[Federal Register Volume 67, Number 34 (Wednesday, February 20, 2002)]
[Notices]
[Pages 7922-7924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4015]



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Part III





Department of Housing and Urban Development





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Funding for Fiscal Year 2001: Capacity Building for Community 
Development and Affordable Housing; Notice

  Federal Register / Vol. 67, No. 34 / Wednesday, February 20, 2002 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4704-N-01]


Funding for Fiscal Year 2001: 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 2001.

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SUMMARY: The fiscal year 2001 HUD Appropriations Act provided 
$32,450,000 in Fiscal Year 2001 funds for activities authorized in 
section 4 of the HUD Demonstration Act of 1993. Twenty-five million 
dollars of these funds is appropriated to the Enterprise Foundation 
(Enterprise) and the Local Initiatives Support Corporation (LISC) for 
activities authorized by section 4, 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. These funds are affected by the Consolidated Appropriations Act, 
2001 (Pub. L. 106-554, 114 Stat. 2763A-214, approved December 21, 
2000), which rescinds an amount equal to 0.22 percent of the 
Department's discretionary budget authority provided for FY 2001. 
Therefore, the total amount available for section 4 activities is 
$32,378,610 with $24,945,000 authorized for Enterprise and LISC of 
which $4,989,000 will be used in rural 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 $24,945,000 appropriated for this capacity building 
initiative between Enterprise and LISC. In addition, $3,450,000 
($3,442,410 after rescission) is appropriated to Habitat for Humanity 
and $4,000,000 ($3,991,200 after rescission) to Youthbuild USA for 
section 4 activities. 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. Enterprise and LISC 
will each use at least $2,494,500 of their $12,472,500 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: Karen Daly, 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. 5552. 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 
telephone numbers.

SUPPLEMENTARY INFORMATION:

1. Authority

    The Departments of Veterans Affairs and Housing and Urban 
Development, Independent Agencies Appropriations Act (Pub. L. 106-377, 
114 Stat. 1441, approved October 27, 2000) (VA/HUD FY 2001 
Appropriations Act) makes $32,450,000 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, 
approved October 27, 1993) (42 U.S.C. 9816 note.) This amount was 
reduced to $32,378,610 by the Consolidated Appropriations Act, 2001 
(Pub. L. 106-554, 114 Stat. 2763A-214, approved December 21, 2000), 
which rescinds an amount equal to 0.22 percent of the Department's 
discretionary budget authority provided for FY 2001. HUD will provide 
this assistance through Enterprise, LISC, Habitat for Humanity and 
Youthbuild USA ``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, approved March 28, 1996). In accordance with these statutes, 
HUD divided both appropriations equally between Enterprise and LISC. 
HUD published a notice in the Federal Register of March 30, 1994 (59 FR 
14988), which set forth the requirements for receipt of 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, 
approved June 12, 1997). HUD published a notice in the Federal Register 
of January 30, 1998 (63 FR 5220), which contained requirements for the 
funds that were made available to Enterprise, LISC, Habitat for 
Humanity and Youthbuild USA. In the Federal Register of May 29, 1998 
(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 that 
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 notice dated March 30, 1994 (see 59 
FR 14988).
    The FY 1998 VA/HUD Appropriations Act (Pub. L. 105-65, 111 Stat. 
1334, approved October 27, 1997) and the FY 1999 VA/HUD Appropriations 
Act (Pub. L. 105-276, 112 Stat. 246, approved October 21, 1998) each 
provided $15 million for activities authorized by section 4. On 
September 11, 1998 (63 FR 48984) and November 8, 1999 (64 FR 60824), 
HUD published notices which contained requirements for the funds that 
were made available to LISC and Enterprise.
    In FY 2000, $26,250,000 was authorized by the FY 2000 HUD 
Appropriations Act (Pub. L. 106-74, 113 Stat. 1047, approved October 
20, 1999). HUD published a notice in the Federal Register of October 
24, 2000 (65 FR 63746) which contained requirements for the funds that 
were made available to LISC, Enterprise, Habitat for Humanity and 
Youthbuild, USA.
    Today's notice contains requirements for the newly appropriated 
$32,378,610. These funds may be used for new activities or, in the case 
of Enterprise and LISC, to continue NCDI activities that received 
funding under the notice dated March 30, 1994 (59 FR 14988). New grant 
agreements will be executed to govern these NCDI activities.

3. Allocation and Form of Awards

    After rescission, the VA/HUD FY 2001 Appropriations Act provides 
$32,378,610 for activities authorized by section 4. In accordance with 
congressional intent, Enterprise and LISC each will be awarded 
$12,472,500. Each of the two organizations will use $2,494,500 of its 
share for activities in rural areas, including tribal areas. Habitat 
for Humanity will be awarded

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$3,442,410. Youthbuild USA will be awarded $3,991,200.

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 
as well as in 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, LISC, 
Habitat for Humanity or Youthbuild USA in consultation with the 
Secretary or his designee.

5. Matching Requirements

    As required by section 4 of the 1993 Act, the $32,378,610 
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 
its proportionate share of matching resources, including resources 
committed directly or by a third party to a grantee or subgrantee after 
October 27, 2000 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 that 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) Each grantee 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, 2003. 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 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).

7. 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 
8(f) of this notice;
    (b) A Summary Budget for the amount of funds being requested as 
described in section VI(H) of the Notice with respect to ``Funding 
Availability for Community Development Technical Assistance (CD-TA) 
Programs--CHDO, HOME, McKinney Act Homeless Assistance and HOPWA'' 
published in the Federal Register of February 24, 2001 (66 FR 11705) 
and a similar summary budget for any amounts to be committed to NCDI 
activities.

8. Findings and Certifications

    (a) Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with the 
Department's

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regulations at 24 CFR part 50, which implement 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 7th 
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. Executive Order 13132 (entitled ``Federalism'') 
prohibits, to the extent practicable by law, an agency from 
promulgating policies that have federalism implications and either 
impose substantial direct compliance costs on State and local 
governments and are not required by statute, or that preempt State law, 
unless the agency meets the relevant requirements of section 6 of the 
Executive Order. This notice does not have federalism implications and 
does not impose substantial direct compliance costs on State and local 
governments or preempt State law within the meaning of the Executive 
Order.
    (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, 
approved 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 has been 
made, a form SF-LLL disclosing such payments must be submitted.
    The Lobbying Disclosure Act of 1995 (Pub.L. 104-65, approved 
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-- (1) Threshold 
Requirements-- (i) Compliance with Fair Housing and Civil Rights Laws. 
Each organization receiving a grant under this notice and its 
subgrantees must comply with all Fair Housing and civil rights laws, 
statutes, regulations and executive orders as enumerated in 24 CFR 
5.105(a). Federally recognized Indian tribes must comply with the 
nondiscrimination provisions enumerated at 24 CFR 1000.12.
    If an entity that receives funding under this notice :
    (a) Has been charged with a systemic violation of the Fair Housing 
Act by the Secretary alleging ongoing discrimination;
    (b) Is a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an ongoing pattern or practice of 
discrimination; or
    (c) Has received a letter of noncompliance findings under Title VI, 
Section 504, or Section 109,--
    HUD will determine whether the charge, lawsuit, or letter of 
findings has been resolved to the satisfaction of the Department and, 
if not, take appropriate action. HUD's decision regarding whether a 
charge, lawsuit, or a letter of findings has been satisfactorily 
resolved will be based upon whether appropriate actions have been taken 
to address allegations of ongoing discrimination in the policies or 
practices involved in the charge, lawsuit, or letter of findings.
    (ii) Nondiscrimination Requirements. Each organization receiving a 
grant under this notice and its subgrantees must comply with the 
Americans with Disabilities Act of 1990 (42 U.S.C. 1201 et seq.), and 
Title IX of the Education Amendments Act of 1972 (20 U.S.C. 1681 et 
seq.).
    (iii) Affirmatively Furthering Fair Housing. Each organization 
receiving a grant under this notice and its subgrantees have a duty to 
affirmatively further fair housing. Each organization and subgrantee 
should include in their application or work plan the specific steps 
that they will take to remedy discrimination in housing and to promote 
fair housing rights and fair housing choice.
    (g) Lead-based Paint Provisions. Each organization receiving a 
grant under this notice and its subgrantees must comply with the 
applicable lead-based paint provisions of 24 CFR part 35, including 
subparts J and K.
    (h) Certification. Applications must contain a certification that 
the organization receiving a grant under this notice and all 
subgrantees will comply with (1) all the requirements and authorities 
identified in section (f) of this notice; (2) section 3 of the Housing 
and Urban Development Act of 1968, as amended (12 U.S.C. 1701u); and 
(3) HUD's implementing regulations at 24 CFR part 135, which require 
that, to the greatest extent feasible, opportunities for training and 
employment be given to low-income persons residing within the unit of 
local government for the metropolitan area (or nonmetropolitan county) 
in which the project is located.

    Authority: Section 4 of the HUD Demonstration Act of 1993 (Pub. 
L. 103-120, 42 U.S.C. 9816 note), as amended, Pub. L. 106-377, 114 
Stat. 1441 and Pub. L. 106-554, 114 Stat. 2763A-213.

    Dated: January 14, 2002.
Roy A. Bernardi,
Assistant Secretary for Community Planning and Development.
[FR Doc. 02-4015 Filed 2-19-02; 8:45 am]
BILLING CODE 4210-29-P