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For communities to survive in this digital era, planning for broadband access must be a basic component of their community planning process. HUD’s Consolidated Plan is a planning mechanism designed to help States and local governments to assess their affordable housing and community development needs and to make data-driven, place-based investment decisions. The consolidated planning process serves as the framework for a community-wide dialogue to identify housing and community development priorities that align and focus funding from HUD’s formula block grant programs. 

This proposed rule would amend HUD’s Consolidated Plan regulations to require that jurisdictions, in their planning efforts, consider the needs of broadband access for low-income residents in the communities they serve.  Broadband is the common term used to refer to a very fast connection to the Internet. Such connection is also referred to as high-speed broadband or high-speed Internet.  Specifically, the rule would require that States and localities that submit a consolidated plan evaluate whether residents of HUD-funded housing have access to high-speed Internet and, if so, in what ways is such access made available to these residents.  If low-income residents in the communities do not have access to high-speed Internet, States and jurisdictions must consider whether such access can be made available to their communities, as part of their investment of HUD funds. The proposed regulatory amendments build upon other HUD efforts to close the digital divide and help ensure that the benefits of high-speed Internet reach every American household, regardless of their economic backgrounds.

Statement of Need:

The proposed rule is part of several mutually supportive efforts being taken by the Administration to close the digital divide for low-income communities. As noted above, many low-income Americans do not have broadband Internet at home. Given the populations impacted by the digital divide, HUD is at the forefront of implementing these Administration efforts. The digital divide in broadband access, connectivity, and use disproportionately affects certain Americans: those who earn less than $25,000 annually; individuals who did not finish high school; and African Americans and Hispanics. Eighty-four percent of households with HUD assistance make less than $20,000 per year, and 63 percent are African American or Hispanic (46 percent and 17 percent, respectively). Of these HUD-assisted household, 38 percent have children who are 18 years or younger. The proposed regulatory amendments will build on the success of ConnectHome by codifying the policy goals of increased Internet access and digital literacy as permanent features of HUD’s community planning regulations.  

Summary of the Legal Basis:

None.

Alternatives:

The Consolidated Plan requirements are regulatory in nature so rulemaking is necessary to revise them. While non-regulatory guidance encouraging the consideration of broadband access in the consolidated planning process is a possible alternative, such guidance is non-binding.   Accordingly, rulemaking is the only possible option to accomplish the policy goals described above.

Anticipated Costs and Benefits:

The proposed rule will amend the Consolidated Plan regulations to require that States and local governments evaluate the access of public and other assisted housing residents to broadband Internet service. The proposed regulatory changes are concerned with the consolidated planning process and HUD does not anticipate that the costs of the revised consultation and reporting requirements, as proposed in this rule, will be significant since the regulatory changes merely build upon similar existing requirements rather than mandating completely new procedures. While the proposed rule would require States and local governments to consider, as part of their Consolidated Planning process, the broadband access needs of resident of public and other assisted housing, the rule does not mandate the actions that actions be taken to meet those needs. The significant interest in participating in ConnectHome demonstrated to HUD that many jurisdictions that are already engaged in planning to bring high-speed Internet access to their low-income communities. These jurisdictions also demonstrated their awareness of the harmful effects of the digital divide and a high interest in narrowing that divide. Additionally, given the positive response to ConnectHome, HUD anticipates that many State and local governments will devote resources, whether public or private, without any mandate from HUD, to bring high-speed Internet access to their communities. This rule therefore, which only requires consideration of the needs in low-income communities to access to broadband Internet service, has a minimal cost impact on all grantees subject to the Consolidated Planning process.

Risks:

This rule poses no risk to public health, safety, or the environment.