[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]]
_______________________________________________________________________
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