[Federal Register Volume 68, Number 13 (Tuesday, January 21, 2003)]
[Notices]
[Pages 2866-2868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1225]



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Part III





Department of Housing and Urban Development





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Funding for Fiscal Year 2002: Capacity Building for Community 
Development and Affordable Housing; Notice

  Federal Register / Vol. 68, No. 13 / Tuesday, January 21, 2003 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4784-N-01]


Funding for Fiscal Year 2002: 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 (FY) 2002.

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SUMMARY: The Fiscal Year 2002 HUD Appropriations Act provided 
$31,000,000 in Fiscal Year 2002 funds for activities authorized in 
section 4 of the HUD Demonstration Act of 1993. Section 4 authorizes 
the Secretary to establish by notice such requirements as may be 
necessary to carry out its provisions. This notice takes effect upon 
issuance.

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 and Independent Agencies Appropriations Act (Pub. L. 107-
73, 115 Stat. 651, approved November 26, 2001) (VA/HUD FY 2002 
Appropriations Act) makes $31,000,000 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). HUD will provide this 
assistance through the Enterprise Foundation (Enterprise), the Local 
Initiatives Support Corporation (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). HUD divided 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.
    Today's notice contains requirements for the newly appropriated 
$31,000,000. 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

    The VA/HUD FY 2002 Appropriations Act provides $31,000,000 for 
activities authorized by section 4. Twenty-five million dollars of 
these funds is appropriated to Enterprise and LISC for activities 
authorized by section 4, as in effect immediately before June 12, 1997. 
HUD will equally divide $25,000,000 of the appropriated funds between 
Enterprise and LISC. 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. In addition, $4,000,000 is appropriated to Habitat for Humanity 
and $2,000,000 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 each will use at least 
$2,500,000 of their $12,500,000 share for activities in rural areas, 
including tribal areas.
    This notice, which takes effect upon issuance, also provides 
details regarding administrative and other requirements that shall 
apply to this program.

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, continuum of care homeless 
assistance efforts, and HUD's Colonias Initiatives 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 Demonstration Act of 1993, the 
$31,000,000 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 November 26, 2001, 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

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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 
also are 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. However, when the 
activity described in a work plan is not to be undertaken in a single 
community, 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 
also will 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 and a 
similar summary budget for any amounts to be committed to NCDI 
activities. The Budget Summary identifying costs for implementing the 
plan of suggested Technical Assistance (TA) activities by cost 
category, in accordance with the following:
    (1) Direct Labor by position or individual, indicating the 
estimated hours per position, the rate per hour, estimated cost per 
staff position and the total estimated direct labor costs;
    (2) Fringe Benefits by staff position identifying the rate, the 
salary base the rate was computed on, estimated cost per position, and 
the total estimated fringe benefit cost;
    (3) Material Costs indicating the item, quantity, unit cost per 
item, estimated cost per item, and the total estimated material costs;
    (4) Transportation Costs, as applicable;
    (5) Equipment charges, if any. Equipment charges should identify 
the type of equipment, quantity, unit costs, and total estimated 
equipment costs;
    (6) Consultant Costs, if applicable. Indicate the type, estimated 
number of consultant days, rate per day, total estimated consultant 
costs per consultant, and total estimated costs for all consultants;
    (7) Subcontract Costs, if applicable. Indicate each individual 
subcontract and amount;
    (8) Other Direct Costs listed by item, quantity, unit cost, total 
for each item listed, and total other direct costs for the award; and
    (9) Indirect Costs which should identify the type, approved 
indirect cost rate, base to which the rate applies, and total indirect 
costs.
    These line items should total the amount requested for each 
Community Development (CD)-TA program area. The grand total of all CD-
TA program funds requested should reflect the grand total of all funds 
for which application is made.

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 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 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. 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 nor preempt state law within the meaning of the Executive 
Order.

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    (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 1003.601.
    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, will 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. 107-73, 115 
Stat. 651.

    Dated: January 9, 2003.
Roy A. Bernardi,
Assistant Secretary for Community Planning and Development.
[FR Doc. 03-1225 Filed 1-17-03; 8:45 am]
BILLING CODE 4210-29-P