80_FR_47453 80 FR 47302 - Equal Participation of Faith-Based Organizations in HUD Programs: Implementation of E.O. 13559

80 FR 47302 - Equal Participation of Faith-Based Organizations in HUD Programs: Implementation of E.O. 13559

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 80, Issue 151 (August 6, 2015)

Page Range47302-47313
FR Document2015-18258

This rule proposes to revise HUD's regulation that covers the equal participation of faith-based (religious) organizations in HUD Programs, including all of HUD's Native American Programs, as well as several program-specific regulations regarding the equal participation of faith-based organizations. These revisions are being undertaken to implement Executive Order 13559, Fundamental Principles and Policymaking Criteria for Partnerships with Faith-Based and Other Neighborhood Organizations. Executive Order 13559 revised Executive Order 13279, Equal Protection of the Laws for Faith-Based and Community Organizations, which provides the legal basis for HUD's current equal participation regulations. This rule implements changes to Executive Order 13279 made by Executive Order 13559, including changes to specific terminology, additional beneficiary protections, and clarifications on the responsibilities of intermediaries. In addition to proposing regulatory amendments to implement Executive Order 13559, HUD is also publishing for public comment a sample notice of beneficiary protections for use by faith-based organizations.

Federal Register, Volume 80 Issue 151 (Thursday, August 6, 2015)
[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Proposed Rules]
[Pages 47302-47313]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18258]



[[Page 47301]]

Vol. 80

Thursday,

No. 151

August 6, 2015

Part X





Department of Housing and Urban Development





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24 CFR Parts 5, 92, 570, et al.





Equal Participation of Faith-Based Organizations in HUD Programs: 
Implementation of E.O. 13559; Proposed Rule

Federal Register / Vol. 80 , No. 151 / Thursday, August 6, 2015 / 
Proposed Rules

[[Page 47302]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 5, 92, 570, 574, 576, 578, 582, 583 and 1003

[Docket No. FR-5781-P-01]
RIN 2501-AD65


Equal Participation of Faith-Based Organizations in HUD Programs: 
Implementation of E.O. 13559

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: This rule proposes to revise HUD's regulation that covers the 
equal participation of faith-based (religious) organizations in HUD 
Programs, including all of HUD's Native American Programs, as well as 
several program-specific regulations regarding the equal participation 
of faith-based organizations. These revisions are being undertaken to 
implement Executive Order 13559, Fundamental Principles and 
Policymaking Criteria for Partnerships with Faith-Based and Other 
Neighborhood Organizations. Executive Order 13559 revised Executive 
Order 13279, Equal Protection of the Laws for Faith-Based and Community 
Organizations, which provides the legal basis for HUD's current equal 
participation regulations. This rule implements changes to Executive 
Order 13279 made by Executive Order 13559, including changes to 
specific terminology, additional beneficiary protections, and 
clarifications on the responsibilities of intermediaries. In addition 
to proposing regulatory amendments to implement Executive Order 13559, 
HUD is also publishing for public comment a sample notice of 
beneficiary protections for use by faith-based organizations.

DATES: Comment Due Date. October 5, 2015.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, 451 
7th Street SW., Room 10276, Department of Housing and Urban 
Development, Washington, DC 20410-0500. There are two methods for 
submitting public comments. All submissions must refer to the above 
docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500. All comments received by mail are a part of 
the public record and will be posted to www.regulations.gov without 
change.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
rule.

    No Facsimile Comments. Facsimile (fax) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m., eastern time, 
weekdays at the above address. Due to security measures at the HUD 
Headquarters building, an advance appointment to review the public 
comments must be scheduled by calling the Regulations Division at 202-
708-3055 (this is not a toll-free number). Individuals with speech or 
hearing impairments may access this number through TTY by calling the 
Federal Relay Service at 800-877-8339 (this is a toll-free number). 
Copies of all comments submitted are available for inspection and 
downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Paula Lincoln, Director, Center for 
Faith-Based and Neighborhood Partnerships, Department of Housing and 
Urban Development, 451 7th Street SW., Room 10184, Washington, DC 
20410-7000; telephone number 202-708-2404 (this is not a toll-free 
number). Hearing- and speech-impaired persons may access this number 
through TTY by calling the Federal Relay Service at 800-877-8339 (this 
is a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Background

    On December 12, 2002, President Bush signed Executive Order 13279, 
Equal Protection of the Laws for Faith-Based and Community 
Organizations, which was published on December 16, 2002, at 67 FR 
77141. Executive Order 13279 set forth fundamental principles and 
policymaking criteria to guide Federal agencies in formulating and 
developing policies with implications for faith-based and other 
community organizations, to ensure equal protection of the laws for 
faith-based and other community organizations, and to expand 
opportunities for, and strengthen the capacity of, faith-based and 
other community organizations to meet social needs in America's 
communities. In addition, Executive Order 13279 directed specified 
agency heads to review and evaluate existing policies relating to 
Federal financial assistance for social service programs and, where 
appropriate, to implement new policies that were consistent with and 
necessary to further the fundamental principles and policymaking 
criteria that have implications for faith-based and community 
organizations.
    HUD implemented Executive Order 13279 through three final rules:
    Participation in HUD Programs by Faith-Based Organizations; 
Providing for Equal Treatment of all HUD Program Participants, 
published on September 30, 2003, at 68 FR 56396, and amended HUD's 
regulations in 24 CFR part 92 (HOME Investment Partnerships Program), 
part 570 (Community Development Block Grants), part 572 (HOPE for 
Homeownership of Single Family Homes (HOPE 3)), \1\ part 574 (Housing 
Opportunities for Persons with AIDS), part 576 (Emergency Shelter 
Grants Program, now Emergency Solutions Grants Program), part 582 
(Shelter Plus Care), part 583 (Supportive Housing Program), and part 
585 (Youthbuild Program); \2\
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    \1\ Part 572 was removed by a HUD final rule published on 
September 2, 2014, at 79 FR 51893.
    \2\ Part 585 was removed by a HUD final rule published on 
September 2, 2014, at 79 FR 51893.
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    Equal Participation of Faith-Based Organizations, published on July 
9, 2004, at 69 FR 41712, and amended HUD's regulations in 24 CFR part 5 
(General HUD Program Requirements and Waivers) and 24 CFR part 570 
(Community Development Block Grant Program); and
    Participation in HUD's Native American Programs by Religious 
Organizations; Providing for Equal Treatment of All Program 
Participants, published on October 22, 2004, at 69 FR 62164, and 
amended HUD's regulations at 24 CFR part 954 (Indian HOME

[[Page 47303]]

Program),\3\ and 24 CFR part 1003 (Community Development Block Grants 
for Indian Tribes and Alaska Native Villages).
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    \3\ HUD stopped awarding grants on the Indian Home Program on 
September 30, 1997, and part 954 was removed by a HUD final rule 
published on February 9, 2012, at 77 FR 6673.
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    The regulations established by each of these three rules provide 
that faith-based (religious) organizations are eligible on the same 
basis as any other eligible organization to participate in HUD programs 
and activities; \4\ organizations may not engage in inherently 
religious activities as part of programs or services directly funded 
under a HUD program or activity; faith-based organizations that 
participate in HUD programs or activities may retain their 
independence; and a faith-based organization that participates in a HUD 
program does not forfeit its exemption from the Federal prohibition 
against employment discrimination on the basis of religion, as provided 
in title VII of the Civil Rights Act of 1964 (though some individual 
HUD programs may have independent statutory nondiscrimination 
requirements). These regulations also provide that organizations may 
not discriminate against beneficiaries or prospective beneficiaries on 
the basis of religion or religious beliefs; address the use of HUD 
funds for acquisition, construction, and rehabilitation of structures 
that are used for inherently religious activities; and clarify the 
attachment of requirements to State, tribal, and local funds that are 
commingled with HUD funds.
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    \4\ Faith-based organizations must also meet any applicable 
program requirements to participate in a HUD program.
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    On February 5, 2009, President Obama signed Executive Order 13498, 
entitled ``Amendments to Executive Order 13199 and Establishment of the 
President's Advisory Council for Faith-Based and Neighborhood 
Partnerships,'' which was published on February 9, 2009, at 74 FR 6533. 
Executive Order 13498 established the President's Advisory Council for 
Faith-Based and Neighborhood Partnerships (Advisory Council) for the 
purpose of bringing together experts to, among other things, make 
recommendations to the President for changes in policies, programs, and 
practices that affect the delivery of services by faith-based and other 
neighborhood organizations.
    The Advisory Council issued its recommendations in a report 
entitled ``A New Era of Partnerships: Report of Recommendations to the 
President'' in March 2010.\5\ The Advisory Council Report included 
recommendations to amend Executive Order 13279 to clarify the legal 
foundation of partnerships, and offered a new set of fundamental 
principles to guide agency decision-making in administering Federal 
financial assistance and support to faith-based and neighborhood 
organizations.
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    \5\ http://www.whitehouse.gov/sites/default/files/microsites/ofbnp-council-final-report.pdf.
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    On November 17, 2010, President Obama signed Executive Order 13559, 
entitled ``Fundamental Principles and Policymaking Criteria for 
Partnerships with Faith-Based and Other Neighborhood Organizations,'' 
which was published on November 22, 2010, at 75 FR 71319.\6\ Executive 
Order 13559 incorporated many of the Advisory Council's recommendations 
and amended Executive Order 13279, to revise and add additional 
fundamental principles and policymaking criteria for inclusion in 
guidance and regulations.\7\ The principles include:
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    \6\ http://www.thefederalregister.org/fdsys/pkg/FR-2010-11-22/pdf/2010-29579.pdf.
    \7\ Executive Order 13279, Section 2, paragraphs (e)-(j).
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     The Federal Government has an obligation to monitor and 
enforce all standards regarding the relationship between religion and 
the Federal Government in ways that avoid excessive entanglement 
between religious bodies and governmental entities;
     Organizations engaging in explicitly religious activities 
must separate these activities, in time or location, from programs 
supported with direct Federal financial assistance (including prime 
awards and sub-awards). Participation in any explicitly religious 
activity cannot be subsidized with direct Federal financial assistance 
(including prime awards and sub-awards), and participation in such 
activities must be voluntary for the beneficiaries of the social 
service program supported with such Federal financial assistance;
     Religious providers are welcome to compete for Federal 
Government funding and maintain a religious identity as described in 
the order;
     Agencies that administer or award Federal financial 
assistance must implement protections for the beneficiaries or 
prospective beneficiaries of those programs (these protections include 
providing referral to an alternative provider if the beneficiary 
objects to the religious character of the organization providing 
services, and ensuring that written notice of these and other 
protections is provided to beneficiaries before they enroll in or 
receive services from the program);
     Agencies that provide Federal financial assistance must 
post online regulations, guidance documents, and policies that have 
implications for faith-based and neighborhood organizations, and post 
online a list of entities receiving such assistance; and
     Agency decisions about awards of Federal financial 
assistance must be free from political interference or even the 
appearance of such interference, and must be made on the basis of 
merit, not on the basis of the religious affiliation, or lack of 
affiliation, of the recipient organization.
    In addition, Executive Order 13559 created the Interagency Working 
Group on Faith-Based and Other Neighborhood Partnerships (Working 
Group) for the purpose of reviewing and evaluating existing 
regulations, guidance documents, and policies.
    The Executive Order also stated that, following receipt of the 
Working Group's report, the Office of Management and Budget (OMB), in 
coordination with the Department of Justice, must issue guidance to 
agencies on the implementation of Executive Order 13559. The Working 
Group issued its report in April 2012.\8\ In August 2013, OMB issued 
guidance instructing specified agency heads to adopt regulations and 
guidance that will fulfill the requirements of Executive Order 13559, 
and to amend regulations and guidance to ensure that they are 
consistent with this Executive order.\9\
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    \8\ Recommendations of the Interagency Working Group on Faith-
Based and Other Neighborhood Partnerships, April 2012, at http://www.whitehouse.gov/sites/default/files/uploads/finalfaithbasedworkinggroupreport.pdf.
    \9\ M-13-19, ``Implementation of Executive Order 13559, 
`Fundamental Principles and Policymaking Criteria for Partnerships 
with Faith-based and Other Neighborhood Organizations','' August 2, 
2013, at http://www.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-19.pdf.
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    Prior to the issuance of the August 2013 guidance and after the 
issuance of Executive Order 13559, HUD issued one interim rule, one 
final rule, and one proposed rule that incorporated language to reflect 
Executive Order 13559:
    Interim Rule: Homeless Emergency Assistance and Rapid Transition to 
Housing: Continuum of Care Program, published on July 31, 2012, at 77 
FR 45422, which provided a new regulation on the equal participation of 
faith-based organizations in 24 CFR part 578 (Continuum of Care 
Program);
    Final Rule: HOME Investment Partnerships Program: Improving 
Performance and Accountability; Updating Property Standards, published 
on July 24, 2013, at 78 FR 44627, which modified HUD's equal 
participation of faith-based organizations regulation in

[[Page 47304]]

24 CFR part 92 (HOME Investment Partnerships Program); and
    Proposed Rule: Homeless Emergency Assistance and Rapid Transition 
to Housing: Rural Housing Stability Assistance Program and Revisions to 
the Definition of ``Chronically Homeless,'' published on March 27, 
2013, at 78 FR 18725, which proposed regulations at 24 CFR part 579 for 
the new Rural Housing Stability Assistance Program, including a 
regulation on the equal participation of faith-based organizations.

II. This Proposed Rule

A. Overview of Proposed Regulations

    This proposed rule updates all HUD regulations governing the equal 
participation of faith-based organizations in HUD programs to reflect 
the new fundamental principles and policymaking criteria in Executive 
Order 13559. Some of the principles do not require regulations and will 
be included in guidance that will accompany the final rule to follow 
this proposed rule. HUD may issue guidance on the applicability of the 
Executive order and this proposed rule to particular programs or 
activities.
    HUD is implementing Executive Order 13559 by amending its Sec.  
5.109 regulation to: (1) Add definitions for direct Federal financial 
assistance, Federal financial assistance, indirect Federal financial 
assistance, and an intermediary; (2) state that decisions must be free 
from political interference or even the appearance of such 
interference; (3) clarify the separation of explicitly religious 
activities from activities funded with direct Federal financial 
assistance and defining explicitly religious activities; (4) clarify 
the responsibilities of intermediary organizations; (5) add new 
beneficiary protections, and (6) amend existing language in Sec.  5.109 
to include Executive Order 13559 changes.
    This proposed rule also proposes to remove duplicate faith-based 
regulations in 24 CFR parts 92, 570, 574, 576, 578, 582, 583, and 1003, 
and replaces them with cross-references to a uniform regulation at 
Sec.  5.109.

B. Specific Proposed Amendments

1. New Definitions
    This proposed rule adds a new paragraph (b) to Sec.  5.109 
providing definitions for direct Federal financial assistance, Federal 
financial assistance, indirect Federal financial assistance, and an 
intermediary, meaning one that accepts and distributes Federal 
financial assistance.
    Executive Order 13559 noted that new regulations should distinguish 
between ``direct'' and ``indirect'' Federal financial assistance 
because the limitation on explicitly religious activities applies to 
programs that are supported with ``direct'' Federal financial 
assistance but does not apply to programs supported with ``indirect'' 
Federal financial assistance. To clarify this distinction, the proposed 
rule provides definitions of these terms.
    Programs are supported with ``direct'' Federal financial assistance 
when either the Federal Government or an intermediary, as identified in 
this proposed rule, selects a service provider and either purchases 
services from that provider (i.e., through a contract) or awards funds 
to that provider to carry out an activity (e.g., through a grant, sub-
grant, sub-award, or cooperative agreement). Under these circumstances, 
there are no intervening steps in which the beneficiary's choice 
determines the provider's identity, the beneficiary being the end user 
of the service, product, or assistance.
    ``Indirect'' Federal financial assistance is distinguishable 
because it places the choice of service provider in the hands of a 
beneficiary before the Federal Government pays for the cost of that 
service through a voucher, certificate, or other similar means. For 
example, the Federal Government could choose to allow the beneficiary 
to secure the needed service on their own. Alternatively, a 
governmental agency, operating under a program of aid that has at least 
one secular provider, could present each beneficiary or prospective 
beneficiary with a list of all qualified providers from which the 
beneficiary could obtain services using a Government-provided 
certificate. Either way, the Government empowers the beneficiaries to 
choose for themselves whether to receive the needed services, including 
those that contain explicitly religious activities, through a faith-
based or other neighborhood organization. The Federal Government could 
then pay for the beneficiary's choice of provider by giving the 
beneficiary a voucher or similar document. Alternatively, the Federal 
Government could choose to pay the provider directly after asking the 
beneficiary to indicate the beneficiary's choice.\10\ An example would 
be the Housing Choice Voucher Program.
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    \10\ See Freedom From Religion Found. v. McCallum, 324 F.3d 880, 
882 (7th Cir. 2003).
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    The Supreme Court has held that if a program meets certain 
criteria, the Government may fund the program if, among other things, 
the program places the benefit in the hands of individuals, who, in 
turn, have the freedom to choose the provider from which they receive 
their benefit and ``spend'' the Government funds, whether that provider 
is public or private, non-religious or religious. See Zelman v. 
Simmons-Harris, 536 U.S. 639, 652-53 (2002). In these instances, the 
Government does not encourage or promote any explicitly religious 
programs that may be among the options available to beneficiaries. 
Notably, the voucher scheme at issue in the Zelman decision, which was 
described by the Court as one of ``true private choice'' \11\ was also 
neutral toward religion and offered beneficiaries adequate secular 
options. This type of Federal financial assistance is considered 
``indirect.'' Accordingly, these criteria also are included in the text 
of the proposed definition of ``indirect Federal financial 
assistance.''
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    \11\ Zelman. at 653.
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    HUD also adds the definition of ``Federal financial assistance'' 
from Executive Order 13279 to clarify the new definitions ``direct 
Federal financial assistance'' and ``indirect Federal financial 
assistance.''
    HUD also proposes a definition for intermediary. An intermediary is 
an entity, including a nongovernmental organization, acting under a 
contract, grant, or other agreement with the Federal Government or with 
a State, tribal or local government that accepts Federal financial 
assistance and distributes that assistance to other organizations that, 
in turn, provide Government-funded services. This definition clarifies 
the application of these requirements to recipients of Federal 
financial assistance from HUD that are classified as intermediaries.
2. Decisions Must Be Free From Political Interference
    This proposed rule adds to the existing paragraph (b) of Sec.  
5.109, redesignated as paragraph (c) under the proposed rule, that 
decisions about awards of Federal financial assistance must be free 
from political interference or even the appearance of such interference 
and must be made on the basis of merit, not on the basis of religion or 
religious belief. To comply with this requirement, entities that award 
Federal financial assistance (HUD or an intermediary) should instruct 
participants in the awarding process to refrain from taking religious 
affiliations or non-religious affiliations into account in the process 
of awarding or allocating funds; i.e., an organization should not 
receive favorable or unfavorable marks merely because it is affiliated 
or unaffiliated with a religious body, or

[[Page 47305]]

related or unrelated to a specific religion. In addition, when 
selecting peer reviewers, entities that award Federal financial 
assistance should never ask about religious affiliation or take such 
matters into account, but should encourage religious, political, and 
professional diversity among peer reviewers by advertising for these 
positions in a wide variety of venues.
3. Separation of Explicitly Religious Activities From Activities Funded 
With Direct Federal Financial Assistance and Definition of Explicitly 
Religious Activities
    This proposed rule would amend paragraphs (c) and (d) in Sec.  
5.109, redesignated as paragraphs (d) and (e) under this proposed rule, 
to clarify the requirement that activities supported by direct Federal 
financial assistance must be separate from explicitly religious 
activities; define ``explicitly religious activities;'' and replace the 
term ``inherently religious activities'' with the term ``explicitly 
religious activities.''
    Executive Order 13559 makes clear that all organizations that 
receive Federal financial assistance are prohibited from discriminating 
against beneficiaries or potential beneficiaries of Federal programs on 
the basis of religion, a religious belief, refusal to hold a religious 
belief, or a refusal to attend or participate in a religious practice. 
Executive Order 13559 also states that organizations offering 
explicitly religious activities (including activities that involve 
overt religious content such as worship, religious instruction, or 
proselytization) must not use direct Federal financial assistance to 
subsidize or support those activities, and that any explicitly 
religious activities must be offered outside of programs that are 
supported with direct Federal financial assistance (including through 
prime awards or sub-awards). In other words, to the extent that an 
organization provides explicitly religious activities, those activities 
must be offered separately, in time or location, from programs or 
services supported with direct Federal financial assistance.
    HUD's existing regulations and Executive Order 13279 prohibit 
nongovernmental organizations from using direct Federal financial 
assistance (e.g., government grants, contracts, sub-grants, sub-awards, 
and subcontracts) for ``inherently religious activities, such as 
worship, religious instruction, and proselytization.'' The term 
``inherently religious,'' however, has proven confusing. In 2006, for 
example, the Government Accountability Office (GAO) found that, 
although all 26 of the religious social service providers it 
interviewed said they understood the prohibition on using direct 
Federal financial assistance for ``inherently religious activities,'' 
four of the providers described acting in ways that appeared to violate 
that rule.\12\
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    \12\ GAO, Faith-Based and Community Initiative: Improvements in 
Monitoring Grantees and Measuring Performance Could Enhance 
Accountability, GAO-06-616, at 34-35 (June 2006) (available at 
http://www.gao.gov/new.items/d06616.pdf).
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    Further, though the Supreme Court has sometimes used the term 
``inherently religious,'' the Court has not used this term to indicate 
the boundary of what the Government may subsidize with direct Federal 
financial assistance. If the term is interpreted narrowly, it could 
permit actions that the Constitution prohibits. On the other hand, one 
could also argue that the term ``inherently religious'' is too broad 
rather than too narrow. For example, some might consider their 
provision of a hot meal to a needy person to be an ``inherently 
religious'' act when it is undertaken from a sense of religious 
motivation or obligation, even though it has no overt religious 
content.
    The Court has determined that the Government cannot subsidize ``a 
specifically religious activity in an otherwise substantially secular 
setting.'' \13\ The Court has also said a direct aid program 
impermissibly advances religion when the aid results in governmental 
indoctrination of religion.\14\ This terminology is fairly interpreted 
to prohibit the Government from directly subsidizing any ``explicitly 
religious activity,'' including activities that involve overt religious 
content. Thus, direct Federal financial assistance must not be used to 
pay for activities such as religious instruction, devotional exercises, 
worship, proselytizing or evangelism; production or dissemination of 
devotional guides or other religious materials; or counseling in which 
counselors introduce religious content. Similarly, direct Federal 
financial assistance may not be used to pay for equipment or supplies 
to the extent they are allocated to such activities.
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    \13\ Hunt v. McNair, 413 U.S. 734, 743 (1973).
    \14\ See Mitchell v. Helms, 530 U.S. 793, 808 (2000) (Thomas, 
J., joined by Rehnquist, C.J., Scalia, and Kennedy, JJ., plurality); 
Helms, at 845 (O'Connor, J., joined by Breyer, J., concurring in the 
judgment); Agostini v. Felton, 521 U.S. 203, 223 (1997).
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    HUD provides the following activities as examples of permissible 
use of funds, but anticipates that such activities would generally not 
apply to HUD programs. Activities that are secular in content, such as 
serving meals to the needy or using a nonreligious text to teach 
someone to read, are not considered ``explicitly religious activities'' 
merely because the provider is religiously motivated to provide those 
services. The study or acknowledgement of religion as a historical or 
cultural reality also would not be considered an explicitly religious 
activity. Notwithstanding the general prohibition on the use of direct 
Federal financial assistance to support explicitly religious 
activities, there are rare instances when religious activities may be 
Federally financed under the Establishment Clause and not subject to 
the direct Federal financial assistance restrictions; for instance, in 
situations where Federal financial assistance is provided to chaplains 
to work with inmates in prisons, detention facilities, or community 
correction centers through social service programs.\15\ Since such 
activities have only been recognized in correctional settings, they 
would likely not arise in HUD-funded programs.
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    \15\ Where there is extensive Government control over the 
environment of the Federally financed social service program, 
program officials may sometimes need to take affirmative steps to 
provide an opportunity for beneficiaries of the social service 
program to exercise their religion. See Cruz v. Beto, 405 U.S. 319, 
322 n.2 (1972) (per curiam) (``reasonable opportunities must be 
afforded to all prisoners to exercise the religious freedom 
guaranteed by the First and Fourteenth Amendment without fear of 
penalty''); Katcoff v. Marsh, 755 F.2d 223, 234 (2d Cir. 1985) 
(finding it ``readily apparent'' that the Government is obligated by 
the First Amendment ``to make religion available to soldiers who 
have been moved by the Army to areas of the world where religion of 
their own denominations is not available to them''). Without such 
efforts, religious freedom might not exist for these beneficiaries. 
Accordingly, services such as chaplaincy services would not be 
considered explicitly religious activities that are subject to 
direct financial aid restrictions.
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    It is important to emphasize that the restrictions on explicitly 
religious content apply to content generated by the administrators of 
the program receiving direct Federal financial assistance, not to 
spontaneous comments made by individual beneficiaries about their 
personal lives in the context of these programs. For example, if a 
person administering a federally funded job skills program asks 
beneficiaries to describe how they gain the motivation necessary for 
their job searches and some beneficiaries refer to their faith or 
membership in a faith community, these kinds of comments do not violate 
the restrictions and should not be censored. In this context, it is 
clear that the administrator of the Government-funded program did not 
orchestrate or encourage such comments.
    HUD, therefore, proposes to replace the term ``inherently religious 
activities'' with the term ``explicitly

[[Page 47306]]

religious activities'' and define the latter term as ``including 
activities that involve overt religious content such as worship, 
religious instruction, or proselytization.'' These changes in language 
will provide greater clarity and more closely match constitutional 
standards as they have been developed in case law.
    These restrictions would not diminish existing regulatory 
protections for the religious identity of faith-based providers. The 
proposed rule would not affect, for example, organizations' ability to 
use religious terms in their organizational names, select board members 
on a religious basis, include religious references in mission 
statements and other organizational documents, and post religious art, 
messages, scriptures and symbols in buildings where Federal financial 
assistance is delivered.
4. Responsibilities of Intermediary Organizations
    HUD also proposes to add a new paragraph (f) to Sec.  5.109 to 
clarify the responsibilities of intermediaries, which may include 
States, tribes, or units of local governments. Each intermediary must 
abide by all statutory and regulatory requirements by, for example, 
providing any services supported with direct Federal financial 
assistance in a religiously neutral manner that does not include 
explicitly religious activities. The intermediary also has the same 
duties as the Federal Government to comply with these rules by, for 
example, selecting any providers to receive Federal financial 
assistance in a manner that does not favor or disfavor organizations on 
the basis of religion or religious belief. While intermediaries may be 
used to distribute Federal financial assistance to other organizations 
in some programs, intermediaries remain accountable for the Federal 
financial assistance they disburse. Accordingly, intermediaries must 
ensure that any providers to which they disburse Federal financial 
assistance also comply with these rules; for example, through funding 
contracts or agreements. If the intermediary is a nongovernmental 
organization, it retains all other rights of a nongovernmental 
organization under the statutory and regulatory provisions governing 
the program.
    A State's use of intermediaries does not relieve the State of its 
traditional responsibility to effectively monitor the actions of such 
organizations. States are obligated to manage the day-to-day operations 
of grant- and sub-grant-supported activities to ensure compliance with 
applicable Federal requirements and performance goals. Moreover, a 
State's use of intermediaries does not relieve the State of its 
responsibility to ensure that providers are selected, and deliver 
services, in a manner consistent with the First Amendment's 
Establishment Clause.
5. New Beneficiary Protections
    This rule proposes to add a new paragraph (g) to Sec.  5.109 
implementing a variety of valuable protections for the religious 
liberty rights of beneficiaries. These protections are aimed at 
ensuring that Federal financial assistance is not used to coerce or 
pressure beneficiaries along religious lines, and to make beneficiaries 
aware of their rights, through appropriate notice, when potentially 
obtaining services from providers with a religious affiliation.
    Executive Order 13559 requires that faith-based organizations 
providing services under a program that is supported by direct Federal 
financial assistance give written notice in a manner prescribed by the 
agency to beneficiaries and prospective beneficiaries of their right to 
be referred to an alternative provider if they object to the 
organization's religious character, when available. Written notice 
should be provided prior to enrollment or receipt of services. However, 
when the nature of the service provided or exigent circumstances make 
it impracticable to provide such written notice in advance of the 
actual service, service providers must advise beneficiaries in writing 
of their protections at the earliest available opportunity. A sample 
notification of beneficiary rights is attached in appendix A for public 
comment.
    If a beneficiary or prospective beneficiary of a social service 
program supported by Federal financial assistance objects to the 
religious character of an organization that provides services under the 
program, the organization must attempt to refer the beneficiary to an 
alternative provider. More specifically, the proposed rule provides 
that, if a beneficiary or prospective beneficiary of a program 
supported by direct Federal financial assistance objects to the 
religious character of an organization that provides services under the 
program, that organization shall promptly undertake reasonable efforts 
to identify and refer the beneficiary to an alternative provider to 
which the prospective beneficiary has no objection. HUD will provide 
further guidance regarding the referral requirement.
    A referral may be made to another religiously affiliated provider, 
if the beneficiary has no objection to that provider. But if the 
beneficiary requests a secular provider, and a secular provider that 
offers the needed services is available, then a referral must be made 
to that provider. The proposed rule specifies that, except for services 
provided by telephone, Internet, or similar means, the referral would 
be to an alternative provider that is in reasonable geographic 
proximity to the organization making the referral and that offers 
services that are similar in substance and quality to those offered by 
the referring organization. The alternative provider also would need to 
have the capacity to accept additional clients. If a Federally 
supported alternative provider meets these requirements and is 
acceptable to the beneficiary, a referral should be made to that 
provider. If, however, there is no Federally supported alternative 
provider that meets these requirements and is acceptable to the 
beneficiary, a referral should be made to an alternative provider that 
does not receive Federal financial assistance but does meet these 
requirements and is acceptable to the beneficiary. In the case of a 
referral, the organization should follow up with the beneficiary, if 
the beneficiary provides contact information, or the organization to 
which the beneficiary has been referred unless the beneficiary opts out 
of follow up. Under no circumstances, however, may an organization 
violate privacy laws in following up on a beneficiary referral.
    If an organization is unable to identify an alternative provider, 
the organization is required under the proposed rule to notify HUD or 
the intermediary, if applicable, and that entity would determine 
whether there is any other suitable alternative provider to which the 
beneficiary may be referred. Further, the Executive order and the 
proposed rule require that HUD or the intermediary ensure that 
appropriate and timely referrals are made to an appropriate provider, 
and that referrals are made in a manner consistent with applicable 
privacy laws and regulations. It must be noted that in some instances 
that HUD or the intermediary may also be unable to identify a suitable 
alternative provider. In all instances, the organization must maintain 
records of all requests for referrals, referrals made, and attempts to 
make a referral. HUD will issue guidance to clarify what constitutes 
reasonable efforts to identify an alternative provider.
6. Amending Existing Sec.  5.109 To Include Executive Order 13559 
Changes
    HUD also proposes to amend the other paragraphs in Sec.  5.109 to 
include the new Executive Order 13559

[[Page 47307]]

principles and to make clarifying changes, including the replacement of 
the terms religious organizations with faith-based organization and 
``inherently religious'' with ``explicitly religious;'' adding the term 
``direct Federal financial assistance'' where appropriate; and 
clarifying that the regulations apply to all HUD programs, including 
all of HUD's Native American programs.
    In addition, HUD proposes to replace the current reference to 24 
CFR parts 84 and 85 with a reference to 2 CFR part 200 in new paragraph 
(j) of this proposed rule. The Federal Government-wide regulations 
governing real property disposition at 24 CFR 84 and 85 have been 
replaced by the new provision at 2 CFR part 200 for awards made on or 
after December 26, 2014. When program-specific regulations governing 
real property disposition conflict with the real property disposition 
regulations in 2 CFR part 200, the HUD program office will provide 
guidance on recipients' (or subrecipients') compliance 
responsibilities.

III. Tribal Consultation

    HUD's policy is to consult with Indian tribes early in the process 
on matters that have tribal implications. Accordingly, on November 19, 
2014, HUD sent letters to all tribal leaders participating in HUD 
programs, informing them of the nature of this forthcoming rulemaking. 
HUD received no comments in response to those letters. Tribal leaders 
are welcome to provide public comments on this proposed rule.

IV. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health, and safety effects; distributive impacts; and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. Under Executive Order 12866 (Regulatory Planning 
and Review), a determination must be made whether a regulatory action 
is significant and, therefore, subject to review by OMB in accordance 
with the requirements of the order. This proposed rule meets the 
principles of Executive Order 13563 in that its implementation of 
Executive Order 13559 harmonizes HUD's proposed regulations with those 
of the other Federal agencies, but does not rise to the level of 
significant regulatory action as defined in Executive Order 12866. This 
proposed rule clarifies existing principles and policies applicable to 
faith-based and neighborhood organizations participating in Federally 
funded programs. In addition, this proposed rule underwent extensive 
review by the Office of Faith-Based Neighborhood Partnerships and the 
Working Group.
    With respect to the principles of Executive Order 13563, this 
proposed rule, as discussed above, would further provide for the equal 
participation of faith-based organizations in HUD's programs, and 
clarify the rights of entities participating in HUD programs and the 
beneficiaries they serve. This proposed rule would also add the 
following provisions that HUD believes will likely impose costs on the 
regulated community: (1) That faith-based organizations that carry out 
an activity with direct Federal financial assistance from HUD must give 
beneficiaries and prospective beneficiaries written notice of the 
protections listed at Sec.  5.109(g)(1) of this proposed rule, and (2) 
that if a beneficiary or prospective beneficiary objects to the 
religious character of the organization, the organization must make 
reasonable efforts to identify and refer the beneficiary or prospective 
beneficiary to an alternative provider to which the beneficiary or 
prospective beneficiary has no objection. To minimize compliance costs 
on these recipients, this proposed rule includes a sample written 
notice that a faith-based organization can provide to a beneficiary or 
prospective beneficiary. An estimate of the cost of providing this 
notice is discussed in the Paperwork Reduction Act section of this 
proposed rule.

Environmental Impact

    This proposed rule sets forth nondiscrimination standards. 
Accordingly, under 24 CFR 50.19(c)(3), this proposed rule is 
categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
(UMRA) establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and on the private sector. This proposed rule does not 
impose a Federal mandate on any State, local, or tribal government, or 
on the private sector, within the meaning of UMRA.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements, unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities.
    This proposed rule would provide more access for entities to 
participate in HUD programs by clarifying requirements for 
participation in HUD programs. In addition, the proposed rule requires 
that faith-based organizations that carry out activities under a HUD 
program with direct Federal financial assistance must give 
beneficiaries and prospective beneficiaries written notice of the 
protections listed at Sec.  5.109(g)(1) of this proposed rule. This 
includes notification that the organization must undertake reasonable 
efforts to identify and refer the beneficiary to an alternative 
provider to which the beneficiary has no objection, if the beneficiary 
objects to the religious character of the organization. The 
organization must inform the beneficiary or prospective beneficiary in 
writing and, if a referral is made, the organization would be required 
to notify HUD or the intermediary.
    As described above, HUD has made every effort to ensure that the 
written notice and referral requirements of the proposed rule impose 
minimum burden and allow maximum flexibility in implementation by 
providing a sample notice that organizations may provide to 
beneficiaries informing them of the protections listed at Sec.  
5.109(g)(1) of this proposed rule and by not prescribing a specific 
format for making referrals through this proposed rule. HUD estimates 
it will take no more than 2 hours for service providers to familiarize 
themselves with the notice requirements of this proposed rule and print 
and duplicate an adequate number of written notices for prospective 
beneficiaries. Using the May 2013 Bureau of Labor Statistics hourly 
mean wage of $22.81 for a Training and Development Specialist, the 
labor cost is approximately $45.62 per service provider for preparing 
the notice. In addition, HUD estimates an upper limit of $100 for the 
annual cost of materials (paper, ink, toner) to print multiple copies 
of the notices. Because these costs will be borne by every faith-based 
organization that carries out an activity under a HUD program with 
direct

[[Page 47308]]

Federal financial assistance, HUD believes that a substantial number of 
small entities will be affected by this provision. However, HUD does 
not believe that a compliance cost of less than $200 per service 
provider per year is a significant percentage of any service provider's 
total revenue. In addition, HUD notes that, after the first year, the 
labor costs associated with compliance will likely decrease 
significantly because small service providers will be familiar with the 
requirements.
    In addition, HUD does not foresee that the cost to comply with 
effective communication requirements pursuant to Section 504 of the 
Rehabilitation Act of 1973 and its implementing regulations at 24 CFR 
8.6 will exceed the estimated cost of $200 per service provider. 
However, HUD specifically invites comments on whether there would be 
additional costs to make this accommodation.
    The rule will also require faith-based organizations, upon a 
beneficiary's objection, to make reasonable efforts to identify and 
refer the beneficiary to an alternative provider to which the 
beneficiary has no objection. HUD estimates that each referral will 
require 2 hours of a Training and Development Specialist's time to 
process at a labor cost of $22.81 per hour. Although HUD does not have 
any way to determine the number of referrals that will occur in any 1 
year, HUD does not believe that referral costs will be significant for 
small service providers. HUD invites interested parties to provide data 
on which HUD can formulate better estimates of the compliance costs 
associated with the written notice and referral requirements of this 
proposed rule.
    Notwithstanding HUD's determination that this proposed rule would 
not have a significant effect on a substantial number of small 
entities, HUD specifically invites comments regarding any less 
burdensome alternatives to this rule that will meet HUD's objectives 
and the principles in Executive Order 13559, as described in this 
preamble.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either: (1) Imposes substantial direct compliance costs on State and 
local governments and is not required by statute, or (2) preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This proposed rule does not have 
federalism implications and does not impose substantial direct 
compliance costs on State and local governments nor preempt State law 
within the meaning of the Executive order.

Paperwork Reduction Act

    The proposed rule includes a new information collection section. 
Section 5.109(g) would impose requirements on faith-based organizations 
that carry out activities under a HUD program with direct Federal 
financial assistance to give beneficiaries (or prospective 
beneficiaries) written notice of certain protections described in this 
proposed rule; beneficiaries can provide a written response that may 
impose a burden under the Paperwork Reduction Act (PRA); and faith-
based organizations must provide a referral if a beneficiary or 
prospective beneficiary objects to the religious character of the 
organization. This rule also requires the retention of records to show 
that the referral requirements in this rulemaking have been met.
    HUD estimates that a faith-based organization would need 2 minutes 
to distribute to each beneficiary the notice required in these proposed 
regulations. This estimate takes into consideration the likelihood 
that, in one-on-one interactions between a staff member and a 
beneficiary, providing the notice might take longer than a minute. 
Conversely, providing notice to a group of beneficiaries at the same 
time would take significantly less than a minute for each beneficiary 
because a few beneficiaries would pass the notice to the remaining 
beneficiaries in a group.
    HUD estimates that in cases where a beneficiary objects to the 
religious character of a faith-based organization, the time required 
for the faith-based organization to make a reasonable effort to 
identify an alternative provider and refer a beneficiary to that 
provider would be about 2 hours. This estimate includes the time 
required to identify service providers that provide similar services, 
preferably under the same or similar programs to the one under which 
the beneficiary is being served by the faith-based organization. The 
estimate also includes the time required to determine whether one of 
the alternative providers is acceptable to the beneficiary. Also, 
depending on whether the beneficiary asked the faith-based organization 
to follow up either with the beneficiary or the alternative service 
provider to determine whether the referral is successful, this estimate 
includes the time required to do the follow-up.
    The Department of Health and Human Services, Substance Abuse and 
Mental Health Services Administration (SAMHSA), implemented a similar 
referral requirement in its 2003 final rule, Charitable Choice 
Regulations Applicable to States Receiving Substance Abuse Prevention 
and Treatment Block Grants, Projects for Assistance in Transition From 
Homelessness Formula Grants, and to Public and Private Providers 
Receiving Discretionary Grant Funding From SAMHSA for the Provision of 
Substance Abuse Services Providing for Equal Treatment of SAMHSA 
Program Participants (SAMHSA Program Rule), 68 FR 56430. Since SAMHSA 
implemented the referral requirement, the SAMHSA program office has 
received no reports of requests for an alternative provider. Because 
faith-based organizations are required to provide a written 
notification of the beneficiary's rights under this proposed rule, 
requests for referrals may be more likely. However, given SAMHSA's 
experience, HUD estimates that 0.10 percent of beneficiaries and 
potential beneficiaries would request referrals to alternative 
providers. HUD will monitor its programs to assess whether this 
estimate is accurate.
    HUD is not estimating the burden of maintaining the records needed 
to demonstrate compliance with the requirements imposed on faith-based 
organizations. HUD has recordkeeping requirements included in 
information collection instruments for HUD programs. Those collection 
instruments cover burdens imposed by program and administrative 
requirements that exist under current, OMB-approved, information 
collection instruments and each of those collections has an OMB-
assigned information collection control number.
    The recordkeeping burden that this proposed rule would add to those 
program-specific information collection instruments is so small that, 
under most programs, it would not measurably increase the burden that 
already exists under current program and administrative requirements. 
If, due to the unique nature of a particular program, the recordkeeping 
burden associated with these proposed regulations is large enough to be 
measurable, that burden will be calculated under the recordkeeping and 
reporting requirements of the affected program and identified in 
information collection requests that are submitted to OMB for PRA 
approval. Therefore, we have not included any estimate of recordkeeping 
burden in this PRA analysis.
    The new information collection requirements contained in this 
proposed

[[Page 47309]]

rule have been submitted to OMB under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520). In accordance with the Paperwork Reduction 
Act, 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 currently valid OMB control number.
    The burden of the information collections in this proposed rule is 
estimated as follows:

                                                           Reporting and Recordkeeping Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             Number of respondents in covered programs                                     Estimated        Estimated
        24 CFR Section        -----------------------------------------------------------------------     Number of         average       annual burden
                                  CPD        FHEO     Housing       OLHCHH         PD&R       PIH         responses      response time      (in hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
5.109(g) (Written Notice of      196,487        400     30,400             250      3,141    495,375  1 per             2 minutes per             24,202
 Rights).                                                                                              beneficiary.      beneficiary.
5.109(g) (Referral)..........        198          1         30               1          3        495  1 per             2 hours per                1,456
                                                                                                       beneficiary.      beneficiary.
                              --------------------------------------------------------------------------------------------------------------------------
    Total Burden (for all HUD  .........  .........  .........  ..............  .........  .........  ................  ...............           25,658
     programs covered by this
     rulemaking).
--------------------------------------------------------------------------------------------------------------------------------------------------------

    In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments 
from members of the public and affected agencies concerning this 
collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated 
collection techniques or other forms of information technology; for 
example, permitting electronic submission of responses.
    Interested persons are invited to submit comments regarding the 
information collection requirements in this rule. Comments must refer 
to the proposed rule by name and docket number (FR-5781-P-01) and must 
be sent to: HUD Desk Officer, Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, Washington, DC 20503, Email: [email protected], 
Fax: 202-395-6947 and
    Colette Pollard, Reports Liaison Officer, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 2204, Washington, DC 
20410-7000.
    Interested persons may submit comments regarding the information 
collection requirements electronically through the Federal eRulemaking 
Portal at http://www.regulations.gov. HUD strongly encourages 
commenters to submit comments electronically. Electronic submission of 
comments allows the commenter maximum time to prepare and submit a 
comment, ensures timely receipt by HUD, and enables HUD to make them 
immediately available to the public. Comments submitted electronically 
through the http://www.regulations.gov Web site can be viewed by other 
commenters and interested members of the public. Commenters should 
follow the instructions provided on that site to submit comments 
electronically.

Catalog of Federal Domestic Assistance

    The regulatory amendments contained in this proposed rule apply to 
all HUD assistance programs for which faith-based organizations are 
eligible to participate. The Catalog of Federal Domestic Assistance 
(CFDA) number for a particular HUD program may be found on the CFDA Web 
site at: http://www.cfda.gov.

List of Subjects

24 CFR Part 5

    Administrative practice and procedure, Aged, Claims, Crime, 
Government contracts, Grant programs-housing and community development, 
Individuals with disabilities, Intergovernmental relations, Loan 
programs-housing and community development, Low and moderate income 
housing, Mortgage insurance, Penalties, Pets, Public housing, Rent 
subsidies, Reporting and recordkeeping requirements, Social security, 
Unemployment compensation, Wages.

24 CFR Part 92

    Administrative practice and procedure, Grant programs-housing and 
community development, Low and moderate income housing, Manufactured 
housing, Rent subsidies, Reporting and recordkeeping requirements.

24 CFR Part 570

    Administrative practice and procedure, American Samoa, Community 
development block grants, Grant programs-education, Grant programs-
housing and community development, Guam, Indians, Loan programs-housing 
and community development, Low and moderate income housing, Northern 
Mariana Islands, Pacific Island Trust Territory, Puerto Rico, Reporting 
and recordkeeping requirements, Student aid, Virgin Islands.

24 CFR Part 574

    Community facilities, Grant programs-housing and community 
development, Grant programs-social programs, HIV/AIDS, Low and moderate 
income housing, Reporting and recordkeeping requirements.

24 CFR Part 576

    Community facilities, Grant programs-housing and community 
development, Grant programs-social programs, Homeless, Reporting and 
recordkeeping requirements.

24 CFR Part 578

    Community facilities, Continuum of Care, Emergency solutions 
grants, Grant programs-housing and community development, Grant 
programs-social programs, Homeless, Rural housing, Reporting and 
recordkeeping requirements, Supportive housing programs- housing and 
community development, Supportive services.

24 CFR Part 582

    Civil rights, Community facilities, Grant programs-housing and 
community development, Grant programs-social

[[Page 47310]]

programs, Homeless, Individuals with disabilities, Mental health 
programs, Nonprofit organizations, Rental subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 583

    Civil rights, Community facilities, Employment, Grant programs-
housing and community development, Grant programs-social programs, 
Homeless, Indians, Individuals with disabilities, Mental health 
programs, Nonprofit organizations, Reporting and recordkeeping 
requirements, Technical assistance.

24 CFR Part 1003

    Alaska, Community development block grants, Grant programs-housing 
and community development, Grant programs- Indians, Indians, Reporting 
and recordkeeping requirements.

    Accordingly, for the reasons described in the preamble, HUD 
proposes to amend 24 CFR parts 5, 92, 570, 574, 576, 578, 582, 583 and 
1003 as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

0
1. The authority citation for 24 CFR part 5 is revised to read as 
follows:

    Authority:  42 U.S.C. 1437a, 1437c, 1437f, 1437n, 3535(d), Sec. 
327, Pub. L. 109-115, 119 Stat. 2936, Sec. 607, Pub. L. 109-162, 119 
Stat. 3051, E.O. 13279, 67 FR 77141, 3 CFR, 2002 Comp., p. 258, and 
E.O. 13559, 75 FR 71319, 3 CFR, 2010 Comp., p. 273.

0
2. In Sec.  5.109:
0
a. The section heading is revised;
0
b. Paragraphs (a), (b), (c), (d), (f), (g), and (h) are revised;
0
c. Paragraph (e) is redesignated as paragraph (i);
0
d. New paragraph (e) is added; and
0
e. Paragraphs (j) and (k) are added, to read as follows:


Sec.  5.109  Equal participation of Faith-based Organizations in HUD 
programs.

    (a) Purpose. Consistent with Executive Order 13279 (issued on 
December 12, 2002, 67 FR 77141), entitled ``Equal Protection of the 
Laws for Faith-Based and Community Organizations,'' as amended by 
Executive Order 13559 (issued on November 17, 2010, 75 FR 71319), 
entitled ``Fundamental Principles and Policymaking Criteria for 
Partnerships With Faith-Based and Other Neighborhood Organizations,'' 
this section describes requirements for ensuring the equal 
participation of faith-based organizations in HUD programs. These 
requirements apply to all HUD programs, including all of HUD's Native 
American Programs, except as may be otherwise noted in the respective 
program regulations in title 24 of the Code of Federal Regulations 
(CFR), or unless inconsistent with certain HUD programs authorizing 
statutes.
    (b) Definitions. The following definitions apply to this section:
    Direct Federal financial assistance means Federal financial 
assistance provided when a Federal Government agency or an 
intermediary, as defined in this section, selects the provider and 
either purchases services from that provider (i.e., via a contract) or 
awards funds to that provider to carry out an activity (e.g., via 
grant, sub-grant, sub-award, or cooperative agreement). The recipients 
of sub-grants or sub-awards that receive Federal financial assistance 
through State-administered programs (e.g., flow-through programs) are 
considered recipients of direct Federal financial assistance. In 
general, Federal financial assistance shall be treated as direct, 
unless it meets the definition of indirect Federal financial 
assistance.
    Federal financial assistance means assistance that non-Federal 
entities receive or administer in the forms of grants, contracts, 
loans, loan guarantees, property, cooperative agreements, food 
commodities, direct appropriations, or other assistance, but does not 
include a tax credit, deduction, or exemption.
    Indirect Federal financial assistance means Federal financial 
assistance provided when the choice of the service provider is placed 
in the hands of the beneficiary, and the cost of that service is paid 
through a voucher, certificate, or other similar means of Government-
funded payment. Federal financial assistance provided to an 
organization is considered indirect when the Government program through 
which the beneficiary receives the voucher, certificate, or other 
similar means of Government-funded payment is neutral toward religion; 
the organization receives the assistance as a result of a decision of 
the beneficiary, not a decision of the Government; and the beneficiary 
has at least one adequate secular option for the use of the voucher, 
certificate, or other similar means of Government-funded payment.
    Intermediary means an entity, including a nongovernmental 
organization, acting under a contract, grant, or other agreement with 
the Federal Government or with a State, tribal or local government, 
that accepts Federal financial assistance and distributes that 
assistance to other entities that, in turn, carry out activities under 
HUD programs.
    (c) Equal participation of faith-based organizations in HUD 
programs. Faith-based organizations are eligible, on the same basis as 
any other organization, to participate in HUD programs. Neither the 
Federal Government, nor a State, tribal or local government, nor any 
other entity that administers any HUD program, shall discriminate 
against an organization on the basis of the organization's religious 
character or affiliation. In addition, decisions about awards of 
Federal financial assistance must be free from political interference 
or even the appearance of such interference and must be made on the 
basis of merit, not on the basis of religion or religious belief.
    (d) Separation of explicitly religious activities from direct 
Federal financial assistance.
    (1) A faith-based organization that applies for, or participates 
in, a HUD program supported with Federal financial assistance retains 
its independence and may continue to carry out its mission, including 
the definition, development, practice, and expression of its religious 
beliefs, provided that it does not use direct Federal financial 
assistance that it receives (e.g., via contract, grant, sub-grant or 
sub-award or cooperative agreement) to support or engage in any 
explicitly religious activities (including activities that involve 
overt religious content such as worship, religious instruction, or 
proselytization), or in any other manner prohibited by law.
    (2) A faith-based organization that receives direct Federal 
financial assistance may use space (including a sanctuary, chapel, 
prayer hall, or other space) in its facilities (including a temple, 
synagogue, church, mosque, or other place of worship) to carry out 
activities under a HUD program without removing religious art, icons, 
scriptures, or other religious symbols. In addition, a faith-based 
organization participating in a HUD program retains its authority over 
its internal governance, and may retain religious terms in its 
organization's name, select its board members on a religious basis, and 
include religious references in its organization's mission statements 
and other governing documents.
    (e) Explicitly religious activities. If an organization engages in 
explicitly religious activities (including activities that involve 
overt religious content such as worship, religious instruction, or 
proselytization), the explicitly religious activities must be offered 
separately, in time or location, from the activities supported by 
direct Federal financial assistance and participation must be voluntary 
for the beneficiaries of the activities that receive direct Federal 
financial assistance.

[[Page 47311]]

    (f) Intermediary responsibilities to ensure equal participation of 
faith-based organizations in HUD programs. If an intermediary--acting 
under a contract, grant, or other agreement with the Federal Government 
or with a State, tribal or local government that is administering a 
program supported by Federal financial assistance--is given the 
authority to select a nongovernmental organization to receive Federal 
financial assistance under a contract, grant, sub-grant, sub-award, or 
cooperative agreement, the intermediary must ensure that such 
organization complies with the requirements of this section. If the 
intermediary is a nongovernmental organization, it retains all other 
rights of a nongovernmental organization under the program's statutory 
and regulatory provisions.
    (g) Beneficiary protections. Faith-based organizations that receive 
direct Federal financial assistance to carry out activities under a HUD 
program must give written notice to beneficiaries and prospective 
beneficiaries of the program describing certain protections available 
to them, as provided in this subsection. In addition, if a beneficiary 
or prospective beneficiary objects to the religious character of the 
organization carrying out activities under the HUD program, that 
organization must promptly undertake reasonable efforts to identify and 
refer the beneficiary or prospective beneficiary to an alternative 
provider to which the beneficiary or prospective beneficiary has no 
such objection.
    (1) Written notice. The written notice must be given in a manner 
prescribed by HUD, and state that:
    (i) The organization may not discriminate against beneficiaries on 
the basis of religion or religious belief;
    (ii) The organization may not require beneficiaries to attend or 
participate in any explicitly religious activities that are offered by 
the organization, and any participation by beneficiaries in such 
activities must be purely voluntary;
    (iii) The organization must separate, in time or location, any 
privately funded explicitly religious activities from activities 
supported by direct Federal financial assistance;
    (iv) If a beneficiary objects to the religious character of the 
organization, the organization must undertake reasonable efforts to 
identify and refer the beneficiary to an alternative provider to which 
the beneficiary has no such objection; and
    (v) Beneficiaries may report violations of these protections to HUD 
(or the intermediary, if applicable).
    (2) Timing of notice. The written notice must be given to 
prospective beneficiaries prior to the time they enroll in the program 
or receive services from such programs. When the nature of the service 
provided or exigent circumstances make it impracticable to provide such 
written notice in advance of the actual service, the organization 
providing the services with direct Federal financial assistance must 
provide written notice to beneficiaries of their protections at the 
earliest available opportunity.
    (3) Referral requirements. (i) If a beneficiary or prospective 
beneficiary of a program that receives direct Federal financial 
assistance from HUD objects to the religious character of an 
organization that provides services under the program, that 
organization must promptly undertake reasonable efforts to identify and 
refer the beneficiary or prospective beneficiary to an alternative 
provider to which the beneficiary or prospective beneficiary has no 
such objection.
    (ii) A referral may be made to another faith-based organization, if 
the beneficiary or prospective beneficiary has no objection to that 
provider based on the provider's religious character. But if the 
beneficiary or prospective beneficiary requests a secular provider, and 
a secular provider is available, then a referral must be made to that 
provider.
    (iii) Except for services provided by telephone, Internet, or 
similar means, the referral must be to an alternative provider that is 
in reasonable geographic proximity to the organization making the 
referral and that offers services that are similar in substance and 
quality to those offered by the organization. The alternative provider 
also must have the capacity to accept additional clients.
    (iv) When the organization makes a referral to an alternative 
provider, or when the organization determines that it is unable to 
identify an alternative provider, the organization shall notify HUD (or 
the intermediary, if applicable). If the organization is unable to 
identify an alternative provider, HUD (or the intermediary, if 
applicable) shall determine whether there is any other suitable 
alternative provider to which the beneficiary or prospective 
beneficiary may be referred. An intermediary that receives a request 
for assistance in identifying an alternative provider may request 
assistance from HUD.
    (h) Nondiscrimination requirements. No recipient of Federal 
financial assistance may discriminate against a beneficiary or 
prospective beneficiary of a HUD program on the basis of religion or 
religious belief in carrying out activities with Federal financial 
assistance.
* * * * *
    (j) Acquisition, construction, and rehabilitation of structures. 
Direct Federal financial assistance may be used for the acquisition, 
construction, or rehabilitation of structures only to the extent that 
those structures are used for conducting eligible activities under a 
HUD program. Where a structure is used for both eligible and explicitly 
religious activities (including activities that involve overt religious 
content such as worship, religious instruction, or proselytization), 
direct Federal financial assistance may not exceed the cost of the 
share of acquisition, construction, or rehabilitation attributable to 
eligible activities in accordance with the cost accounting requirements 
applicable to the HUD program. However, acquisition, construction, or 
rehabilitation of sanctuaries, chapels, or other rooms that a HUD-
funded faith-based organization uses as its principal place of worship, 
may not be paid with direct Federal financial assistance. Disposition 
of real property after use for the authorized purpose, or any change in 
use of the property from the authorized purpose, is subject to 
Governmentwide regulations governing real property disposition (see, 
e.g., 2 CFR part 200).
    (k) Commingling of Federal and State, tribal, and local funds. If a 
State, tribal, or local government voluntarily contributes its own 
funds to supplement direct Federal financial assistance for an 
activity, the State, tribal or local government has the option to 
segregate those funds or commingle them with the direct Federal 
financial assistance. However, if the funds are commingled, the 
requirements of this section apply to all of the commingled funds. 
Further, if a State, tribal, or local government is required to 
contribute matching funds to supplement direct Federal financial 
assistance for an activity, the matching funds are considered 
commingled with the direct Federal financial assistance and, therefore, 
subject to the requirements of this section. Some HUD programs' 
requirements govern any activity assisted under those programs. 
Accordingly, recipients should consult with the appropriate HUD program 
office to determine the scope of applicable requirements.

PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM

0
3. The authority citation for 24 CFR part 92 continues to read as 
follows:


[[Page 47312]]


    Authority:  42 U.S.C. 3535(d) and 12701-12839.

0
4. Revise Sec.  92.257 to read as follows:


Sec.  92.257  Equal participation of Faith-Based Organizations.

    The HUD program requirements in Sec.  5.109 of this subtitle apply 
to the HOME program.

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

0
5. The authority citation for 24 CFR part 570 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 5301-5320.

0
6. In Sec.  570.200 revise paragraph (j) to read as follows:


Sec.  570.200  General policies.

* * * * *
    (j) Equal participation of Faith-Based Organizations. The HUD 
program requirements in Sec.  5.109 of this title apply to the CDBG 
program.

PART 574--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

0
7. The authority citation for 24 CFR part 574 continues to read as 
follows:

    Authority:  42 U.S.C. 3535(d) and 12901-12912.

0
8. In Sec.  574.300, revise paragraph (c) to read as follows:


Sec.  574.300  Eligible activities.

* * * * *
    (c) Equal participation of Faith-Based Organizations. The HUD 
program requirements in Sec.  5.109 of this title apply to the HOPWA 
program.

PART 576--EMERGENCY SOLUTIONS GRANTS PROGRAM

0
9. The authority citation for 24 CFR part 576 continues to read as 
follows:

    Authority:  42 U.S.C. 11371 et seq., 42 U.S.C. 3535(d).

0
10. Revise Sec.  576.406 to read as follows:


Sec.  576.406  Equal participation of Faith-Based Organizations.

    The HUD program requirements in Sec.  5.109 of this title apply to 
the ESG program.

PART 578--CONTINUUM OF CARE PROGRAM

0
11. The authority citation for 24 CFR part 578 continues to read as 
follows:

    Authority:  42 U.S.C. 11371 et seq., 42 U.S.C. 3535(d).

0
12. In Sec.  578.87, revise paragraph (b) to read as follows:


Sec.  578.87  Limitation on use of funds.

* * * * *
    (b) Equal participation of Faith-Based Organizations. The HUD 
program requirements in Sec.  5.109 of this title apply to the 
Continuum of Care program.
* * * * *

PART 582--SHELTER PLUS CARE

0
13. The authority citation for 24 CFR part 582 continues to read as 
follows:

    Authority:  42 U.S.C. 3535(d) and 11403-11407b.

0
14. In Sec.  582.115, revise paragraph (c) to read as follows:


Sec.  582.115  Limitations on assistance.

* * * * *
    (c) Equal participation of Faith-Based Organizations. The HUD 
program requirements in Sec.  5.109 of this title apply to the S+C 
program.
* * * * *

PART 583--SUPPORTIVE HOUSING PROGRAM

0
15. The authority citation for 24 CFR part 583 continues to read as 
follows:

    Authority: 42 U.S.C. 11389 and 3535(d).

0
16. In Sec.  583.150, revise paragraph (b) to read as follows:


Sec.  583.150  Limitations on use of assistance.

* * * * *
    (b) Equal participation of Faith-Based Organizations. The HUD 
program requirements in Sec.  5.109 of this title apply to the 
Supportive Housing Program.
* * * * *

PART 1003--COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND 
ALASKA NATIVE VILLAGES

0
17. The authority citation for 24 CFR part 1003 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 5301 et seq.

0
18. Revise Sec.  1003.600 to read as follows:


Sec.  1003.600  Equal participation of Faith-Based Organizations.

    The HUD program requirements in Sec.  5.109 of this title apply to 
the ICDBG program.

    Dated: May 27, 2015.
Juli[aacute]n Castro,
Secretary.

    Note: The following appendix will not appear in the Code of 
Federal Regulations.

Appendix A

WRITTEN NOTICE OF BENEFICIARY RIGHTS

Name of Organization:

Name of Program:

Contact Information for Program Staff (name, phone number, and email 
address, if appropriate):

Because this program is supported in whole or in part by financial 
assistance from the Federal Government, we are required to let you 
know that:

 We may not discriminate against you on the basis of 
religion or religious belief;
 We may not require you to attend or participate in any 
explicitly religious activities that are offered by us, and any 
participation by you in these activities must be purely voluntary;
 We must separate, in time or location, any privately funded 
explicitly religious activities from activities supported with 
direct Federal financial assistance;
 If you object to the religious character of our 
organization, we must make reasonable efforts to identify and refer 
you to an alternative provider to which you have no objection; and
 You may report violations of these protections to HUD [or 
the intermediary, if applicable].

We must give you this written notice before you enroll in our 
program or receive services from the program, as required by [Insert 
Federal Agency's regulations].

BENEFICARY REFERRAL REQUEST

    If you object to receiving services from us based on the 
religious character of our organization, please complete this form 
and return it to the program contact identified above. Your use of 
this form is voluntary.
    If you object to the religious character of our organization, we 
must make reasonable efforts to identify and refer you to an 
alternative provider to which you have no objection. We cannot 
guarantee, however, that in every instance, an alternative provider 
will be available. With your consent, we will follow up with you or 
the organization to which you are referred to determine whether you 
have contacted that organization.

( ) Please check if you want to be referred to another service 
provider.

Please provide the following information if you want us to follow up 
with you:

 Your Name:

 Best way to reach me (phone/address/email):

Please provide the following information if you want us to follow up 
with the service provider only.

 Your Name:

You are permitted to withhold your name, though if you choose to do 
so, we will be unable to follow up with you or the service provider 
about your referral.

( ) Please check if you do not want follow-up.

FOR STAFF USE ONLY

1. Date of Objection: __/ __/ __

2. Referral (check one):

[[Page 47313]]

 ( ) Individual was referred to (name of alternative provider and 
contact information):
 ( ) Individual left without a referral
 ( ) No alternative service provider is available--summarize below 
what efforts you made to identify an alternative (including reaching 
out to HUD or the intermediary, if applicable):

3. Follow-up date: __/ __/ __
 ( ) Individual contacted alternative provider
 ( ) Individual did not contact alternative provider

4. Staff name and initials:

[FR Doc. 2015-18258 Filed 8-5-15; 8:45 am]
 BILLING CODE P



                                                     47302                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules

                                                     DEPARTMENT OF HOUSING AND                               the public record and will be posted to               Equal Protection of the Laws for Faith-
                                                     URBAN DEVELOPMENT                                       www.regulations.gov without change.                   Based and Community Organizations,
                                                                                                               2. Electronic Submission of                         which was published on December 16,
                                                     24 CFR Parts 5, 92, 570, 574, 576, 578,                 Comments. Interested persons may                      2002, at 67 FR 77141. Executive Order
                                                     582, 583 and 1003                                       submit comments electronically through                13279 set forth fundamental principles
                                                                                                             the Federal eRulemaking Portal at                     and policymaking criteria to guide
                                                     [Docket No. FR–5781–P–01]                               www.regulations.gov. HUD strongly                     Federal agencies in formulating and
                                                     RIN 2501–AD65                                           encourages commenters to submit                       developing policies with implications
                                                                                                             comments electronically. Electronic                   for faith-based and other community
                                                     Equal Participation of Faith-Based                      submission of comments allows the                     organizations, to ensure equal
                                                     Organizations in HUD Programs:                          commenter maximum time to prepare                     protection of the laws for faith-based
                                                     Implementation of E.O. 13559                            and submit a comment, ensures timely                  and other community organizations, and
                                                                                                             receipt by HUD, and enables HUD to                    to expand opportunities for, and
                                                     AGENCY:    Office of the Secretary, HUD.                make them immediately available to the                strengthen the capacity of, faith-based
                                                     ACTION:   Proposed rule.                                public. Comments submitted                            and other community organizations to
                                                                                                             electronically through the                            meet social needs in America’s
                                                     SUMMARY:    This rule proposes to revise                www.regulations.gov Web site can be                   communities. In addition, Executive
                                                     HUD’s regulation that covers the equal                  viewed by other commenters and                        Order 13279 directed specified agency
                                                     participation of faith-based (religious)                interested members of the public.                     heads to review and evaluate existing
                                                     organizations in HUD Programs,                          Commenters should follow the                          policies relating to Federal financial
                                                     including all of HUD’s Native American                  instructions provided on that site to                 assistance for social service programs
                                                     Programs, as well as several program-                   submit comments electronically.                       and, where appropriate, to implement
                                                     specific regulations regarding the equal                                                                      new policies that were consistent with
                                                     participation of faith-based                              Note: To receive consideration as public
                                                                                                             comments, comments must be submitted                  and necessary to further the
                                                     organizations. These revisions are being                through one of the two methods specified              fundamental principles and
                                                     undertaken to implement Executive                       above. Again, all submissions must refer to           policymaking criteria that have
                                                     Order 13559, Fundamental Principles                     the docket number and title of the rule.              implications for faith-based and
                                                     and Policymaking Criteria for                              No Facsimile Comments. Facsimile                   community organizations.
                                                     Partnerships with Faith-Based and                       (fax) comments are not acceptable.                       HUD implemented Executive Order
                                                     Other Neighborhood Organizations.                          Public Inspection of Public                        13279 through three final rules:
                                                     Executive Order 13559 revised                           Comments. All properly submitted
                                                     Executive Order 13279, Equal Protection                                                                          Participation in HUD Programs by
                                                                                                             comments and communications                           Faith-Based Organizations; Providing
                                                     of the Laws for Faith-Based and                         submitted to HUD will be available for
                                                     Community Organizations, which                                                                                for Equal Treatment of all HUD Program
                                                                                                             public inspection and copying between                 Participants, published on September
                                                     provides the legal basis for HUD’s                      8 a.m. and 5 p.m., eastern time,
                                                     current equal participation regulations.                                                                      30, 2003, at 68 FR 56396, and amended
                                                                                                             weekdays at the above address. Due to                 HUD’s regulations in 24 CFR part 92
                                                     This rule implements changes to                         security measures at the HUD
                                                     Executive Order 13279 made by                                                                                 (HOME Investment Partnerships
                                                                                                             Headquarters building, an advance                     Program), part 570 (Community
                                                     Executive Order 13559, including                        appointment to review the public
                                                     changes to specific terminology,                                                                              Development Block Grants), part 572
                                                                                                             comments must be scheduled by calling                 (HOPE for Homeownership of Single
                                                     additional beneficiary protections, and                 the Regulations Division at 202–708–
                                                     clarifications on the responsibilities of                                                                     Family Homes (HOPE 3)), 1 part 574
                                                                                                             3055 (this is not a toll-free number).                (Housing Opportunities for Persons with
                                                     intermediaries. In addition to proposing                Individuals with speech or hearing
                                                     regulatory amendments to implement                                                                            AIDS), part 576 (Emergency Shelter
                                                                                                             impairments may access this number                    Grants Program, now Emergency
                                                     Executive Order 13559, HUD is also                      through TTY by calling the Federal
                                                     publishing for public comment a sample                                                                        Solutions Grants Program), part 582
                                                                                                             Relay Service at 800–877–8339 (this is                (Shelter Plus Care), part 583 (Supportive
                                                     notice of beneficiary protections for use               a toll-free number). Copies of all
                                                     by faith-based organizations.                                                                                 Housing Program), and part 585
                                                                                                             comments submitted are available for                  (Youthbuild Program); 2
                                                     DATES: Comment Due Date. October 5,                     inspection and downloading at
                                                     2015.                                                                                                            Equal Participation of Faith-Based
                                                                                                             www.regulations.gov.
                                                                                                                                                                   Organizations, published on July 9,
                                                     ADDRESSES:    Interested persons are                    FOR FURTHER INFORMATION CONTACT:                      2004, at 69 FR 41712, and amended
                                                     invited to submit comments regarding                    Paula Lincoln, Director, Center for                   HUD’s regulations in 24 CFR part 5
                                                     this rule to the Regulations Division,                  Faith-Based and Neighborhood                          (General HUD Program Requirements
                                                     Office of General Counsel, 451 7th                      Partnerships, Department of Housing                   and Waivers) and 24 CFR part 570
                                                     Street SW., Room 10276, Department of                   and Urban Development, 451 7th Street                 (Community Development Block Grant
                                                     Housing and Urban Development,                          SW., Room 10184, Washington, DC                       Program); and
                                                     Washington, DC 20410–0500. There are                    20410–7000; telephone number 202–                        Participation in HUD’s Native
                                                     two methods for submitting public                       708–2404 (this is not a toll-free                     American Programs by Religious
                                                     comments. All submissions must refer                    number). Hearing- and speech-impaired                 Organizations; Providing for Equal
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                                                     to the above docket number and title.                   persons may access this number through                Treatment of All Program Participants,
                                                       1. Submission of Comments by Mail.                    TTY by calling the Federal Relay                      published on October 22, 2004, at 69 FR
                                                     Comments may be submitted by mail to                    Service at 800–877–8339 (this is a toll-              62164, and amended HUD’s regulations
                                                     the Regulations Division, Office of                     free number).                                         at 24 CFR part 954 (Indian HOME
                                                     General Counsel, Department of                          SUPPLEMENTARY INFORMATION:
                                                     Housing and Urban Development, 451                                                                              1 Part 572 was removed by a HUD final rule
                                                     7th Street SW., Room 10276,                             I. Background
                                                                                                                                                                   published on September 2, 2014, at 79 FR 51893.
                                                     Washington, DC 20410–0500. All                             On December 12, 2002, President                      2 Part 585 was removed by a HUD final rule

                                                     comments received by mail are a part of                 Bush signed Executive Order 13279,                    published on September 2, 2014, at 79 FR 51893.



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                                                                            Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules                                                  47303

                                                     Program),3 and 24 CFR part 1003                         Report included recommendations to                    regulations, guidance documents, and
                                                     (Community Development Block Grants                     amend Executive Order 13279 to clarify                policies that have implications for faith-
                                                     for Indian Tribes and Alaska Native                     the legal foundation of partnerships,                 based and neighborhood organizations,
                                                     Villages).                                              and offered a new set of fundamental                  and post online a list of entities
                                                        The regulations established by each of               principles to guide agency decision-                  receiving such assistance; and
                                                     these three rules provide that faith-                   making in administering Federal                          • Agency decisions about awards of
                                                     based (religious) organizations are                     financial assistance and support to faith-            Federal financial assistance must be free
                                                     eligible on the same basis as any other                 based and neighborhood organizations.                 from political interference or even the
                                                     eligible organization to participate in                    On November 17, 2010, President                    appearance of such interference, and
                                                     HUD programs and activities; 4                          Obama signed Executive Order 13559,                   must be made on the basis of merit, not
                                                     organizations may not engage in                         entitled ‘‘Fundamental Principles and                 on the basis of the religious affiliation,
                                                     inherently religious activities as part of              Policymaking Criteria for Partnerships                or lack of affiliation, of the recipient
                                                     programs or services directly funded                    with Faith-Based and Other                            organization.
                                                     under a HUD program or activity; faith-                 Neighborhood Organizations,’’ which                      In addition, Executive Order 13559
                                                     based organizations that participate in                 was published on November 22, 2010, at                created the Interagency Working Group
                                                     HUD programs or activities may retain                   75 FR 71319.6 Executive Order 13559                   on Faith-Based and Other Neighborhood
                                                     their independence; and a faith-based                   incorporated many of the Advisory                     Partnerships (Working Group) for the
                                                     organization that participates in a HUD                 Council’s recommendations and                         purpose of reviewing and evaluating
                                                     program does not forfeit its exemption                  amended Executive Order 13279, to                     existing regulations, guidance
                                                     from the Federal prohibition against                    revise and add additional fundamental                 documents, and policies.
                                                     employment discrimination on the basis                  principles and policymaking criteria for                 The Executive Order also stated that,
                                                     of religion, as provided in title VII of the            inclusion in guidance and regulations.7               following receipt of the Working
                                                     Civil Rights Act of 1964 (though some                   The principles include:                               Group’s report, the Office of
                                                     individual HUD programs may have                           • The Federal Government has an                    Management and Budget (OMB), in
                                                     independent statutory                                   obligation to monitor and enforce all                 coordination with the Department of
                                                     nondiscrimination requirements). These                  standards regarding the relationship                  Justice, must issue guidance to agencies
                                                     regulations also provide that                           between religion and the Federal                      on the implementation of Executive
                                                     organizations may not discriminate                      Government in ways that avoid                         Order 13559. The Working Group issued
                                                     against beneficiaries or prospective                    excessive entanglement between                        its report in April 2012.8 In August
                                                     beneficiaries on the basis of religion or               religious bodies and governmental                     2013, OMB issued guidance instructing
                                                     religious beliefs; address the use of HUD               entities;                                             specified agency heads to adopt
                                                     funds for acquisition, construction, and                   • Organizations engaging in explicitly             regulations and guidance that will fulfill
                                                     rehabilitation of structures that are used              religious activities must separate these              the requirements of Executive Order
                                                     for inherently religious activities; and                activities, in time or location, from                 13559, and to amend regulations and
                                                     clarify the attachment of requirements                  programs supported with direct Federal                guidance to ensure that they are
                                                     to State, tribal, and local funds that are              financial assistance (including prime                 consistent with this Executive order.9
                                                     commingled with HUD funds.                              awards and sub-awards). Participation                    Prior to the issuance of the August
                                                        On February 5, 2009, President                       in any explicitly religious activity                  2013 guidance and after the issuance of
                                                     Obama signed Executive Order 13498,                     cannot be subsidized with direct                      Executive Order 13559, HUD issued one
                                                     entitled ‘‘Amendments to Executive                      Federal financial assistance (including               interim rule, one final rule, and one
                                                     Order 13199 and Establishment of the                    prime awards and sub-awards), and                     proposed rule that incorporated
                                                     President’s Advisory Council for Faith-                 participation in such activities must be              language to reflect Executive Order
                                                     Based and Neighborhood Partnerships,’’                  voluntary for the beneficiaries of the                13559:
                                                     which was published on February 9,                      social service program supported with                    Interim Rule: Homeless Emergency
                                                     2009, at 74 FR 6533. Executive Order                    such Federal financial assistance;                    Assistance and Rapid Transition to
                                                     13498 established the President’s                          • Religious providers are welcome to               Housing: Continuum of Care Program,
                                                     Advisory Council for Faith-Based and                    compete for Federal Government                        published on July 31, 2012, at 77 FR
                                                     Neighborhood Partnerships (Advisory                     funding and maintain a religious                      45422, which provided a new regulation
                                                     Council) for the purpose of bringing                    identity as described in the order;                   on the equal participation of faith-based
                                                     together experts to, among other things,                   • Agencies that administer or award                organizations in 24 CFR part 578
                                                     make recommendations to the President                   Federal financial assistance must                     (Continuum of Care Program);
                                                     for changes in policies, programs, and                  implement protections for the                            Final Rule: HOME Investment
                                                     practices that affect the delivery of                   beneficiaries or prospective                          Partnerships Program: Improving
                                                     services by faith-based and other                       beneficiaries of those programs (these                Performance and Accountability;
                                                     neighborhood organizations.                             protections include providing referral to             Updating Property Standards, published
                                                        The Advisory Council issued its                      an alternative provider if the beneficiary            on July 24, 2013, at 78 FR 44627, which
                                                     recommendations in a report entitled                    objects to the religious character of the             modified HUD’s equal participation of
                                                     ‘‘A New Era of Partnerships: Report of                  organization providing services, and                  faith-based organizations regulation in
                                                     Recommendations to the President’’ in                   ensuring that written notice of these and
                                                     March 2010.5 The Advisory Council                       other protections is provided to
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                                                                                                                                                                      8 Recommendations of the Interagency Working
                                                                                                             beneficiaries before they enroll in or                Group on Faith-Based and Other Neighborhood
                                                       3 HUD   stopped awarding grants on the Indian         receive services from the program);                   Partnerships, April 2012, at http://
                                                     Home Program on September 30, 1997, and part 954
                                                     was removed by a HUD final rule published on
                                                                                                                • Agencies that provide Federal                    www.whitehouse.gov/sites/default/files/uploads/
                                                                                                                                                                   finalfaithbasedworkinggroupreport.pdf.
                                                     February 9, 2012, at 77 FR 6673.                        financial assistance must post online                    9 M–13–19, ‘‘Implementation of Executive Order
                                                       4 Faith-based organizations must also meet any
                                                                                                                                                                   13559, ‘Fundamental Principles and Policymaking
                                                     applicable program requirements to participate in a        6 http://www.gpo.gov/fdsys/pkg/FR-2010-11-22/
                                                                                                                                                                   Criteria for Partnerships with Faith-based and Other
                                                     HUD program.                                            pdf/2010-29579.pdf.                                   Neighborhood Organizations’,’’ August 2, 2013, at
                                                       5 http://www.whitehouse.gov/sites/default/files/         7 Executive Order 13279, Section 2, paragraphs     http://www.whitehouse.gov/sites/default/files/omb/
                                                     microsites/ofbnp-council-final-report.pdf.              (e)–(j).                                              memoranda/2013/m-13-19.pdf.



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                                                     47304                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules

                                                     24 CFR part 92 (HOME Investment                         ‘‘direct’’ and ‘‘indirect’’ Federal                   choose the provider from which they
                                                     Partnerships Program); and                              financial assistance because the                      receive their benefit and ‘‘spend’’ the
                                                        Proposed Rule: Homeless Emergency                    limitation on explicitly religious                    Government funds, whether that
                                                     Assistance and Rapid Transition to                      activities applies to programs that are               provider is public or private, non-
                                                     Housing: Rural Housing Stability                        supported with ‘‘direct’’ Federal                     religious or religious. See Zelman v.
                                                     Assistance Program and Revisions to the                 financial assistance but does not apply               Simmons-Harris, 536 U.S. 639, 652–53
                                                     Definition of ‘‘Chronically Homeless,’’                 to programs supported with ‘‘indirect’’               (2002). In these instances, the
                                                     published on March 27, 2013, at 78 FR                   Federal financial assistance. To clarify              Government does not encourage or
                                                     18725, which proposed regulations at 24                 this distinction, the proposed rule                   promote any explicitly religious
                                                     CFR part 579 for the new Rural Housing                  provides definitions of these terms.                  programs that may be among the options
                                                     Stability Assistance Program, including                    Programs are supported with ‘‘direct’’             available to beneficiaries. Notably, the
                                                     a regulation on the equal participation                 Federal financial assistance when either              voucher scheme at issue in the Zelman
                                                     of faith-based organizations.                           the Federal Government or an                          decision, which was described by the
                                                                                                             intermediary, as identified in this                   Court as one of ‘‘true private choice’’ 11
                                                     II. This Proposed Rule                                  proposed rule, selects a service provider             was also neutral toward religion and
                                                     A. Overview of Proposed Regulations                     and either purchases services from that               offered beneficiaries adequate secular
                                                        This proposed rule updates all HUD                   provider (i.e., through a contract) or                options. This type of Federal financial
                                                     regulations governing the equal                         awards funds to that provider to carry                assistance is considered ‘‘indirect.’’
                                                     participation of faith-based                            out an activity (e.g., through a grant,               Accordingly, these criteria also are
                                                     organizations in HUD programs to                        sub-grant, sub-award, or cooperative                  included in the text of the proposed
                                                     reflect the new fundamental principles                  agreement). Under these circumstances,                definition of ‘‘indirect Federal financial
                                                     and policymaking criteria in Executive                  there are no intervening steps in which               assistance.’’
                                                                                                             the beneficiary’s choice determines the                  HUD also adds the definition of
                                                     Order 13559. Some of the principles do
                                                                                                             provider’s identity, the beneficiary                  ‘‘Federal financial assistance’’ from
                                                     not require regulations and will be
                                                                                                             being the end user of the service,                    Executive Order 13279 to clarify the
                                                     included in guidance that will
                                                                                                             product, or assistance.                               new definitions ‘‘direct Federal
                                                     accompany the final rule to follow this                    ‘‘Indirect’’ Federal financial assistance          financial assistance’’ and ‘‘indirect
                                                     proposed rule. HUD may issue guidance                   is distinguishable because it places the              Federal financial assistance.’’
                                                     on the applicability of the Executive                   choice of service provider in the hands                  HUD also proposes a definition for
                                                     order and this proposed rule to                         of a beneficiary before the Federal                   intermediary. An intermediary is an
                                                     particular programs or activities.                      Government pays for the cost of that                  entity, including a nongovernmental
                                                        HUD is implementing Executive
                                                                                                             service through a voucher, certificate, or            organization, acting under a contract,
                                                     Order 13559 by amending its § 5.109
                                                                                                             other similar means. For example, the                 grant, or other agreement with the
                                                     regulation to: (1) Add definitions for                  Federal Government could choose to                    Federal Government or with a State,
                                                     direct Federal financial assistance,                    allow the beneficiary to secure the                   tribal or local government that accepts
                                                     Federal financial assistance, indirect                  needed service on their own.                          Federal financial assistance and
                                                     Federal financial assistance, and an                    Alternatively, a governmental agency,                 distributes that assistance to other
                                                     intermediary; (2) state that decisions                  operating under a program of aid that                 organizations that, in turn, provide
                                                     must be free from political interference                has at least one secular provider, could              Government-funded services. This
                                                     or even the appearance of such                          present each beneficiary or prospective               definition clarifies the application of
                                                     interference; (3) clarify the separation of             beneficiary with a list of all qualified              these requirements to recipients of
                                                     explicitly religious activities from                    providers from which the beneficiary                  Federal financial assistance from HUD
                                                     activities funded with direct Federal                   could obtain services using a                         that are classified as intermediaries.
                                                     financial assistance and defining                       Government-provided certificate. Either
                                                     explicitly religious activities; (4) clarify                                                                  2. Decisions Must Be Free From
                                                                                                             way, the Government empowers the                      Political Interference
                                                     the responsibilities of intermediary                    beneficiaries to choose for themselves
                                                     organizations; (5) add new beneficiary                  whether to receive the needed services,                  This proposed rule adds to the
                                                     protections, and (6) amend existing                     including those that contain explicitly               existing paragraph (b) of § 5.109,
                                                     language in § 5.109 to include Executive                religious activities, through a faith-                redesignated as paragraph (c) under the
                                                     Order 13559 changes.                                    based or other neighborhood                           proposed rule, that decisions about
                                                        This proposed rule also proposes to                                                                        awards of Federal financial assistance
                                                                                                             organization. The Federal Government
                                                     remove duplicate faith-based                                                                                  must be free from political interference
                                                                                                             could then pay for the beneficiary’s
                                                     regulations in 24 CFR parts 92, 570, 574,                                                                     or even the appearance of such
                                                                                                             choice of provider by giving the
                                                     576, 578, 582, 583, and 1003, and                                                                             interference and must be made on the
                                                                                                             beneficiary a voucher or similar
                                                     replaces them with cross-references to a                                                                      basis of merit, not on the basis of
                                                                                                             document. Alternatively, the Federal
                                                     uniform regulation at § 5.109.                                                                                religion or religious belief. To comply
                                                                                                             Government could choose to pay the
                                                     B. Specific Proposed Amendments                         provider directly after asking the                    with this requirement, entities that
                                                                                                             beneficiary to indicate the beneficiary’s             award Federal financial assistance (HUD
                                                     1. New Definitions                                                                                            or an intermediary) should instruct
                                                                                                             choice.10 An example would be the
                                                        This proposed rule adds a new                        Housing Choice Voucher Program.                       participants in the awarding process to
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                                                     paragraph (b) to § 5.109 providing                         The Supreme Court has held that if a               refrain from taking religious affiliations
                                                     definitions for direct Federal financial                program meets certain criteria, the                   or non-religious affiliations into account
                                                     assistance, Federal financial assistance,               Government may fund the program if,                   in the process of awarding or allocating
                                                     indirect Federal financial assistance,                  among other things, the program places                funds; i.e., an organization should not
                                                     and an intermediary, meaning one that                   the benefit in the hands of individuals,              receive favorable or unfavorable marks
                                                     accepts and distributes Federal financial               who, in turn, have the freedom to                     merely because it is affiliated or
                                                     assistance.                                                                                                   unaffiliated with a religious body, or
                                                        Executive Order 13559 noted that new                  10 See Freedom From Religion Found. v.

                                                     regulations should distinguish between                  McCallum, 324 F.3d 880, 882 (7th Cir. 2003).            11 Zelman.   at 653.



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                                                                            Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules                                                       47305

                                                     related or unrelated to a specific                      religious social service providers it                    teach someone to read, are not
                                                     religion. In addition, when selecting                   interviewed said they understood the                     considered ‘‘explicitly religious
                                                     peer reviewers, entities that award                     prohibition on using direct Federal                      activities’’ merely because the provider
                                                     Federal financial assistance should                     financial assistance for ‘‘inherently                    is religiously motivated to provide those
                                                     never ask about religious affiliation or                religious activities,’’ four of the                      services. The study or acknowledgement
                                                     take such matters into account, but                     providers described acting in ways that                  of religion as a historical or cultural
                                                     should encourage religious, political,                  appeared to violate that rule.12                         reality also would not be considered an
                                                     and professional diversity among peer                      Further, though the Supreme Court                     explicitly religious activity.
                                                     reviewers by advertising for these                      has sometimes used the term                              Notwithstanding the general prohibition
                                                     positions in a wide variety of venues.                  ‘‘inherently religious,’’ the Court has not              on the use of direct Federal financial
                                                                                                             used this term to indicate the boundary                  assistance to support explicitly religious
                                                     3. Separation of Explicitly Religious                   of what the Government may subsidize                     activities, there are rare instances when
                                                     Activities From Activities Funded With                  with direct Federal financial assistance.                religious activities may be Federally
                                                     Direct Federal Financial Assistance and                 If the term is interpreted narrowly, it                  financed under the Establishment
                                                     Definition of Explicitly Religious                      could permit actions that the                            Clause and not subject to the direct
                                                     Activities                                              Constitution prohibits. On the other                     Federal financial assistance restrictions;
                                                        This proposed rule would amend                       hand, one could also argue that the term                 for instance, in situations where Federal
                                                     paragraphs (c) and (d) in § 5.109,                      ‘‘inherently religious’’ is too broad                    financial assistance is provided to
                                                     redesignated as paragraphs (d) and (e)                  rather than too narrow. For example,                     chaplains to work with inmates in
                                                     under this proposed rule, to clarify the                some might consider their provision of                   prisons, detention facilities, or
                                                     requirement that activities supported by                a hot meal to a needy person to be an                    community correction centers through
                                                     direct Federal financial assistance must                ‘‘inherently religious’’ act when it is                  social service programs.15 Since such
                                                     be separate from explicitly religious                   undertaken from a sense of religious                     activities have only been recognized in
                                                     activities; define ‘‘explicitly religious               motivation or obligation, even though it                 correctional settings, they would likely
                                                     activities;’’ and replace the term                      has no overt religious content.                          not arise in HUD-funded programs.
                                                     ‘‘inherently religious activities’’ with                   The Court has determined that the                        It is important to emphasize that the
                                                     the term ‘‘explicitly religious activities.’’           Government cannot subsidize ‘‘a                          restrictions on explicitly religious
                                                        Executive Order 13559 makes clear                    specifically religious activity in an                    content apply to content generated by
                                                     that all organizations that receive                     otherwise substantially secular                          the administrators of the program
                                                     Federal financial assistance are                        setting.’’ 13 The Court has also said a                  receiving direct Federal financial
                                                     prohibited from discriminating against                  direct aid program impermissibly                         assistance, not to spontaneous
                                                     beneficiaries or potential beneficiaries                advances religion when the aid results                   comments made by individual
                                                     of Federal programs on the basis of                     in governmental indoctrination of                        beneficiaries about their personal lives
                                                     religion, a religious belief, refusal to                religion.14 This terminology is fairly                   in the context of these programs. For
                                                     hold a religious belief, or a refusal to                interpreted to prohibit the Government                   example, if a person administering a
                                                     attend or participate in a religious                    from directly subsidizing any                            federally funded job skills program asks
                                                     practice. Executive Order 13559 also                    ‘‘explicitly religious activity,’’ including             beneficiaries to describe how they gain
                                                     states that organizations offering                      activities that involve overt religious                  the motivation necessary for their job
                                                     explicitly religious activities (including              content. Thus, direct Federal financial                  searches and some beneficiaries refer to
                                                     activities that involve overt religious                 assistance must not be used to pay for                   their faith or membership in a faith
                                                     content such as worship, religious                      activities such as religious instruction,                community, these kinds of comments do
                                                     instruction, or proselytization) must not               devotional exercises, worship,                           not violate the restrictions and should
                                                     use direct Federal financial assistance to              proselytizing or evangelism; production                  not be censored. In this context, it is
                                                     subsidize or support those activities,                  or dissemination of devotional guides or                 clear that the administrator of the
                                                     and that any explicitly religious                       other religious materials; or counseling                 Government-funded program did not
                                                     activities must be offered outside of                   in which counselors introduce religious                  orchestrate or encourage such
                                                     programs that are supported with direct                 content. Similarly, direct Federal                       comments.
                                                     Federal financial assistance (including                 financial assistance may not be used to                     HUD, therefore, proposes to replace
                                                     through prime awards or sub-awards).                    pay for equipment or supplies to the                     the term ‘‘inherently religious
                                                     In other words, to the extent that an                   extent they are allocated to such                        activities’’ with the term ‘‘explicitly
                                                     organization provides explicitly                        activities.
                                                     religious activities, those activities must                HUD provides the following activities                    15 Where there is extensive Government control

                                                     be offered separately, in time or                       as examples of permissible use of funds,                 over the environment of the Federally financed
                                                     location, from programs or services                     but anticipates that such activities                     social service program, program officials may
                                                                                                                                                                      sometimes need to take affirmative steps to provide
                                                     supported with direct Federal financial                 would generally not apply to HUD                         an opportunity for beneficiaries of the social service
                                                     assistance.                                             programs. Activities that are secular in                 program to exercise their religion. See Cruz v. Beto,
                                                        HUD’s existing regulations and                       content, such as serving meals to the                    405 U.S. 319, 322 n.2 (1972) (per curiam)
                                                     Executive Order 13279 prohibit                          needy or using a nonreligious text to                    (‘‘reasonable opportunities must be afforded to all
                                                                                                                                                                      prisoners to exercise the religious freedom
                                                     nongovernmental organizations from                                                                               guaranteed by the First and Fourteenth Amendment
                                                     using direct Federal financial assistance                 12 GAO, Faith-Based and Community Initiative:
                                                                                                                                                                      without fear of penalty’’); Katcoff v. Marsh, 755
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                                                     (e.g., government grants, contracts, sub-               Improvements in Monitoring Grantees and                  F.2d 223, 234 (2d Cir. 1985) (finding it ‘‘readily
                                                                                                             Measuring Performance Could Enhance                      apparent’’ that the Government is obligated by the
                                                     grants, sub-awards, and subcontracts)                   Accountability, GAO–06–616, at 34–35 (June 2006)         First Amendment ‘‘to make religion available to
                                                     for ‘‘inherently religious activities, such             (available at http://www.gao.gov/new.items/              soldiers who have been moved by the Army to areas
                                                     as worship, religious instruction, and                  d06616.pdf).                                             of the world where religion of their own
                                                     proselytization.’’ The term ‘‘inherently                  13 Hunt v. McNair, 413 U.S. 734, 743 (1973).
                                                                                                                                                                      denominations is not available to them’’). Without
                                                                                                               14 See Mitchell v. Helms, 530 U.S. 793, 808 (2000)     such efforts, religious freedom might not exist for
                                                     religious,’’ however, has proven
                                                                                                             (Thomas, J., joined by Rehnquist, C.J., Scalia, and      these beneficiaries. Accordingly, services such as
                                                     confusing. In 2006, for example, the                    Kennedy, JJ., plurality); Helms, at 845 (O’Connor, J.,   chaplaincy services would not be considered
                                                     Government Accountability Office                        joined by Breyer, J., concurring in the judgment);       explicitly religious activities that are subject to
                                                     (GAO) found that, although all 26 of the                Agostini v. Felton, 521 U.S. 203, 223 (1997).            direct financial aid restrictions.



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                                                     47306                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules

                                                     religious activities’’ and define the latter            requirements and performance goals.                   provider. But if the beneficiary requests
                                                     term as ‘‘including activities that                     Moreover, a State’s use of intermediaries             a secular provider, and a secular
                                                     involve overt religious content such as                 does not relieve the State of its                     provider that offers the needed services
                                                     worship, religious instruction, or                      responsibility to ensure that providers               is available, then a referral must be
                                                     proselytization.’’ These changes in                     are selected, and deliver services, in a              made to that provider. The proposed
                                                     language will provide greater clarity and               manner consistent with the First                      rule specifies that, except for services
                                                     more closely match constitutional                       Amendment’s Establishment Clause.                     provided by telephone, Internet, or
                                                     standards as they have been developed                                                                         similar means, the referral would be to
                                                                                                             5. New Beneficiary Protections
                                                     in case law.                                                                                                  an alternative provider that is in
                                                        These restrictions would not diminish                   This rule proposes to add a new                    reasonable geographic proximity to the
                                                     existing regulatory protections for the                 paragraph (g) to § 5.109 implementing a               organization making the referral and
                                                     religious identity of faith-based                       variety of valuable protections for the               that offers services that are similar in
                                                     providers. The proposed rule would not                  religious liberty rights of beneficiaries.            substance and quality to those offered
                                                     affect, for example, organizations’                     These protections are aimed at ensuring               by the referring organization. The
                                                     ability to use religious terms in their                 that Federal financial assistance is not              alternative provider also would need to
                                                     organizational names, select board                      used to coerce or pressure beneficiaries              have the capacity to accept additional
                                                     members on a religious basis, include                   along religious lines, and to make                    clients. If a Federally supported
                                                     religious references in mission                         beneficiaries aware of their rights,                  alternative provider meets these
                                                     statements and other organizational                     through appropriate notice, when                      requirements and is acceptable to the
                                                     documents, and post religious art,                      potentially obtaining services from                   beneficiary, a referral should be made to
                                                     messages, scriptures and symbols in                     providers with a religious affiliation.               that provider. If, however, there is no
                                                     buildings where Federal financial                          Executive Order 13559 requires that                Federally supported alternative provider
                                                     assistance is delivered.                                faith-based organizations providing                   that meets these requirements and is
                                                                                                             services under a program that is                      acceptable to the beneficiary, a referral
                                                     4. Responsibilities of Intermediary                     supported by direct Federal financial
                                                     Organizations                                                                                                 should be made to an alternative
                                                                                                             assistance give written notice in a                   provider that does not receive Federal
                                                        HUD also proposes to add a new                       manner prescribed by the agency to                    financial assistance but does meet these
                                                     paragraph (f) to § 5.109 to clarify the                 beneficiaries and prospective                         requirements and is acceptable to the
                                                     responsibilities of intermediaries, which               beneficiaries of their right to be referred           beneficiary. In the case of a referral, the
                                                     may include States, tribes, or units of                 to an alternative provider if they object             organization should follow up with the
                                                     local governments. Each intermediary                    to the organization’s religious character,            beneficiary, if the beneficiary provides
                                                     must abide by all statutory and                         when available. Written notice should                 contact information, or the organization
                                                     regulatory requirements by, for example,                be provided prior to enrollment or                    to which the beneficiary has been
                                                     providing any services supported with                   receipt of services. However, when the                referred unless the beneficiary opts out
                                                     direct Federal financial assistance in a                nature of the service provided or exigent             of follow up. Under no circumstances,
                                                     religiously neutral manner that does not                circumstances make it impracticable to                however, may an organization violate
                                                     include explicitly religious activities.                provide such written notice in advance                privacy laws in following up on a
                                                     The intermediary also has the same                      of the actual service, service providers              beneficiary referral.
                                                     duties as the Federal Government to                     must advise beneficiaries in writing of                  If an organization is unable to identify
                                                     comply with these rules by, for                         their protections at the earliest available           an alternative provider, the organization
                                                     example, selecting any providers to                     opportunity. A sample notification of                 is required under the proposed rule to
                                                     receive Federal financial assistance in a               beneficiary rights is attached in                     notify HUD or the intermediary, if
                                                     manner that does not favor or disfavor                  appendix A for public comment.                        applicable, and that entity would
                                                     organizations on the basis of religion or                  If a beneficiary or prospective                    determine whether there is any other
                                                     religious belief. While intermediaries                  beneficiary of a social service program               suitable alternative provider to which
                                                     may be used to distribute Federal                       supported by Federal financial                        the beneficiary may be referred. Further,
                                                     financial assistance to other                           assistance objects to the religious                   the Executive order and the proposed
                                                     organizations in some programs,                         character of an organization that                     rule require that HUD or the
                                                     intermediaries remain accountable for                   provides services under the program,                  intermediary ensure that appropriate
                                                     the Federal financial assistance they                   the organization must attempt to refer                and timely referrals are made to an
                                                     disburse. Accordingly, intermediaries                   the beneficiary to an alternative                     appropriate provider, and that referrals
                                                     must ensure that any providers to which                 provider. More specifically, the                      are made in a manner consistent with
                                                     they disburse Federal financial                         proposed rule provides that, if a                     applicable privacy laws and regulations.
                                                     assistance also comply with these rules;                beneficiary or prospective beneficiary of             It must be noted that in some instances
                                                     for example, through funding contracts                  a program supported by direct Federal                 that HUD or the intermediary may also
                                                     or agreements. If the intermediary is a                 financial assistance objects to the                   be unable to identify a suitable
                                                     nongovernmental organization, it retains                religious character of an organization                alternative provider. In all instances, the
                                                     all other rights of a nongovernmental                   that provides services under the                      organization must maintain records of
                                                     organization under the statutory and                    program, that organization shall                      all requests for referrals, referrals made,
                                                     regulatory provisions governing the                     promptly undertake reasonable efforts to              and attempts to make a referral. HUD
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                                                     program.                                                identify and refer the beneficiary to an              will issue guidance to clarify what
                                                        A State’s use of intermediaries does                 alternative provider to which the                     constitutes reasonable efforts to identify
                                                     not relieve the State of its traditional                prospective beneficiary has no                        an alternative provider.
                                                     responsibility to effectively monitor the               objection. HUD will provide further
                                                     actions of such organizations. States are               guidance regarding the referral                       6. Amending Existing § 5.109 To
                                                     obligated to manage the day-to-day                      requirement.                                          Include Executive Order 13559 Changes
                                                     operations of grant- and sub-grant-                        A referral may be made to another                     HUD also proposes to amend the
                                                     supported activities to ensure                          religiously affiliated provider, if the               other paragraphs in § 5.109 to include
                                                     compliance with applicable Federal                      beneficiary has no objection to that                  the new Executive Order 13559


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                                                                            Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules                                           47307

                                                     principles and to make clarifying                       implementation of Executive Order                     local, or tribal government, or on the
                                                     changes, including the replacement of                   13559 harmonizes HUD’s proposed                       private sector, within the meaning of
                                                     the terms religious organizations with                  regulations with those of the other                   UMRA.
                                                     faith-based organization and ‘‘inherently               Federal agencies, but does not rise to the
                                                                                                                                                                   Regulatory Flexibility Act
                                                     religious’’ with ‘‘explicitly religious;’’              level of significant regulatory action as
                                                     adding the term ‘‘direct Federal                        defined in Executive Order 12866. This                   The Regulatory Flexibility Act (5
                                                     financial assistance’’ where appropriate;               proposed rule clarifies existing                      U.S.C. 601 et seq.) generally requires an
                                                     and clarifying that the regulations apply               principles and policies applicable to                 agency to conduct a regulatory
                                                     to all HUD programs, including all of                   faith-based and neighborhood                          flexibility analysis of any rule subject to
                                                     HUD’s Native American programs.                         organizations participating in Federally              notice and comment rulemaking
                                                        In addition, HUD proposes to replace                 funded programs. In addition, this                    requirements, unless the agency certifies
                                                     the current reference to 24 CFR parts 84                proposed rule underwent extensive                     that the rule will not have a significant
                                                     and 85 with a reference to 2 CFR part                   review by the Office of Faith-Based                   economic impact on a substantial
                                                     200 in new paragraph (j) of this                        Neighborhood Partnerships and the                     number of small entities.
                                                     proposed rule. The Federal                              Working Group.                                           This proposed rule would provide
                                                     Government-wide regulations governing                      With respect to the principles of                  more access for entities to participate in
                                                     real property disposition at 24 CFR 84                  Executive Order 13563, this proposed                  HUD programs by clarifying
                                                     and 85 have been replaced by the new                    rule, as discussed above, would further               requirements for participation in HUD
                                                     provision at 2 CFR part 200 for awards                  provide for the equal participation of                programs. In addition, the proposed rule
                                                     made on or after December 26, 2014.                     faith-based organizations in HUD’s                    requires that faith-based organizations
                                                     When program-specific regulations                       programs, and clarify the rights of                   that carry out activities under a HUD
                                                     governing real property disposition                     entities participating in HUD programs                program with direct Federal financial
                                                     conflict with the real property                         and the beneficiaries they serve. This                assistance must give beneficiaries and
                                                     disposition regulations in 2 CFR part                   proposed rule would also add the                      prospective beneficiaries written notice
                                                     200, the HUD program office will                        following provisions that HUD believes                of the protections listed at § 5.109(g)(1)
                                                                                                             will likely impose costs on the regulated             of this proposed rule. This includes
                                                     provide guidance on recipients’ (or
                                                                                                             community: (1) That faith-based                       notification that the organization must
                                                     subrecipients’) compliance
                                                                                                             organizations that carry out an activity              undertake reasonable efforts to identify
                                                     responsibilities.
                                                                                                             with direct Federal financial assistance              and refer the beneficiary to an
                                                     III. Tribal Consultation                                from HUD must give beneficiaries and                  alternative provider to which the
                                                        HUD’s policy is to consult with                      prospective beneficiaries written notice              beneficiary has no objection, if the
                                                     Indian tribes early in the process on                   of the protections listed at § 5.109(g)(1)            beneficiary objects to the religious
                                                     matters that have tribal implications.                  of this proposed rule, and (2) that if a              character of the organization. The
                                                     Accordingly, on November 19, 2014,                      beneficiary or prospective beneficiary                organization must inform the
                                                     HUD sent letters to all tribal leaders                  objects to the religious character of the             beneficiary or prospective beneficiary in
                                                     participating in HUD programs,                          organization, the organization must                   writing and, if a referral is made, the
                                                     informing them of the nature of this                    make reasonable efforts to identify and               organization would be required to notify
                                                     forthcoming rulemaking. HUD received                    refer the beneficiary or prospective                  HUD or the intermediary.
                                                                                                             beneficiary to an alternative provider to                As described above, HUD has made
                                                     no comments in response to those
                                                                                                             which the beneficiary or prospective                  every effort to ensure that the written
                                                     letters. Tribal leaders are welcome to
                                                                                                             beneficiary has no objection. To                      notice and referral requirements of the
                                                     provide public comments on this                                                                               proposed rule impose minimum burden
                                                     proposed rule.                                          minimize compliance costs on these
                                                                                                             recipients, this proposed rule includes a             and allow maximum flexibility in
                                                     IV. Findings and Certifications                         sample written notice that a faith-based              implementation by providing a sample
                                                                                                             organization can provide to a                         notice that organizations may provide to
                                                     Regulatory Review—Executive Orders                                                                            beneficiaries informing them of the
                                                     12866 and 13563                                         beneficiary or prospective beneficiary.
                                                                                                             An estimate of the cost of providing this             protections listed at § 5.109(g)(1) of this
                                                        Executive Orders 12866 and 13563                     notice is discussed in the Paperwork                  proposed rule and by not prescribing a
                                                     direct agencies to assess all costs and                 Reduction Act section of this proposed                specific format for making referrals
                                                     benefits of available regulatory                        rule.                                                 through this proposed rule. HUD
                                                     alternatives and, if regulation is                                                                            estimates it will take no more than 2
                                                     necessary, to select regulatory                         Environmental Impact                                  hours for service providers to
                                                     approaches that maximize net benefits                     This proposed rule sets forth                       familiarize themselves with the notice
                                                     (including potential economic,                          nondiscrimination standards.                          requirements of this proposed rule and
                                                     environmental, public health, and safety                Accordingly, under 24 CFR 50.19(c)(3),                print and duplicate an adequate number
                                                     effects; distributive impacts; and                      this proposed rule is categorically                   of written notices for prospective
                                                     equity). Executive Order 13563                          excluded from environmental review                    beneficiaries. Using the May 2013
                                                     emphasizes the importance of                            under the National Environmental                      Bureau of Labor Statistics hourly mean
                                                     quantifying both costs and benefits, of                 Policy Act of 1969 (42 U.S.C. 4321).                  wage of $22.81 for a Training and
                                                     reducing costs, of harmonizing rules,                                                                         Development Specialist, the labor cost is
                                                                                                             Unfunded Mandates Reform Act
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                                                     and of promoting flexibility. Under                                                                           approximately $45.62 per service
                                                     Executive Order 12866 (Regulatory                          The Unfunded Mandates Reform Act                   provider for preparing the notice. In
                                                     Planning and Review), a determination                   of 1995 (2 U.S.C. 1531–1538) (UMRA)                   addition, HUD estimates an upper limit
                                                     must be made whether a regulatory                       establishes requirements for Federal                  of $100 for the annual cost of materials
                                                     action is significant and, therefore,                   agencies to assess the effects of their               (paper, ink, toner) to print multiple
                                                     subject to review by OMB in accordance                  regulatory actions on State, local, and               copies of the notices. Because these
                                                     with the requirements of the order. This                tribal governments and on the private                 costs will be borne by every faith-based
                                                     proposed rule meets the principles of                   sector. This proposed rule does not                   organization that carries out an activity
                                                     Executive Order 13563 in that its                       impose a Federal mandate on any State,                under a HUD program with direct


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                                                     47308                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules

                                                     Federal financial assistance, HUD                       and does not impose substantial direct                Health Services Administration
                                                     believes that a substantial number of                   compliance costs on State and local                   (SAMHSA), implemented a similar
                                                     small entities will be affected by this                 governments nor preempt State law                     referral requirement in its 2003 final
                                                     provision. However, HUD does not                        within the meaning of the Executive                   rule, Charitable Choice Regulations
                                                     believe that a compliance cost of less                  order.                                                Applicable to States Receiving
                                                     than $200 per service provider per year                                                                       Substance Abuse Prevention and
                                                                                                             Paperwork Reduction Act
                                                     is a significant percentage of any service                                                                    Treatment Block Grants, Projects for
                                                     provider’s total revenue. In addition,                     The proposed rule includes a new                   Assistance in Transition From
                                                     HUD notes that, after the first year, the               information collection section. Section               Homelessness Formula Grants, and to
                                                     labor costs associated with compliance                  5.109(g) would impose requirements on                 Public and Private Providers Receiving
                                                     will likely decrease significantly                      faith-based organizations that carry out              Discretionary Grant Funding From
                                                     because small service providers will be                 activities under a HUD program with                   SAMHSA for the Provision of Substance
                                                     familiar with the requirements.                         direct Federal financial assistance to                Abuse Services Providing for Equal
                                                        In addition, HUD does not foresee that               give beneficiaries (or prospective                    Treatment of SAMHSA Program
                                                     the cost to comply with effective                       beneficiaries) written notice of certain              Participants (SAMHSA Program Rule),
                                                     communication requirements pursuant                     protections described in this proposed                68 FR 56430. Since SAMHSA
                                                     to Section 504 of the Rehabilitation Act                rule; beneficiaries can provide a written             implemented the referral requirement,
                                                     of 1973 and its implementing                            response that may impose a burden                     the SAMHSA program office has
                                                     regulations at 24 CFR 8.6 will exceed                   under the Paperwork Reduction Act                     received no reports of requests for an
                                                     the estimated cost of $200 per service                  (PRA); and faith-based organizations                  alternative provider. Because faith-
                                                     provider. However, HUD specifically                     must provide a referral if a beneficiary              based organizations are required to
                                                     invites comments on whether there                       or prospective beneficiary objects to the             provide a written notification of the
                                                     would be additional costs to make this                  religious character of the organization.              beneficiary’s rights under this proposed
                                                     accommodation.                                          This rule also requires the retention of              rule, requests for referrals may be more
                                                        The rule will also require faith-based               records to show that the referral                     likely. However, given SAMHSA’s
                                                     organizations, upon a beneficiary’s                     requirements in this rulemaking have                  experience, HUD estimates that 0.10
                                                     objection, to make reasonable efforts to                been met.                                             percent of beneficiaries and potential
                                                     identify and refer the beneficiary to an                   HUD estimates that a faith-based                   beneficiaries would request referrals to
                                                     alternative provider to which the                       organization would need 2 minutes to                  alternative providers. HUD will monitor
                                                     beneficiary has no objection. HUD                       distribute to each beneficiary the notice             its programs to assess whether this
                                                     estimates that each referral will require               required in these proposed regulations.               estimate is accurate.
                                                     2 hours of a Training and Development                   This estimate takes into consideration                   HUD is not estimating the burden of
                                                     Specialist’s time to process at a labor                 the likelihood that, in one-on-one                    maintaining the records needed to
                                                     cost of $22.81 per hour. Although HUD                   interactions between a staff member and               demonstrate compliance with the
                                                     does not have any way to determine the                  a beneficiary, providing the notice                   requirements imposed on faith-based
                                                     number of referrals that will occur in                  might take longer than a minute.                      organizations. HUD has recordkeeping
                                                     any 1 year, HUD does not believe that                   Conversely, providing notice to a group               requirements included in information
                                                     referral costs will be significant for                  of beneficiaries at the same time would               collection instruments for HUD
                                                     small service providers. HUD invites                    take significantly less than a minute for             programs. Those collection instruments
                                                     interested parties to provide data on                   each beneficiary because a few                        cover burdens imposed by program and
                                                     which HUD can formulate better                          beneficiaries would pass the notice to                administrative requirements that exist
                                                     estimates of the compliance costs                       the remaining beneficiaries in a group.               under current, OMB-approved,
                                                     associated with the written notice and                     HUD estimates that in cases where a                information collection instruments and
                                                     referral requirements of this proposed                  beneficiary objects to the religious                  each of those collections has an OMB-
                                                     rule.                                                   character of a faith-based organization,              assigned information collection control
                                                        Notwithstanding HUD’s                                the time required for the faith-based                 number.
                                                     determination that this proposed rule                   organization to make a reasonable effort                 The recordkeeping burden that this
                                                     would not have a significant effect on a                to identify an alternative provider and               proposed rule would add to those
                                                     substantial number of small entities,                   refer a beneficiary to that provider                  program-specific information collection
                                                     HUD specifically invites comments                       would be about 2 hours. This estimate                 instruments is so small that, under most
                                                     regarding any less burdensome                           includes the time required to identify                programs, it would not measurably
                                                     alternatives to this rule that will meet                service providers that provide similar                increase the burden that already exists
                                                     HUD’s objectives and the principles in                  services, preferably under the same or                under current program and
                                                     Executive Order 13559, as described in                  similar programs to the one under                     administrative requirements. If, due to
                                                     this preamble.                                          which the beneficiary is being served by              the unique nature of a particular
                                                                                                             the faith-based organization. The                     program, the recordkeeping burden
                                                     Executive Order 13132, Federalism                       estimate also includes the time required              associated with these proposed
                                                        Executive Order 13132 (entitled                      to determine whether one of the                       regulations is large enough to be
                                                     ‘‘Federalism’’) prohibits an agency from                alternative providers is acceptable to the            measurable, that burden will be
                                                     publishing any rule that has federalism                 beneficiary. Also, depending on                       calculated under the recordkeeping and
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                                                     implications if the rule either: (1)                    whether the beneficiary asked the faith-              reporting requirements of the affected
                                                     Imposes substantial direct compliance                   based organization to follow up either                program and identified in information
                                                     costs on State and local governments                    with the beneficiary or the alternative               collection requests that are submitted to
                                                     and is not required by statute, or (2)                  service provider to determine whether                 OMB for PRA approval. Therefore, we
                                                     preempts State law, unless the agency                   the referral is successful, this estimate             have not included any estimate of
                                                     meets the consultation and funding                      includes the time required to do the                  recordkeeping burden in this PRA
                                                     requirements of section 6 of the                        follow-up.                                            analysis.
                                                     Executive order. This proposed rule                        The Department of Health and Human                    The new information collection
                                                     does not have federalism implications                   Services, Substance Abuse and Mental                  requirements contained in this proposed


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                                                                               Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules                                                                                                                          47309

                                                     rule have been submitted to OMB under                                       a person is not required to respond to,                                                  The burden of the information
                                                     the Paperwork Reduction Act of 1995                                         a collection of information unless the                                                 collections in this proposed rule is
                                                     (44 U.S.C. 3501–3520). In accordance                                        collection displays a currently valid                                                  estimated as follows:
                                                     with the Paperwork Reduction Act, an                                        OMB control number.
                                                     agency may not conduct or sponsor, and
                                                                                                                             REPORTING AND RECORDKEEPING BURDEN
                                                                                                       Number of respondents in covered programs                                                                                                                                     Estimated
                                                                                                                                                                                                                 Number of                     Estimated average
                                                        24 CFR Section                                                                                                                                                                                                             annual burden
                                                                                                                                                                                                                 responses                       response time
                                                                                   CPD              FHEO              Housing               OLHCHH                   PD&R                 PIH                                                                                        (in hours)

                                                     5.109(g) (Written No-        196,487                   400          30,400                           250             3,141         495,375          1 per beneficiary .....              2 minutes per bene-                         24,202
                                                       tice of Rights).                                                                                                                                                                         ficiary.
                                                     5.109(g) (Referral) ...            198                     1               30                            1                 3              495       1 per beneficiary .....              2 hours per bene-                            1,456
                                                                                                                                                                                                                                                ficiary.

                                                         Total Burden          ................   ................   ................   ........................   ................   ................   ..................................   ..................................          25,658
                                                           (for all HUD
                                                           programs cov-
                                                           ered by this
                                                           rulemaking).



                                                        In accordance with 5 CFR                                                 Electronic submission of comments                                                      Reporting and recordkeeping
                                                     1320.8(d)(1), HUD is soliciting                                             allows the commenter maximum time to                                                   requirements.
                                                     comments from members of the public                                         prepare and submit a comment, ensures
                                                                                                                                                                                                                        24 CFR Part 570
                                                     and affected agencies concerning this                                       timely receipt by HUD, and enables
                                                     collection of information to:                                               HUD to make them immediately                                                              Administrative practice and
                                                        (1) Evaluate whether the proposed                                        available to the public. Comments                                                      procedure, American Samoa,
                                                     collection of information is necessary                                      submitted electronically through the                                                   Community development block grants,
                                                     for the proper performance of the                                           http://www.regulations.gov Web site can                                                Grant programs-education, Grant
                                                     functions of the agency, including                                          be viewed by other commenters and                                                      programs-housing and community
                                                     whether the information will have                                           interested members of the public.                                                      development, Guam, Indians, Loan
                                                     practical utility;                                                          Commenters should follow the                                                           programs-housing and community
                                                        (2) Evaluate the accuracy of the                                         instructions provided on that site to                                                  development, Low and moderate
                                                     agency’s estimate of the burden of the                                      submit comments electronically.                                                        income housing, Northern Mariana
                                                     proposed collection of information;                                                                                                                                Islands, Pacific Island Trust Territory,
                                                        (3) Enhance the quality, utility, and                                    Catalog of Federal Domestic Assistance                                                 Puerto Rico, Reporting and
                                                     clarity of the information to be                                               The regulatory amendments                                                           recordkeeping requirements, Student
                                                     collected; and                                                              contained in this proposed rule apply to                                               aid, Virgin Islands.
                                                        (4) Minimize the burden of the                                           all HUD assistance programs for which
                                                     collection of information on those who                                                                                                                             24 CFR Part 574
                                                                                                                                 faith-based organizations are eligible to
                                                     are to respond, including through the                                       participate. The Catalog of Federal                                                      Community facilities, Grant programs-
                                                     use of appropriate automated collection                                     Domestic Assistance (CFDA) number for                                                  housing and community development,
                                                     techniques or other forms of information                                    a particular HUD program may be found                                                  Grant programs-social programs, HIV/
                                                     technology; for example, permitting                                         on the CFDA Web site at: http://                                                       AIDS, Low and moderate income
                                                     electronic submission of responses.                                         www.cfda.gov.                                                                          housing, Reporting and recordkeeping
                                                        Interested persons are invited to                                                                                                                               requirements.
                                                     submit comments regarding the                                               List of Subjects
                                                     information collection requirements in                                                                                                                             24 CFR Part 576
                                                                                                                                 24 CFR Part 5
                                                     this rule. Comments must refer to the                                                                                                                                Community facilities, Grant programs-
                                                     proposed rule by name and docket                                              Administrative practice and                                                          housing and community development,
                                                     number (FR–5781–P–01) and must be                                           procedure, Aged, Claims, Crime,                                                        Grant programs-social programs,
                                                     sent to: HUD Desk Officer, Office of                                        Government contracts, Grant programs-                                                  Homeless, Reporting and recordkeeping
                                                     Information and Regulatory Affairs,                                         housing and community development,                                                     requirements.
                                                     Office of Management and Budget, New                                        Individuals with disabilities,
                                                     Executive Office Building, Washington,                                      Intergovernmental relations, Loan                                                      24 CFR Part 578
                                                     DC 20503, Email: oira_submissions@                                          programs-housing and community                                                           Community facilities, Continuum of
                                                     omb.eop.gov, Fax: 202–395–6947 and                                          development, Low and moderate                                                          Care, Emergency solutions grants, Grant
                                                        Colette Pollard, Reports Liaison                                         income housing, Mortgage insurance,                                                    programs-housing and community
                                                     Officer, Department of Housing and                                          Penalties, Pets, Public housing, Rent                                                  development, Grant programs-social
                                                     Urban Development, 451 Seventh Street                                       subsidies, Reporting and recordkeeping                                                 programs, Homeless, Rural housing,
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                                                     SW., Room 2204, Washington, DC                                              requirements, Social security,                                                         Reporting and recordkeeping
                                                     20410–7000.                                                                 Unemployment compensation, Wages.                                                      requirements, Supportive housing
                                                        Interested persons may submit                                                                                                                                   programs- housing and community
                                                                                                                                 24 CFR Part 92
                                                     comments regarding the information                                                                                                                                 development, Supportive services.
                                                     collection requirements electronically                                        Administrative practice and
                                                     through the Federal eRulemaking Portal                                      procedure, Grant programs-housing and                                                  24 CFR Part 582
                                                     at http://www.regulations.gov. HUD                                          community development, Low and                                                           Civil rights, Community facilities,
                                                     strongly encourages commenters to                                           moderate income housing,                                                               Grant programs-housing and community
                                                     submit comments electronically.                                             Manufactured housing, Rent subsidies,                                                  development, Grant programs-social


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                                                     47310                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules

                                                     programs, Homeless, Individuals with                    otherwise noted in the respective                     same basis as any other organization, to
                                                     disabilities, Mental health programs,                   program regulations in title 24 of the                participate in HUD programs. Neither
                                                     Nonprofit organizations, Rental                         Code of Federal Regulations (CFR), or                 the Federal Government, nor a State,
                                                     subsidies, Reporting and recordkeeping                  unless inconsistent with certain HUD                  tribal or local government, nor any other
                                                     requirements.                                           programs authorizing statutes.                        entity that administers any HUD
                                                                                                                (b) Definitions. The following                     program, shall discriminate against an
                                                     24 CFR Part 583                                         definitions apply to this section:                    organization on the basis of the
                                                       Civil rights, Community facilities,                      Direct Federal financial assistance                organization’s religious character or
                                                     Employment, Grant programs-housing                      means Federal financial assistance                    affiliation. In addition, decisions about
                                                     and community development, Grant                        provided when a Federal Government                    awards of Federal financial assistance
                                                     programs-social programs, Homeless,                     agency or an intermediary, as defined in              must be free from political interference
                                                     Indians, Individuals with disabilities,                 this section, selects the provider and                or even the appearance of such
                                                     Mental health programs, Nonprofit                       either purchases services from that                   interference and must be made on the
                                                     organizations, Reporting and                            provider (i.e., via a contract) or awards             basis of merit, not on the basis of
                                                     recordkeeping requirements, Technical                   funds to that provider to carry out an                religion or religious belief.
                                                     assistance.                                             activity (e.g., via grant, sub-grant, sub-               (d) Separation of explicitly religious
                                                                                                             award, or cooperative agreement). The                 activities from direct Federal financial
                                                     24 CFR Part 1003                                        recipients of sub-grants or sub-awards                assistance.
                                                       Alaska, Community development                         that receive Federal financial assistance                (1) A faith-based organization that
                                                     block grants, Grant programs-housing                    through State-administered programs                   applies for, or participates in, a HUD
                                                     and community development, Grant                        (e.g., flow-through programs) are                     program supported with Federal
                                                     programs- Indians, Indians, Reporting                   considered recipients of direct Federal               financial assistance retains its
                                                     and recordkeeping requirements.                         financial assistance. In general, Federal
                                                                                                                                                                   independence and may continue to
                                                       Accordingly, for the reasons described                financial assistance shall be treated as
                                                                                                                                                                   carry out its mission, including the
                                                     in the preamble, HUD proposes to                        direct, unless it meets the definition of
                                                                                                                                                                   definition, development, practice, and
                                                     amend 24 CFR parts 5, 92, 570, 574,                     indirect Federal financial assistance.
                                                                                                                Federal financial assistance means                 expression of its religious beliefs,
                                                     576, 578, 582, 583 and 1003 as follows:                                                                       provided that it does not use direct
                                                                                                             assistance that non-Federal entities
                                                                                                             receive or administer in the forms of                 Federal financial assistance that it
                                                     PART 5—GENERAL HUD PROGRAM                                                                                    receives (e.g., via contract, grant, sub-
                                                     REQUIREMENTS; WAIVERS                                   grants, contracts, loans, loan guarantees,
                                                                                                             property, cooperative agreements, food                grant or sub-award or cooperative
                                                     ■ 1. The authority citation for 24 CFR                  commodities, direct appropriations, or                agreement) to support or engage in any
                                                     part 5 is revised to read as follows:                   other assistance, but does not include a              explicitly religious activities (including
                                                                                                             tax credit, deduction, or exemption.                  activities that involve overt religious
                                                       Authority: 42 U.S.C. 1437a, 1437c, 1437f,                                                                   content such as worship, religious
                                                     1437n, 3535(d), Sec. 327, Pub. L. 109–115,                 Indirect Federal financial assistance
                                                                                                             means Federal financial assistance                    instruction, or proselytization), or in
                                                     119 Stat. 2936, Sec. 607, Pub. L. 109–162,
                                                     119 Stat. 3051, E.O. 13279, 67 FR 77141, 3              provided when the choice of the service               any other manner prohibited by law.
                                                     CFR, 2002 Comp., p. 258, and E.O. 13559, 75             provider is placed in the hands of the                   (2) A faith-based organization that
                                                     FR 71319, 3 CFR, 2010 Comp., p. 273.                    beneficiary, and the cost of that service             receives direct Federal financial
                                                                                                             is paid through a voucher, certificate, or            assistance may use space (including a
                                                     ■ 2. In § 5.109:
                                                                                                             other similar means of Government-                    sanctuary, chapel, prayer hall, or other
                                                     ■ a. The section heading is revised;
                                                     ■ b. Paragraphs (a), (b), (c), (d), (f), (g),           funded payment. Federal financial                     space) in its facilities (including a
                                                     and (h) are revised;                                    assistance provided to an organization is             temple, synagogue, church, mosque, or
                                                     ■ c. Paragraph (e) is redesignated as                   considered indirect when the                          other place of worship) to carry out
                                                     paragraph (i);                                          Government program through which the                  activities under a HUD program without
                                                     ■ d. New paragraph (e) is added; and                    beneficiary receives the voucher,                     removing religious art, icons, scriptures,
                                                     ■ e. Paragraphs (j) and (k) are added, to               certificate, or other similar means of                or other religious symbols. In addition,
                                                     read as follows:                                        Government-funded payment is neutral                  a faith-based organization participating
                                                                                                             toward religion; the organization                     in a HUD program retains its authority
                                                     § 5.109 Equal participation of Faith-based              receives the assistance as a result of a              over its internal governance, and may
                                                     Organizations in HUD programs.                          decision of the beneficiary, not a                    retain religious terms in its
                                                       (a) Purpose. Consistent with                          decision of the Government; and the                   organization’s name, select its board
                                                     Executive Order 13279 (issued on                        beneficiary has at least one adequate                 members on a religious basis, and
                                                     December 12, 2002, 67 FR 77141),                        secular option for the use of the                     include religious references in its
                                                     entitled ‘‘Equal Protection of the Laws                 voucher, certificate, or other similar                organization’s mission statements and
                                                     for Faith-Based and Community                           means of Government-funded payment.                   other governing documents.
                                                     Organizations,’’ as amended by                             Intermediary means an entity,                         (e) Explicitly religious activities. If an
                                                     Executive Order 13559 (issued on                        including a nongovernmental                           organization engages in explicitly
                                                     November 17, 2010, 75 FR 71319),                        organization, acting under a contract,                religious activities (including activities
                                                     entitled ‘‘Fundamental Principles and                   grant, or other agreement with the                    that involve overt religious content such
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                                                     Policymaking Criteria for Partnerships                  Federal Government or with a State,                   as worship, religious instruction, or
                                                     With Faith-Based and Other                              tribal or local government, that accepts              proselytization), the explicitly religious
                                                     Neighborhood Organizations,’’ this                      Federal financial assistance and                      activities must be offered separately, in
                                                     section describes requirements for                      distributes that assistance to other                  time or location, from the activities
                                                     ensuring the equal participation of faith-              entities that, in turn, carry out activities          supported by direct Federal financial
                                                     based organizations in HUD programs.                    under HUD programs.                                   assistance and participation must be
                                                     These requirements apply to all HUD                        (c) Equal participation of faith-based             voluntary for the beneficiaries of the
                                                     programs, including all of HUD’s Native                 organizations in HUD programs. Faith-                 activities that receive direct Federal
                                                     American Programs, except as may be                     based organizations are eligible, on the              financial assistance.


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                                                                            Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules                                            47311

                                                        (f) Intermediary responsibilities to                    (2) Timing of notice. The written                  or religious belief in carrying out
                                                     ensure equal participation of faith-                    notice must be given to prospective                   activities with Federal financial
                                                     based organizations in HUD programs.                    beneficiaries prior to the time they                  assistance.
                                                     If an intermediary—acting under a                       enroll in the program or receive services             *      *     *     *     *
                                                     contract, grant, or other agreement with                from such programs. When the nature of                   (j) Acquisition, construction, and
                                                     the Federal Government or with a State,                 the service provided or exigent                       rehabilitation of structures. Direct
                                                     tribal or local government that is                      circumstances make it impracticable to
                                                                                                                                                                   Federal financial assistance may be used
                                                     administering a program supported by                    provide such written notice in advance
                                                                                                                                                                   for the acquisition, construction, or
                                                     Federal financial assistance—is given                   of the actual service, the organization
                                                                                                                                                                   rehabilitation of structures only to the
                                                     the authority to select a                               providing the services with direct
                                                                                                                                                                   extent that those structures are used for
                                                     nongovernmental organization to                         Federal financial assistance must
                                                                                                                                                                   conducting eligible activities under a
                                                     receive Federal financial assistance                    provide written notice to beneficiaries
                                                                                                                                                                   HUD program. Where a structure is used
                                                     under a contract, grant, sub-grant, sub-                of their protections at the earliest
                                                                                                                                                                   for both eligible and explicitly religious
                                                     award, or cooperative agreement, the                    available opportunity.
                                                                                                                (3) Referral requirements. (i) If a                activities (including activities that
                                                     intermediary must ensure that such                                                                            involve overt religious content such as
                                                     organization complies with the                          beneficiary or prospective beneficiary of
                                                                                                             a program that receives direct Federal                worship, religious instruction, or
                                                     requirements of this section. If the                                                                          proselytization), direct Federal financial
                                                     intermediary is a nongovernmental                       financial assistance from HUD objects to
                                                                                                             the religious character of an                         assistance may not exceed the cost of
                                                     organization, it retains all other rights of                                                                  the share of acquisition, construction, or
                                                     a nongovernmental organization under                    organization that provides services
                                                                                                             under the program, that organization                  rehabilitation attributable to eligible
                                                     the program’s statutory and regulatory                                                                        activities in accordance with the cost
                                                     provisions.                                             must promptly undertake reasonable
                                                                                                             efforts to identify and refer the                     accounting requirements applicable to
                                                        (g) Beneficiary protections. Faith-                                                                        the HUD program. However,
                                                     based organizations that receive direct                 beneficiary or prospective beneficiary to
                                                                                                             an alternative provider to which the                  acquisition, construction, or
                                                     Federal financial assistance to carry out                                                                     rehabilitation of sanctuaries, chapels, or
                                                     activities under a HUD program must                     beneficiary or prospective beneficiary
                                                                                                             has no such objection.                                other rooms that a HUD-funded faith-
                                                     give written notice to beneficiaries and                                                                      based organization uses as its principal
                                                     prospective beneficiaries of the program                   (ii) A referral may be made to another
                                                                                                             faith-based organization, if the                      place of worship, may not be paid with
                                                     describing certain protections available                                                                      direct Federal financial assistance.
                                                                                                             beneficiary or prospective beneficiary
                                                     to them, as provided in this subsection.                                                                      Disposition of real property after use for
                                                                                                             has no objection to that provider based
                                                     In addition, if a beneficiary or                                                                              the authorized purpose, or any change
                                                                                                             on the provider’s religious character.
                                                     prospective beneficiary objects to the                                                                        in use of the property from the
                                                                                                             But if the beneficiary or prospective
                                                     religious character of the organization                                                                       authorized purpose, is subject to
                                                                                                             beneficiary requests a secular provider,
                                                     carrying out activities under the HUD                                                                         Governmentwide regulations governing
                                                                                                             and a secular provider is available, then
                                                     program, that organization must                                                                               real property disposition (see, e.g., 2
                                                                                                             a referral must be made to that provider.
                                                     promptly undertake reasonable efforts to                   (iii) Except for services provided by              CFR part 200).
                                                     identify and refer the beneficiary or                   telephone, Internet, or similar means,
                                                     prospective beneficiary to an alternative                                                                        (k) Commingling of Federal and State,
                                                                                                             the referral must be to an alternative                tribal, and local funds. If a State, tribal,
                                                     provider to which the beneficiary or                    provider that is in reasonable
                                                     prospective beneficiary has no such                                                                           or local government voluntarily
                                                                                                             geographic proximity to the                           contributes its own funds to supplement
                                                     objection.                                              organization making the referral and                  direct Federal financial assistance for an
                                                        (1) Written notice. The written notice               that offers services that are similar in              activity, the State, tribal or local
                                                     must be given in a manner prescribed by                 substance and quality to those offered                government has the option to segregate
                                                     HUD, and state that:                                    by the organization. The alternative                  those funds or commingle them with the
                                                        (i) The organization may not                         provider also must have the capacity to               direct Federal financial assistance.
                                                     discriminate against beneficiaries on the               accept additional clients.                            However, if the funds are commingled,
                                                     basis of religion or religious belief;                     (iv) When the organization makes a                 the requirements of this section apply to
                                                        (ii) The organization may not require                referral to an alternative provider, or               all of the commingled funds. Further, if
                                                     beneficiaries to attend or participate in               when the organization determines that it              a State, tribal, or local government is
                                                     any explicitly religious activities that                is unable to identify an alternative                  required to contribute matching funds to
                                                     are offered by the organization, and any                provider, the organization shall notify               supplement direct Federal financial
                                                     participation by beneficiaries in such                  HUD (or the intermediary, if applicable).             assistance for an activity, the matching
                                                     activities must be purely voluntary;                    If the organization is unable to identify             funds are considered commingled with
                                                        (iii) The organization must separate,                an alternative provider, HUD (or the                  the direct Federal financial assistance
                                                     in time or location, any privately funded               intermediary, if applicable) shall                    and, therefore, subject to the
                                                     explicitly religious activities from                    determine whether there is any other                  requirements of this section. Some HUD
                                                     activities supported by direct Federal                  suitable alternative provider to which                programs’ requirements govern any
                                                     financial assistance;                                   the beneficiary or prospective                        activity assisted under those programs.
                                                        (iv) If a beneficiary objects to the                 beneficiary may be referred. An                       Accordingly, recipients should consult
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                                                     religious character of the organization,                intermediary that receives a request for              with the appropriate HUD program
                                                     the organization must undertake                         assistance in identifying an alternative              office to determine the scope of
                                                     reasonable efforts to identify and refer                provider may request assistance from                  applicable requirements.
                                                     the beneficiary to an alternative                       HUD.
                                                     provider to which the beneficiary has no                   (h) Nondiscrimination requirements.                PART 92—HOME INVESTMENT
                                                     such objection; and                                     No recipient of Federal financial                     PARTNERSHIPS PROGRAM
                                                        (v) Beneficiaries may report violations              assistance may discriminate against a
                                                     of these protections to HUD (or the                     beneficiary or prospective beneficiary of             ■ 3. The authority citation for 24 CFR
                                                     intermediary, if applicable).                           a HUD program on the basis of religion                part 92 continues to read as follows:


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                                                     47312                  Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules

                                                       Authority: 42 U.S.C. 3535(d) and 12701–               § 578.87    Limitation on use of funds.               Appendix A
                                                     12839.                                                  *     *    *     *     *                              WRITTEN NOTICE OF BENEFICIARY
                                                     ■   4. Revise § 92.257 to read as follows:                (b) Equal participation of Faith-Based              RIGHTS
                                                                                                             Organizations. The HUD program                        Name of Organization:
                                                     § 92.257 Equal participation of Faith-Based
                                                                                                             requirements in § 5.109 of this title                 Name of Program:
                                                     Organizations.
                                                                                                             apply to the Continuum of Care
                                                       The HUD program requirements in                                                                             Contact Information for Program Staff (name,
                                                                                                             program.                                              phone number, and email address, if
                                                     § 5.109 of this subtitle apply to the
                                                     HOME program.                                           *     *    *     *     *                              appropriate):
                                                                                                                                                                   Because this program is supported in whole
                                                     PART 570—COMMUNITY                                      PART 582—SHELTER PLUS CARE                            or in part by financial assistance from the
                                                     DEVELOPMENT BLOCK GRANTS                                                                                      Federal Government, we are required to let
                                                                                                             ■ 13. The authority citation for 24 CFR               you know that:
                                                       5. The authority citation for 24 CFR                  part 582 continues to read as follows:
                                                     ■                                                                                                             • We may not discriminate against you on
                                                     part 570 continues to read as follows:                    Authority: 42 U.S.C. 3535(d) and 11403–                the basis of religion or religious belief;
                                                       Authority: 42 U.S.C. 3535(d) and 5301–                11407b.                                               • We may not require you to attend or
                                                     5320.                                                                                                            participate in any explicitly religious
                                                                                                             ■ 14. In § 582.115, revise paragraph (c)
                                                                                                                                                                      activities that are offered by us, and any
                                                     ■ 6. In § 570.200 revise paragraph (j) to               to read as follows:                                      participation by you in these activities
                                                     read as follows:                                        § 582.115    Limitations on assistance.                  must be purely voluntary;
                                                                                                                                                                   • We must separate, in time or location, any
                                                     § 570.200   General policies.                           *     *    *     *     *                                 privately funded explicitly religious
                                                     *      *    *     *    *                                  (c) Equal participation of Faith-Based                 activities from activities supported with
                                                       (j) Equal participation of Faith-Based                Organizations. The HUD program                           direct Federal financial assistance;
                                                     Organizations. The HUD program                          requirements in § 5.109 of this title                 • If you object to the religious character of
                                                     requirements in § 5.109 of this title                   apply to the S+C program.                                our organization, we must make reasonable
                                                                                                                                                                      efforts to identify and refer you to an
                                                     apply to the CDBG program.                              *     *    *     *     *                                 alternative provider to which you have no
                                                                                                                                                                      objection; and
                                                     PART 574—HOUSING                                        PART 583—SUPPORTIVE HOUSING                           • You may report violations of these
                                                     OPPORTUNITIES FOR PERSONS WITH                          PROGRAM                                                  protections to HUD [or the intermediary, if
                                                     AIDS                                                                                                             applicable].
                                                                                                             ■ 15. The authority citation for 24 CFR
                                                     ■ 7. The authority citation for 24 CFR                                                                        We must give you this written notice before
                                                                                                             part 583 continues to read as follows:                you enroll in our program or receive services
                                                     part 574 continues to read as follows:
                                                                                                                 Authority: 42 U.S.C. 11389 and 3535(d).           from the program, as required by [Insert
                                                       Authority: 42 U.S.C. 3535(d) and 12901–                                                                     Federal Agency’s regulations].
                                                     12912.                                                  ■ 16. In § 583.150, revise paragraph (b)
                                                                                                             to read as follows:                                   BENEFICARY REFERRAL REQUEST
                                                     ■ 8. In § 574.300, revise paragraph (c) to
                                                                                                                                                                      If you object to receiving services from us
                                                     read as follows:                                        § 583.150 Limitations on use of                       based on the religious character of our
                                                                                                             assistance.                                           organization, please complete this form and
                                                     § 574.300   Eligible activities.
                                                                                                             *     *    *     *     *                              return it to the program contact identified
                                                     *     *    *     *     *                                  (b) Equal participation of Faith-Based              above. Your use of this form is voluntary.
                                                       (c) Equal participation of Faith-Based                Organizations. The HUD program                           If you object to the religious character of
                                                     Organizations. The HUD program                          requirements in § 5.109 of this title                 our organization, we must make reasonable
                                                     requirements in § 5.109 of this title                   apply to the Supportive Housing                       efforts to identify and refer you to an
                                                     apply to the HOPWA program.                                                                                   alternative provider to which you have no
                                                                                                             Program.                                              objection. We cannot guarantee, however,
                                                     PART 576—EMERGENCY SOLUTIONS                            *     *    *     *     *                              that in every instance, an alternative provider
                                                     GRANTS PROGRAM                                                                                                will be available. With your consent, we will
                                                                                                             PART 1003—COMMUNITY                                   follow up with you or the organization to
                                                     ■ 9. The authority citation for 24 CFR                  DEVELOPMENT BLOCK GRANTS FOR                          which you are referred to determine whether
                                                     part 576 continues to read as follows:                  INDIAN TRIBES AND ALASKA NATIVE                       you have contacted that organization.
                                                       Authority: 42 U.S.C. 11371 et seq., 42                VILLAGES                                              ( ) Please check if you want to be referred
                                                     U.S.C. 3535(d).                                                                                               to another service provider.
                                                                                                             ■ 17. The authority citation for 24 CFR               Please provide the following information if
                                                     ■ 10. Revise § 576.406 to read as                       part 1003 continues to read as follows:               you want us to follow up with you:
                                                     follows:                                                                                                            Your Name:
                                                                                                               Authority: 42 U.S.C. 3535(d) and 5301 et
                                                     § 576.406 Equal participation of Faith-                 seq.                                                        Best way to reach me (phone/address/
                                                     Based Organizations.                                                                                          email):
                                                                                                             ■ 18. Revise § 1003.600 to read as
                                                       The HUD program requirements in                       follows:                                              Please provide the following information if
                                                     § 5.109 of this title apply to the ESG                                                                        you want us to follow up with the service
                                                     program.                                                § 1003.600 Equal participation of Faith-              provider only.
                                                                                                             Based Organizations.                                        Your Name:
mstockstill on DSK4VPTVN1PROD with PROPOSALS2




                                                     PART 578—CONTINUUM OF CARE                                The HUD program requirements in                     You are permitted to withhold your name,
                                                     PROGRAM                                                 § 5.109 of this title apply to the ICDBG              though if you choose to do so, we will be
                                                                                                             program.                                              unable to follow up with you or the service
                                                     ■ 11. The authority citation for 24 CFR                                                                       provider about your referral.
                                                     part 578 continues to read as follows:                    Dated: May 27, 2015.                                ( ) Please check if you do not want follow-
                                                       Authority: 42 U.S.C. 11371 et seq., 42                Julián Castro,                                       up.
                                                     U.S.C. 3535(d).                                         Secretary.                                            FOR STAFF USE ONLY
                                                     ■ 12. In § 578.87, revise paragraph (b) to                Note: The following appendix will not               1. Date of Objection: ll/ ll/ ll
                                                     read as follows:                                        appear in the Code of Federal Regulations.            2. Referral (check one):



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                                                                            Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules                                                47313

                                                          ( ) Individual was referred to (name of            made to identify an alternative (including                 ( ) Individual did not contact alternative
                                                     alternative provider and contact                        reaching out to HUD or the intermediary, if           provider
                                                     information):                                           applicable):                                          4. Staff name and initials:
                                                          ( ) Individual left without a referral             3. Follow-up date: ll/ ll/ ll
                                                                                                                                                                   [FR Doc. 2015–18258 Filed 8–5–15; 8:45 am]
                                                          ( ) No alternative service provider is                  ( ) Individual contacted alternative
                                                     available—summarize below what efforts you              provider                                              BILLING CODE P
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Document Created: 2018-02-23 10:55:40
Document Modified: 2018-02-23 10:55:40
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComment Due Date. October 5, 2015.
ContactPaula Lincoln, Director, Center for Faith-Based and Neighborhood Partnerships, Department of Housing and Urban Development, 451 7th Street SW., Room 10184, Washington, DC 20410-7000; telephone number 202-708-2404 (this is not a toll-free number). Hearing- and speech-impaired persons may access this number through TTY by calling the Federal Relay Service at 800-877-8339 (this is a toll-free number).
FR Citation80 FR 47302 
RIN Number2501-AD65
CFR Citation24 CFR 1003
24 CFR 570
24 CFR 574
24 CFR 576
24 CFR 578
24 CFR 582
24 CFR 583
24 CFR 5
24 CFR 92
CFR AssociatedAlaska; Grant Programs- Indians; Administrative Practice and Procedure; Aged; Claims; Crime; Government Contracts; Grant Programs-Housing and Community Development; Individuals with Disabilities; Intergovernmental Relations; Loan Programs-Housing and Community Development; Low and Moderate Income Housing; Mortgage Insurance; Penalties; Pets; Public Housing; Rent Subsidies; Reporting and Recordkeeping Requirements; Social Security; Unemployment Compensation; Wages; American Samoa; Community Development Block Grants; Grant Programs-Education; Guam; Indians; Northern Mariana Islands; Pacific Island Trust Territory; Puerto Rico; Student Aid; Virgin Islands; Community Facilities; Grant Programs-Social Programs; Hiv/aids; Homeless; Continuum of Care; Emergency Solutions Grants; Rural Housing; Supportive Housing Programs- Housing and Community Development; Supportive Services; Civil Rights; Mental Health Programs; Nonprofit Organizations; Rental Subsidies; Employment; Technical Assistance and Manufactured Housing

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