[Federal Register Volume 63, Number 191 (Friday, October 2, 1998)]
[Notices]
[Pages 53080-53081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26494]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4161-N-01]


Deadlines Limiting the Availability of Community Development 
Block Grant and Certain Other Program Funds for Obligation and 
Expenditure

AGENCY: Office of Community Planning and Development, HUD.

ACTION: Notice.

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SUMMARY: This notice advises grantees on the effect of the 
appropriation accounting provisions in 31 U.S.C. 1551-1557 (the Act), 
as added by the National Defense Authorization Act for Fiscal Year 
1991, on Community Development Block Grant funds, including all 
programs funded under that account and related accounts. These 
statutory provisions control the availability of certain appropriations 
for expenditure.

FOR FURTHER INFORMATION CONTACT: Jan C. Opper, Senior Program Officer, 
Office of Block Grant Assistance, Room 7286, Department of Housing and 
Urban Development, 451 Seventh Street, S.W., Washington, DC 20410-7000, 
telephone number (202) 708-3587, extension 4538; or Laura M. Marin, 
Director, Budget Division, Office of Technical Assistance and 
Management, Room 7236, at the same address, telephone number (202) 708-
2182, extension 4432. Persons with hearing or speech impairments may 
access this number via TTY by calling the Federal Information Relay 
Service at (800) 877-8339. FAX inquiries may be sent to Mr. Opper at 
(202) 401-2044, or to Ms. Marin at (202) 708-4275. (Except for the 
``800'' number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

Background

    The appropriation accounting provisions in 31 U.S.C. 1551-1557 (the 
Act), as added by section 1405 of the National Defense Authorization 
Act for Fiscal Year 1991 (Pub. L. 101-510, approved November 5, 1990; 
104 Stat. 1485, 1675) limit the availability of certain appropriations 
for expenditure. The Act requires the withdrawal from recipients' lines 
of credit funds that recipients have not expended 5 years after the 
expiration of the period of their availability for expenditure.

Limits on Availability of Funds Appropriated for a Finite Period of 
Time

    This notice sets forth the effect of the Act on appropriations that 
are available for obligation by the Federal Government for a finite 
period of time, such as most appropriations for Community Development 
Block Grant (CDBG) funds and all other programs that are appropriated 
under the CDBG and Urban Development Action Grant (UDAG) accounts. The 
Act states:

    (a) On September 30th of the 5th fiscal year after the period of 
availability for obligation of a fixed appropriation account ends, 
the account shall be closed and any remaining balance (whether 
obligated or unobligated) in the account shall be canceled and 
thereafter shall not be available for obligation or expenditure for 
any purpose. (31 U.S.C. 1552).

    There is an exception for certain CDBG and UDAG funds. In this 
regard, an administrative provision in title II, chapter XI of the Dire 
Emergency Supplemental Appropriations Act of 1991 (Pub. L. 102-27, 
approved April 10, 1991; 105 Stat. 130, 151) exempted from operation of 
the provisions in 31 U.S.C. 1551-1557 all HUD funds appropriated under 
the category ``Community development grants'' and ``Urban development 
action grants'' for fiscal years prior to 1991 that were obligated as 
of March 5, 1991.
    Accordingly, all CDBG and UDAG funds available for obligation for a 
finite period of time and that were not obligated on or before March 5, 
1991, must be obligated and expended within a maximum of 8 years of the 
initial appropriation--3 fiscal years of availability for HUD to 
obligate funds and 5 additional fiscal years for the grantee to expend 
funds. The total 8-year period of time that a grantee has before funds 
are withdrawn starts at the beginning of the source year for the 
appropriation. This is not affected by the fact that funds may actually 
be obligated by HUD to a recipient at any time within the 3 fiscal 
years of availability for obligation. Thus, the time period that a 
grantee has between the date of HUD's obligation of funds, and the date 
after which funds are withdrawn from its line of credit under the cited 
provisions of title 31 of the U.S. Code, will likely be less than the 
full 8 years, and could be as short as 5 years. The Federal fiscal year 
ends on September 30. After the 8-year period, all remaining funds from 
affected appropriations accounts will be canceled and withdrawn from 
HUD, and HUD will likewise cancel those amounts in the grantee's line 
of credit. As an example, any source year 1991 funds not expended by 
September 30, 1998 will cease to be available on October 1, 1998, and 
will be withdrawn from the grantee's line of credit.
    Any programs for which HUD is funded under the appropriations law 
headings ``Community Development Grants,'' ``Community Development 
Block Grants Fund,'' or ``Urban Development Action Grants,'' except as 
noted above, are subject to this provision. Examples of these 
appropriations headings are to be found in title II of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Pub. L. 104-
134, approved April 26, 1996; 110 Stat. 1321, 1321-272) (``Community 
Development Grants''); in the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997 (Pub. L. 104-204, approved September 26, 1996; 110 Stat. 
2874, 2887) (``Community Development Block Grants Fund''); and in the 
Department of Housing and Urban Development-Independent Agencies 
Appropriations Act, 1986 (Pub. L. 99-160, approved November 25, 1985; 
99 Stat. 909, 913) (``Urban Development Action Grants'').
    In addition to the Entitlement Communities, States, and Small 
Cities programs, a number of other programs have been funded under the 
CDBG appropriations account in recent years. The attached table lists 
those other programs funded under the CDBG appropriations account since 
1991. In addition, most but not all of the CDBG disaster recovery 
assistance provided through supplemental appropriations is covered by 
the limitations of the Act. Certain CDBG supplemental appropriations 
for disaster recovery may be available until expended--an indefinite 
period of time. They would therefore be excluded from the limitations 
of this provision. If you are unsure whether your grant is subject to 
the Act, you should contact HUD for clarification. (This list may not 
be fully inclusive.)
    This notice does not relax the CDBG rules regarding timely 
expenditure of funds at 24 CFR 570.902 for entitlement communities, nor 
the rules regarding timely distribution of funds at Sec. 570.494 for 
States. In fact, grantees' compliance with these rules by carrying out 
programs and expending funds in a timely manner will avoid the loss of 
unexpended funds that are the focus of the limitations in the 
provisions of title 31 of the U.S. Code.

    Dated: August 3, 1998.
Saul N. Ramirez, Jr.,
Assistant Secretary for Community Planning and Development.

[[Page 53081]]



                                            Other Programs Funded With CDBG Appropriations Account Since 1991
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                                              1991          1992          1993          1994          1995          1996          1997          1998
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Special Purpose Grants (section 107):
    Insular Areas.......................            X             X             X             X             X             X             X             X
    Technical Assistance................            X   ............            X             X             X   ............            X             X
    Work Study..........................            X             X             X             X             X             X             X             X
    Historically Black Colleges and
     Universities (HBCU)................            X             X             X             X             X             X             X             X
    ``Los Angeles, CA''.................  ............  ............            X   ............  ............  ............  ............  ............
    ``Bridgeport, CT''..................  ............  ............            X   ............  ............  ............  ............  ............
    Community Outreach..................  ............  ............  ............            X             X             X             X             X
    Management Information System.......  ............  ............  ............  ............  ............  ............  ............            X
    National Center for the
     Revitalization of Cities...........  ............  ............  ............  ............  ............  ............  ............            X
    Joint Community Development.........  ............  ............  ............            X             X   ............  ............  ............
    Community Adjustment Planning.......  ............  ............  ............            X             X   ............  ............  ............
Native Americans........................            X             X             X             X             X             X             X             X
Neighborhood Development................            X             X             X             X             X   ............  ............  ............
Early Childhood Development.............            X             X             X             X             X   ............  ............  ............
Integrated Data Base....................  ............            X             X   ............  ............  ............  ............  ............
Housing Assistance Council..............  ............  ............  ............  ............  ............            X             X             X
National American Indian Housing Council  ............  ............  ............  ............  ............            X             X             X
Supportive Services Grants:
    Economic Development & Supp.
     Services...........................  ............  ............  ............  ............  ............            X             X             X
    Family Self Sufficiency.............  ............  ............  ............  ............  ............            X   ............  ............
    Bridges to Work.....................  ............  ............  ............  ............  ............            X
    Service Coordinators................  ............  ............  ............  ............  ............            X             X             X
    Tenant Opportunity..................  ............  ............  ............  ............  ............  ............            X
    Moving to Work......................  ............  ............  ............  ............  ............  ............            X             X
    Congregate Services.................  ............  ............  ............  ............  ............  ............  ............            X
Housing Counseling......................  ............  ............  ............  ............  ............            X
Tenant Opportunity......................  ............  ............  ............  ............  ............            X
Youthbuild..............................  ............  ............  ............  ............  ............            X             X             X
Economic Development Initiative (EDI)...  ............  ............  ............  ............  ............            X   ............            X
Homeownership Zones (EDI)...............  ............  ............  ............  ............  ............            X   ............  ............
Lead Hazard Control.....................  ............  ............  ............  ............  ............  ............            X             X
Law Enforcement Agencies Reimbursement..  ............  ............  ............  ............  ............  ............            X   ............
Habitat/Self-Help Homeownership.........  ............  ............  ............  ............  ............  ............  ............            X
Capacity Building (NCDI)................  ............  ............  ............  ............  ............  ............  ............            X
Rural Economic and Housing Development..  ............  ............  ............  ............  ............  ............  ............            X
Neighborhood Initiative Demonstration...  ............  ............  ............  ............  ............  ............  ............            X
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[FR Doc. 98-26494 Filed 10-1-98; 8:45 am]
BILLING CODE 4210-29-P