[Federal Register Volume 69, Number 95 (Monday, May 17, 2004)]
[Notices]
[Pages 27976-27978]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10923]



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Part II





Department of Housing and Urban Development





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Funding for Fiscal Year 2003: Capacity Building for Community 
Development and Affordable Housing; Notice

  Federal Register / Vol. 69, No. 95 / Monday, May 17, 2004 / Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4864-N-01]


Funding for Fiscal Year 2003: Capacity Building for Community 
Development and Affordable Housing

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

ACTION: Notice.

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SUMMARY: The Consolidated Appropriations Resolution, 2003, makes 
available approximately $34.3 million in Fiscal Year (FY) 2003 funds 
for capacity building 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 establishes the requirements for use of the 
FY2003 funds and takes effect upon issuance.

FOR FURTHER INFORMATION CONTACT: Karen Williams, Office of Community 
Planning and Development, Department of Housing and Urban Development, 
1835 Assembly Street, Columbia, SC 29201-2480; telephone number (803) 
253-3009. Persons with hearing or speech impairments may access this 
number through TTY by calling the Federal Information Relay Service at 
800-877-8339 or by calling (202) 708-2565. Except for the ``800'' 
number, these are not toll-free telephone numbers.

SUPPLEMENTARY INFORMATION: 

1. Authority

    The Consolidated Appropriations Resolution, 2003 (Pub. L. 108-7, 
approved February 20, 2003) (FY2003 Appropriations Resolution) 
appropriates approximately $34.3 million for capacity building for 
community development and affordable housing as authorized by section 4 
of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note). These funds 
are subject to the provision in Title VI, section 601 of the FY2003 
Appropriations Resolution that requires an across-the-board rescission 
of 0.65 percent. Therefore, a total of $34,275,750 is available to be 
allocated this fiscal year. 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

    Beginning in FY1994, HUD provided funding to Enterprise and LISC 
through the National Community Development Initiative (NCDI), as 
authorized by section 4 of the HUD Demonstration Act of 1993. In 
accordance with authorizing statutes, HUD divided the 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 subsequent years, pursuant to the various appropriations acts, 
funding was made available to Enterprise, LISC, Habitat for Humanity, 
and YouthBuild USA. In each of these years, HUD published a notice in 
the Federal Register that contained requirements for the funds that 
were made available to LISC, Enterprise, Habitat for Humanity, and 
YouthBuild USA.
    Today's notice establishes requirements for the use of the FY2003 
funds. 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

    Of the FY2003 funds appropriated for section 4 activities, $28.25 
million is made available in equal shares to Enterprise Foundation and 
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. In addition, $4.25 
million is appropriated to Habitat for Humanity and $2 million to 
YouthBuild USA for section 4 activities. Each organization will match 
the HUD assistance 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 $2.5 million of their $14.125 million 
share for activities in rural areas, including tribal areas. As stated 
above, these funds are subject to the 0.65 percent rescission provision 
in the FY2003 Appropriations Resolution. Therefore, a total of 
$34,275,750 is available to be allocated, with LISC and Enterprise 
Foundation each receiving $14,033,187, Habitat for Humanity receiving 
$4,222,375, and YouthBuild USA receiving $1,987,000.
    This notice will take effect upon issuance.

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 communitywide participation in assessing area needs; consulting 
broadly within the community; planning cooperatively 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 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 that 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 the Secretary's designee.

5. Matching Requirements

    As required by section 4 of the HUD Demonstration Act of 1993, the 
$34.5 million appropriation, as reduced by the rescission of 0.65 
percent to $34,275,750, is subject to each award dollar being matched 
by $3 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 
February 20, 2003, to conduct activities.
    In-kind contributions shall conform to the requirements of 24 CFR 
84.23.

6. Administrative and Other Requirements

    Each 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-

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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 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, 2004. 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, such as the number of housing units and 
facilities each CDC/CHDO produces annually during the grant period and 
the average cost of those units. However, when the activity described 
in a work plan is to be undertaken in more than one community, a report 
indicating the areas in which the activity will be undertaken, along 
with appropriate goals and objectives, must be provided when that 
information is available. The performance reports also must 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) 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 the recipient will:
    (1) Supply HUD with all available, relevant information necessary 
for HUD to perform for each property any environmental review required 
by this part;
    (2) Carry out mitigating measures required by HUD or select 
alternate eligible property; and
    (3) Not acquire, rehabilitate, convert, lease, repair or construct 
property, nor commit or expend HUD or local funds for these program 
activities with respect to any eligible property, until HUD approval of 
the property is received.

7. Application Content

    Applicants will be required to file an application containing the 
following:
    (a) Application for Federal Assistance (SF 424), Non-construction 
Assurances Form (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, each identifying costs for implementing the plan of 
suggested technical assistance (TA) activities by cost category, 
including:
    (1) direct labor by position or individual, indicating the 
estimated hours per position, the rate per hour, the estimated cost per 
staff position, and the total estimated direct labor costs;
    (2) fringe benefits by staff position, identifying the rate, the 
salary base on which the rate was computed, the 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, if applicable;
    (5) equipment charges, if any, identifying each type of equipment, 
its quantity and unit cost, and total estimated equipment costs;
    (6) consultant costs, if applicable, indicating 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, indicating 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, identifying 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 technical assistance (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 8 a.m. and 5 p.m. weekdays in the Regulations 
Division, Office of the General Counsel, Room 10276, Department of 
Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 
20410-0500.
    (b) Wage Rates. Unless triggered by other federal funds for a 
project under this grant, the requirements of the Davis-Bacon Act (40 
U.S.C. 276) do not apply.
    (c) Relocation. The Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1979 (42 U.S.C. 4601-4655) and implementing 
regulations at 49 CFR part 24 apply 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

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an agency from promulgating policies that have federalism implications 
if the policies either impose substantial direct compliance costs on 
state and local governments and are not required by statute, or the 
policies preempt state law, unless the agency meets the consultation 
and funding 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.
    (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 (2 U.S.C. 1601 et 
seq.).
    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, 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 that 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 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 --
    Has been charged with a systemic violation of the Fair Housing Act 
by the Secretary alleging ongoing discrimination,
    Is a defendant in a Fair Housing Act lawsuit filed by the 
Department of Justice alleging an ongoing pattern or practice of 
discrimination, or
    Has received a letter of noncompliance findings under Title VI of 
the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 
1973, or Section 109 of the Housing and Community Development Act of 
1974--

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.
    Examples of actions that may be taken prior to the application 
deadline to resolve the charge, lawsuit, or letter of findings include, 
but are not limited to:
    (A) A voluntary compliance agreement signed by all parties in 
response to the letter of findings;
    (B) A HUD-approved conciliation agreement signed by all parties;
    (C) A consent order or consent decree; or
    (D) A judicial ruling or a HUD Administrative Law Judge's decision 
that exonerates the respondent of any allegations of discrimination.
    (ii) Nondiscrimination Requirements. Each organization receiving a 
grant under this notice and its subgrantees also 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 each of its subgrantees has a 
duty to affirmatively further fair housing. Each organization and 
subgrantee should include in its application or work plan the specific 
steps that it 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 8(f) 
of this notice;
    (2) Section 3 of the Housing and Urban Development Act of 1968 (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-2 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 42 
U.S.C. 9816 note) and the Consolidated Appropriations Resolution, 
2003, Pub. L. 108-7, 117 Stat. 550, approved February 20, 2003.

    Dated: April 30, 2004.
Roy A. Bernardi,
Assistant Secretary for Community Planning and Development.
[FR Doc. 04-10923 Filed 5-14-04; 8:45 am]
BILLING CODE 4210-29-P