[Federal Register Volume 61, Number 133 (Wednesday, July 10, 1996)]
[Rules and Regulations]
[Pages 36456-36460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17558]



[[Page 36455]]


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Part IV





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 570



Office of the Assistant Secretary for Policy Development and Research; 
Community Development Work Study Program; Amendments; Final Rule

  Federal Register / Vol. 61, No. 133 / Wednesday, July 10, 1996 / 
Rules and Regulations  

[[Page 36456]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR-3902-F-02]
RIN 2528-AA05


Office of the Assistant Secretary for Policy Development and 
Research; Community Development Work Study Program; Amendments; Final 
Rule

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

ACTION: Final rule.

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

SUMMARY: On November 6, 1995 (60 FR 56104), HUD published for public 
comment a rule proposing to 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 full-time students who participate in a community development 
work-study program. The November 6, 1995 rule proposed to make several 
revisions to the CDWSP so that it would more effectively and 
efficiently meet its program objectives. This rule finalizes the 
policies and procedures of the November 6, 1995 proposed rule and 
considers the public comments submitted on the proposed rule.

EFFECTIVE DATE: August 9, 1996.

FOR FURTHER INFORMATION CONTACT: John Hartung, Office of University 
Partnerships, Department of Housing and Urban Development, Room 8130, 
425 Seventh Street, SW., Washington, D.C. 20410, telephone (202) 708-
1537. (This telephone number is not toll-free.) Hearing- or speech-
impaired individuals may access this number via TTY by calling the 
toll-free Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act Statement

    The information collection requirements contained in this final 
rule have been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2528-0175. 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 valid 
control number.

II. The November 6, 1995 Proposed Rule

    On November 6, 1995 (60 FR 56104), HUD published for public comment 
a rule proposing to revise its regulations at 24 CFR 570.415, which 
govern the Community Development Work Study Program (CDWSP). 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.) 
creating the 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 community development academic program.
    The November 6, 1995 rule proposed to make several revisions to 
Sec. 570.415 so that it would more effectively and efficiently meet the 
objectives of the CDWSP. HUD has determined that these changes are 
necessary as a result of its experience in administering the CDWSP. 
Among other revisions, the November 6, 1995 rule proposed to: (1) limit 
the number of students assisted under the CDWSP to five students per 
participating institution of higher education; (2) limit the CDWSP to 
graduate level programs; and (3) permit institutions of higher learning 
to apply individually or through APOs. The November 6, 1995 proposed 
rule described in detail the amendments to 24 CFR 570.415.

III. Changes to the November 6, 1995 Proposed Rule

    This rule clarifies the definition of ``areawide planning 
organization (APO)'' set forth in the November 6, 1995 proposed rule. 
Language in the current definition referencing the ``nonmetropolitan 
area'' served by an APO is confusing since no specific 
``nonmetropolitan'' areas are delineated for census purposes. The 
November 6, 1995 rule proposed to establish a revised definition, 
clarifying the relevant geographic area for purposes of an APO. Upon 
further consideration, HUD has determined that this proposed definition 
did not adequately address the ambiguity present in the current 
definition. This final rule clarifies that in order for an organization 
operating in a nonmetropolitan area to be considered an APO, its 
jurisdiction must cover at least one county.
    This final rule also makes one revision to the November 6, 1995 
proposed rule as a result of public comment. Specifically, HUD has 
decided to amend 24 CFR 570.415 by combining the per-student limit on 
CDWSP tuition assistance with the per-student limit on ``additional 
support.'' The public comment period on the November 6, 1995 proposed 
rule expired on January 5, 1996. Ten public comments were received. The 
following section of the preamble presents a summary of the significant 
issues raised by the public commenters on the proposed rule, and HUD's 
responses to these comments.

IV. Discussion of Public Comments on the November 6, 1996 Proposed 
Rule

1. Support for the CDWSP and the Elimination of the Repayment 
Requirements.

    Comment. Several commenters expressed their strong support for the 
CDWSP. These commenters believe the CDWSP is a valuable resource for 
providing assistance to qualified minority and disadvantaged students 
pursuing graduate level studies in the field of community planning. 
Further, the majority of commenters applauded the proposed rule's 
elimination of the repayment requirements currently found at 24 CFR 
570.415(g)(3)(i) and (k)(3)(ii). As one of the commenters, a 
university, wrote:

    [W]e are delighted with the proposed amendments to 24 CFR 
570.415(g) and 24 CFR 570.415(k), which eliminate the program's 
repayment requirements. The university agrees that this requirement 
is both unnecessary as an incentive to highly motivated students and 
onerous to the recipient institution.

2. CDWSP Should Not be Limited to Graduate Programs

    Comment. Four of the commenters opposed the proposed amendment to 
paragraph (a) of Sec. 570.415, which would have limited the CDWSP to 
graduate-level programs. These commenters believed the proposed 
amendment would unfairly restrict CDWSP participation, and deny the 
community the valuable contributions made by certain undergraduate 
students. One commenter felt that this would especially be true for 
``nontraditional'' undergraduate students, such as older, working, and 
minority students. The commenter noted that these students often 
possess valuable work and life experiences that they bring to their 
work study assignments, greatly benefiting

[[Page 36457]]

the community organizations for whom they work.
    HUD Response. HUD does not agree with these commenters. While HUD 
appreciates the value of undergraduate participation in the CDWSP, the 
program has long emphasized a curriculum that leads directly and 
immediately to careers in community and economic development or a 
related field. The masters degree has in recent years become the 
accepted credential for professional positions in these fields. 
Moreover, although CDWSP funding addresses a critical need for highly 
qualified professionals, it is insufficient to fully meet that need in 
an era when the community and economic development field is 
increasingly complex. Accordingly, HUD finds it prudent to concentrate 
the funding in graduate programs, where it can be of the greatest and 
most immediate overall benefit to communities.

3. Five Student Limit Would Adversely Impact Minority Students

    Four commenters were concerned about the potential negative impact 
of proposed 24 CFR 570.415(c)(2), which would have limited CDWSP 
assistance to five students per participating institution of higher 
education. These commenters believed that the proposed amendment would 
discourage the recruitment of minority students. The commenters wrote 
that the proposed amendment would increase competition for the small 
pool of minority students. This increased competition might lead many 
colleges and universities to conclude that the available funding does 
not warrant the extensive expenditures of time and resources 
traditionally needed to identify and recruit qualified minority 
students.
    HUD Response. HUD disagrees. HUD's practice in recent years has 
been to fund five or fewer students per college or university, despite 
the authority to fund up to ten students per institution of higher 
learning. Although the proposed amendment may reduce HUD's discretion, 
it is not a divergence from existing practice. Moreover, HUD believes 
the amendment will improve opportunities for qualifying minorities to 
participate in the CDWSP. The amendment allows more institutions to 
participate in the program and thus more interested students to apply.

4. Participation Through APOs Should be Encouraged

    Proposed 24 CFR 570.415(d)(1)(iii) would have permitted 
institutions of higher education to apply for participation in the 
CDWSP independently of an APO. One commenter wrote that partnerships 
between universities and APOs are essential to the success of the 
CDWSP. This commenter noted that APOs have strong ties with many area 
local governments and nonprofit organizations that serve as excellent 
placement agencies. These strong relations enable APOs to provide a 
variety of diverse internship opportunities.
    The commenter also believed that it is more cost effective if APOs 
administer CDWSP participation. The commenter noted that without APO 
coordination, HUD staff must handle the administrative costs and 
paperwork for each individual participating college or university. This 
commenter believed that APO participation in the CDWSP dramatically 
decreases the administrative burden for HUD staff and assists in 
preserving limited Federal resources. The commenter suggested that HUD 
revise the November 6, 1995 proposed rule to include language strongly 
encouraging work partnerships between APOs and universities, especially 
in metropolitan areas.
    HUD Response. HUD has not adopted the suggestion made by the 
commenter. HUD agrees that in some circumstances the participation of 
an APO may lead to a stronger application, but this is not necessarily 
always the case. HUD believes the matter is best left to the discretion 
of the institutions of higher education and the APOS. Further HUD 
believes that institutions of higher education should not be penalized 
for choosing to submit an individual application. While the 
administrative burden for either HUD or the institutions of higher 
education may be less when an APO is involved, this is not necessarily 
always the case. The comparative advantage of an APO on these matters 
depends on how effectively it communicates with HUD and monitors the 
activities of the institutions of higher education involved.

5. HUD Should Consolidate Tuition and ``Additional Support'' Cost 
Categories

    Comment. One commenter suggested that HUD combine the per-student 
limit on CDWSP tuition assistance with the per-student limit on 
``additional support,'' a category that includes books and travel. The 
commenter, director of the CDWSP at a private institution of higher 
education, indicated that the institution would likely utilize this 
greater flexibility to provide the entire combined amount to the 
students as tuition assistance.
    HUD Response. HUD agrees with the suggestion made by the commenter. 
Tuition at private institutions now generally exceeds by far the 
existing $3,500 annual per-student limit on CDWSP tuition assistance. 
The additional flexibility would help economically disadvantaged and 
minority students better afford to complete their degree. In 
particular, students may find that they can minimize travel expense by 
attending locally sponsored conferences, rather than travelling to 
distant locations, and thus direct additional funds to meeting their 
tuition obligations. Likewise, some students may be able to purchase 
books at less than $500 per year, leaving more funds for meeting 
tuition requirements.
    Although this amendment was not part of the November 6, 1995 
proposed rule, it falls squarely within the spirit of that rule. The 
November 6, 1995 rule proposed an across-the-board streamlining of the 
CDWSP in order to increase program efficiency, eliminate unnecessary 
procedures, and clarify the existing regulations. The change suggested 
by the commenter will increase the flexibility provided to CDWSP 
participants, thus permitting the program to more effectively meet its 
objective of assisting qualified minority and disadvantaged students. 
Accordingly, this final rule adopts the commenter's recommendation and 
amends 24 CFR 570.415 to consolidate the per-student limit on tuition 
assistance with the per-student limit on additional support.

V. Other Matters

    Environmental Impact. A Finding of No Significant Impact with 
respect to the environment was made at the proposed rule stage 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 remains applicable to 
this final rule and 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.
    Regulatory Flexibility. The Secretary, in accordance with the 
Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed and approved 
this final rule, and in so doing certifies that this final rule will 
not have a significant economic impact on a substantial number of small 
entities. This rule makes several streamlining changes to the CDWSP. 
The amendments made by this rule are designed to clarify the existing 
regulations, increase program

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efficiency, and eliminate unnecessary procedures. This final rule only 
affects applicants and participants in the CDWSP, and will not have any 
meaningful economic impact on any entity.
    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 final 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 final rule 
are 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.
    Family Impact. The General Counsel, as the Designated Official 
under Executive Order 12606, The Family, has determined that this final 
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 final 
rule, as those policies and programs relate to family concerns.

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 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) and (B),
    d. Removing paragraph (c)(1)(i)(C);
    e. Revising paragraph (c)(2);
    f. Revising paragraphs (d)(1)(i) (A) and (B), (d)(1)(ii), and 
(d)(1)(iii);
    g. Revising paragraph (d)(2)(i)(A);
    h. Removing paragraph (d)(2)(i)(D) and redesignating paragraphs 
(d)(2)(i) (E) through (I) as paragraphs (d)(2)(i) (D) through (H), 
respectively;
    i. Revising newly designated (d)(2)(i)(E);
    j. Revising paragraphs (f)(1) and (f)(2)(i);
    k. Revising paragraphs (g)(1) (ii) and (iii), (g)(2)(ii), and 
(g)(3) (i) and (ii);
    l. Revising paragraphs (i)(1)(iii) and (i)(2);
    m. Revising paragraph (k)(3)(ii); and
    n. 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 metropolitan or nonmetropolitan area. For an 
organization operating in a nonmetropolitan area to be considered an 
APO, its jurisdiction must cover at least one county.
    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

[[Page 36459]]

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.
    (B) Tuition support and additional support. The amount of support 
for tuition, fees, books, and travel related to the academic program, 
workplace assignment or conferences may not exceed actual costs 
incurred or $5,000 per year, whichever is higher. The conferences are 
limited to those dealing with community building, sponsored by 
professional organizations.
* * * * *
    (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 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

[[Page 36460]]

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 28, 1996.
Michael A. Stegman,
Assistant Secretary for Policy Development and Research.
[FR Doc. 96-17558 Filed 7-9-96; 8:45 am]
BILLING CODE 4210-62-P