[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)]
[Rules and Regulations]
[Pages 15836-15839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7401]




[[Page 15835]]

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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Policy Development and Research



_______________________________________________________________________



24 CFR Part 570



Joint Community Development Program: Institutions of Higher Education 
and States/Units of General Local Government; Special Purpose Grants; 
Final Rule

  Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules 
and Regulations   
[[Page 15836]] 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Policy Development and Research

24 CFR Part 570

[Docket No. R-95-1684; FR-3415-F-03]


Joint Community Development Program: Institutions of Higher 
Education and States/Units of General Local Government; Special Purpose 
Grants

AGENCY: Office of the Assistant Secretary for Policy Development and 
Research, HUD.

ACTION: Final rule.

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SUMMARY: This final rule establishes the requirements and procedures 
for awarding and administering special purpose grants under Title I of 
the Housing and Community Development Act of 1974, as amended by the 
Housing and Community Development Act of 1992, to institutions of 
higher education or to States and units of general local government and 
institutions of higher education jointly submitting applications to 
HUD. Institutions of higher education must demonstrate that they have 
the capacity to carry out eligible activities.

EFFECTIVE DATE: April 26, 1995.

FOR FURTHER INFORMATION CONTACT: Jane Karadbil, Office of University 
Partnerships, Department of Housing and Urban Development, 451 Seventh 
Street SW., Washington, DC 20410, (202) 708-1537. The 
Telecommunications Device for the Deaf (TDD) number is (202) 708-1455. 
(These are not toll free numbers.)

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act

    The information collection requirements contained in this final 
rule have been submitted to the Office of Management and Budget for 
review under the provisions of the Paperwork Reduction Act of 1980 (44 
U.S.C. 3501-3520) and have been assigned OMB approval number 2535-0084.

II. Background

    Section 801(c)(2) of the Housing and Community Development Act of 
1992 (Pub. L. 102-550, approved October 28, 1992) amended Section 107 
of Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) to add a new category of special purpose grants. 
This new program authorizes grants to institutions of higher education 
or to States and units of general local government and institutions of 
higher education that jointly submit applications to HUD. Institutions 
of higher education must demonstrate capacity to carry out eligible 
activities under Title I. This rule implements this new grant 
authority. For ease of reference, this new program may be called the 
Joint Community Development (CD) Program.

III. Summary of Final Rule

    Following are the highlights of the rule that will govern the 
grants under the Joint CD Program:
    1. A new section 570.411 is being added to Subpart E, Special 
Purpose Grants, of the Community Development Block Grant (CDBG) 
regulations to govern grants under this program. It should be noted 
that section 570.400, which contains general requirements for all 
special purpose grant programs, applies to this new program as well. 
Additionally, grantees must comply with the Americans with Disabilities 
Act of 1990.
    2. Section 570.411(b) provides definitions for ``demonstrated 
capacity'' and ``institutions of higher education.''
    3. Section 570.411(c) defines eligible applicants. It indicates 
that an application must be filed either by an institution of higher 
education or jointly by an institution of higher education and a State 
or unit of general local government. This subsection also states that 
HUD will not fund an applicant twice for the same kinds of activities.
    4. Section 570.411(d) spells out the role of each participant in 
the joint applications.
    5. Section 570.411(e) defines the eligible activities as those 
eligible under the basic CDBG regulations found in subpart C of part 
570. It also makes clear that these activities may be designed to 
assist residents of colonias to improve living conditions and standards 
within colonias.
    6. Section 570.411(f) indicates that the program will be run 
competitively through publication of a Notice of Funding Availability 
(NOFA).
    7. Section 570.411(g) provides that when an institution of higher 
education or a State which is a joint applicant proposes to carry out 
an activity within the entitlement jurisdiction of one or more units of 
general local government, then such governments must approve the 
activity and certify that it is consistent with their consolidated plan 
(see 24 CFR part 91).
    8. Section 570.411(h) provides a general description of what will 
be contained in each NOFA.
    9. Sections 570.411 (i) and (j) detail the selection criteria that 
HUD will use to evaluate applications under each NOFA competition.
    10. Section 570.411(l) spells out that an applicant proposing 
housing activities will have to submit a certification that the 
activities are consistent with the Consolidated Plan of the 
jurisdiction to be served.
    11. Section 570.411(m) deals with the citizen participation 
requirement under the Joint CD Program. It is a modified version of the 
basic CDBG requirement and is similar to that used in other special 
purpose grant programs.
    12. Section 570.411(n) provides details on environmental review 
responsibilities for this program.

IV. Discussion of Public Comments

    A proposed rule was published in the Federal Register on December 
29, 1993, at 58 FR 68795, and the public was given 60 days in which to 
submit comments. Three comments were received on the proposed rule: one 
from a university, one from a city and one from an association of 
institutions of higher education. Following are the comments made and 
HUD's response to each comment.
    Comment. The definition of eligible institution of higher education 
should be broadened to include community colleges.
    Response. Community colleges generally do not have the capacity to 
undertake the kinds of activities that will be eligible under this 
program. With a limited amount of funds and a very large number of 
qualified four-year institutions applying for these funds, it would be 
unfair to community colleges to have them expend time and costs to 
prepare applications when their chances of being successful are very 
limited. Therefore, the proposed definition was not changed.
    Comment. The rule should spell out in greater detail the program 
objectives and not leave this for the Notice of Funding Availability 
(NOFA).
    Response. The precise program objectives may change from time-to-
time. Each NOFA will spell out the precise objective for that 
competition. Therefore, the objectives will not be included in the rule 
but in the NOFA.
    Comment. Grants should be limited to those institutions that meet 
the Federal definition of ``urban'' universities.
    Response. There is no Federal government-wide definition of urban 
universities. The definition cited by the commenter is not a Federal 
definition but restricted to a specific program in the U.S. Department 
of Education. The Joint CD program has no statutory provision limiting 
grants to urban universities, nor does HUD feel that 
[[Page 15837]] such a restriction is appropriate, given the interest of 
many different kinds of institutions of higher education in addressing 
CDBG needs. Therefore, the comment was not accepted.
    Comment. All applications from States or units of local governments 
must demonstrate support from an institution of higher education.
    Response. Such a demonstration of support is inherent in the 
requirement that applications from governments must be filed jointly 
with an institution of higher education. HUD does not believe that any 
further demonstration of support is needed or desirable.
    Comment. Two commenters indicated that the provision in section 
570.411(c) that eligible applicants will be funded only every other 
funding cycle is not clear. They questioned whether grants would be for 
one year or two year periods.
    Response. A funding cycle is determined each time HUD issues a 
NOFA. A decision regarding the length of the grant will be made at the 
time each NOFA is issued and delineated in the NOFA. Since HUD expects 
that each NOFA may deal with different priorities and eligible 
activities, it is not prudent to identify the project period in the 
regulations. In addition, HUD has revised the requirement that eligible 
applicants be funded only every other funding cycle to prohibit 
grantees that are institutions of higher education from receiving any 
subsequent grants from NOFAs with the same program objectives as those 
for which they received funding. State or local governments may apply 
in subsequent cycles in which the NOFA contains the same program 
objectives as long as they apply with a different institution of higher 
education. The need for these funds is great, as is the number of 
institutions and governments interested in applying. HUD believes that 
it would be unwise to concentrate the funds among a few institutions.

V. Other Matters

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
in this rule do not have Federalism implications and, thus, are not 
subject to review under the Order. Nothing in the rule implies any 
preemption of State or local law, nor does any provision of the rule 
disturb the existing relationship between the Federal Government and 
State and local governments.

Executive Order 12606, the Family

    The General Counsel, as the designated Official under Executive 
Order 12606, has determined that this rule does not have potential 
significant impact on family formation, maintenance, and general well-
being, and, thus, is not subject to review under the Order.

Environmental Finding

    A Finding of No Significant Impact with regard to the environment 
has been made in accordance with HUD regulations in 24 CFR part 50, 
which implement section 102(2)(C) of the National Environmental Policy 
Act of 1969, 42 U.S.C. 4321. The Finding of No Significant Impact is 
available for public inspection between 7:30 a.m. and 5:30 p.m. 
weekdays in the Office of the Rules Docket Clerk, Room 10276, 451 
Seventh Street, SW., Washington, DC 20410.

Regulatory Flexibility

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this rule before publication and by 
approving it certifies that this rule does not have a significant 
economic impact on a substantial number of small entities inasmuch as 
the entities funded under this program will be relatively few in 
number. Consequently, HUD does not believe that a significant number of 
small entities will be affected by this program. The application 
requirements associated with funding under the program have been kept 
to the minimum necessary for administration of grant funds, and the 
Department does not believe it is necessary or appropriate to alter 
these requirements as they apply to small entities who may be 
prospective grantees.

Semiannual Agenda

    This final rule was listed as item 1849 in the Department's 
Semiannual Agenda of Regulations published on November 14, 1994 (59 FR 
57632, 57665) under Executive Order 12866 and the Regulatory 
Flexibility Act.

Catalog of Federal Domestic Assistance

    The Joint Community Development Program is listed in the Catalog of 
Federal Domestic Assistance under number 14.242.

List of Subjects in 24 CFR Part 570

    Administrative practice and procedure, American Samoa, Community 
development block grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Lead poisoning, Loan 
programs--housing and community development, Low and moderate income 
housing, New communities, Northern Mariana Islands, Pacific Islands 
Trust Territory, Pockets of poverty, Puerto Rico, Reporting and 
recordkeeping requirements, Small cities, Student aid, Virgin Islands.
    Accordingly, 24 CFR part 570 is amended as follows:

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

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

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

    2. Section 570.411 is added to subpart E, to read as follows:


Sec. 570.411   Joint Community Development Program.

    (a) General. Grants under this section will be awarded to 
institutions of higher education or to States and local governments 
applying jointly with institutions of higher education. Institutions of 
higher education must demonstrate the capacity to carry out activities 
under Title I of the Housing and Community Development Act of 1974. For 
ease of reference, this program may be called the Joint CD Program.
    (b) Definitions.
    Demonstrated capacity to carry out eligible activities under Title 
I means recent satisfactory activity by the institution of higher 
education's staff designated to work on the program, including 
subcontractors and consultants firmly committed to work on the proposed 
activities, in Title I programs or similar programs without the need 
for oversight by a State or unit of general local government.
    Institution of higher education means a college or university 
granting 4-year degrees and accredited by a national or regional 
accrediting agency recognized by the U.S. Department of Education.
    (c) Eligible applicants. Institutions of higher education or States 
and units of general local government jointly with institutions of 
higher education may apply. Institutions of higher education with 
demonstrated capacity to carry out eligible activities under Title I 
may apply on their own, without the joint participation of a State or 
unit of general local government. States or unit of general local 
governments must file jointly with an institution of higher education. 
For these approved joint applications, the grant will be made to the 
State or unit of general local government and the institution of higher 
education jointly. If an eligible applicant is an institution of higher 
education, it will not be funded more [[Page 15838]] than once for the 
same kinds of activities. These grantees may not receive funding under 
a subsequent NOFA if it has the same program objectives as the one 
under which the grantee previously received funding. However, a State 
or unit of general local government is eligible to apply if it files 
jointly with a different institution of higher education in each NOFA 
cycle. HUD may further limit the type of eligible applicant to be 
funded. Any such limitations will be contained in the Notice of Funding 
Availability described below in paragraph (h) of this section.

    (d) Role of participants in joint applications. An institution of 
higher education and a State or unit of general local government may 
carry out eligible activities approved in joint applications. Where 
there are joint applicants, the grant will be made to both and both 
will be responsible for oversight, compliance, and performance. The 
application will have to clearly delineate the role of each applicant 
in the joint application. Any funding sanctions or other remedial 
actions by HUD for noncompliance or nonperformance, whether by the 
State or unit of general local government or by the institution of 
higher education, shall be taken against both grantees.

    (e) Eligible activities. Activities that may be funded under this 
section are those eligible under 24 CFR Part 570--Community Development 
Block Grants, Subpart C--Eligible Activities. These activities may be 
designed to assist residents of colonias, as defined in Section 916(d) 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
5306 note), to improve living conditions and standards within colonias. 
HUD may limit the activities to be funded. Any such limitations will be 
contained in the Notice of Funding Availability described in paragraph 
(h) of this section.

    (f) Applications. Applications will only be accepted from eligible 
applicants in response to a publication of a Notice of Funding 
Availability (NOFA) published by HUD in the Federal Register.

    (g) Local approval. (1) Where an institution of higher education is 
the applicant, each unit of general local government that is an 
entitlement jurisdiction where an activity is to take place must 
approve the activity and certify that the activity is consistent with 
its Consolidated Plan.

    (2) Where a State is the joint applicant and it proposes to carry 
out an activity within the jurisdiction of one or more units of general 
local government, then each such unit must approve the activity and 
state that the activity is consistent with its Consolidated Plan.

    (3) These approvals and findings must accompany each application 
and may take the form of a letter by the chief executive officer of 
each unit of general local government affected or a resolution of the 
legislative body of each such unit of general local government.

    (h) NOFA contents. The NOFA will describe any special objectives 
sought to be achieved by the funding to be provided, including any 
limitations on the type of activities to be funded to achieve the 
objectives, any limitations on the type of eligible applicants, and 
points to be awarded to each of the selection criteria and any special 
factors to be evaluated in assigning points under the selection 
criteria to achieve the stated objectives. The NOFA will also state the 
deadline for the submission of applications, the total funding 
available for the competition, the period of performance and the 
maximum and minimum amount of individual grants. The NOFA will also 
state which of the various possible levels of competition HUD will use: 
national and/or regional or entitlement areas vs. non-entitlement 
areas; and States or units of general local government vs. institutions 
of higher education vs. institutions of higher education with a 
demonstrated capacity. The NOFA will include further information and 
instructions for the submission of acceptable applications to HUD.

    (i) Selection criteria. Each application submitted under this 
section will be evaluated by HUD using the following criteria:

    (1) The extent to which the applicant addresses the objectives 
published in the NOFA and demonstrates how the proposed activities will 
have a substantial impact in achieving the objectives.

    (2) The extent of the needs to be addressed by the proposed 
activities, particularly with respect to benefiting low- and moderate-
income persons and residents of colonias, where applicable.

    (3) The feasibility of the proposed activities, i.e., their 
technical and financial feasibility, for achieving the stated 
objectives.

    (4) The capability of the applicant to carry out satisfactorily the 
proposed activities in a timely fashion, including satisfactory 
performance in carrying out any previous HUD-assisted projects or 
activities.

    (5) The extent of commitment to fair housing and equal opportunity, 
as indicated by such factors as previous HUD monitoring/compliance 
activity, actions to promote minority- and women-owned business 
enterprise, affirmatively furthering fair housing issues, and 
nondiscriminatory delivery of services.

    (j) Selection discretion. HUD retains the right to exercise 
discretion in selecting projects in a manner that would best serve the 
program objectives, with consideration given to the needs of States and 
units of general local government and institutions of higher education, 
types of activities proposed, an equitable geographical distribution, 
and program balance. The NOFA will state whether HUD will use this 
discretion in any specific competition.

    (k) Certifications. (1) Certifications, including those indicating 
that applicants have adhered to all civil rights requirements under 
subpart K of this part and the Americans with Disabilities Act of 1990, 
required to be submitted by applicants shall be as prescribed in the 
NOFA.

    (2) In the absence of independent evidence which tends to challenge 
in a substantial manner the certifications made by the applicant, the 
required certifications will be accepted by HUD. However, if 
independent evidence is available, HUD may require further information 
or assurances to be submitted in order to determine whether the 
applicant's certifications are satisfactory.

    (l) Consolidated plan. An applicant that proposes any housing 
activities as part of its application will be required to submit a 
certification that these activities are consistent with the 
Consolidated Plan of the jurisdiction to be served.
    [[Page 15839]] (m) Citizen participation. The citizen participation 
requirements of Secs. 570.301, 570.431, 570.485(c) and 570.486(a) are 
modified to require the following: The applicant must certify that 
citizens likely to be affected by the project regardless of race, 
color, creed, sex, national origin, familial status, or handicap, 
particularly low- and moderate-income persons, have been provided an 
opportunity to comment on the proposal or application.
    (n) Environmental and Intergovernmental Review. The requirements 
for Intergovernmental Reviews do not apply to these awards. When 
required, an environmental review in accordance with 24 CFR part 58 
must be carried out by the State or unit of general local government 
when it is the applicant. HUD will conduct any required environmental 
review when an institution of higher education is the applicant.

(Approved by the Office of Management and Budget under control 
number 2535-0084)

    Dated: March 17, 1995.
Henry G. Cisneros,
Secretary.
[FR Doc. 95-7401 Filed 3-24-95; 8:45 am]
BILLING CODE 4210-62-P