[Federal Register Volume 64, Number 215 (Monday, November 8, 1999)]
[Notices]
[Pages 60824-60826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29219]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Community Planning and 
Development
[Docket No. FR-4521-N-01]


Funding for Fiscal Year 1999: Capacity Building for Community 
Development and Affordable Housing

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice of funding for fiscal year 1999.

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SUMMARY: A recently enacted appropriation provided $15 million in 
Fiscal Year 1999 funds for activities authorized in section 4 of the 
HUD Demonstration Act of 1993 as in effect immediately before June 12, 
1997. The funds are to be used for capacity building for community 
development and affordable housing--provided that at least $5,000,000 
of the funding is used in rural areas, including tribal areas.
    Section 4 authorizes the Secretary to establish by notice such 
requirements as may be necessary to carry out its provisions. This 
notice, which takes effect upon issuance, indicates that HUD will 
equally divide the $15 million appropriated for this capacity building 
initiative between the Enterprise Foundation (Enterprise) and the Local 
Initiatives Support Corporation (LISC). Each organization will match 
the HUD assistance provided with resources from private sources in an 
amount equal to three times its share, as required by section 4. Each 
organization will use at least $2.5 million of its $7.5 million share 
for activities in rural areas, including tribal areas.
    This notice also provides details regarding administrative and 
other requirements which shall apply to this program.

FOR FURTHER INFORMATION CONTACT: Penelope G. McCormack, Office of 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 7216, Washington DC 20410, 
telephone number (202) 708-3176 Ext. 4391; persons with hearing or 
speech impediments may access this number via TTY by calling the 
Federal Information Relay Service at 1-800-877-8339, or they may call: 
(202) 708-2565 (except for the ``800'' number, these are not toll-free 
numbers.)

SUPPLEMENTARY INFORMATION:

1. Authority

    The Department of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriations Act (Pub. L. 105-
276, 112 Stat. 2461, October 21, 1998) (VA/HUD FY 1999 Appropriations 
Act) makes $15 million available from the community development grants 
program for capacity building for community development and affordable 
housing as authorized by section 4 of the HUD Demonstration Act of 1993 
(Pub. L. 103-120, 107 Stat. 1148,

[[Page 60825]]

October 27, 1993) (42 U.S.C. 9816 note). HUD will provide this 
assistance through Enterprise and LISC ``to develop the capacity and 
ability of community development corporations and community housing 
development organizations to undertake community development and 
affordable housing projects and programs.''

2. Background

    In Fiscal Year 1994, HUD provided $20 million to Enterprise and 
LISC through The National Community Development Initiative (NCDI) as 
authorized by section 4 of the HUD Demonstration Act of 1993. In FY 
1996, $10 million for NCDI was authorized by section 12(b)(3) of the 
Housing Opportunity Program Extension Act of 1996 (Pub. L. 104-120, 110 
Stat. 845, March 28, 1996). In accordance with these statutes, HUD 
divided both appropriations equally between Enterprise and LISC. HUD 
published a notice on March 30, 1994, at 59 FR 14988, which sets forth 
the requirements for these funds.
    In FY 1997, $30.2 million was authorized by the FY 1997 Emergency 
Supplemental Appropriations Act (Pub. L. 105-18, 111 Stat. 198 and 201, 
June 12, 1997). HUD published a notice on January 30, 1998, 63 FR 5220, 
which contained requirements for these funds which were made available 
to Enterprise, LISC, Habitat for Humanity and Youthbuild USA. On May 
29, 1998 at 63 FR 29418, HUD published a revision to the January 30, 
1998 notice. Under these notices, Enterprise and LISC were allocated 
funding to be used either for new activities or to continue NCDI 
activities which received funding under the notice dated March 30, 1994 
and grant agreements pursuant to it. Funding used to continue NCDI 
activities was governed by the requirements of the Federal Register 
funding notice dated March 30, 1994.
    In FY 1998, the Department of Veterans Affairs and Housing and 
Urban Development and Independent Agencies Appropriations Act (Pub. L. 
105-65, 111 Stat. 1344, October 27, 1997) (VA/HUD FY 1998 
Appropriations Act) provided $15 million for activities authorized by 
section 4. On September 11, 1998, at 63 FR 48984, HUD published a 
notice which contained requirements for these funds which were made 
available to LISC and Enterprise.
    Today's notice contains requirements for the newly appropriated $15 
million. These funds may be used for new activities or to continue NCDI 
activities that received funding under the notice dated March 30, 1994 
and grant agreements pursuant to it. Funding used to continue NCDI 
activities is governed by the requirements of the March 30, 1994, 
Federal Register funding notice.

3. Allocation and Form of Awards

    The VA/HUD FY 1999 Appropriations Act provides $15 million for 
activities authorized by section 4. In accordance with congressional 
intent, Enterprise and LISC will each be awarded $7.5 million. HUD has 
determined that LISC and Enterprise were the appropriate organizations 
to be funded prior to the amendments made effective on June 12, 1997. 
Therefore, the $15 million made available by the FY 1999 Appropriations 
Act is limited to LISC and Enterprise. In addition, each of the two 
organizations will use $2.5 million of its share for activities in 
rural areas, including tribal areas.

4. Eligible Activities

    Eligible activities under this award include:
    (a) Training, education, support, and advice to enhance the 
technical and administrative capabilities of community development 
corporations (CDCs) and community housing development organizations 
(CHDOs) including the capacity to participate in consolidated planning 
including fair housing planning and continuum of care homeless 
assistance efforts that help ensure community-wide participation in 
assessing area needs, consulting broadly within the community, 
cooperatively planning for the use of available resources in a 
comprehensive and holistic manner, and assisting in evaluating 
performance under these community efforts and in linking plans with 
neighboring communities in order to foster regional planning;
    (b) Loans, grants, development assistance, predevelopment 
assistance, or other financial assistance to CDCs/CHDOs to carry out 
community development and affordable housing activities that benefit 
low-income families and persons, including the acquisition, 
construction, or rehabilitation of housing for low-income families and 
persons, and community and economic development activities which create 
jobs for low-income persons; and
    (c) Such other activities as may be determined by Enterprise and 
LISC in consultation with the Secretary or his designee.

5. Matching Requirements

    As required by section 4 of the 1993 Act, this $15 million 
appropriation is subject to each award dollar being matched by three 
dollars in cash or in-kind contributions to be obtained from private 
sources. Each of the organizations receiving these funds will document 
their proportionate share of matching resources, including resources 
committed directly or by a third party to a grantee or subgrantee after 
October 27, 1997 to conduct activities.
    In-kind contributions shall conform to the requirements of 24 CFR 
84.23.

6. Administrative and Other Requirements

    The award will be governed by 24 CFR part 84 (Uniform 
Administrative Requirements), OMB Circular A-122 (Cost Principles for 
Nonprofit Organizations), and OMB Circular A-133 (Audits of States, 
Local Governments, and Non-Profit Organizations).
    Other requirements will be detailed in the terms and conditions of 
the grant agreement provided to grantees, including the following:
    (a) Each grantee will submit to HUD a specific work and funding 
plan for each community showing when and how the federal funds will be 
used. The work plan must be sufficiently detailed for monitoring 
purposes and must identify the performance goals and objectives to be 
achieved. Within 30 days after submission of a specific work plan, HUD 
will approve the work plan or notify the grantee of matters which need 
to be addressed prior to approval, or the work plan shall be construed 
to be approved. Work plans may be developed for less than the full 
dollar amount and term of the award, but no HUD-funded costs may be 
incurred for any activity until the work plan is approved by HUD. All 
activities are also subject to the environmental requirements in 
paragraph 6(f) of this notice.
    (b) The grantees shall submit to HUD an annual performance report 
due 90 days after the end of each calendar year, with the first report 
due on March 31, 2000. Performance reports shall include reports on 
both performance and financial progress under work plans and shall 
include reports on the commitment and expenditure of private matching 
resources utilized through the end of the reporting period. Reports 
shall conform to the reporting requirements of 24 CFR part 84. 
Additional information or increased frequency of reporting, not to 
exceed twice a year, may be required by HUD any time during the grant 
agreement if HUD finds such reporting to be necessary for monitoring 
purposes.
    To further the consultation process and share the results of 
progress to date, the Secretary may require grantees to

[[Page 60826]]

present and discuss their performance reports at annual meetings in 
Washington, DC during the life of the award.
    (c) The performance reports must contain the information required 
under 24 CFR part 84, including a comparison of actual accomplishments 
with the objectives and performance goals of the work plans. In the 
work plans each grantee will identify performance goals and objectives 
established for each community in which it proposes to work and 
appropriate measurements under the work plan such as: the number of 
housing units and facilities each CDC/CHDO produces annually during the 
grant period and the average cost of these units. Provided, however, 
that when the activity described in a work plan is not to be undertaken 
in a single community that a report indicating the areas in which the 
activity will be undertaken, along with appropriate goals and 
objectives, will be provided when that information is available. The 
performance reports will also include a discussion of the 
reasonableness of the unit costs; the reasons for slippage if 
established objectives and goals are not met; and additional pertinent 
information.
    (d) A final performance report, in the form described in paragraph 
(c) above, shall be provided to HUD by each grantee within 90 days 
after the completion date of the award.
    (e) Financial status reports (SF-269A) shall be submitted 
semiannually.
    (f) Environmental review. Individual projects to be funded by these 
grants may not be known at the time the overall grants are awarded and 
also may not be known when some of the individual subgrants are made. 
Therefore, in accordance with 24 CFR 50.3(h), the application and the 
grant agreement must provide that no commitment or expenditure of HUD 
or local funds to a HUD-assisted project may be made until HUD has 
completed an environmental review to the extent required under 
applicable regulations and has given notification of its approval in 
accordance with 24 CFR 50.3(h).

8. Application Content

    Grantees will be required to file an application containing the 
following:
    (a) Application for Federal Assistance (OMB Standard Form 424), 
Non-construction Assurances (SF-424B), Certification Regarding Drug-
Free Workplace Requirements, Certification Regarding Lobbying and the 
Fair Housing and Equal Opportunity certification described in section 
9(f) of this notice;
    (b) A Summary Budget for the amount of funds being requested as 
described in section VI (10) of the ``NOFA for Consolidated Technical 
Assistance for Community Planning and Development (CPD) Programs; 
Notice,'' published at 59 FR 33842, 33848, on June 30, 1994 and 
specifying any amounts to be committed to NCDI activities under the 
notice dated March 30, 1994 and grant agreements pursuant to it.

9. Other Matters

    (a) Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with the 
Department's regulations at 24 CFR part 50, which implements section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332). The Finding of No Significant Impact is available for public 
inspection between 7:30 a.m. and 5:30 p.m. weekdays at the Office of 
the Rules Docket Clerk, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410.
    (b) Wage Rates. Unless triggered by other Federal funds for a 
project under this grant, the requirements of the Davis-Bacon Act do 
not apply.
    (c) Relocation. The Uniform Relocation Act applies to anyone who is 
displaced as a result of acquisition, rehabilitation, or demolition, 
for a HUD-assisted activity.
    (d) Federalism. The General Counsel, as the Designated Official 
under section 7(a) of the Executive Order 12612, Federalism, has 
determined that the policies contained in this funding notice will not 
have substantial direct effects on States or their political 
subdivisions or on the distribution of power and responsibilities among 
the various levels of government. Specifically, this notice makes funds 
available through specific entities for specific activities, as 
required by statute, and does not impinge upon the relationships 
between the Federal government, and State and local governments.
    (e) Prohibition Against Lobbying Activities. Applicants for funding 
under this notice are subject to the provisions of section 319 of the 
Department of Interior and Related Agencies Appropriation Act for 
Fiscal Year 1991, 31 U.S.C. 1352 (the Byrd Amendment) and to the 
provisions of the Lobbying Disclosure Act of 1995, Pub. L. 104-65 
(December 19, 1995).
    The Byrd Amendment, which is implemented in regulations at 24 CFR 
part 87, prohibits applicants for Federal contracts and grants from 
using appropriated funds to attempt to influence Federal Executive or 
legislative officers or employees in connection with obtaining such 
assistance, or with its extension, continuation, renewal, amendment or 
modification. The Byrd Amendment applies to the funds that are the 
subject of this notice. Therefore, applicants must file with their 
application a certification stating that they have not made and will 
not make any prohibited payments and, if any payments or agreement to 
make payments of nonappropriated funds for these purposes have been 
made, a form SF-LLL disclosing such payments must be submitted.
    The Lobbying Disclosure Act of 1995, Pub. L. 104-65 (December 19, 
1995), which repealed section 112 of the HUD Reform Act and resulted in 
the elimination of the regulations at 24 CFR part 86, requires all 
persons and entities who lobby covered Executive or Legislative Branch 
officials to register with the Secretary of the Senate and the Clerk of 
the House of Representatives and file reports concerning their lobbying 
activities.
    (f) Fair Housing and Equal Opportunity. Applications must contain a 
certification that the applicant and all subgrantees shall comply with 
the requirements of the Fair Housing Act, title VI of the Civil Rights 
Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age 
Discrimination Act of 1975, and will affirmatively further fair 
housing.

    Authority: Sec. 4 of the HUD Demonstration Act of 1993, (Pub. L. 
103-120, 42 U.S.C. 9816 note), as amended and Pub. L. 105-276, 112 
Stat. 2461.

    Dated: October 4, 1999.
Cardell Cooper,
Assistant Secretary for Community Planning and Development.
[FR Doc. 99-29219 Filed 11-5-99; 8:45 am]
BILLING CODE 4210-29-P