[Federal Register Volume 60, Number 214 (Monday, November 6, 1995)]
[Proposed Rules]
[Pages 56104-56109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27431]




[[Page 56103]]

_______________________________________________________________________

Part IV





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 570



Community Development Work Study Program; Proposed Rule

  Federal Register / Vol. 60, No. 214 / Monday, November 6, 1995 / 
Proposed Rules  

[[Page 56104]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Policy Development and Research

24 CFR Part 570

[Docket No. FR-3902-P-01]
RIN 2528-AA05


Community Development Work Study Program; Proposed Amendments

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

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would revise HUD's regulations governing 
the Community Development Work Study Program (CDWSP). Under the CDWSP, 
HUD awards grants to institutions of higher education, either directly 
or through areawide planning organizations (APOs) or States, for the 
purpose of providing assistance to economically disadvantaged and 
minority students who participate in a community development work study 
program while enrolled in a full-time graduate or undergraduate 
Community Development Academic Program. This rule proposes to make 
several revisions to the CDWSP so that it can more effectively and 
efficiently meet its program objectives. Among other changes, this 
proposed rule would limit the number of students assisted under CDWSP 
to 5 students per participating institution of higher education, limit 
the CDWSP to graduate-level programs, and permit institutions of higher 
learning to apply individually or through APOs.

DATES: Comments Due Date: January 5, 1996.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Office of the General Counsel, Rules Docket 
Clerk, Room 10276, Department of Housing and Urban Development, 451 
Seventh Street SW., Washington, D.C. 20410-0500. Communications should 
refer to the above docket number and title and to the specific sections 
of the regulation. Facsimile (FAX) comments are not acceptable. A copy 
of each communication submitted will be available for public inspection 
and copying during regular business hours at the above address.

FOR FURTHER INFORMATION CONTACT: John Hartung, Office of University 
Partnerships, Department of Housing and Urban Development, Room 8130, 
451 Seventh Street SW., Washington, D.C. 20410, telephone (202) 708-
1537. Hearing or speech-impaired individuals may call HUD's TDD number 
(202) 708-0770, or 1-800-877-8399 (Federal Information Relay Service 
TDD). (Other than the ``800'' number, these are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act Statement

    The information collection requirements contained in this proposed 
rule have been submitted to the Office of Management and Budget (OMB) 
for review under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-
3520). No person may be subjected to a penalty for failure to comply 
with these information collection requirements until they have been 
approved and assigned an OMB control number. The public reporting 
burden is estimated to include the time for reviewing the instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information in 
instances where such action would be necessary. Information on the 
estimated public reporting burden is provided under the Preamble 
heading, Other Matters. Send comments regarding this burden estimate or 
any other aspect of this collection of information, including 
suggestions for reducing this burden, to the Department of Housing and 
Urban Development, Rules Docket Clerk, 451 Seventh Street SW., Room 
10276, Washington, D.C., 20410-0500; and to the Office of Information 
and Regulatory Affairs, Office of Management and Budget, Attention: 
Desk Officer for HUD, Washington, D.C. 20503.

II. Background

    Section 501(b)(2) of the Housing and Community Development Act of 
1987 (Pub. L. 100-242, approved February 5, 1988) added a new section 
107(c) to the Housing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.), authorizing the Community Development Work Study Program 
(CDWSP). Under the CDWSP, HUD is authorized to award grants to 
institutions of higher education, either directly or through areawide 
planning organizations (APOs) or States, for the purpose of providing 
assistance to economically disadvantaged and minority students who 
participate in a community development work study program while 
enrolled in a full-time graduate or undergraduate Community Development 
Academic Program.
    On June 27, 1989 (54 FR 27128), HUD published a final rule 
implementing section 107(c) at 24 CFR 570.415. Since that date, HUD has 
published Notices of Funding Availability (NOFAs) for the purpose of 
soliciting applications for CDWSP grant awards. Based on its experience 
in administering the CDWSP, HUD is proposing to make several amendments 
to 24 CFR 570.415 so that the CDWSP can more effectively and 
efficiently meet its program objectives.

A. CDWSP Limited to Graduate Programs

    The Secretary of HUD is authorized by 24 CFR 570.415(a) to fund 
both graduate and undergraduate students through CDWSP. However, 
experience has convinced HUD that graduate-level programs are better 
suited to CDWSP. Graduate programs in community and economic 
development and related fields almost always include an internship or 
related component that introduces most of the program's students to 
professional work experience.
    Moreover, the master's degree has become the accepted credential 
for professional positions in community and economic development and 
related fields. Graduate-level CDWSP students are, therefore, qualified 
to immediately assume positions enabling substantial contributions in 
these fields. Accordingly, HUD has determined that CDWSP funds can be 
utilized more effectively by limiting CDWSP to graduate-level programs. 
HUD proposes to amend Sec. 570.415 to limit CDWSP to provide 
opportunities for relevant graduate-level study.

B. Proposed Amendments to 24 CFR 570.415(b)

    Paragraph (b) of Sec. 570.415 sets forth the program's definitions. 
This proposed rule would clarify the definition of ``areawide planning 
organization''. Language in the current definition of that term 
referencing the ``metropolitan or nonmetropolitan area'' served by an 
APO was confusing inasmuch as no specific ``nonmetropolitan'' areas are 
delineated for census purposes. The definition would be amended to make 
clear that the relevant geographic area for purposes of the APO is the 
area defined by the State law or interlocal agreement creating it.
    Amendments to 24 CFR 570.415(b) would also clarify HUD's 
interpretation of the statutory phrase ``community and economic 
development, community planning or community management'' with 
reference to the types of employment opportunities and academic 
programs the CDWSP addresses. Specifically, the term ``community 
building'' would be added 

[[Page 56105]]
and would be defined to include all the disciplines the statutory 
phrase ``community and economic development, community planning or 
community management'' was meant to encompass. The term ``community 
building academic program'' would replace ``community development 
academic program'' and would be defined to encompass academic programs 
whose purpose and focus is to prepare students for careers in community 
building. Finally, the definition of the term ``Institution of higher 
education'' would be amended to reference ``community building academic 
program'' rather than ``community development academic program.''

C. Proposed Amendments to 24 CFR 570.415(c)

    Several changes to 24 CFR 570.415(c) are proposed. First, 24 CFR 
570.415(c)(1)(A) would be amended to specify that the student's hourly 
rate should be sufficiently high to permit the student to earn the full 
stipend by working no more than 20 hours per week during the school 
year and 40 hours per week in the summer. HUD's experience suggests 
that some CDWSP students have worked at hourly rates which make it 
difficult to exhaust the stipend. HUD, however, intends that students 
be able to earn the full stipend if the specified hours are worked.
    Furthermore, 24 CFR 570.415(c)(2) would be amended to limit the 
number of students assisted under the CDWSP to five students per 
participating institution of higher education. HUD is interested in 
funding economically disadvantaged and minority students who show 
strong potential for academic and professional success in community 
development and related fields. Given the large number of institutions 
of higher education interested in the CDWSP, HUD's experience suggests 
that the strongest overall group of CDWSP students would be recruited 
by having numerous institutions of higher education select their few 
most qualified economically disadvantaged and minority students, rather 
than channeling the funds so that any single institution of higher 
education distributes up to ten awards. The minimum number of students 
to be assisted by a grant would remain unchanged, so that the students 
earn adequate funds to pursue their degree.

D. Proposed Amendments to 24 CFR 570.415(d)

    This proposed rule would amend 24 CFR 570.415(d)(1) to permit each 
eligible institution of higher education to choose whether to apply 
individually or participate in an APO or State's CDWSP application. 
Through this approach, a State or an APO could apply with some 
participating institutions of higher education at the same time that 
other institutions of higher education in the area or State submit 
separate applications. The current rule prohibits institutions of 
higher education from applying individually if they are located within 
the jurisdiction of an APO or State that is applying.
    HUD has found that many institutions of higher education are 
pleased to participate in the application of an APO. However, HUD also 
recognizes that some institutions of higher education might submit 
stronger applications and administer a program as well or better than 
their area APO. HUD's experience suggests that such institutions of 
higher education should be permitted to determine whether it is to 
their advantage to apply separately or to participate in the 
application of an APO or State. HUD, however, does not intend to permit 
an institution of higher education to apply both separately and as part 
of an APO or State's application during a single funding cycle. The 
proposed rule would amend Sec. 570.415(d)(1)(iii) to set forth the 
procedure for disregarding an application under such circumstances.
    Without this amendment, an institution of higher education that 
might be an excellent candidate for CDWSP funding could be denied an 
opportunity for funding simply because its APO or State unsuccessfully 
applies. Giving institutions this option would also strongly encourage 
APOs to develop or maintain excellent work study programs which are 
capable of attracting the participation of the area's institutions of 
higher education.
    Paragraph (d)(2)(i)(D) of Sec. 570.415 sets forth a requirement of 
periodic seminars. HUD continues to believe that seminars can often be 
a useful means of relating CDWSP work experience to the student's 
academic program. Nevertheless, HUD is proposing that CDWSP seminars no 
longer be mandatory, for several reasons. First, many graduate programs 
in community building have a professional practice seminar as a 
requirement of the graduate program itself. Second, the experience of 
many students in CDWSP involves ongoing, informal mentoring and work-
related counseling from the program director and other faculty. 
Discussions with CDWSP recipients and students have convinced HUD that 
the recipients are best positioned to determine how administrative 
funds can be used most effectively to further the program's objectives.
    Paragraph (d)(2)(i)(F) of Sec. 570.415 would be amended to state 
that the recipient must encourage participating students to seek post-
graduation employment with specified types of employers engaged in 
community building. The current regulation requires that students be 
encouraged to seek employment with specified types of employers 
receiving community development funds. This proposed change recognizes 
that a CDWSP student's post-graduation employment in community building 
comports with CDWSP objectives even if his or her particular employer 
is not receiving community development funds.

E. Elimination of the Repayment Requirements in 24 CFR 570.415(g) and 
24 CFR 570.415(k)

    The repayment requirements in paragraphs (g)(3)(i) and (k)(3)(ii) 
of Sec. 570.415 would be eliminated. Currently, 24 CFR 570.415(g)(3)(i) 
states that students who are terminated from CDWSP participation 
without having completed their academic program must repay to the 
recipient any tuition and non-stipend assistance received through 
CDWSP. Paragraph (k)(3)(ii) of Sec. 570.415, in turn, requires that the 
recipient repay to the Federal Government the tuition and other non-
stipend assistance the student has received, and imposes this 
requirement regardless of whether the recipient collects the funds from 
the student.
    Based on experience and discussions with recipients, HUD has 
determined that these repayment requirements should be eliminated, for 
several reasons. First, HUD believes that a repayment requirement is 
unnecessary as an incentive to select highly motivated students. 
Recipients already have a strong incentive to select highly motivated 
students since their CDWSP funding in any funding cycle depends in 
significant part on the graduation rate of students to whom the 
recipient provided CDWSP or similar funding.
    Moreover, as noted above, the program is to be revised to further 
limit the number of students funded per institution of higher 
education. The increased selectivity that institutions of higher 
education will necessarily exercise suggests that the academic 
potential and motivation of CDWSP students can be expected to be even 
higher than in the past. Furthermore, the requirement may discourage 
students from seeking to participate in CDWSP since the financial risk 
of failure to complete the program may appear substantial. 

[[Page 56106]]

    HUD further notes that the repayment requirements also impose a 
substantial cost (administrative burden and repayment costs) to 
recipients who attempt to collect funds for academic credit hours and 
other support the student has already been provided. Because a CDWSP 
student is necessarily economically disadvantaged, the student cannot 
generally repay the debt other than in small payments over a long 
period of time involving considerable administrative burden to the 
recipient. HUD is aware of occasions in which institutions of higher 
education have had to either ``write off'' the debt as uncollectible or 
collect small periodic payments.

F. Proposed Amendments to 24 CFR 570.415(i)

    Paragraph (i) of Sec. 570.415 would be amended in several respects. 
The initial sentence in 24 CFR 570.415(i)(2) would be amended to 
clarify that a threshold review for applicant eligibility occurs before 
applications are rated and placed in priority funding order.
    Paragraph (i)(5) of Sec. 570.415, concerning the ranking of 
otherwise eligible applicants, would be amended to clarify the 
selection criteria, eliminate duplication of issues among criteria, and 
make the criteria consistent with other proposed changes. Paragraph 
(i)(2)(i) of Sec. 570.415, which establishes the quality of the 
academic program as a ranking factor, would be clarified so as to set 
forth a non-exhaustive list of academic program quality indicators. The 
issue of the graduation rate among the applicant's past CDWSP students, 
which is currently part of the academic quality factor, would be set 
forth as a separate factor to reflect that factor's independent 
significance.
    A new factor would be added as 24 CFR 570.415(i)(2)(iii), dealing 
with the recipient's commitment to meeting the needs of CDWSP-funded 
students. This consideration is already partially encompassed in 24 CFR 
570.415(i)(2)(vi), dealing with the applicant's ``relative commitment 
to meeting the needs of minority economically disadvantaged students.'' 
However, 24 CFR 570.415(i)(2)(vi) has lacked clarity, and applicants 
have responded to it in varying and inconsistent ways, with some 
applicants referring to their indirect costs, others referring to 
additional tuition support, and still others simply restating 
information used in responding to other ranking factors.
    HUD intends to have this new, separate factor address the 
institution of higher education's commitment to help the CDWSP student 
see his or her way through the program financially. HUD is aware, from 
communications with recipients and students, that the CDWSP award 
leaves many CDWSP-funded students significantly short of funds to 
pursue their degree, even though they are working twenty hours per 
week. HUD believes a student's ability to pursue the academic program 
without undue financial stress is of great importance to the student's 
success.
    Proposed 24 CFR 570.415(i)(2)(v) would address the likelihood that 
an applicant's program will lead students to permanent employment in 
community building, a consideration currently addressed in 24 CFR 
570.415(i)(2)(iv). HUD would clarify this factor by setting forth 
several primary determinants of how well the factor is met. Proposed 24 
CFR 570.415(i)(2)(vi) would be identical to the current 24 CFR 
570.415(i)(2)(v).
    Proposed 24 CFR 570.415(i)(2)(vii) would address the applicant's 
commitment to meeting the needs of economically disadvantaged and 
minority students. This factor, a modification of the present 24 CFR 
570.415(i)(2)(vi), would clarify that the program is intended to 
address the needs of both minority and nonminority economically 
disadvantaged students.

III. Other Matters

A. Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
which implements section 102(2)(C) of the National Environmental Policy 
Act of 1969 (NEPA). This 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, Office of the General Counsel, 
Department of Housing and Urban Development, Room 10276, 451 Seventh 
Street SW., Washington, DC 20410-0500.

B. Regulatory Flexibility

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this proposed rule, and in so 
doing certifies that this proposed rule will not have a significant 
economic impact on a substantial number of small entities. This rule 
only affects applicants and participants in HUD's Community Development 
Work Study Program, and will not have any meaningful economic impact on 
any entity.

C. Public Reporting Burden

    This rule does not propose to add to the overall information 
collection requirements of the Community Development Work Study 
Program. Nevertheless, because the proposed rule would alter the 
specific information requirements for applying for the program, the 
information collection requirements of this program, as amended, are 
being submitted to OMB for review under section 3504(h) of the 
Paperwork Reduction Act of 1980. Information on these requirements is 
provided as follows:

                    Annual Reporting Burden--24 CFR 570.415, Community Development Work Study                   
----------------------------------------------------------------------------------------------------------------
                                                                              Total                             
                                                               Number of      annual     Hours per   Total hours
                                                              respondents   responses     response              
----------------------------------------------------------------------------------------------------------------
Application.................................................           75           75           20        1,500
Annual reports..............................................           30           30            6          180
Final reports...............................................           30           30            8          240
Recordkeeping...............................................           30           30            5          150
                                                             ---------------------------------------------------
                                                                                                           2,070
----------------------------------------------------------------------------------------------------------------

D. Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this proposed rule will not have substantial direct 
effects on States or their political subdivisions, or the relationship 
between the Federal government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
Specifically, the requirements of this proposed rule are 

[[Page 56107]]
directed toward applicants and participants in HUD's Community 
Development Work Study Program (CDWSP). It effects no changes in the 
current relationships between the Federal government, the States and 
their political subdivisions in connection with CDWSP.

E. Family Impact

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this proposed rule does 
not have the potential for significant impact on family formation, 
maintenance and general well-being, and, thus, is not subject to review 
under the Order. No significant changes in existing HUD policies or 
programs will result from promulgation of this proposed rule, as those 
policies and programs relate to family concerns.

F. Executive Order 12866

    This proposed rule was reviewed by the Office of Management and 
Budget under Executive Order 12866, Regulatory Planning and Review. Any 
changes made to the proposed rule as a result of that review are 
clearly identified in the docket file, which is available for public 
inspection in the office of the Department's Rules Docket Clerk, Room 
10276, 451 Seventh Street SW., Washington, DC 20410-0500.

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.

    The Catalog of Federal Domestic Assistance program number is 
14.234.
    Accordingly, 24 CFR part 570 is proposed to be 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.

Subpart E--Special Purpose Grants

    2. Section 570.415 is amended by:
    a. Revising paragraph (a);
    b. Revising paragraph (b);
    c. Revising paragraphs (c)(1)(i) (A), (B), and (C), and (c)(2);
    d. Revising paragraphs (d)(1)(i) (A) and (B), (d)(1)(ii), and 
(d)(1)(iii);
    e. Revising paragraph (d)(2)(i)(A);
    f. Removing paragraph (d)(2)(i)(D) and redesignating paragraphs 
(d)(2)(i) (E) through (I) as paragraphs (d)(2)(i) (D) through (H), 
respectively;
    g. Revising newly designated (d)(2)(i)(E);
    h. Revising paragraphs (f)(1) and (f)(2)(i);
    i. Revising paragraphs (g)(1) (ii) and (iii), (g)(2)(ii), and 
(g)(3) (i) and (ii);
    j. Revising paragraphs (i)(1)(iii) and (i)(2);
    k. Revising paragraph (k)(3)(ii); and
    l. Removing paragraph (k)(3)(iii) and redesignating paragraph 
(k)(3)(iv) as paragraph (k)(3)(iii), to read as follows:


Sec. 570.415  Community Development Work Study Program.

    (a) Applicability and objectives. HUD makes grants under CDWSP to 
institutions of higher education, either directly or through areawide 
planning organizations or States, for the purpose of providing 
assistance to economically disadvantaged and minority students who 
participate in a work study program while enrolled in full-time 
graduate programs in community and economic development, community 
planning, and community management. The primary objectives of the 
program are to attract economically disadvantaged and minority students 
to careers in community and economic development, community planning, 
and community management, and to provide a cadre of well-qualified 
professionals to plan, implement and administer local community 
development programs.
    (b) Definitions. The following definitions apply to CDWSP:
    Applicant means an institution of higher education, a State, or an 
areawide planning organization that submits an application for 
assistance under CDWSP.
    Areawide planning organization (APO) means an organization 
authorized by law or by interlocal agreement to undertake planning and 
other activities for a particular geographic area.
    CDWSP means the Community Development Work Study Program.
    Community building means community and economic development, 
community planning, community management, land use and housing 
activities.
    Community building academic program or academic program means a 
graduate degree program whose purpose and focus is to educate students 
in community building. ``Community building academic program'' or 
``academic program'' includes but is not limited to graduate degree 
programs in community and economic development, community planning, 
community management, public administration, public policy, urban 
economics, urban management, and urban planning. ``Community building 
academic program'' or ``academic program'' excludes social and 
humanistic fields such as law, economics (except for urban economics), 
education and history. ``Community building academic program'' or 
``academic program'' excludes joint degree programs except where both 
joint-degree fields have the purpose and focus of educating students in 
community building.
    Economically disadvantaged and minority students means students who 
satisfy all applicable guidelines established at the participating 
institution of higher education to measure financial need for academic 
scholarship or loan assistance, including, but not limited to, students 
who are Black, American Indian/Alaskan Native, Hispanic, or Asian/
Pacific Island, and including students with disabilities.
    Institution of higher education means a public or private 
educational institution that offers a community building academic 
program and that is accredited by an accrediting agency or association 
recognized by the Secretary of Education under 34 CFR part 602.
    Recipient means an approved applicant that executes a grant 
agreement with HUD.
    Student means a student enrolled in an eligible full-time academic 
program. He/she must be a first-year student in a two-year graduate 
program. Students enrolled in Ph.D. programs are ineligible.
    Student with disabilities means a student who meets the definition 
of ``person with disabilities'' in the Americans with Disabilities Act 
of 1990.
    (c) * * *
    (1) * * *
    (i) * * *
    (A) Student stipend. The amount of the student stipend is based 
upon the prevailing hourly rate for initial entry positions in 
community building and the number of hours worked by the student at the 
work placement assignment, except that the hourly rate used should be 
sufficiently high to allow a student to earn the full stipend without 
working over 20 hours per week during the school year and 40 hours per 
week during the summer. The amount of the stipend the student receives 
may not exceed the actual amount earned, up to $9,000 per year.

[[Page 56108]]

    (B) Tuition support. The amount of the tuition support may not 
exceed the tuition charged at the participating institution of higher 
education up to a maximum of $3,500 per year.
    (C) Additional support. The amount of additional support may not 
exceed the actual costs incurred, up to a maximum of $1,500 per year. 
The recipient may provide additional support for:
    (1) Books;
    (2) Travel related to the academic program, work placement 
assignment, or attendance at conferences sponsored by professional 
organizations in community building; and
    (3) Costs associated with reasonable accommodations for students 
with disabilities including, but not limited to, interpreters for the 
deaf/hard of hearing, special equipment, and braille materials.
* * * * *
    (2) Number of students assisted. The minimum number of students 
that may be assisted is three students per participating institution of 
higher education. If an APO or State receives assistance for a program 
that is conducted by two or more institutions of higher education, each 
participating institution must have a minimum of three students in the 
program. The maximum number of students that may be assisted under 
CDWSP is five students per participating institution of higher 
education.
    (d) * * *
    (1) * * *
    (i) * * *
    (A) Institutions of higher education. Institutions of higher 
education offering a community building academic program are eligible 
for assistance under CDWSP.
    (B) Areawide planning organizations and States. An APO or a State 
may apply for assistance for a program to be conducted by two or more 
institutions of higher education. Institutions participating in an APO 
program must be located within the particular area that is served by 
the APO and is identified by the State law or interlocal agreement 
creating the APO. Institutions of higher education participating in a 
State program must be located within the State.
    (ii) To be eligible in future funding competitions for CDWSP, 
recipients are required to maintain a 50-percent rate of graduation 
from a CDWSP-funded academic program.
    (iii) If an institution of higher education that submits an 
individual application is also included in the application of an APO or 
State, then the separate individual application of the institution of 
higher education will be disregarded. Additionally, if an institution 
of higher education is included in the application of both an APO and a 
State, then the references to the institution in the application of the 
State will be stricken. The State's application will then be ineligible 
if fewer than two institutions of higher education remain as 
participants in the State's application.
    (2) * * *
    (i) * * *
    (A) Recruit and select students for participation in CDWSP. The 
recipient shall establish recruitment procedures that identify 
economically disadvantaged and minority students pursuing careers in 
community building, and make such students aware of the availability of 
assistance opportunities. Students must be selected before the 
beginning of the semester for which funding has been provided.
* * * * *
    (E) Encourage participating students to obtain employment for a 
minimum of two years after graduation with a unit of State or local 
government, Indian tribe or nonprofit organization engaged in community 
building.
* * * * *
    (f) Work placement agencies eligibility and responsibilities (1) 
Eligibility. To be eligible to participate in the CDWSP, the work 
placement agencies must be involved in community building and must be 
an agency of a State or unit of local government, an APO, an Indian 
tribe, or a nonprofit organization.
    (2) * * *
    (i) Provide practical experience and training in community 
building.
* * * * *
    (g) * * *
    (1) * * *
    (ii) Must be a full-time student enrolled in the first year of 
graduate study in a community building academic program at the 
participating institution of higher education. Individuals enrolled in 
doctoral programs are ineligible.
    (iii) Must demonstrate an ability to maintain a satisfactory level 
of performance in the community building academic program and in work 
placement assignments, and to comply with the professional standards 
set by the recipient and the work placement agencies.
* * * * *
    (2) * * *
    (ii) An interest in, and commitment to, a professional career in 
community building.
* * * * *
    (3) * * *
    (i) Enroll in a two-year program. A student's academic and work 
placement responsibilities include: Full-time enrollment in an approved 
academic program; maintenance of a satisfactory level of performance in 
the community building academic program and in work placement 
assignments; and compliance with the professional conduct standards set 
by the recipient and the work placement agency. A satisfactory level of 
academic performance consists of maintaining a B average. A student's 
participation in CDWSP shall be terminated for failure to meet these 
responsibilities and standards. If a student's participation is 
terminated, the student is ineligible for further CDWSP assistance.
    (ii) Agree to make a good-faith effort to obtain employment in 
community building with a unit of State or local government, an Indian 
tribe, or a nonprofit organization. The term of employment should be 
for at least two consecutive years following graduation from the 
academic program. If the student does not obtain such employment, the 
student is not required to repay the assistance received.
* * * * *
    (i) * * *
    (1) * * *
    (iii) The applicant must demonstrate that each institution of 
higher education participating in the program as a recipient has the 
required academic programs and faculty to carry out its activities 
under CDWSP. Each work placement agency must have the required staff 
and community building work study program to carry out its activities 
under CDWSP.
    (2) Rating. All applications that meet the threshold requirements 
for applicant eligibility will be rated based on the following 
selection criteria:
    (i) Quality of Academic Program. The quality of the academic 
program offered by the institution of higher education, including 
without limitation the:
    (A) Quality of course offerings;
    (B) Appropriateness of course offerings for preparing students for 
careers in community building; and
    (C) Qualifications of faculty and percentage of their time devoted 
to teaching and research in community building.
    (ii) Rates of Graduation. The rates of graduation of students 
previously enrolled in a community building academic program at the 
institution of 

[[Page 56109]]
higher education, specifically including (where applicable) graduation 
rates from any previously funded CDWSP academic programs or similar 
programs.
    (iii) Extent of Financial Commitment. The commitment and ability of 
the institution of higher education to assure that CDWSP students will 
receive sufficient financial assistance (including loans, where 
necessary) above and beyond the CDWSP funding to complete their 
academic program in a timely manner and without working in excess of 20 
hours per week during the school year.
    (iv) Quality of Work Placement Assignments. The extent to which the 
participating students will receive a sufficient number and variety of 
work placement assignments, the assignments will provide practical and 
useful experience to students participating in the program, and the 
assignments will further the participating students' preparation for 
professional careers in community building.
    (v) Likelihood of Fostering Students' Permanent Employment in 
Community Building. The extent to which the proposed program will lead 
participating students directly and immediately to permanent employment 
in community building, as indicated by, without limitation:
    (A) The past success of the institution of higher education in 
placing its graduates (particularly CDWSP-funded and similar program 
graduates where applicable) in permanent employment in community 
building; and
    (B) The amount of faculty and staff time and institutional 
resources devoted to assisting students (particularly students in 
CDWSP-funded and similar programs where applicable) in finding 
permanent employment in community building.
    (vi) Effectiveness of Program Administration. The degree to which 
an applicant will be able effectively to coordinate and administer the 
program. HUD will allocate the maximum points available under this 
criterion equally among the following considerations set forth in 
paragraphs (i)(2)(vi)(A), (B), and (C) of this section. Except that the 
maximum points available under this criterion will be allocated equally 
between the considerations set forth in paragraphs (i)(2)(vi)(A) and 
(B) of this section only where the applicant has not previously 
administered a CDWSP-funded program.
    (A) The strength and clarity of the applicant's plan for placing 
CDWSP students on rotating work placement assignments and monitoring 
CDWSP students' progress both academically and in their work placement 
assignments;
    (B) The degree to which the individual who will coordinate and 
administer the program has clear responsibility, ample available time, 
and sufficient authority to do so; and
    (C) The effectiveness of the applicant's prior coordination and 
administration of a CDWSP-funded program, where applicable (including 
the timeliness and completeness of the applicant's compliance with 
CDWSP reporting requirements).
    (vii) Commitment to Meeting Economically Disadvantaged and Minority 
Students' Needs. The applicant's commitment to meeting the needs of 
economically disadvantaged and minority students as demonstrated by 
policies and plans regarding, and past effort and success in, 
recruiting, enrolling and financially assisting economically 
disadvantaged and minority students. If the applicant is an APO or 
State, then HUD will consider the demonstrated commitment of each 
institution of higher education on whose behalf the APO or State is 
applying; HUD will then also consider the demonstrated commitment of 
the APO or State to recruit and hire economically disadvantaged and 
minority students.
* * * * *
    (k) * * *
    (3) * * *
    (ii) If a student's participation in CDWSP is terminated before the 
completion of the two-year term of the student's program, the recipient 
may substitute another student to complete the two-year term of a 
student whose participation has terminated. The substituted student 
must have a sufficient number of academic credits to complete the 
degree program within the remaining portion of the terminated student's 
two-year term.
* * * * *
    Dated: June 8, 1995.
Michael A. Stegman,
Assistant Secretary for Policy Development and Research.
[FR Doc. 95-27431 Filed 11-3-95; 8:45 am]
BILLING CODE 4210-62-P