA and HUD, and upon a finding

that it is in the interest of the communities affected by the closure/

realignment of the installation, DoD, through the Director of the

Office of Economic Adjustment, may extend or postpone any deadline

contained in this part.

(b) Upon completion of a determination and finding of good cause,

and except for deadlines and actions required on the part of DoD, HUD

may waive any provision of Secs. 586.20 through 586.45 in any

particular case, subject only to statutory limitations.

Sec. 586.20 Overview of the process.

(a) Recognition of the LRA. As soon as practicable after the list

of installations recommended for closure or realignment is approved,

DoD, through OEA, will recognize an LRA for the installation. Upon

recognition, OEA shall publish the name, address, and point of contact

for the LRA in the Federal Register and in a newspaper of general

circulation in the communities in the vicinity of the installation.

(b) Responsibilities of the Military Department. The Military

Department shall make installation properties available to other DoD

components and Federal agencies in accordance with the procedures set

out at 32 CFR part 175. The Military Department will keep the LRA

informed of other Federal interest in the property during this process.

Upon completion of this process the Military Department will notify HUD

and either the LRA, or the Chief Executive Officer of the State, as

[[Page 37481]]

appropriate, and publish a list of surplus property on the installation

that will be available for reuse in the Federal Register and a

newspaper of general circulation in the communities in the vicinity of

the installation.

(c) Responsibilities of the LRA. The LRA should begin to conduct

outreach efforts with respect to the installation as soon as is

practicable after the date of approval of closure/realignment of the

installation. The local reuse planning process must begin no later than

the date of the Military Department's Federal Register publication of

available property described at Sec. 586.20(b). For those installations

that began the process described in this part prior to August 17, 1995,

HUD will, on a case by case basis, determine whether the statutory

requirements have been fulfilled and whether any additional

requirements listed in this part should be required. Upon the Federal

Register publication described in Sec. 586.20(b), the LRA shall:

(1) Publish, within 30 days, in a newspaper of general circulation

in the communities in the vicinity of the installation, the time period

during which the LRA will receive notices of interest from State and

local governments, representatives of the homeless, and other

interested parties. This publication shall include the name, address,

telephone number and the point of contact for the LRA who can provide

information on the prescribed form and contents of the notices of

interest. The LRA shall notify DoD of the deadline specified for

receipt of notices of interest. LRAs are strongly encouraged to make

this publication as soon as possible within the permissible 30 day

period in order to expedite the closure process.

(i) In addition, the LRA has the option to conduct an informal

solicitation of notices of interest from public and non-profit entities

interested in obtaining property via a public benefit transfer other

than a homeless assistance conveyance under either 40 U.S.C. 471 et

seq., or 49 U.S.C. 47151-47153. As part of such a solicitation, the LRA

may wish to request that interested entities submit a description of

the proposed use to the LRA and the sponsoring Federal agency.

(ii) For all installations selected for closure or realignment

prior to 1995 that elected to proceed under Public Law 103-421, the LRA

shall accept notices of interest for not less than 30 days.

(iii) For installations selected for closure or realignment in 1995

or thereafter, notices of interest shall be accepted for a minimum of

90 days and not more than 180 days after the LRA's publication under

Sec. 586.20(c)(1).

(2) Prescribe the form and contents of notices of interest.

(i) The LRA may not release to the public any information regarding

the capacity of the representative of the homeless to carry out its

program, a description of the organization, or its financial plan for

implementing the program, without the consent of the representative of

the homeless concerned, unless such release is authorized under Federal

law and under the law of the State and communities in which the

installation concerned is located. The identity of the representative

of the homeless may be disclosed.

(ii) The notices of interest from representatives of the homeless

must include:

(A) A description of the homeless assistance program proposed,

including the purposes to which the property or facility will be put,

which may include uses such as supportive services, job and skills

training, employment programs, shelters, transitional housing or

housing with no established limitation on the amount of time of

residence, food and clothing banks, treatment facilities, or any other

activity which clearly meets an identified need of the homeless and

fills a gap in the continuum of care;

(B) A description of the need for the program;

(C) A description of the extent to which the program is or will be

coordinated with other homeless assistance programs in the communities

in the vicinity of the installation;

(D) Information about the physical requirements necessary to carry

out the program including a description of the buildings and property

at the installation that are necessary to carry out the program;

(E) A description of the financial plan, the organization, and the

organizational capacity of the representative of the homeless to carry

out the program; and

(F) An assessment of the time required to start carrying out the

program.

(iii) The notices of interest from entities other than

representatives of the homeless should specify the name of the entity

and specific interest in property or facilities along with a

description of the planned use.

(3) In addition to the notice required under Sec. 586.20(c)(1),

undertake outreach efforts to representatives of the homeless by

contacting local government officials and other persons or entities

that may be interested in assisting the homeless within the vicinity of

the installation.

(i) The LRA may invite persons and organizations identified on the

HUD list of representatives of the homeless and any other

representatives of the homeless with which the LRA is familiar,

operating in the vicinity of the installation, to the workshop

described in Sec. 586.20(c)(3)(ii).

(ii) The LRA, in coordination with the Military Department and HUD,

shall conduct at least one workshop where representatives of the

homeless have an opportunity to:

(A) Learn about the closure/realignment and disposal process;

(B) Tour the buildings and properties available either on or off

the installation;

(C) Learn about the LRA's process and schedule for receiving

notices of interest as guided by Sec. 586.20(c)(2); and

(D) Learn about any known land use constraints affecting the

available property and buildings.

(iii) The LRA should meet with representatives of the homeless that

express interest in discussing possible uses for these properties to

alleviate gaps in the continuum of care.

(4) Consider various properties in response to the notices of

interest. The LRA may consider property that is located off the

installation.

(5) Develop an application, including the redevelopment plan and

homeless assistance submission, explaining how the LRA proposes to

address the needs of the homeless. This application shall consider the

notices of interest received from State and local governments,

representatives of the homeless, and other interested parties. This

shall include, but not be limited to, entities eligible for public

benefit transfers under either 40 U.S.C. 471 et seq., or 49 U.S.C.

47151-47153; representatives of the homeless; commercial, industrial,

and residential development interests; and other interests. From the

deadline date for receipt of notices of interest described at

Sec. 586.20(c)(1), the LRA shall have 270 days to complete and submit

the LRA application to the appropriate Military Department and HUD. The

application requirements are described at Sec. 586.30.

(6) Make the draft application available to the public for review

and comment periodically during the process of developing the

application. The LRA must conduct at least one public hearing on the

application prior to its submission to HUD and the appropriate Military

Department. A summary of the public comments received during the

process of developing the application shall be

[[Page 37482]]

included in the application when it is submitted.

(d) Public benefit transfer screening. The LRA should, while

conducting its outreach efforts, work with the Federal agencies that

sponsor public benefit transfers under either 40 U.S.C. 471 et seq. or

49 U.S.C. 47151-47153. Those agencies can provide a list of parties in

the vicinity of the installation that might be interested in and

eligible for public benefit transfers. The LRA should make a reasonable

effort to inform such parties of the availability of the property and

incorporate their interests within the planning process. Actual

recipients of property are to be determined by the sponsoring Federal

agency. The Military Departments shall notify sponsoring Federal

agencies about property that is available based on the community

redevelopment plan and keep the LRA apprised of any expressions of

interest. Such expressions of interest are not required to be

incorporated into the redevelopment plan, but must be considered.

Sec. 586.25 HUD's negotiations and consultations with the LRA.

HUD may negotiate and consult with the LRA before and during the

course of preparation of the LRA's application and during HUD's review

thereof with a view toward avoiding any preliminary determination that

the application does not meet any requirement of this part. LRAs are

encouraged to contact HUD for a list of persons and organizations that

are representatives of the homeless operating in the vicinity of the

installation.

Sec. 586.30 LRA application.

(a) Redevelopment plan. A copy of the redevelopment plan shall be

part of the application.

(b) Homeless assistance submission. This component of the

application shall include the following:

(1) Information about homelessness in the communities in the

vicinity of the installation.

(i) A list of all the political jurisdictions which comprise the

LRA.

(ii) A description of the unmet need in the continuum of care

system within each political jurisdiction, which should include

information about any gaps that exist in the continuum of care for

particular homeless subpopulations. The source for this information

shall depend upon the size and nature of the political jurisdictions(s)

that comprise the LRA. LRAs representing:

(A) Political jurisdictions that are required to submit a

Consolidated Plan shall include a copy of their Homeless and Special

Needs Population Table (Table 1), Priority Homeless Needs Assessment

Table (Table 2), and narrative description thereof from that

Consolidated Plan, including the inventory of facilities and services

that assist the homeless in the jurisdiction.

(B) Political jurisdictions that are part of an urban county that

is required to submit a Consolidated Plan shall include a copy of their

Homeless and Special Needs Population Table (Table 1), Priority

Homeless Needs Assessment Table (Table 2), and narrative description

thereof from that Consolidated Plan, including the inventory of

facilities and services that assist the homeless in the jurisdiction.

In addition, the LRA shall explain what portion of the homeless

population and subpopulations described in the Consolidated Plan are

attributable to the political jurisdiction it represents.

(C) A political jurisdiction not described by

Sec. 586.30(b)(1)(ii)(A) or Sec. 586.30(b)(1)(ii)(B) shall submit a

narrative description of what it perceives to be the homeless

population within the jurisdiction and a brief inventory of the

facilities and services that assist homeless persons and families

within the jurisdiction. LRAs that represent these jurisdictions are

not required to conduct surveys of the homeless population.

(2) Notices of interest proposing assistance to homeless persons

and/or families.

(i) A description of the proposed activities to be carried out on

or off the installation and a discussion of how these activities meet a

portion or all of the needs of the homeless by addressing the gaps in

the continuum of care. The activities need not be limited to

expressions of interest in property, but may also include discussions

of how economic redevelopment may benefit the homeless;

(ii) A copy of each notice of interest from representatives of the

homeless for use of buildings and property and a description of the

manner in which the LRA's application addresses the need expressed in

each notice of interest. If the LRA determines that a particular notice

of interest should not be awarded property, an explanation of why the

LRA determined not to support that notice of interest, the reasons for

which may include the impact of the program contained in the notice of

interest on the community as described in Sec. 586.30(b)(2)(iii); and

(iii) A description of the impact that the implemented

redevelopment plan will have on the community. This shall include

information on how the LRA's redevelopment plan might impact the

character of existing neighborhoods adjacent to the properties proposed

to be used to assist the homeless and should discuss alternative plans.

Impact on schools, social services, transportation, infrastructure, and

concentration of minorities and/or low income persons shall also be

discussed.

(3) Legally binding agreements for buildings, property, funding,

and/or services.

(i) A copy of the legally binding agreements that the LRA proposes

to enter into with the representative(s) of the homeless selected by

the LRA to implement homeless programs that fill gaps in the existing

continuum of care. The legally binding agreements shall provide for a

process for negotiating alternative arrangements in the event that an

environmental analysis conducted under Sec. 586.45(b) indicates that

any property identified for transfer in the agreement is not suitable

for the intended purpose. Where the balance determined in accordance

with Sec. 586.30(b)(4) provides for the use of installation property as

a homeless assistance facility, legally binding agreements must provide

for the reversion or transfer, either to the LRA or to another entity

or entities, of the buildings and property in the event they cease to

be used for the homeless. In cases where the balance proposed by the

LRA does not include the use of buildings or property on the

installation, the legally binding agreements need not be tied to the

use of specific real property and need not include a reverter clause.

Legally binding agreements shall be accompanied by a legal opinion of

the chief legal advisor of the LRA or political jurisdiction or

jurisdictions which will be executing the legally binding agreements

that the legally binding agreements, when executed, will constitute

legal, valid, binding, and enforceable obligations on the parties

thereto;

(ii) A description of how buildings, property, funding, and/or

services either on or off the installation will be used to fill some of

the gaps in the current continuum of care system and an explanation of

the suitability of the buildings and property for that use; and

(iii) Information on the availability of general services such as

transportation, police, and fire protection, and a discussion of

infrastructure such as water, sewer, and electricity in the vicinity of

the proposed homeless activity at the installation.

(4) An assessment of the balance with economic and other

development needs.

(i) An assessment of the manner in which the application balances

the expressed needs of the homeless and the

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needs of the communities comprising the LRA for economic redevelopment

and other development; and

(ii) An explanation of how the LRA's application is consistent with

the appropriate Consolidated Plan(s) or any other existing housing,

social service, community, economic, or other development plans adopted

by the jurisdictions in the vicinity of the installation.

(5) A description of the outreach undertaken by the LRA. The LRA

shall explain how the outreach requirements described at

Sec. 586.20(c)(1) and Sec. 586.20(c)(3) have been fulfilled. This

explanation shall include a list of the representatives of the homeless

the LRA contacted during the outreach process.

(c) Public comments. The LRA application shall include the

materials described at Sec. 586.20(c)(6). These materials shall be

prefaced with an overview of the citizen participation process observed

in preparing the application.

Sec. 586.35 HUD's review of the application.

(a) Timing. HUD shall complete a review of each application no

later than 60 days after its receipt of a completed application.

(b) Standards of review. The purpose of the review is to determine

whether the application is complete and, with respect to the expressed

interest and requests of representatives of the homeless, whether the

application:

(1) Need. Takes into consideration the size and nature of the

homeless population in the communities in the vicinity of the

installation, the availability of existing services in such communities

to meet the needs of the homeless in such communities, and the

suitability of the buildings and property covered by the application

for use and needs of the homeless in such communities. HUD will take

into consideration the size and nature of the installation in reviewing

the needs of the homeless population in the communities in the vicinity

of the installation.

(2) Impact of notices of interest. Takes into consideration any

economic impact of the homeless assistance under the plan on the

communities in the vicinity of the installation, including:

(i) Whether the plan is feasible in light of demands that would be

placed on available social services, police and fire protection, and

infrastructure in the community; and,

(ii) Whether the selected notices of interest are consistent with

the Consolidated Plan(s) or any other existing housing, social service,

community, economic, or other development plans adopted by the

political jurisdictions in the vicinity of the installation.

(3) Legally binding agreements. Specifies the manner in which the

buildings, property, funding, and/or services on or off the

installation will be made available for homeless assistance purposes.

HUD will review each legally binding agreement to verify that:

(i) They include all the documents legally required to complete the

transactions necessary to realize the homeless use(s) described in the

application;

(ii) They include all appropriate terms and conditions;

(iii) They address the full range of contingencies including those

described at Sec. 586.30(b)(3)(i);

(iv) They stipulate that the buildings, property, funding, and/or

services will be made available to the representatives of the homeless

in a timely fashion; and

(v) They are accompanied by a legal opinion of the chief legal

advisor of the LRA or political jurisdiction or jurisdictions which

will be executing the legally binding agreements that the legally

binding agreements will, when executed, constitute legal, valid,

binding, and enforceable obligations on the parties thereto.

(4) Balance. Balances in an appropriate manner a portion or all of

the needs of the communities in the vicinity of the installation for

economic redevelopment and other development with the needs of the

homeless in such communities.

(5) Outreach. Was developed in consultation with representatives of

the homeless and the homeless assistance planning boards, if any, in

the communities in the vicinity of the installation and whether the

outreach requirements described at Sec. 586.20(c)(1) and

Sec. 586.20(c)(3) have been fulfilled by the LRA.

(c) Notice of determination. (1) HUD shall, no later than the 60th

day after its receipt of the application, unless such deadline is

extended pursuant to Sec. 586.15(a), send written notification both to

DoD and the LRA of its preliminary determination that the application

meets or fails to meet the requirements of Sec. 586.35(b). If the

application fails to meet the requirements, HUD will send the LRA:

(i) A summary of the deficiencies in the application;

(ii) An explanation of the determination; and

(iii) A statement of how the LRA must address the determinations.

(2) In the event that no application is submitted and no extension

is requested as of the deadline specified in Sec. 586.20(c)(5), and the

State does not accept within 30 days a DoD written request to become

recognized as the LRA, the absence of such application will trigger an

adverse determination by HUD effective on the date of the lapsed

deadline. Under these conditions, HUD will follow the process described

at Sec. 586.40.

(d) Opportunity to cure. (1) The LRA shall have 90 days from its

receipt of the notice of preliminary determination under

Sec. 586.35(c)(1) within which to submit to HUD and DoD a revised

application which addresses the determinations listed in the notice.

Failure to submit a revised application shall result in a final

determination, effective 90 days from the LRA's receipt of the

preliminary determination, that the redevelopment plan fails to meet

the requirements of Sec. 586.35(b).

(2) HUD shall, within 30 days of its receipt of the LRA's

resubmission, send written notification of its final determination of

whether the application meets the requirements of Sec. 586.35(b) to

both DOD and the LRA.

Sec. 586.40 Adverse determinations.

(a) Review and consultation. If the resubmission fails to meet the

requirements of Sec. 586.35(b), or if no resubmission is received, HUD

will review the original application, including the notices of interest

submitted by representatives of the homeless. In addition, in such

instances or when no original application has been submitted, HUD:

(1) Shall consult with the representatives of the homeless, if any,

for purposes of evaluating the continuing interest of such

representatives in the use of buildings or property at the installation

to assist the homeless;

(2) May consult with the applicable Military Department regarding

the suitability of the buildings and property at the installation for

use to assist the homeless; and

(3) May consult with representatives of the homeless and other

parties as necessary.

(b) Notice of decision. (1) Within 90 days of receipt of an LRA's

revised application which HUD determines does not meet the requirements

of Sec. 586.35(b), HUD shall, based upon its reviews and consultations

under Sec. 586.40(a):

(i) Notify DoD and the LRA of the buildings and property at the

installation that HUD determines are suitable for use to assist the

homeless; and

(ii) Notify DoD and the LRA of the extent to which the revised

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redevelopment plan meets the criteria set forth in Sec. 586.35(b).

(2) In the event that an LRA does not submit a revised

redevelopment plan under Sec. 586.35(d), HUD shall, based upon its

reviews and consultations under Sec. 586.40(a), notify DoD and the LRA

of the buildings and property at the installation that HUD determines

are suitable for use to assist the homeless, either

(i) Within 190 days after HUD sends its notice of preliminary

adverse determination under Sec. 586.35(c)(1), if an LRA has not

submitted a revised redevelopment plan; or

(ii) Within 390 days after the Military Department's Federal

Register publication of available property under Sec. 586.20(b), if no

redevelopment plan has been received and no extension has been

approved.

Sec. 586.45 Disposal of buildings and property.

(a) Public benefit transfer screening. Not later than the LRA's

submission of its redevelopment plan to DoD and HUD, the Military

Department will conduct an official public benefit transfer screening

in accordance with the Federal Property Management Regulations (41 CFR

part 101-47.303-2) based upon the uses identified in the redevelopment

plan. Federal sponsoring agencies shall notify eligible applicants that

any request for property must be consistent with the uses identified in

the redevelopment plan. At the request of the LRA, the Military

Department may conduct the official State and local public benefit

screening at any time after the publication of available property

described at Sec. 586.20(b).

(b) Environmental analysis. Prior to disposal of any real property,

the Military Department shall, consistent with NEPA and section 2905 of

the Defense Base Closure and Realignment Act of 1990, as amended (10

U.S.C. 2687 note), complete an environmental impact analysis of all

reasonable disposal alternatives. The Military Department shall consult

with the LRA throughout the environmental impact analysis process to

ensure both that the LRA is provided the most current environmental

information available concerning the installation, and that the

Military Department receives the most current information available

concerning the LRA's redevelopment plans for the installation.

(c) Disposal. Upon receipt of a notice of approval of an

application from HUD under Sec. 586.35(c)(1) or Sec. 586.35(d)(2), DoD

shall dispose of buildings and property in accordance with the record

of decision or other decision document prepared under Sec. 586.45(b).

Disposal of buildings and property to be used as homeless assistance

facilities shall be to either the LRA or directly to the

representative(s) of the homeless and shall be without consideration.

Upon receipt of a notice from HUD under Sec. 586.40(b), DoD will

dispose of the buildings and property at the installation in

consultation with HUD and the LRA.

(d) LRA's responsibility. The LRA shall be responsible for the

implementation of and compliance with legally binding agreements under

the application.

(e) Reversions to the LRA. If a building or property reverts to the

LRA under a legally binding agreement under the application, the LRA

shall take appropriate actions to secure, to the maximum extent

practicable, the utilization of the building or property by other

homeless representatives to assist the homeless. An LRA may not be

required to utilize the building or property to assist the homeless.

Dated: June 27, 1997.

Jacquie M. Lawing,

Acting Assistant Secretary for Community Planning and Development.

[FR Doc. 97-18136 Filed 7-10-97; 8:45 am]

BILLING CODE 4210-29-P