[Federal Register Volume 77, Number 31 (Wednesday, February 15, 2012)]
[Rules and Regulations]
[Pages 9112-9136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2373]
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Vol. 77
Wednesday,
No. 31
February 15, 2012
Part IV
Department of Labor
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Employment and Training Administration
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20 CFR Part 672
YouthBuild Program; Final Rule
Federal Register / Vol. 77 , No. 31 / Wednesday, February 15, 2012 /
Rules and Regulations
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DEPARTMENT OF LABOR
Employment and Training Administration
20 CFR Part 672
RIN 1205-AB49
YouthBuild Program
AGENCY: Employment and Training Administration, Labor.
ACTION: Final rule.
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SUMMARY: The Employment and Training Administration (ETA) of the U.S.
Department of Labor (Department) issues this final rule to implement
the YouthBuild Transfer Act of 2006 (Transfer Act), which establishes
the YouthBuild program in the Department under subtitle D of Title I of
the Workforce Investment Act of 1998 (WIA) as amended. The final rule
clarifies the requirements of the Transfer Act for YouthBuild program
providers and participants. The final rule sets the standards under
which YouthBuild program providers can carry out the goals of the
program, which are to assist at-risk youth in obtaining a High School
diploma or General Educational Development (GED) diploma and acquiring
occupational skills training that leads to employment through the
construction/rehabilitation of housing for low-income or homeless
individuals and families in the community.
DATES: Effective date: This final rule is effective April 16, 2012.
FOR FURTHER INFORMATION CONTACT: Sanzanna Toles, Program Manager,
Division of Youth Services, Office of Workforce Investment, U.S.
Department of Labor, 200 Constitution Avenue, Room N-4508, Washington,
DC 20210; telephone 202-693-3030 (this is not a toll free number).
Individuals with hearing or speech impairments may access the telephone
number above via TTY by calling the toll-free Federal information Relay
service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
Executive Summary
I. Purpose of the Regulatory Action
a. The ETA of the Department issues this final rule to implement
the Transfer Act, which establishes the YouthBuild program in the
Department under subtitle D of Title I of the WIA as amended.
b. On September 22, 2006, the Transfer Act, codified at Section
173A of the WIA, 29 U.S.C. 2918a, was signed into law. The Transfer Act
authorizes grants for job training and educational activities for at-
risk youth who, as part of their training, help construct or
rehabilitate housing for homeless individuals and families and low-
income families in their respective communities. Participants receive a
combination of classroom training, job skills development, and on-site
training in the construction trades.
II. Summary of the Major Provisions of the Regulatory Action In
Question
The final rule clarifies the requirements of the Transfer Act for
YouthBuild program providers and participants. The final rule sets the
standards under which YouthBuild program providers can carry out the
goals of the program, which are to assist at-risk youth in obtaining a
High School diploma or GED and acquiring occupational skills training
that leads to employment through the construction/rehabilitation of
housing for low-income or homeless individuals and families in the
community. Furthermore, the final rule expands the occupational skills
training opportunities in YouthBuild beyond construction skills
training. We have determined, based on comments received advocating the
expansion of the training offered to include occupational skills
training and our program administration experience, that allowing other
occupational skills training will help YouthBuild programs provide more
successful job placement outcomes and secondary schools placements for
program participants.
III. Costs and Benefits
This rule has not been designated an economically significant rule
under section 3(f) of Executive Order 12866. However, we provide an
analysis of the impact of the final rule, including a costs and
benefits analysis under Executive Order 13563, in the Administrative
Section of this final rule.
The Preamble of this final rule is organized as follows:
I. Background--provides a brief description of the development of
the final rule;
II. General Discussion of the Rulemaking;
III. Section-by-Section Review of the Final Rule--analyzes comments
and summarizes and discusses the structure and requirements of the
YouthBuild Program;
IV. Administrative Section--sets forth the applicable regulatory
requirements.
I. Background
On September 22, 2006, the YouthBuild Transfer Act of 2006, Public
Law 109-281 (Transfer Act), codified at Section 173A of the Workforce
Investment Act of 1998 (WIA), 29 U.S.C. 2918a, was signed into law. The
Transfer Act authorizes grants for job training and educational
activities for at-risk youth who, as part of their training, help
construct or rehabilitate housing for homeless individuals and families
and low-income families in their respective communities. Participants
receive a combination of classroom training, job skills development,
and on-site training in the construction trades.
The White House Task Force for Disadvantaged Youth recommended
transferring the administration of the YouthBuild program, also known
as ``Hope for Youth,'' from the U.S. Department of Housing and Urban
Development (HUD) to the Department. The White House Task Force for
Disadvantaged Youth Final Report. Pg. 4, October 2003.
The transfer allows for greater coordination of the YouthBuild
program with Job Corps, WIA Youth Programs, the workforce investment
system, including local workforce investment boards (WIBs), One-Stop
Career Centers, and their partner programs (for example, Federal,
State, and local education agencies), while at the same time retaining
many of the same affordable housing goals as the HUD program. The
Transfer Act transfers the authority for the YouthBuild program from
the Cranston-Gonzalez National Affordable Housing Act (49 U.S.C. 12899
et seq.) (Cranston-Gonzales Act) to subtitle D of Title I of WIA, and
it makes modifications and changes to the programs that focus on
increasing the skilled workforce available for the construction trades.
The Transfer Act authorizes the expansion of activities authorized
under the YouthBuild program to include many activities authorized
under the WIA Title I youth formula program. This rule maintains all
the goals of the YouthBuild program as originally developed under HUD,
but shifts the emphasis to education and skills training for at-risk
youth participants. The Department will continue to support the
development of affordable housing which was a goal of the HUD program.
The Transfer Act retains the out-of-school and age requirements
that were in the Cranston-Gonzalez Act for YouthBuild, targeting
eligible youth who are school dropouts and are between the ages of 16
and 24 years old. The Transfer Act further provides that at least 75
percent of participants must be school drop-outs who are members of
low-income families, foster care youth, youth offenders, youths with a
disability, children of an incarcerated parent, or migrant youths. In
addition,
[[Page 9113]]
to ensure that other at-risk youths have access to the program, the
Transfer Act includes a 25 percent eligibility exception. This
exception permits secondary schools to refer students to a YouthBuild
program that offers a secondary school diploma if the program is
determined to be a better fit for the youth. The exception also allows
youth who have a diploma or GED but test as basic skills deficient to
participate in a YouthBuild program.
II. General Discussion of the Rulemaking
We have administered the YouthBuild program, including making
grants, since the passage of the Transfer Act. In drafting the Notice
of Proposed Rulemaking (NPRM), we relied on the knowledge gained from
administering the program, along with the experience gained in
developing the WIA Youth Program. Consistent with the Transfer Act, the
rule incorporates technical modifications to the YouthBuild program to
make it consistent with WIA job training, education, and employment
goals. Moreover, the rule authorizes education and workforce investment
activities such as occupational skills training, internships, and job
shadowing, as well as community service and peer-centered activities.
In addition, the rule describes how we will use performance indicators
developed for Federal youth employment and training programs to enhance
the accountability of YouthBuild programs.
On August 27, 2010, ETA published the YouthBuild NPRM at 75 FR
52671 (Aug 27, 2010). The NPRM explained our main focus is to prepare
at-risk youth for employment, although the construction and
rehabilitation of affordable housing continues to be a major component
of the YouthBuild training program. Therefore, the NPRM increased the
emphasis on the education and occupational skills training provided by
YouthBuild programs. Specifically, the NPRM proposed that the
occupational skills training offered in YouthBuild programs must begin
upon program enrollment and be tied to the award of an industry-
recognized credential; i.e., the National Center for Construction
Education and Research (NCCER), the Home Builder's Institute's (HBI)
HPACT curriculum, or the Building Trades Multi-Craft Core curriculum.
Additionally, the NPRM placed emphasis on coordinating training with
registered apprenticeship programs, which will allow participants to
enter such programs upon exiting YouthBuild.
The NPRM proposed the use of some YouthBuild funds to pay for
supervision and training costs to allow participants to develop skills
and obtain work experience in the rehabilitation or construction of
community buildings and other public facilities. The NPRM advanced
these and other new activities to better assist at-risk youth in
preparing for employment.
Finally, in the NPRM, we solicited comments on whether YouthBuild
should continue to focus on construction skills training or whether
skills training should be expanded to other industry areas.
Overview of the Comments Received on the NPRM
The comment period for the NPRM was open from August 27, 2010 to
October 26, 2010. We received twenty-nine comment letters in response
to the NPRM. The commenters represented a broad range of constituencies
for the YouthBuild program, including seven private citizens, five
local and community employment and training organizations, two union
organizations, five local YouthBuild programs, two local governments,
two Federal agencies, three state governments, one advocacy
organization, and two individuals with YouthBuild U.S.A.
The comments raised a variety of concerns, some general and some
pertaining to specific provisions or specific proposals. After
reviewing the comments, we have modified some provisions and retained
others as originally proposed in the NPRM. The issue most frequently
raised in the comments concerned the NPRM's specific proposals for
various program requirements. Most of these comments were requests for
clarification about specific program requirements, such as the time
allowed for follow-up services for program participants. Several
commenters also addressed the question whether the YouthBuild program
should continue to focus on construction skills training or if we
should allow other occupational skills training in YouthBuild.
We received several comments that were beyond the scope of the
proposed rule and included issues with the YouthBuild Solicitation for
Grant Applications, published at 73 FR 58653 (October 7, 2008), and
individual State laws. These are issues that cannot be resolved or
implemented through this regulatory process or are not within the
Department's purview. Additionally, comments submitted in a manner
inconsistent with the specific directions of the NPRM or submitted
after the comment period closed were not considered.
III. Section-by-Section Review of the Final Rule
When developing this final rule the substantive issues raised by
the comments were taken into careful consideration. These issues and
our reasons for developing the final rule as it is written are
discussed below.
Subpart A--Purpose and Definitions
Sections 672.100, .105, and .110 deal with the purpose, scope, and
definitions related to the YouthBuild program. Significantly, under
Sec. 672.100, we emphasize that YouthBuild is a workforce development
program in addition to a program that aims to increase the amount of
affordable housing for low-income and homeless individuals and
families. This emphasis implements one of the primary goals of the
Transfer Act, which, in moving the administration of YouthBuild from
HUD to the Department, was to make YouthBuild a program that focuses on
occupational skills development.
What is YouthBuild? (Sec. 672.100)
This section describes the YouthBuild program as administered by
the Department. One commenter requested either an expansion or
clarification of the description of the YouthBuild program. The
commenter suggested changing the description of the program as being
for secondary school dropouts, to read ``at least 75 [percent] of whom
have left school without a diploma.'' The commenter states this would
make it clear at the outset that not all YouthBuild participants must
lack a High-School diploma.
We believe that Sec. 672.300 clearly articulates who may be an
eligible participant by stating that at least 75 percent of
participants must lack a High-School diploma, while no more than 25
percent of participants may have a diploma but are still basic skills
deficient as defined in section 101(4) of WIA. Nevertheless, we have
accommodated the commenter's concern by adding the words ``most of
whom'' to make clear that there are some YouthBuild participants who
need not be high school dropouts.
What are the purposes of the YouthBuild program? (Sec. 672.105)
This section details the goals of the YouthBuild program. We
received four comments from two commenters on this section. We changed
Sec. 672.105(a) by emphasizing that YouthBuild participants should
obtain education and training for high-demand and local
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in-demand jobs to achieve economic self-sufficiency. We believe this
change better reflects WIA Sec. 173(A)(a) which states that the purpose
of YouthBuild is to provide education and employment skills for
participants for occupations in demand. One commenter made a
recommendation to insert the following sentence, ``[t]o assist
participants in overcoming barriers, the program provides a variety of
case management and counseling supports, as well as training in life
skills'' in Sec. 672.105(a). The commenter suggests that the purpose
for the change is to appropriately emphasize key components of
successful programs. We agree that case management and counseling are
key components to a YouthBuild program but we do not think it is
appropriate to highlight these components in this section which is a
broad statement of the program's goals. Instead, these services are
more appropriately addressed in the discussion of Sec. 672.210.
The commenter also recommended changing Sec. 672.105(a)(3) from
the goal being to ``reduce the rate of homelessness in communities with
YouthBuild programs,'' to the goal being ``to expand the supply of
permanent affordable housing * * *'' The commenter believes the change
is more accurate and is a direct reflection of the Transfer Act. We
agree with the commenter and have changed the language at Sec.
672.105(a)(3) to more accurately reflect the language of the Transfer
Act.
The other commenter requested that the final rule articulate the
importance of recruiting young women and young women with children as
provided in the Transfer Act. The commenter went on to explain that
special efforts to recruit young women into YouthBuild are essential to
increasing their participation because few women are exposed to the
construction trades and other non-traditional occupations while they
are in school.
We agree with the commenter about the importance of recruiting
young women and participants with children but we don't feel it is
appropriate to amend the statement of goals. Instead, we will consider
the effort to recruit, or plans to recruit young women put forth by
YouthBuild programs and applicants as an important factor in the
Solicitation for Grant Application selection process.
What definitions apply to this part? (Sec. 672.110)
This section explains the definitions applicable to this final
rule. We received comments, which we discuss below, on several of the
definitions. Those definitions on which we did not receive comments
have been adopted as proposed.
Alternative School
In part, the proposed definition of ``alternative school'' reads,
``An `alternative school' must be recognized by the authorizing entity
designated by the State, must award a high school diploma and, must be
affiliated with YouthBuild programs. * * *'' One commenter pointed out
that some YouthBuild programs are recognized by authorizing entities
but only offer GEDs while other YouthBuild programs offer GEDs and High
School Diplomas and are recognized by authorizing entities. The
commenter goes on to ask what the impact of these regulations would be
on the alternative school status of those YouthBuild programs that
offer GEDs and High School Diplomas.
We have changed the rule so that schools offering both a high
school diploma and a GED, when authorized by the appropriate entity,
can be included as an alternative school. For the purposes of
participation in a sequential services strategy, schools that offer
only High School Diplomas will continue to be considered alternative
schools. In order for a YouthBuild Program's academic component to meet
the definition of a ``sequential service strategy,'' as defined in
Sec. 672.110, the program's alternative school must award a high
school diploma and not a GED. This allows YouthBuild programs with
alternative schools to enroll out-of-school youth participants into
their alternative school prior to enrollment into their YouthBuild
program, while enabling them to maintain their out-of-school youth
eligibility at the time of their enrollment into the YouthBuild program
as long as it is part of a ``sequential service strategy.'' This
flexibility is only granted to YouthBuild programs with alternative
schools that award high school diplomas and not GEDs because research
establishes that individuals who receive a high school diploma have a
higher long-term earning potential than individuals who receive a GED.
GEDs are also generally achieved by participants within the first year
of service. The flexibility for YouthBuild grantees to use a
``sequential service strategy'' is an incentive for more programs to
move towards high school diploma granting academic components, and
supports earlier dropout recovery of future YouthBuild participants and
prevents programs from having to drop youth out of their program so
they can then reenroll as an out-of-school youth.
Community or Other Public Facility
We received several comments seeking to expand the definition for
``Community or Other Public Facility.'' The NPRM explained that
``community or other public facility'' means those facilities which are
publicly owned and publicly used for the benefit of the community.
Examples include public-use buildings such as recreation centers,
libraries, public park shelters, or public schools. This term may also
encompass facilities used by the program but only if the facility is
available for public entry and use.
One commenter wanted the definition to include churches or faith-
based facilities. Another commenter agreed that buildings owned by
faith-based, non-profit organizations should be included in the
definition. Another commenter also suggested that if the definition of
community and public facilities could be expanded, it would increase
opportunities for employment training and community benefits. The
commenter further stated that proposed projects should be individually
evaluated based on several factors including the extent of
rehabilitation or construction required to make the project habitable,
the project's likelihood to provide comprehensive training value to
young people, and the project's projected value to the broader
community, regardless of ownership or public use. Two other comment
letters contend that since the Transfer Act does not state that
``community or other public facilities'' must be publicly owned, the
definition should include privately held non-profit facilities.
We agree with the commenters and revise the definition of
``community or other public facilities'' to include privately owned
non-profit facilities, including facilities owned by faith-based
organizations, as well as publicly owned facilities, as long as those
facilities are available for public entry and used for the benefit of
the public. While grant funds can be used in the rehabilitation or
construction of buildings owned by faith-based organization, funds may
not be used to rehabilitate or construct a facility, or portion of a
facility, that will be used for religious purposes.
Any work done by YouthBuild participants on a community or public
facility must be directly related to training for YouthBuild
participants and follow the relevant Office of Management and Budget's
(OMB) cost principles for grants. (OMB Circulars A-87, 2 CFR part 225
and A-122, 2 CFR part 230). Under these cost principles, any activity
funded with grant funds
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that would result in the Department obtaining an equity interest in
equipment, buildings, or land, is unallowable. Of particular relevance
to the YouthBuild program, under Circulars A-87 and A-122, capital
expenditures for improvements to land, buildings, or equipment which
materially increase their value or useful life are unallowable. 2 CFR
part 225, Appendix B, Sec. 15(b); 2 CFR part 230, Appendix B, Sec.
15(b). While Circulars A-87 and A-122 permit these costs with advance
approval from the Department, as a matter of policy the Department will
not approve these costs in order to avoid taking an equity interest in
the relevant capital asset (i.e.: land, building, and equipment).
However, costs for normal maintenance and upkeep that does not add
to the value or prolong the useful life of land, buildings, or
equipment are allowable costs not subject to pre-approval by the
Department. 2 CFR part 225, Appendix B, Sec. 25; 2 CFR part 230,
Appendix B, Sec. 27.
The NPRM contemplates that buildings privately owned by non-profit
grantees fall within the definition of ``community or other public
facilities.'' We do not think that there is any reason to distinguish
between grantee and non-grantee owned non-profit facilities that are
privately owned, thus we agree with the commenters that the definition
should be expanded. However, proposed projects on privately owned
facilities, including facilities owned by faith-based organizations,
must meet the public entry and use restrictions outlined in the
definition and the cost principles already discussed.
Homeless Individual
We received no comments on the definition for ``homeless
individual''. However, the definition for ``homeless individual'' from
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) provided
in the NPRM was amended before publication of this final rule by sec.
1003(a)(2) of the Homeless Emergency Assistance and Rapid Transition to
Housing Act of 2009. 42 U.S.C. 11302(a). As a result, we are changing
the rule text by removing the detailed definition of ``homeless
individual'' to cite only the McKinney-Vento Homeless Assistance Act in
the final rule to incorporate any future changes in the definition.
Therefore, for the purposes of YouthBuild, the definition of ``homeless
individual'' at Section 103 of the McKinney-Vento Homeless Assistance
Act applies.
Indian and Indian Tribe
One commenter described the definition of ``Indian''' and ``Indian
tribe'' as too limiting and potentially offensive to Native Alaskans.
The commenter suggested that we replace the term ``Indian and Indian
Tribe'' with ``American Indian/Alaska Native. We appreciate the
sensitivity explicit in the commenter's suggestion. However, in this
instance we are constrained from changing the term because the final
rule reflects the Transfer Act's adoption of the definitions of these
terms from sec. 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450(b)).
Low Income Family
In the NPRM, we defined ``Low-Income Family'' as a family whose
income does not exceed 80 percent of the median income for the area
unless the U.S. Secretary of Labor (Secretary) determines that a higher
or lower ceiling is warranted. This term is defined in the Transfer
Act. One commenter wanted the rule to increase the median income level
from 80 percent of the median income for the area to 120 percent of the
median income for a low-income family, due to the difficulty some
YouthBuild programs are having finding low-income homebuyers.
We have determined that the definition of ``Low-income family''
will remain unchanged in the rule to mean a family whose income does
not exceed 80 percent of the median income for the area unless the
Secretary determines that a higher or lower ceiling is warranted. The
term ``low-income family'' was taken from United States Housing Act of
1937 (42 U.S.C. 1437a(b)(2)) and is a widely recognized term and
metric. However, at the discretion of the Secretary, we may consider
temporary increases in the median income level based on economic
conditions. If such a temporary increase is determined to be necessary
it will be done so in future SGAs or through guidance.
Further, we have made several non-substantive changes to this
definition to improve readability.
Migrant Youth
We received one comment on the definition of ``Migrant Youth.'' The
commenter stated that the proposed definition was too limiting because
it did not include workers affiliated with the seasonal fishing
industry. We understand the commenter's concern with the possible
limitations of the definition of ``migrant youth.'' Because YouthBuild
is a WIA-funded program, we first considered using a definition for
``Migrant Youth'' that incorporates the WIA definition for migrant
farmworker from the National Farmworker Jobs Program found at WIA Sec.
167(h)(3). Under WIA, a ``Migrant seasonal farmworker'' is a seasonal
farmworker whose agricultural labor requires travel to a job site such
that the farmworker is unable to return to a permanent place of
residence within the same day. (WIA sec. 167 (h)(3)(A)(4)(A)). However,
we believed that using the definition found in the statute limited the
number of potential program participants. Accordingly, we chose to
adapt our definition of ``Migrant Youth'' from the broader definition
of ``migrant farmworker'' found in Farmworker Bulletin 00-02, which
relates to eligibility in the Migrant Seasonal Farmworker Youth
Program, and expands on the definition of ``migrant seasonal
farmworker'' found in WIA. Using this broader definition allows a
larger population of potential YouthBuild participants to be served by
the program. The definition of ``migrant farmworker'' found in
Farmworker Bulletin 00-02 uses the North American Industry
Classification System (NAICS) codes to determine whether or not a
worker is a ``migrant farmworker.'' The definition of ``migrant
farmworker'' in the Farmworker Bulletin excludes workers whose work is
classified as ``aqua-culture,'' which includes the seasonal fishing
industry. In addition, using the definition of ``migrant seasonal
farmworker'' from Farmworker Bulletin 00-02 allows for consistency
throughout ETA programs, as both the National Farmworker Jobs Program
and the Office of Foreign Labor Certifications use similar definitions
that exclude the seasonal fishing industry. Because we have based our
definition on Farmworker Bulletin 00-02, and because that definition
does not include workers in the seasonal fishing industry, we have
decided not to include seasonal fishing industry workers as part of the
definition of migrant youth.
We received no comments on the remaining definitions, and therefore
have adopted each as proposed.
Subpart B--Funding and Grant Applications
This subpart deals with the selection process, the funding process,
and the application process for potential grantees to apply through an
SGA.
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How are YouthBuild grants funded and administered? (Sec. 672.200)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
How does an eligible entity apply for grant funds to operate a
YouthBuild program? (Sec. 672.205)
We did not receive any comments on this section. The final rule
adopts proposed regulation as proposed.
How are eligible entities selected to receive grant funds? (Sec.
672.210)
This section describes the criteria for selecting grantees. One
commenter requested that we offer separate funding for rural programs,
urban programs, and new programs as was the case when HUD administered
YouthBuild. The commenter maintained that it is difficult for rural
programs to compete against urban programs. Additionally, the commenter
believed the minimum amount of funds for which a program can apply is
an amount too large for smaller YouthBuild programs. We acknowledge the
commenter's concerns in that some rural programs may have difficulty in
obtaining grant awards because often the suggested minimum amount of a
YouthBuild grant award is more than some rural programs need to operate
successfully. We believe, however, that the commenter's concerns are
addressed in the annual SGAs. When awarding grant funds the Grant
Officer considers a variety of factors, including geographic diversity
and the need for affordable housing in an area. Additionally,
YouthBuild SGAs do not have a minimum level of funding which applicants
must request; the minimum amounts in the SGA are only suggested
amounts. Applicants may request an amount of funding that is less than
the suggested minimum grant award amount.
Two commenters expressed some difficulties in obtaining data
addressing the required indicators of need, poverty, unemployment
rates, and high school drop-out rates referenced in Sec. 672.210(c).
They further related that there is no standardized methodology for
calculating unemployment or drop-out rates among States and local
communities. The commenters believe this situation makes it unfair to
rate applications from different regions against each other.
We understand it may be difficult to obtain data which demonstrates
the various indicators of need in Sec. 672.210(c) for different State
and local communities. However, contrary to the commenters' assertion,
we do not evaluate grant applications by comparing them to one another
or measuring them against other grant applications. Each respective
YouthBuild application submitted in response to an SGA is rated only
against the criteria established in the SGA. Furthermore, we do not
mandate that applicants obtain data which demonstrates the various
indicators of need from specific sources. YouthBuild applicants are
free to use whatever source they prefer for data showing indicators of
need as long as they can demonstrate in their grant application the
validity of the data and its accuracy in showing he community's need
for the YouthBuild program.
One commenter suggested adding ``counseling and case management''
to Sec. 672.210(d) which reads, ``[t]he commitment of an applicant to
provide skills training, leadership development, and education to
participants.'' The commenter contends that without the commitment of
personal support for the individual participant offered by YouthBuild
programs through counseling and case management, the ability of
participants to achieve the desired outcomes would be dramatically
reduced.
We agree that the offer of counseling and case management is
important for participants' success in YouthBuild. We also believe that
these services are being provided by YouthBuild programs as part of
their commitment to provide skills training, leadership development,
and education to participants. Furthermore, Sec. 672.310(a)(2) details
some of the eligible activities, including counseling services, that
may be funded in YouthBuild programs. However, we agree with the
commenter that counseling and case management should be included as a
basis for selection in the grant application process. Accordingly, we
have added counseling and case management to Sec. 672.210(d) as part
of the required selection criteria.
Two commenters proposed new language to be added to Sec.
672.210(e). Proposed Sec. 672.210(e) establishes that one, of many,
selection criteria is, ``[t]he focus of a proposed program on preparing
youth for postsecondary education and training opportunities or in-
demand occupations in the construction industry.'' The commenters
proposed that this section be changed to read, ``[t]he focus of a
proposed program on preparing youth for postsecondary education or jobs
within their communities, including high-demand occupations and
entrepreneurship opportunities.'' The commenters stated the reason the
change is necessary is because in rural and Native communities,
``demand'' occupations may not be reflected accurately in data due to
the small size of many employers. Further, the complete absence of
products and services in a community often reflects need but this need
is not captured by actual employment data. One of these commenters
suggests that these factors place programs in these communities in the
awkward position of encouraging young people to leave their
communities, and also may encourage young people to apply for jobs for
which they have no transportation or cannot afford the transportation
to access.
We agree with the commenters' concern. The selection criteria and
the process through which grantees are selected, as stated at Sec.
672.210(e), is specifically described in sec. 173A(c)(4)(E) of WIA.
Section 173A(c)(4)(E) states that applicants will be judged based on
``the focus of a proposed program on preparing youth for occupations in
demand or postsecondary education and training opportunities.''
Therefore, we have amended the text in Sec. 672.210(e) by adding the
word ``local'' to address the commenters' concerns about demand
occupations.
Two commenters noted that rural and Tribal programs are
disadvantaged by the criteria in Sec. 672.210(f)(1) because they have
limited partnership choices which affect the applicant's performance
under the selection criterion that deals with an applicant's
demonstrated ability to enter partnerships with various entities. One
commenter went on to explain that the lack of One-Stop Centers and
other workforce investment systems in rural areas and Tribal lands make
it difficult for programs in these areas to seek partnerships with
those entities as required in Sec. 672.210(f)(1). To remedy this, the
commenter suggested that Job Corps be added as a specific workforce
investment partner in the rule.
We are aware that rural and Tribal programs may have limited
partnership choices and that Job Corps would make a good partner for
the YouthBuild program. However, we do not believe it is necessary to
specifically mention Job Corps in the text of Sec. 672.210(f)(1)
because Job Corps is a One-Stop partner and applicants are already
evaluated on the extent to which they propose to coordinate activities
with such partners. Therefore, specifically adding in a Job Corps
provision to this section would be redundant. To address the issue
about potential partners that the commenter raised, we issued Training
and Employment Notice (TEN) 50-08, on
[[Page 9117]]
June 24, 2009 to provide strategies to YouthBuild Programs on
collaborating with Job Corps Programs. The TEN is available at the ETA
Advisories Web site at http://wdr.doleta.gov/directives/attach/TEN/ten2008/TEN50-08acc.pdf, and is made available to any new YouthBuild-
funded programs.
We understand the difficult task of obtaining partnerships,
especially for those applicants in rural areas or Tribal lands, this is
why the workforce system coordination clause in Sec. 672.210(f)(1)
contains the caveat, ``or the extent of the applicant's good faith
efforts, as determined by the Secretary, in achieving such
coordination''.'' This clause allows the Grant Officer to credit an
applicant's effort to obtain partnerships, even if that effort was
ultimately unsuccessful.
One commenter suggested that we strengthen in Sec. 672.210(i)(1)
through (5) the emphasis on the quality and coordination of the
partnerships and the nature of the partnering relationship, rather than
on the number of partnerships. The commenter stated that, ``while
partnerships are desirable and often essential, both for delivering
services and leveraging resources, we see risks in over-emphasizing and
incentivizing partnerships as the way to deliver services.''
We believe that we have appropriate measures in place to prevent
the over-emphasis on the number of partnerships versus the quality of
partnerships in the grant selection process. In our SGAs, YouthBuild
applicants are not rated simply on the number of partners, but also
must demonstrate the level of commitment, the qualifications, and the
abilities of the partners to contribute to participants' success, and
the strength and the maturity of the partnership. Therefore, in
assessing the selection criteria in Sec. 672.210(i)(1) through (5), we
seek to analyze the qualitative aspects of the described partnership
and how likely the partnership will contribute to the overall success
of a YouthBuild participant.
The same commenter suggested adding the adult justice system to
proposed Sec. 672.210(i)(4) which describes the extent to which an
applicant should partner with the juvenile justice system, because many
of the participants are classified as adults. Additionally, the
commenter suggested that we add a paragraph to Sec. 672.210(i)(4)
stating that a selection criterion for YouthBuild applicants is the
demonstrated service they can receive from partnerships with the adult
and juvenile justice system for referrals of eligible participants
through diversion or re-entry from incarceration.
We agree with the commenter's two suggestions and have made the
suggested changes in the rule, because many possible YouthBuild
participants are classified as adults in the justice system.
Consequently, it would be the adult justice system that would be able
to provide assistance with reporting recidivism rates and referrals of
these potential participants. This will enable YouthBuild to better
attract participants from its targeted population.
How are eligible entities notified of approval for grant funds? (Sec.
672.215)
This section describes the process and timeline for notifying a
grant applicant of a YouthBuild grant application approval or
disapproval.
One commenter recommended the addition of the following: ``The
[Department] will establish a threshold level of points required to be
eligible for funding, and will make known what was the actual cut-off
point for funding, if it was above that threshold as a result of high
quality competition, in each round. Upon request the [Department] will
provide the specific scores for each proposal and written feedback
regarding the weaknesses of the proposal. It will also accept appeals
from applicants who can demonstrate after reviewing the scores that a
specific error in scoring was made on a technical point, such as
whether a particular item of required documentation was provided. If
the Secretary determines a correction is warranted, the Secretary may
make that correction from subsequent year appropriations.''
We find that these suggestions are unnecessary. As explained in our
YouthBuild SGAs, proposals that are timely and responsive to the
requirements of the SGA are rated against listed criteria by an
independent panel comprised of representatives from the Department,
HUD, the U.S. Department of Justice, the U.S. Department of Health and
Human Services, and other peers. The ranked scores serve as the primary
basis for selecting applications for funding, in conjunction with other
factors such as: urban, rural, and geographic balance; whether the
areas to be served have previously received grants for YouthBuild
programs; the availability of funds; and which proposals are most
advantageous to the Department. Also in the SGAs, we state that, upon
request, we provide feedback to applicants on portions of their
specific application we believe can be improved. However, we do not
provide guidance on any portions that we believe are strengths in an
application. We take this approach because we understand that what
works for one grant applicant may not work for other grant applicants
that have different challenges and needs that YouthBuild may help in
addressing. Further, we do not provide a threshold for scores in the
regulation or in the current SGAs because the numerical scores are only
one part of the overall final award decision, other factors (listed
above) are also brought into consideration. Also, the Department has
routinely received enough high scoring applications submitted in
response to SGAs, thus there is no need to set a threshold score to
ensure that enough high quality grants given out. In addition, an
applicant has a right to appeal the decision on their grant application
under sec. 186 of WIA. Finally, the Secretary reserves the right to
make any corrections she believes necessary in awarding grants for
YouthBuild.
Subpart C--Program Requirements
Subpart C deals with eligibility determinations of YouthBuild
program participants, required program activities, designated minimum
timeframes for certain activities, and services that must be carried
out by programs.
Who is an eligible participant? (Sec. 672.300)
Section 672.300 implements sec. 173A(e)(1) of WIA. This section
defines who is eligible to become a YouthBuild participant.
Specifically, Sec. 672.300(a)(1) through (3), implementing sec.
173A(e)(1)(A) of WIA, states that an individual eligible for YouthBuild
participation must be between 16 and 24 years old, a school dropout or
a dropout who is enrolled in an alternative school as defined Sec.
672.110, and either is a member of a low-income family, in foster care,
a youth offender, disabled, a child of an incarcerated parent, or a
migrant youth. Under sec. 173A(e)(1)(B) of WIA no more than 25 percent
of the participants in a particular YouthBuild program may be
individuals that do not meet the criteria described above, provided
that they meet one of the exceptions listed in sec. 173A(e)(1)(B) of
WIA. These exceptions are set out in Sec. 672.300(b) of the final
rule.
One commenter suggested increasing YouthBuild's current exception
in Sec. 672.300(b)(1) for participants who have a high school diploma
or GED and an educational deficiency from 25 percent to 40 percent,
because this would aid recruitment and broaden YouthBuild's participant
base, and enable YouthBuild programs to move even more participants
more quickly
[[Page 9118]]
into employment, enhancing placement rates. While this suggestion would
help broaden the number of potential eligible participants, the 25
percent cap is mandated by the statute. Section 173A(e)(1)(B) of WIA
states that no more than 25 percent of YouthBuild participants in a
particular program may be individuals who do not meet the educational
deficiency requirements in sec. 173A(e)(1)(A)(ii) and (iii) of WIA.
One commenter suggested that the rule include guidance on what
documentation is acceptable for determining the eligibility of a
participant.
We do not view the regulations as the proper place to provide
detailed operational guidance. The regulations set the general rules
governing the YouthBuild program and we provide administrative guidance
to provide the detailed operational procedures. The type of
documentation we accept to establish participant eligibility is broad,
and often changing due to changes made at the Federal, State, or local
level to the forms required, changes in the relevant legal definitions
at the Federal, State, and local level, or because of other changes to
the documentation that we currently accept. By including this
information in the regulation, we could not easily adapt to the changes
described above and could not make the changes that we believe are
necessary in a timely fashion. In addition, upon award of a YouthBuild
grant, each grantee is provided with a Department-issued YouthBuild
handbook that helps grantees understand what documentation is
acceptable to be used to determine a participant's eligibility. This
handbook also provides eligibility guidelines for grantees to use when
selecting participants. Finally, each grantee is required to have in
place written policies it will use to determine the eligibility status
of a perspective participant.
Another commenter recommended that rather than calling the young
people ``dropouts,'' the regulation should describe them as young
people who left school without a diploma. The commenter reasoned that
language used to describe the participants should carefully avoid
labels of all kinds, and in many quarters ``dropout'' has a negative
connotation. We understand the commenter's concerns about labeling
participants with a word that could have a negative connotation.
However the term ``drop out,'' as currently used in WIA sec.
173A(e)(1)(A)(iii) and as defined in WIA sec. 101(39), is a clear,
fair, commonly-used and concise term used to describe the actions of
youth who voluntarily left high school without a diploma.
Are there special rules that apply to veterans? (Sec. 672.305)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
What eligible activities may be funded under the YouthBuild program?
(Sec. 672.310)
This section implements sec. 173A(e)(3) and 173A(c)(2)(A) of WIA,
which outline new education and workforce investment activities. These
activities, newly permitted under the YouthBuild program, consist of
postsecondary education services and activities, including tutoring,
study skills training and dropout prevention activities; other paid and
unpaid work experiences, including internships and job shadowing;
alternative secondary school services, occupational skills training,
and counseling services and related activities, such as comprehensive
guidance and counseling on drug and alcohol abuse and referral.
One commenter had a general concern that the wording of Sec.
672.310 may leave some YouthBuild programs and applicants with the
impression that it will be at the individual program's discretion as to
whether or not they will provide certain services. The commenter is
correct that the intent of the regulation is to provide program
operators with some discretion over the services they may provide.
While a YouthBuild program must offer several required services, we
allow some variation in the overall services available in a program
because we do not believe that a one-size fits all approach would help
programs be successful. We recognize that because YouthBuild is a
nation-wide program, there will be differences between the needs and
resources between regions and among individual programs. This is not to
say that YouthBuild programs can pick and choose services in a vacuum.
Grantees must structure programs so that at least 90% of the
participants' time is spent on eligible education activities (50%) and
eligible workforce investment activities (40%). YouthBuild Federal
project officers monitor program progress and work with grantees to
make sure that grantees' programs produce positive outcomes for the
program and for the participants, while giving detailed information on
required activities and allowable activities.
The same commenter stated that Mental Toughness is an important
element that contributes greatly to cohesive culture-building, and
motivates young people to engage with the program and with each other.
Consequently, the commenter recommended that Mental Toughness/
Orientation be mentioned in the regulations and that programs be
allowed to use their grant funds for this activity. We agree that
Mental Toughness can be an important component of a YouthBuild program.
Because of its potential positive impact, we issued guidance on Mental
Toughness/Orientation (Training and Employment Guidance Letter (TEGL)
14-09 issued on February 25, 2010), which discusses the allowable costs
for initial intake or informal interviews with YouthBuild participants
to gauge prospective participants and their readiness for the rigors of
the YouthBuild program. While we recognize that Mental Toughness can
have a very positive impact on programmatic and participant success, we
do not feel it is appropriate to mandate this technique to all
grantees. Since YouthBuild is a nation-wide program, there will be
differences in the needs, resources, and approaches between regions and
among individual programs.
One commenter recommended that we clarify that YouthBuild programs
are permitted to use grant funds for post-secondary educational
training costs where a participant completes secondary education while
still enrolled in the program, or where a participant is otherwise
ready for post-secondary study. Section 672.310(a)(1)(iv), which
mirrors Sec. 173A(c)(2)(A)(iv)(IV) of WIA, provides that counseling and
assistance in obtaining post-secondary education and required financial
aid is an eligible education activity for grant funds and is available
to the participant whether the participant is still in the program or
has exited and is receiving follow-up services. The regulation follows
the language of the statute. It is an allowable activity under Sec.
672.310(a) for grantees to spend grant funds on post-secondary
education costs described in Sec. 672.530(e)(1) and (2). We urge
grantees to use these funds reasonably for participants, both during
their time in YouthBuild and after they exit and are receiving follow-
up services, so that they may assist as many participants as possible
with post-secondary education costs such as application fees or fees
associated with financial aid. However, grantees have discretion to
determine whether to spend grant funds to directly fund the costs of
post-secondary education.
Another commenter recommended that funding rules should allow
[[Page 9119]]
YouthBuild sites to offer relationship skills training so that
participants may learn communication skills and problem solving skills.
The commenter believes this will help young people acquire necessary
skills and keep jobs they may get with the skills learned through
YouthBuild participation. We agree with the importance of offering
relationship skills training for YouthBuild participants. Many of the
young people who eventually enter YouthBuild lack the communication
skills needed to build strong inter-personal and work-centered
relationships. In our experience, the development of these ``soft''
skills is critical to participant success in the workforce once an
individual leaves YouthBuild. Therefore, at Sec. 672.310(a)(3), we
provide for employment and leadership skills training to encourage
positive social behaviors, which includes the type of training
suggested by the commenter.
One commenter wanted the final rule to offer participants a stipend
for transportation because it would aid in their ability to participate
successfully in a YouthBuild program. The commenter stated that many
low to very low income individuals lack dependable transportation and
that providing participants with a stipend for public transportation
would improve successful outcomes. We agree with the commenter's
understanding of the importance of transportation to the success of
participants. The NPRM, at Sec. 672.310(a)(4) would permit programs to
use grant funds to provide supportive services, which includes aiding
participants in obtaining transportation, including public
transportation, to and from YouthBuild locations and worksites because
it is considered a supportive service under WIA sec. 101(46). We have
carried this provision into the Final Rule.
Another commenter wanted the final rule to provide guidance on how
programs are authorized to provide funds for childcare. Childcare is
another supportive service available under Sec. 672.310(a)(4).
One commenter stated that the 10 percent restriction on grant
funding in Sec. 672.310(c)(2) should be increased to allow for
additional exposure to other sectors of the construction industry
beyond residential construction. We are constrained by WIA sec.
173A(c)(2)(C), which states that no more than ten percent of grant
funds may be used for the supervision and training for participants in
the rehabilitation or construction of community and other public
facilities.
What timeframes apply to participation? (Sec. 672.315)
We received two comments about the amount of time a participant is
permitted to be enrolled in the YouthBuild program. One commenter
wanted to know if there was an exception to the requirement that
participants must be offered full-time participation for a period of at
least six months and not more than 24 months. Section 173A(e)(2) of WIA
provides no exception to this requirement. Therefore we cannot permit
an exception in the final rule.
The other commenter requested that the rule discourage programs
from establishing their program length at the minimum level because
many YouthBuild students' incoming reading and math skill levels and
workforce readiness are typically so limited that YouthBuild
participation and program engagement longer than six months is required
to help improve these skills. The same commenter went on to recommend
that the rule make it clear that every enrollee may participate for up
to 24 months, or for however long the program receives funding,
whichever is shorter.
The suggested change is not needed. Because we are focused on
outcomes within the requirements of the Transfer Act, we work with
programs to ensure participants' success regardless of the time spent
in a YouthBuild program. We understand that the various programs and
participants face different challenges and, therefore, we encourage
programs to work towards successful outcomes for participants, whether
occurring after six months or longer. In addition, Sec. 672.325
requires that each participant exiting a YouthBuild program be provided
follow-up services for a minimum of nine months to assist participants
in obtaining or retaining employment, or applying for and transitioning
to post-secondary education or training. Therefore, each participant
who exits a YouthBuild program, even after only six months, receives
additional services to help ensure a successful transition into
employment or post-secondary education.
What timeframes must be devoted to education and workforce investment
or other activities? (Sec. 672.320)
This section explains the required structure of YouthBuild programs
so that participants in the program are offered specific educational
and related services and activities during at least 50 percent of their
participation time, workforce investment activities during at least 40
percent of their participation time, with the 10 percent time remaining
designated for YouthBuild participants to conduct leadership
development and community service activities, or additional workforce
investment activities or educational activities. The 40 percent
workforce investment activities participation time is a new requirement
under sec. 173A(e)(3)(B) of WIA.
We received two comments on the 10 percent time limit designated
for YouthBuild participants to conduct construction skills training and
construction on affordable housing and public facilities. One commenter
suggested that YouthBuild programs be permitted to use the 10 percent
time limit for YouthBuild participants to work on community projects to
include the opportunity for participants to work on commercial
projects. Both commenters stated that such a broadening of the use of
the additional time could serve to bring YouthBuild programs and
Registered Apprenticeship programs into closer mutual understanding and
alignment and allow additional exposure to these other sectors of the
construction industry.
We agree with the commenter that permission to work on commercial
projects would expose participants to other sectors of the construction
industry. Therefore, we will allow YouthBuild participants to work on
commercial projects as long as those commercial projects directly
involve the building of affordable housing for low income and homeless
families and individuals. One of the goals of the YouthBuild program,
as articulated in sec. 173A(a)(4), is to increase the amount of
permanent affordable housing for homeless individuals and low-income
families. Therefore, due to the limited amount of time for YouthBuild
participants to do construction, coupled with our goal of increasing
affordable housing for homeless individuals and low-income families, we
will permit participants to work on public facility-based projects and
commercial projects, as long as those commercial projects are building
affordable housing.
YouthBuild Programs May Offer Other Occupational Skills Training
In response to comments solicited in the NPRM, we have determined
that YouthBuild programs may offer participants other occupational
skills training besides construction skills training. Each YouthBuild
program is required to offer construction skills training, but
participants do not need to
[[Page 9120]]
complete construction skills training as a prerequisite to engage in
other occupational skills training.
In addition, we will continue to require YouthBuild programs to
provide community service and leadership development opportunities for
every YouthBuild participant. We expect that, when possible, YouthBuild
programs will align community service projects and leadership
development activities with the participant's occupational training and
will provide participants with an opportunity for community service
relevant to their training, allowing participants to use their skills
and training to serve their communities. For example, relevant
community service opportunities for a participant pursuing health care
career training might include volunteering at a local clinic or
volunteering to educate the community about preventative health care.
Other current examples include participants volunteering at a community
food pantry, tutoring younger youth, participating in a graffiti
removal campaign, cleaning a city park, or organizing and speaking at
voter registration drives.
These community service opportunities should intend to address real
needs in the community. It is expected that participants will play a
key role in the design, selection, and implementation of service
projects. Additionally, participants are encouraged to perform
additional community service or volunteer in local non-profit
organizations independent of the YouthBuild program.
We discuss the options we considered for expanding occupational
skills training beyond construction skills training in detail below.
Options Considered for Expanding YouthBuild Training for Participants
In the NPRM, we explained that current grantees have expressed an
interest in expanding their program training beyond construction to
other occupational skills training because YouthBuild programs have
difficulty in placing participants in the construction industry when
demand for construction workers in a local area is low. Additionally,
we learned from grantees that many youth can benefit from the
YouthBuild program, but are not interested in ultimately entering
careers in the construction industry. Because of these concerns, we
asked for comments in the NPRM on whether YouthBuild should continue to
focus on construction skills training or if the skills training should
be expanded to other industry areas. See 75 FR 52671, 52676 (Aug. 27,
2010).
In response, we received fourteen comments on the issue of whether
to allow YouthBuild programs to provide occupational skills training in
addition to construction skills training. One comment was outside the
scope of this rulemaking. Ten commenters stated that we should allow
programs to focus on other occupational skills training besides
construction. Three commenters wanted to keep the focus of occupational
skills training on construction in YouthBuild programs.
Based on our analysis of the comments, we developed three options.
The first option was to maintain the current program approach which is
to allow construction skills training only. The second and third
options both involved allowing other occupational skills training in
YouthBuild besides construction. The second option would require some
construction skills training as a prerequisite for participants to
undergo other occupational skills training. The third option allowed
participants to do other occupational skill straining without first
engaging in construction skills training.
Option 1: Allow Construction Skills Training Only
Three commenters advocated allowing only construction skills
training in YouthBuild. One commenter stated that it was important to
support youth who have the technical skills and industry-recognized
credentials to fill future jobs in the construction industry. This
commenter went on to suggest that YouthBuild participants should be
helped to understand that many skills acquired through YouthBuild
constructions skills training are transferable to other industries.
Another commenter supported maintaining construction skills
training because the growing U.S. population and the aging building
environment in the U.S. will combine to drive demand for construction
workforce development efforts like YouthBuild. This commenter also
stated that the increasingly complex skills necessary for construction
due to the energy efficiency and sustainable construction movement will
drive demand for programs like YouthBuild. The commenter also addressed
the benefits of using construction skills training in YouthBuild by
explaining that it provides a step-by-step learning opportunity with
well-defined knowledge benchmarks. The commenter explained that once
construction skills were learned, the participant could immediately
apply this knowledge in the participant's non-construction work
experiences. The commenter also stated that through construction skills
training, YouthBuild participants could see tangible results of their
training. Furthermore, the commenter felt that YouthBuild participants
would be better prepared to address home maintenance or repair issues
themselves through construction skills learned in training. Finally,
this commenter addressed the statement made in the NPRM that many
YouthBuild participants are not interested ultimately in entering
construction careers. The commenter said that participants are not
limited to placement in construction occupations and that plans
targeting the participant's ultimate career goal could be part of an
individual's ``placement plan''.
The third commenter in support of only construction skill training
stated that from personal experience in operating a YouthBuild program
for more than a decade, the commenter has found that participants may
discover an interest in careers other than construction as a result of
construction skills training in YouthBuild. The commenter also stated
that emphasizing construction skills training enables programs to teach
a work-ethic, provide hands-on training in a demand occupation that may
lead to apprenticeship opportunities, increase the supply of affordable
housing for low-income and homeless individuals and families, and
promote and assist students interested in other in demand occupations
after exiting YouthBuild.
While we agree with many of the commenters' arguments, we have
decided not to continue to require YouthBuild grantees to provide only
construction skills training for a number of reasons. Sec.
173A(c)(2)(A)(ii) of WIA allows other occupational skills training.
Additionally, sec. 173A(a)(1) states that one of the purposes of the
program is to enable participants to obtain the skills necessary to
achieve economic self-sufficiency in occupations in demand, which may
not include jobs in the construction industry in a local area. We agree
with the commenters that a program allowing for other occupational
skills training besides or in addition to construction skills affords
YouthBuild programs and participants more flexibility in matching
available training opportunities to participants' interests. This
approach also allows programs to try and match skills training with
local job market data when appropriate or possible, to develop a
program better suited to both the needs of the community and the
interests of the participants, which we believe will lead to better
employment outcomes for participants.
[[Page 9121]]
Option 2: Allow Other Occupational Skills Training But Require
Construction Skills Training
Four of the commenters recommended allowing other occupational
skills training but stated that construction skills training should
remain a core or primary component of YouthBuild training. Three of the
commenters recommended that YouthBuild should continue to focus on
construction skills training as the primary mode by which participants
learn job-related and leadership skills. One of these commenters stated
that some programs have identified innovative and unique opportunities
to impart in-demand skills to participants including agricultural and
forestry skills, technology-based skills like computer repair,
cosmetology, and entrepreneurship skills. This commenter further
recommended that YouthBuild programs should be provided with an
approved list of other occupational skills training based on sound
models proposed or implemented by local programs, including rural and
Native-serving programs. However, this commenter stressed that
construction [skills training] should continue to be the primary mode
by which young people learn job-related and leadership skills. The
commenter went on to suggest that any other occupational skills
training ``track'' should be pre-approved by the Department and should
be secondary to construction skills training.
Another commenter supported allowing YouthBuild programs the
flexibility to include additional high-demand, service-oriented skills
training that would provide access to entry-level jobs and post-
secondary placement in promising career tracks. However, the commenter
stated that additional occupational skills training should be offered
as an enhancement to accompany constructions skills training, not as a
replacement for construction as the core element of YouthBuild
training. The commenter stated that construction skills training
continues to be of value to YouthBuild participants because it is
attractive to young men who are underrepresented in youth employment
programs. The commenter pointed out that more than 30 percent of
YouthBuild graduates enter construction jobs and that construction
careers should recover as green building expands. Finally, the
commenter asserted that Public Housing authorities seek to hire
disadvantaged youth to ``green'' public housing, and construction
companies will hire youth with criminal records who have gotten back on
track.
We understood these four comments as advocating an approach that
would make construction skills training a required element for all
YouthBuild participants. While we appreciate the approach these
commenters recommend, we have determined that we will not require
YouthBuild programs to make construction skills training a prerequisite
for other occupational skills training. We agree with the commenters
that construction skills training is important to YouthBuild because it
is a vehicle that allows programs to teach transportable skills sets to
participants while imparting them with experiences in team work in a
community service context. We want to make it clear that, based on sec.
173A(c)(2)(A)(i) of WIA, YouthBuild programs have to make construction
skills training available as a part of every program. However, when
possible, we believe that participants, working with YouthBuild
administrators and educators, should able to make a decision about the
occupational skills training they want to undertake. Feedback received
from several YouthBuild programs suggests this approach, matching
training opportunities based on local, in-demand jobs with
participants' interests, will lead to better educational and job
placement outcomes. We will work with YouthBuild programs to develop
innovative job training programs as one commenter suggested.
Option 3: Allow Other Occupational Skills Training Without Requiring
Construction Skills Training
Six commenters recommended that YouthBuild programs should be
allowed to train participants in other occupational skills besides
construction without first going through construction training.
Of the six commenters that recommended a change from construction
skills training to other occupational skills training, four of these
commenters cited the depressed construction industry labor demand as a
reason to expand the skills training in YouthBuild. Two of these
commenters went on to explain that limiting skills training in
YouthBuild to construction work harms existing skilled workers by
reducing their ability to find a job in a time of high unemployment in
the construction industry since there is a surplus of construction
workers seeking limited job opportunities.
Another commenter stated that workforce training in construction
does not offer participants useful employment skills to enter the labor
market in communities where there are few or no jobs in construction.
This commenter explained that allowing YouthBuild programs to tailor
the training offered to more closely mirror employment opportunities
available within local labor markets would increase the number of
participants who successfully achieve job placements after completion
of the program.
Additionally, three of the commenters cited the lack of participant
interest in construction skills training as a basis for supporting
other occupational skills training. Another commenter stated that, in
one particular YouthBuild program, most female students, when asked,
preferred a different career track than construction. One commenter
stated that the heart of YouthBuild is a project-based learning
environment and that construction skills training is simply one method
of conducting it. Furthermore, the commenter believed that because
participants' needs, interests, and abilities may not support
construction skills training, grantees should be given flexibility to
train young people for any high demand field, as long as programs can
demonstrate use of an effective project-based learning environment.
This commenter stated that what is essential to the YouthBuild program
is that participants' experiences in YouthBuild include hands-on
training that meet real community needs in a team-based setting.
In response to the comments received, we have carefully considered
the issue of whether to expand the skills training offered by
YouthBuild from construction skills to other occupational skills
training. As discussed, we have determined that we will allow other
occupational skills training in YouthBuild programs, because we believe
that allowing programs to be able to match job training opportunities
with local, in-demand jobs will lead to more successful employment
outcomes for YouthBuild participants. This will also allow programs,
when possible, a better way to match training opportunities with
participants' interests. However, because the Transfer Act made clear
that the YouthBuild program continues to be a construction training
program, we have determined that YouthBuild programs must continue to
offer construction skills training as an element in all YouthBuild
programs.
Section 173A(c)(2)(A)(i) and (ii) of WIA permits grantees to use
grant funds for workforce investment activities including work
experience and skills training in rehabilitation and construction
activities and occupational skills training. We have determined,
[[Page 9122]]
based on comments received advocating the expansion of the training
offered to include occupational skills training and our program
administration experience, that allowing other occupational skills
training will help YouthBuild programs provide more successful job
placement outcomes and secondary schools placements for program
participants. As we have learned from the most recent recession,
allowing only construction skills training makes job placement
especially difficult for YouthBuild participants during downturns in
the construction industry. Also, we believe that this approach will
enable programs to take innovative approaches to providing training
opportunities that may benefit more participants, especially female
participants who many commenters pointed out do not, ultimately, pursue
construction careers.
In addition, sec. 173A(c)(3)(B)(i) and (v) of WIA require grant
applications to include information about the local labor market,
including projections on career opportunities in growing industries and
descriptions of educational and job training activities that will
prepare participants for employment in in-demand occupations in local
labor markets. We believe that allowing other occupational skills
training in YouthBuild in addition to construction, especially for
local in-demand occupations such as healthcare, ``green'' jobs, and
information technology allows the Department and grantees to better
achieve the purposes of the Transfer Act.
We will work to ensure that the other occupational skills training
should lead to some benchmarked outcome such as a nationally recognized
certificate or certification, an associate degree, or a recognizable
skills achievement that will assist the participant in pursuing a
sustainable career pathway. We will provide further guidance on this
issue as necessary.
While we believe that occupational skills training can be a
valuable part of any YouthBuild program, we stress that construction
skills training remains a mandatory offering for all YouthBuild
programs. Construction skills training is a project-based, easily
benchmarked method for teaching occupational and teamwork skills that
are transferable to virtually any part of the country. As we discussed
in the NPRM, YouthBuild creates a sense of self-worth for its
participants by providing job skills training in the construction
industry and highlighting the important role that each individual can
have on community development and engagement. In addition, youth can
witness their success and contributions through the rehabilitation and
construction of affordable housing for homeless individuals and
families and low-income families. This provides a sense of
accomplishment that many participants will experience for the first
time through a YouthBuild program.
Other Comments
Another commenter suggested changes to Sec. 672.320(a) and (b).
The commenter felt the language in paragraphs (a) and (b) could lead to
the misunderstanding that a program might be out of compliance if a
participant leaves the program before actually participating in
education or workforce investment activities at the specified
percentages. The commenter pointed out that the operative word in the
statute is ``offered'' and argued that programs should not be penalized
for the actual levels of participation that are demonstrated by
participants who do not complete the program. Finally, the commenter
suggested modifying these paragraphs to read: ``(a) Eligible education
activities * * * during at least 50 percent of the program cycle in
which they have enrolled;'' and ``(b) Eligible workforce investment
activities * * * during at least 40 percent of the program cycle in
which they have enrolled.''
We believe the language as written is sufficient to avoid any
unfair penalties for non-compliance. The current language in Sec.
672.320(a) and (b) focuses on the services that participants are
offered during the time they participate in the program because it is
the structure of the program and not participant activity in those
services that governs compliance.
What timeframes apply for follow-up services? (Sec. 672.325)
This section requires that follow-up services be provided to
YouthBuild participants for a period of not less than 9 months but no
more than 12 months after participants exit a YouthBuild program. One
commenter wanted clarification whether the rule required that all
participants be provided follow-up services or if only those
participants that achieve placement were to be provided follow-up
services. All participants that exit the program must be provided
follow-up services, whether or not they achieve placement. The text of
the Final Rule has been changed to clarify this provision.
Another commenter suggested that the follow-up period be no less
than six months with the cap on follow-up periods being the end of the
grant period. The commenter felt that some YouthBuild programs have
excellent post-exit follow-up services, and that some participants
require more intensive follow-up services. Similarly, another commenter
wanted to extend the period of follow-up for up to two years. We agree
that some participants need intensive services. However, the length of
time allotted for follow-up services is set by law in sec.
173A(c)(2)(A)(vii) of WIA at a maximum of 12 months. Additionally, the
9 month minimum for follow-up services is essential for measuring
programmatic outcomes. Specific outcomes for the program are measured
in 3 quarter (or 9 month) increments. For participants and programs to
be measured properly throughout their time in YouthBuild, a minimum 9
month follow-up period is required by the common performance measures.
Subpart D--Performance Indicators
Subpart D deals with the required performance indicators for
grants, required levels of grant performance, grant reporting
requirements, and grant reporting due dates.
What are the performance indicators for YouthBuild grants? (Sec.
672.400)
This section explains the required indicators, such as certificate
attainment, that must be reported by YouthBuild grantees.
One commenter recommended that OSHA-10, First-Aid/CPR,
Weatherization Tactics, and the 48 hour HAZWOPER certificates all be
considered recognized credentials and counted towards program
performance. Another commenter asked about other industry-recognized
credentials, particularly for weatherization and green construction or
other green industries that may be applicable to YouthBuild and can be
reported in the performance indicators.
We appreciate the time and effort necessary to earn these
certificates and the benefits that accrue from them. Credential
attainment is a common measure for WIA and other workforce programs. As
a result, certifications that may be counted towards program
performance must meet the requirements established in TEGL 17-05. This
TEGL explains that the parameters for recognized credential are,
``participation in secondary school, post-secondary school, adult
education program, or any other organized program of study leading to a
degree or certificate.'' The parameters for credentials were further
clarified in TEGL 15-10, which says that ``a credential is awarded in
recognition of an individual's attainment of measurable technical or
occupational
[[Page 9123]]
skills necessary to gain employment or advance within an occupation.''
The certificates specifically mentioned by the commenter do not meet
the criteria to be considered a credential under TEGLs 17-05 and 15-10.
Examples of industry-recognized credentials in the construction
field include the credentials earned through the National Center for
Construction Education and Research's program, the Home Builder's
Institute's (HBI) HPACT curriculum, and the Building Trades Multi-Craft
Core curriculum, are the ones most widely used throughout YouthBuild.
Examples of credentials that are recognized in industries other than
construction include, Certified Nursing Assistant, Certified Java
Programmer, National Institute for Automotive Service Excellence
Certificate, Certified Novell Engineer, and industry-recognized
licensure. While these lists are not exhaustive, they give a few
examples of credentials that would qualify for the performance
measures.
What are the required levels of performance for the performance
indicators? (Sec. 672.405)
This section explains that expected levels of performance for each
of the common performance indicators are national standards that will
be established at a later date and will be provided in separately
issued guidance.
Three commenters requested that we consider basing performance
level expectations on peer group data, specifically rural, urban and
tribal data, and or statewide data or negotiations for other WIA
programs, and that accommodations for sustained economic downturn be
factored into these expectations in some manner. One commenter
suggested that sustained economic distress (which can vary regionally)
and urban, rural and tribal data warrant less uniform and more
individualized performance level expectations without compromising the
goal of continuous improvement in performance. Additionally, according
to a commenter, performance measures should be, in part, based on
average entrance scores--not just Educational Functioning Levels
(levels that measure a defined set of skills and competencies as
developed by the U.S. Department of Education, 34 CFR 462.3), and on
placement outcomes as well. One of the commenters additionally
recommended that all students should be required to meet the outcome
measures for literacy and numeracy, but that only the more advanced
students should be held to criteria concerning academic or occupational
credentials and placement.
We have determined it is not necessary to change the performance
measures. In 2006, we issued TEGL No. 17-05, which dealt with Common
Measures and performance accountability in ETA programs such as
YouthBuild. This guidance set forth one set of measures to be used for
common measure performance purposes. Furthermore, this TEGL describes
the participant information that must be collected and reported for ETA
programs that will be used to assess the performance of grantees under
the common measures. We appreciate the commenters' concerns but the
purpose a common set of measures that apply across similar programs is
to enable us to compare the accomplishments of different programs and
to determine which strategies are successful so that we can apply them
to improve similar programs.
Developing individualized performance targets based on individual
and unique situations would result in performance reports based on
varying definitions and methodologies. This would make it difficult
both to assess the YouthBuild program as a whole and to determine
YouthBuild's impact on the workforce system. Furthermore, since the
Department began administration of the YouthBuild program, we have held
the program to goals that are higher than the Government Performance
Results Act (GPRA) goals. We do not want to lower the expected
performance outcomes based on individualized factors because we believe
that doing so would be detrimental to YouthBuild participants.
YouthBuild programs should strive to meet the performance goals set by
the Department to ensure successful post-secondary and job placement
outcomes for participants. We believe that these aggregate goals have
motivated and will continue to motivate YouthBuild grantees to continue
working towards improved performance outcomes. For these reasons, and
for the reasons discussed above, we will continue to use the standards
announced in TEGL 17-05 that apply to ETA programs such as YouthBuild.
Another commenter stated that it is essential that data collected
to develop the performance indicators for YouthBuild be disaggregated
by gender and other characteristics, so that young women's
participation in the program can be evaluated. We do track this data
and disaggregate participation by, among other things, gender for
review of program activity. We have an electronic management
information system (MIS) that performs this operation for internal
analysis. This information allows us to craft policy to address program
concerns as they arise.
Another commenter recommended that we mention reduction in
recidivism as a performance measure that the Secretary may require to
be tracked. As explained above, we have determined that it is important
to use the Common Measures for the YouthBuild program which are also
required by sec. 173A(c)(3)(B)(xii) of WIA. We will provide the details
of the performance indicators in administrative guidance and will take
the comments into consideration as performance standards are
established. If we later conclude that the standard identified by the
commenter, or any other performance standard is appropriate, Sec.
672.400(a)(4) allows us to require additional performance indicators
not listed in Sec. 672.400(a)(1) through (3).
Another commenter recommended that YouthBuild programs be held to
the same or equivalent standards required of apprenticeship programs
under 29 CFR part 29. The commenter reasoned that the standards set
forth at 29 CFR 29.5, would ensure a quality program.
We appreciate the commenter's suggestions as means to enhance
YouthBuild standards. However, if we were to apply all of the
requirements of 29 CFR part 29 to YouthBuild, we would extend the
period of training beyond the period of performance authorized in the
Transfer Act.
What are the reporting requirements for YouthBuild grantees? (Sec.
672.410)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
What are the due dates for quarterly reporting? (Sec. 672.415)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
Subpart E--Administrative Rules, Costs and Limitations
This subpart deals with other Federal regulations that apply to
YouthBuild programs, and cost limitations and fund matching
requirements.
What administrative regulations apply to the YouthBuild program? (Sec.
672.500)
This section explains the other regulations focusing on
administrative standards, non-discrimination requirements, audit
requirements, and other requirements that apply to YouthBuild programs.
One commenter recommended that the occupational skills and safety
training provided by grantees include comprehensive training on equal
[[Page 9124]]
employment opportunity laws, rights, and responsibilities. The
commenter believes that training YouthBuild participants about their
equal employment opportunity rights and responsibilities will help
create a work environment free of discrimination for all workers.
We agree that a work environment free of unlawful discrimination is
very important. Therefore, Sec. 672.500 specifically refers to the WIA
nondiscrimination regulations at 29 CFR part 37 that apply to
YouthBuild. Furthermore, the nondiscrimination provisions of WIA in
sec. 188 require YouthBuild grantees to ensure equal opportunity and
prevent discrimination in their programs. WIA sec. 188 ensures
nondiscrimination and equal opportunity for various categories of
persons, including persons with disabilities, who apply for and
participate in programs and activities operated by recipients of WIA
Title I financial assistance. Finally, while we do not require
YouthBuild grantees to conduct comprehensive Equal Employment
Opportunity training for program participants, the programs are
required by 29 CFR 37.29 through 37.32 to post, in a conspicuous place
in the YouthBuild facility, an equal opportunity hiring policy
applicable to YouthBuild program staff.
Another commenter requested that we specify young women as a target
population in YouthBuild's nondiscrimination regulations in Subpart E
of the Rule. Section 672.500 explicitly states that the non-
discrimination provisions in 29 CFR part 37 are applicable to
YouthBuild. Part 37 broadly prohibits all forms of discrimination for
WIA Title I programs (which include YouthBuild), including against
women. Specifically, 29 CFR 37.5 states that ``[n]o individual in the
United States may, on the ground of race, color, religion, sex,
national origin, age, disability, political affiliation or belief
[hellip] be excluded from participation in, denied the benefits of,
subjected to discrimination under, or denied employment in the
administration of or in connection with any WIA Title I--funded program
or activity.'' We believe that these applicable non-discrimination
provisions sufficiently protect YouthBuild participants, including
young women
How may grantees provide services under the YouthBuild program? (Sec.
672.505)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
What cost limits apply to the use of YouthBuild program funds? (Sec.
672.510)
Two commenters recommended that the restriction or cap of the cost
of supervision and training for participants in the rehabilitation or
construction of community and other public facilities be raised from 10
percent to 25 percent or 30 percent, or be eliminated. One commenter
explained that the current housing crisis has affected rural and tribal
YouthBuild programs by making it difficult for these programs to
maintain a pipeline of rehabilitation and construction projects for
skills training.
We understand that the comments are aimed at increasing training
projects for YouthBuild participants and producing projects that may
bring added value to the broader community. However, we may not alter
the cost limitation by regulation because it is statutorily mandated in
WIA Section 173A(c)(2)(C).
What are the cost-sharing or matching requirements of the YouthBuild
program? (Sec. 672.515)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
What are considered to be leveraged funds? (Sec. 672.520)
This section provides that funds must be applied toward allowable
costs to be counted as leveraged funds.
One commenter stated that by focusing solely on allowable costs,
the regulations penalize rural and Native groups, which have fewer
opportunities to match and to leverage funds, as well as any group that
raises funds for unallowable costs to advance their program goals. The
commenter suggests creating a third category for which programs are
acknowledged and rewarded (with application review points or monitoring
visit assessment ratings) called ``Other Funds Raised to Support the
Program.'' The commenter states this would encourage programs to
fundraise for legitimate needs (but ``unallowable'' costs) while
assisting us to fully capture local support for YouthBuild. The
commenter also suggested that match and leveraged funding level
requirements and criteria be lowered for rural and tribal programs in
high-poverty and/or persistently poor census tracts or counties, in
recognition of very limited assets and resources in these communities.
While we recognize that rural and tribal programs are often located
in high-poverty and/or persistently poor census tracts, we have decided
not to lower the match requirement. We believe that well -run
YouthBuild programs can not rely solely on Federal grant funds.
YouthBuild programs, to be effective, must have several different
funding sources in order to be able to provide the various services
participants need. The required match over a three year period of
performance brings necessary resources and partners to the program.
Therefore, we do not believe that the requirement is so onerous that it
prevents these kinds of grantees from serving as YouthBuild grantees.
Furthermore, the match requirement demonstrates the commitment of
the community and the program to provide the necessary resources for
the success of the YouthBuild program. Our program experience is that
that a significant number of rural and native applicants have been able
to meet the match requirement, therefore we do not believe that that
requirement prevents rural and tribal programs from serving as
YouthBuild grantees.
We want to clarify that costs which benefit the grant program
(whether paid for with Federal or non-Federal resources) and are
otherwise allowable under the cost principles are allowable under the
grant and may be used as leveraged funds as long as no other statutory,
regulatory, or grant provision prohibits the use of such funds for that
purpose. In response to the commenter's proposed third category, the
type of funds the commenter characterizes are already taken into
account. An additional category is not needed since leveraged or
matched funds are already considered in the review of the application.
How are the costs associated with real property treated in the
YouthBuild program? (Sec. 672.525)
This section explains the costs associated with real property that
are allowable solely for the purpose of training YouthBuild
participants.
We received four comments on this section, one of which was outside
the scope of the NPRM. One commenter recommended that personal
protective equipment (PPE) be allowed as an expense for YouthBuild
training activities in Sec. 672.525(c)(1) in order to ensure that
YouthBuild participants comply with Federal and State health and safety
standards.
We agree that the protection and safety of YouthBuild participants
during construction training is of the highest importance. Therefore,
we have amended the final rule to include PPE as an allowable expense
for YouthBuild training activities under Sec. 675.525(c)(1).
Two commenters asked that the cost of land acquisition for the
construction of a new building for the purposes of
[[Page 9125]]
YouthBuild construction training be an allowable cost for match and
leverage requirements. Because YouthBuild is a job skills training
program, as a matter of policy, the allowable costs for match and
leverage must be made up of training-related costs and not property
costs. Therefore, the final rule continues to disallow land acquisition
as an allowable cost.
What participant costs are allowable under the YouthBuild program?
(672.530)
We did not receive any comments on this section. However, as
described above in the discussion of Sec. 672.310, we have added
language to Sec. 672.530(e) to clarify that the costs for providing
additional benefits, described in Sec. 672.530(e)(1) through (3), to
participants or individuals who have exited the program and are
receiving follow-up services, can still be incurred after participants
terminate participation in the program.
What effect do payments to YouthBuild participants have on eligibility
for other Federal needs-based benefits? (Sec. 672.535)
This section explains what effect stipends and other assistance
received from YouthBuild have on a participant's income for purposes of
establishing need for other Federally sponsored needs-based programs.
One commenter stated that wages paid to participating youth as part
of construction skills training should be exempt from income
considerations for Temporary Assistance for Needy Families (TANF),
Section 8 rental assistance programs, and Medicaid income thresholds.
The commenter goes on to explain that access to nutrition, housing, and
health care should not be diminished by participating in an employment
and training program that will help participants become self-
sufficient.
We agree. Under the WIA regulations at 20 CFR 667.272(c),
allowances, earnings, and payments to individuals participating in
programs under Title I of WIA are not considered as income for purposes
of determining eligibility for and the amount of income transfer and
in-kind aid furnished under any Federal or Federally-assisted program
based on need other than as provided under the Social Security Act (42
U.S.C. 301). Since YouthBuild is a WIA Title I Program, income earned
from participation in the YouthBuild program should not disqualify
participants from benefitting from other Federally-sponsored needs-
based programs that are available to them.
What program income requirements apply under the YouthBuild program?
(Sec. 672.540)
This section deals with program income requirements, as specified
in the applicable Uniform Administrative Requirements at 29 CFR 95.24
and 97.25.
One commenter stated that it was disappointing to learn that, in
the NPRM, we proposed that revenue from the sale or rental of
YouthBuild construction and rehabilitation projects would not be
counted as program income because it would be discouraging to
participants to see the fruits of their labors not reinvested in
improving and sustaining their program.
We agree with the commenter that under the Uniform Administrative
Requirements rental income is considered program income and can be used
to pay for allowable costs incurred by the program. We have amended
Sec. 672.540(b) to reflect this change. However, under the Uniform
Administrative Requirements, income derived from the sale of YouthBuild
construction and rehabilitation projects is not considered program
income. We encourage grantees to reinvest any revenue realized through
sales back into the YouthBuild programs to promote long-term
sustainability.
Are YouthBuild programs subject to the Davis-Bacon Act labor standards?
(Sec. 672.545)
This section deals with the Davis-Bacon wage rules that cover
prevailing wage rates on Federally-funded or -assisted construction
projects. We received five comments on this section. Two commenters
stated that many groups may be confused by the Davis-Bacon Act labor
standards and its application to YouthBuild. One commenter suggested
that we offer separate guidance on this issue. At this time, ETA has no
plans to offer guidance on Davis-Bacon labor standards' applicability
to YouthBuild. However, the Department's Wage and Hour Division (WHD),
which is responsible for the administration of the Davis-Bacon Act
labor standards, does offer compliance guidance at its Web site at
http://www.dol.gov/whd/regs/compliance/ca_main.htm.
The other commenter requested a definition of ``Davis-Bacon-covered
laborer or mechanic work.'' The definition of laborer or mechanic work
for Davis-Bacon purposes can be found at 29 CFR 5.2.
Proposed Sec. 672.545(b)(1) of the NPRM explained that YouthBuild
participants could be classified as ``trainees'' for Davis-Bacon
purposes if they are individually registered in a trainee program
approved by ETA. Two commenters objected to classifying YouthBuild
participants as ``trainees'' on Davis-Bacon covered projects that would
allow the YouthBuild ``trainee'' to be paid less than the Davis-Bacon
Labor Standards require. Both commenters go on to say that allowing
YouthBuild ``trainees'' to be paid lower rates than workers subject to
the Davis-Bacon wage requirements would provide an incentive to hire
YouthBuild ``trainees'' for construction work instead of journey-level
construction workers and apprentices in many of the building and
construction trades. It also, according to one commenter, could result
in the loss of jobs and job opportunities for laborers. The commenters
also suggest that establishing YouthBuild programs as ``trainee''
programs would place them in direct competition with many formal
apprenticeship programs registered with the Department because in many
instances, according to the commenters, the two training programs draw
upon the same pool of candidates. Both commenters argue that because
there are other benefits attached to participation in YouthBuild such
as needs-based stipends and other services, this would place YouthBuild
``trainees'' at a competitive advantage with apprentices and journey-
workers by making YouthBuild ``trainees'' cheaper to employ. One
commenter states that this affects the construction industry by
weakening its ability to attract and retain skilled workers. This
commenter goes on to argue that the YouthBuild program does not qualify
as a certified and registered training program under ETA and therefore,
YouthBuild participants should not be classified as ``trainees'' for
Davis-Bacon purposes.
However, this commenter encourages us to promote cooperation and
partnerships between YouthBuild and registered apprenticeship programs
and to promote the transfer of YouthBuild training credit within these
apprentice programs. Furthermore, the other commenter argues that there
is nothing in the Transfer Act that indicates the purpose of YouthBuild
is to create trainee programs registered with ETA. Finally, the
commenter states that it seems clear that Congress intended YouthBuild
to serve as a source of qualified applicants for formal pre-
apprenticeship and registered apprenticeship training programs in the
building and construction industry.
The two commenters linked comments about the YouthBuild Trainee--
Apprenticeship Preparation
[[Page 9126]]
Standards (YB-TAP) to the NPRM section that addresses certified
``trainee'' programs under the Davis-Bacon Act in Sec. 672.545.
The YB-TAP standards are a set of national standards developed in
close consultation with ETA's Office of Apprenticeship (OA). The
standards provide the basis for a YouthBuild program to establish an
OA-approved trainee training program. By using the YB-TAP standards, a
YouthBuild program can participate in a nationally approved trainee
training program that allows it to pay participants less than the
Davis-Bacon journey worker wage rates when performing work on Federal
and federally assisted construction projects to which Davis-Bacon
requirements apply.
Our intent in developing the YB-TAP was to design standards
specifically for YouthBuild to create a more formal pathway into
registered apprenticeships for YouthBuild participants, to create
consistency in the construction skills training offered by YouthBuild
programs across the country, and to provide another portable credential
for YouthBuild program participants. Additionally, YB-TAP provided
greater flexibility for YouthBuild programs to work on sites covered by
Davis-Bacon, and thus expand the pool of potential worksites for
grantees which often struggle to find suitable projects for worksite
training. Of the 223 DOL-funded YouthBuild programs, 28 have registered
with YB-TAP to-date; 12 of those requested and received a certification
to have participants work at Davis-Bacon-covered sites, which allows
them to be paid at less than the journey worker prevailing wage.
However, as a result of implementing YB-TAP, we found unintended
consequences have arisen that are a concern for YouthBuild programs.
Many of the organizations that YouthBuild seeks to partner with see YB-
TAP as being in direct competition because programs are allowed to pay
their participants, as trainees, less than the prevailing wage rate.
The lower ratio of journey workers to trainees approved in the YB-TAP
program makes it less expensive for a contractor to hire a YouthBuild-
sponsored construction crew versus a journey worker staffed crew, and
the YB-TAP standards, in effect, create a competing apprenticeship-like
program approved by the Department.
Therefore, while these provisions for trainees who may be paid less
than Davis-Bacon journeyman wage rates remain in effect as part of the
Davis-Bacon Act labor standards, we have deleted the references to
trainees and registered trainee programs in Sec. 672.545(b)(1) to
indicate that we will not approve programs as ``trainee'' programs for
Davis-Bacon wage rate purposes without further notice. We believe this
change is currently in the best interests of the YouthBuild program for
the reasons discussed above.
What are the recordkeeping requirements for YouthBuild programs? (Sec.
672.550)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
Subpart F--Additional Requirements
This subpart deals with other requirements, such as safety
requirements and YouthBuild housing requirements, with which all
programs must comply.
What are the safety requirements for the YouthBuild program? (Sec.
672.600)
This section explains the safety standards that YouthBuild grantees
must meet.
A commenter wrote that though safety is a preeminent concern for
YouthBuild grantees, following National Institute for Occupational
Safety and Health (NIOSH) and Occupational Safety and Health
Administration (OSHA) standards can present significant challenges.
That commenter explains that Mental Toughness is only effective if
young people gain some exposure to the worksite, and it is not
practical to provide such training at the beginning of Mental
Toughness. The commenter asks that grantees be given some discretion in
the timing of OSHA safety training to accommodate the purpose of Mental
Toughness. The commenter also suggests that many YouthBuild grantees do
not own or manage their own construction sites. They build in
cooperation with a housing partner, such as Habitat for Humanity. The
commenter believes it would be appropriate to follow the safety
standards used by the housing partner.
On November 14, 2006, we published, at 71 FR 66349, a Federal
Register notice requesting public comments and announcing public
meetings on the design of YouthBuild grants. The notice sought public
input and observations on the optimum number of years and amount of
grant awards, ways to ensure grantees meet educational and employment
outcomes, how capacity building grants can be strengthened, and ways to
improve any other aspect of the program. We received four comments,
including comments from NIOSH and OSHA, relating to safety issues in
response to the Federal Register notice. The NIOSH comments emphasized
the dangers of youth working in construction and noted that youth
fatalities in construction are related to noncompliance with child
labor laws and occupational safety and health regulations. The comments
from OSHA similarly stressed the importance of safety training and
identification of worksite hazards.
Based upon the concerns raised by these commenters and others, the
NPRM required that YouthBuild grantees not only comply with Federal and
State health and safety standards, including the hazardous orders in
the WHD child labor regulations, but also that they: Provide
comprehensive safety training for youth working on YouthBuild
construction projects; have written, jobsite-specific, safety plans
overseen by an on-site supervisor with authority to enforce safety
procedures as part of the grant application; provide necessary personal
protective equipment to youth working on YouthBuild projects; and
submit injury incident reports to ETA. The intent of these requirements
is to protect the health and safety of YouthBuild participants on
YouthBuild work sites, and to ensure that YouthBuild grantees comply
with child labor laws.
We reiterate the importance of the NIOSH and OSHA safety standards
for YouthBuild programs to ensure participant safety; therefore, we
will not grant programs the discretion to provide the training after
youth have already been on the worksite. The dangers inherent in youth
working in construction and the well documented youth fatalities in
construction which are directly related to noncompliance with child
labor laws and occupational safety and health regulations makes it
imperative that YouthBuild participants receive NIOSH and OSHA training
before admittance to the work site. However, we recommend that any
safety standards that may exist in addition to the required safety
standards already discussed should be observed by YouthBuild
participants. Therefore, it is appropriate for participants also to
follow the safety standards of a YouthBuild housing partner, as the
commenter suggested, as long as the standards compliment Federal,
State, and local safety standards and provide at least the same level
of safety as the required Federal, State and local standards.
Another commenter recommended that the requirement that grantees
comply with Federal child labor laws be extended to include state child
labor laws as well. We agree it is important for programs to comply
with state child
[[Page 9127]]
labor laws as well and therefore has included the requirement in Sec.
672.600.
The same commenter contended that we need to develop an injury
surveillance system to routinely collect, analyze and report the injury
data that grantees will be required to submit under the proposed rules.
We agree with the importance of capturing this information and already
have a system in place in which to capture the data.
Further, the commenter stressed the need to conceptualize and
implement health and safety training as an integral and essential
component of occupational skills development. The commenter felt that
health and safety training was an ``add-on'' to occupational skills
training instead of being an integral component of occupational skills
development. We disagree with this assessment. Safety of the
participants and the program staff is of significant importance to the
Department. This is expressed not only in the proposed rule, but in all
of the YouthBuild SGAs.
What are the reporting requirements for youth safety? (Sec. 672.605)
This section explains the requirements and process for filing
reports when youth are injured while working on YouthBuild projects.
One commenter asked that we specify the process of reporting and
filing injury incident reports for accidents involving youth that occur
while youth are working on YouthBuild projects. This commenter goes on
to ask that we provide details on what forms must be used in filing
injury incidents, where to obtain the reports, and where the form is
filed.
As we explained in Sec. 672.605 of the NPRM and in this final
rule, a YouthBuild grantee is responsible for sending a copy of OSHA's
injury incident report form, to the U.S. Department of Labor,
Employment and Training Administration within 7 days of any reportable
injury suffered by a YouthBuild participant. The injury incident report
form is available from OSHA and can be downloaded at http://www.osha.gov/recordkeeping/RKforms.html.
What environmental protection laws apply to the YouthBuild program?
(Sec. 672.610)
We did not receive any comments on this section. The final rule
adopts the regulation as proposed.
What requirements apply to YouthBuild housing? (Sec. 672.615)
This section explains that, for a period of at least ten years, all
YouthBuild housing must be rented or sold to low income or homeless
individuals and families, and that housing must be kept in a clean and
sanitary condition. In addition, this section outlines some of the
rules that must be followed when leasing YouthBuild housing to homeless
or low income families and individuals.
One commenter expressed concern that there is a potential for
exploitation for private benefit without requiring grantees to have
written policies governing the rehabilitation of low income houses that
are occupied. The same commenter went on to suggest that the
Department's lawyers examine what impact, if any, Federal rules
relating to relocation may have on the rehabilitation of occupied
housing. The commenter pointed out that the Uniform Relocation Act and
related statutes provide certain rights to residents who are relocated
as a result of Federally-assisted housing activities.
We share the commenter's concern that there is a chance for
exploitation for private benefit without requiring grantees to have a
written policy. Furthermore, we appreciate the commenter's concerns
over the applicability of the Uniform Relocation Act as it pertains to
grantees rehabilitating occupied low income housing. We will examine
the issues and, if necessary, will produce guidance addressing both of
these issues.
IV. Administrative Information
Regulatory Flexibility Analysis, Executive Order 13272, Small Business
Regulatory Enforcement Fairness Act
The Regulatory Flexibility Act (RFA) at 5 U.S.C. 603(a) requires
agencies to prepare and make available for public comment an initial
regulatory flexibility analysis (IRFA) which will describe the impact
of a regulation on small entities. Section 605 of the RFA allows an
agency to certify a rule, in lieu of preparing an IRFA, if the final
rule is not expected to have a significant economic impact on a
substantial number of small entities. Furthermore, under the Small
Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801
(SBREFA), an agency is required to produce compliance guidance for
small entities if the rule has a significant economic impact on a
substantial number of small entities. The RFA defines small entities as
small business concerns, small not-for-profit enterprises, or small
governmental jurisdictions. The final rule directly affects all
YouthBuild grantees, of which there are currently 226. About half of
these are small entities (generally non-profit, community-based
organizations). We do not believe that the final rule will have a
significant economic impact on a substantial number of these small
entities. We have certified this to the Chief Counsel for Advocacy,
Small Business Administration, under the Regulatory Flexibility Act.
The primary issues affected by the final rule are discussed below.
The YouthBuild program has existed since 1978. YouthBuild began as
a Federal grant program in 1994 and was administered by HUD until 2006
when it was transferred to the Department. YouthBuild operates as a
voluntary grant program. While there are matching and leverage
requirements, organizations apply for Federal grant funds. Also, grant
funds may be used to pay for requirements in the final rule that
address participant safety, worksite environmental standards, and a
required follow-up time period for YouthBuild enrollees.
The final rule requires that all applicable National Institute for
Occupational Safety and Health (NIOSH) and Occupational Safety and
Heath Administration (OSHA) regulations be followed for youth who are
on YouthBuild participant construction sites. The NIOSH safety
standards are standard requirements for all Federally-funded
construction worksites across the United States. The requirements will
not add demonstrably to the cost of any YouthBuild program because
safety equipment required by NIOSH standards can be purchased using
YouthBuild grant funds provided by the Department. Further, the cost of
the other requirements--supervisor training, development of safety
plans, safety reporting, etc.--can be paid for with grant funds as
well.
In addition, the final rule requires that all Federal environmental
standards, including National Environmental Policy Act of 1969 (NEPA),
be followed. This is a standard for all Federally-funded construction
worksites across the United States and is already established procedure
at many YouthBuild work sites. YouthBuild grant funds may be used to
ensure compliance with the required environmental standards.
The YouthBuild program will have a beneficial economic impact on
small entity program participants. While there are match and leverage
requirements under YouthBuild, the grantees are applying to receive
additional resources to carry out their purposes for the benefit of
participants. Finally, we are aware of no public concern that the rule
will have a significant economic impact
[[Page 9128]]
on a substantial number of small entities. We specifically invited
comments from members of the public who believe there will be such an
impact on small entities. We did not receive any comments in response.
Accordingly, we certify that this final rule will not have a
significant economic impact on a substantial number of small entities.
Paperwork Reduction Act
One of the purposes of the Paperwork Reduction Act of 1995 (PRA),
44 U.S.C. 3501 et seq., is to minimize the paperwork burden on affected
entities. The PRA requires certain actions before an agency can adopt
or revise the collection of information, including publishing a summary
of the collection of information and a brief description of the need
for and proposed use of the information.
The collection of data described in this final rule contains
requirements to implement reporting and recordkeeping requirements for
the YouthBuild program. This reporting structure features standardized
data collection for program participants, and quarterly narrative and
Management Information System (MIS) performance report formats. All
data collection and reporting will be done by YouthBuild grantees.
These requirements were previously reviewed and approved for use by
OMB under 44 U.S.C. 3507 and 5 CFR part 1320, and assigned OMB control
number 1205-0464 under the provisions of the PRA. YouthBuild grantees
will collect and report selected standardized information on
participants in YouthBuild programs for the purposes of general program
oversight, evaluation, and performance assessment. ETA will provide all
grantees with a YouthBuild management information system (MIS) to use
for collecting participant data and for preparing and submitting the
required quarterly reports. We have determined that this final rule
contains no new information collection requirements.
We estimate that the public reporting burden for this collection of
information will amount to 16,280 hours. This total includes all
paperwork required by this rule over the course of one program year for
all grantees nationwide.
Executive Orders 12866 and 13563
Executive Orders (E.O.) 13563 and 12866 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility.
Section 3(f) of E.O. 12866 defines a ``significant regulatory
action'' as an action that is likely to result in a rule that: (1) Has
an annual effect on the economy of $100 million or more or adversely
and materially affects a sector of the economy, productivity,
competition, jobs, the environment, public health or safety, or State,
local or Tribal governments or communities (also referred to as
``economically significant''); (2) creates serious inconsistency or
otherwise interferes with an action taken or planned by another agency;
(3) materially alters the budgetary impacts of entitlement grants, user
fees, or loan programs or the rights and obligations of recipients
thereof; or (4) raises novel legal or policy issues arising out of
legal mandates, the President's priorities, or the principles set forth
in E.O. 12866
We received one comment on E.O. 12866 addressing whether this rule
is a significant regulatory action. The commenter was concerned that
YouthBuild participants who were employed on Davis-Bacon sites would
displace skilled construction apprentices and journey workers because
the YouthBuild participant could be paid a lower than Davis-Bacon
required wage. The commenter suggested that this would result in the
unemployment of these trade workers and the effect on the economy could
be large, ranging from loss of income and loss of buying power, to
increased Federal unemployment support and increased need for other
social services. However, in response to the comment, we have
determined that YouthBuild participants that work on Davis-Bacon
worksites will be subject to Davis-Bacon wage rates. Therefore,
YouthBuild participants could not be employed at lower than Davis-Bacon
wage rates.
E.O. 13563, issued after publication of the NPRM, asked agencies to
identify, to the extent possible, the necessity of the regulation as
well as the costs and benefits of the regulation.
YouthBuild is a workforce development program that provides
employment, education, leadership development, and training
opportunities to disadvantaged and low-income youth between the ages of
16 and 24, most of whom are secondary school drop outs and are either a
member of a low-income family, a foster care youth, a youth offender, a
youth with a disability, a child of an incarcerated parent, or a
migrant youth. This regulation is necessary for the orderly operation
and management of the YouthBuild program because the Department has not
published regulations governing the YouthBuild program since it was
transferred from HUD to the Department in 2006.
Program participants receive numerous benefits through their
participation in the YouthBuild program. Participants receive education
services that may lead to either a high school diploma or GED. Further,
they receive occupational skills training and are encouraged to pursue
a post- secondary education or additional training, including
registered apprenticeship programs. The program is designed to create a
skilled workforce either in the construction industry, through the
rehabilitation and construction of housing for homeless individuals and
families and low- income families, as well as public facilities, or in
other high wage, high-demand jobs. The program also benefits the larger
community because it provides more new and rehabilitated affordable
housing.
In contrast to the benefits provided to both program participants
and their communities, the cost to YouthBuild programs to provide these
services is minimal. The money to provide these benefits to program
participants is provided to YouthBuild programs both through an annual
grant competition overseen by the Department, as well as any additional
leveraged resources obtained by YouthBuild programs. Based on these
factors, we have reviewed the costs and benefits of the regulation and
have determined that this regulatory approach maximizes net benefits.
While the regulatory requirements defined and implemented by this
final rule for this grant program will not have an annual, measurable
effect on the economy of $100 million or more, the final rule raises
novel policy issues about, among other things, application of Davis-
Bacon wage rules, Federal cost limitations, and the expansion of the
YouthBuild program approved training to other occupational skills
besides construction skills training. Therefore, this rule has been
designated a ``significant regulatory action'' although not
economically significant, under section 3(f) of E.O. 12866 and
submitted to OMB for review.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531)
[[Page 9129]]
directs agencies to assess the effects of Federal regulatory actions on
State, local, and tribal governments, and the private sector. This
final rule has no ``Federal mandate,'' which is defined in 2 U.S.C.
658(6) to include either a ``Federal intergovernmental mandate'' or a
``Federal private sector mandate.'' A Federal mandate is any provision
in a regulation that imposes an enforceable duty upon State, local, or
tribal governments, or imposes a duty upon the private sector which is
not voluntary. The YouthBuild program is a grant program. Grantee
participation in YouthBuild is voluntary. Furthermore, this final rule
does not include any Federal mandate that may result in increased
expenditure by State, local, and tribal governments in the aggregate of
more than $100 million, or increased expenditures by the private sector
of more than $100 million.
Executive Order--12630 Government Actions and Interference With
Constitutionally Protected Property Rights
The YouthBuild Transfer Act requires that housing rehabilitated or
constructed with YouthBuild grant funds be for the purposes of housing
homeless individuals and families or low-income families. In order for
the Department to ensure that the YouthBuild program is administered in
compliance with the legislation, each grantee must ensure that the
owner of the property where YouthBuild funds are spent to construct or
rehabilitate residential units records a restrictive covenant on the
property, limiting the use of the units to housing for homeless
individuals and families and low-income families. Such a restrictive
covenant will not result in a taking without just compensation. This is
a contractually-based restriction and therefore property owners are
compensated for any limitations on the use of their land. Property
owners enter into these contracts creating the restriction voluntarily
and they receive consideration in the form of services from the
YouthBuild program to build or rehabilitate their housing for the
burden on their property. Subsequent purchasers will have notice of the
covenant and will be able to determine purchase price with knowledge of
the limitations on the use of the property. Furthermore, the
restrictive covenant will expire 10 years from the date of issuance of
occupancy permit, giving flexibility to the grantee and/or property
owner within a reasonable time period. We are committed to upholding
the integrity of the YouthBuild program in all its aspects and believe
that a restrictive covenant is the best way to meet the purpose of the
legislation to increase the supply of housing for homeless individuals
and families and low-income families.
Executive Order 12988--Civil Justice
This final rule has been drafted and reviewed in accordance with
Executive Order 12988, Civil Justice Reform, and will not unduly burden
the Federal court system. The final rule has been written so as to
minimize litigation and provide a clear legal standard for affected
conduct and has been reviewed carefully to eliminate drafting errors
and ambiguities.
Executive Order 13045
Executive Order 13045 concerns the protection of children from
environmental health risks and safety risks. This final rule has no
impact on the environmental health or safety of children.
Executive Order 13175
Executive Order 13175 addresses the unique relationship between the
Federal Government and Indian Tribal governments. The order requires
Federal agencies to take certain actions when regulations have ``Tribal
implications.'' Required actions include consulting with Tribal
governments before promulgating a regulation with Tribal implications
and preparing a Tribal impact statement. The order defines regulations
as having Tribal implications when they have substantial direct effects
on one or more Indian Tribes, on the relationship between the Federal
Government and Indian Tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian Tribes.
This final rule addresses a voluntary grant program, YouthBuild,
which is administered by the U.S. Department of Labor. Although there
are tribal YouthBuild grantees, we conclude that this final rule does
not directly affect one or more Indian Tribes, the relationship between
the Federal Government and Indian Tribes, or the distribution of power
and responsibilities between the Federal Government and Indian Tribes.
Environmental Impact Assessment
We have reviewed this final rule in accordance with the
requirements of the National Environmental Policy Act (NEPA) of 1969
(42 U.S.C. 4321 et seq.), the regulations of the Council on
Environmental Quality (40 CFR. part 1500), and the Department's NEPA
procedures (29 CFR. part 11). The final rule will not have a
significant impact on the quality of the human environment, and, thus,
we have not prepared an environmental assessment or an environmental
impact statement.
Assessment of Federal Regulations and Policies on Families
Section 654 of the Treasury and General Government Appropriations
Act, enacted as part of the Omnibus Consolidated and Emergency
Supplemental Appropriations Act of 1999 (Pub. L. 105-277, 112 Stat.
2681), requires us to assess the impact of this final rule on family
well-being. A rule that is determined to have a negative effect on
families must be supported with an adequate rationale.
We have assessed this final rule and determines that it will not
have a negative effect on families. Indeed, we maintain that this rule
will strengthen families by providing low-income housing and
occupational training for low-income families and others.
Executive Order 13211
This final rule is not subject to Executive Order 13211, because it
will not have a significant adverse effect on the supply, distribution,
or use of energy.
Privacy Act of 1974
The Privacy Act of 1974 is implicated when a regulation: (1)
Requires either collection of information that the agency will retrieve
by an individual's name or other personal identifier or would create a
program where the agency's program records will be retrieved by an
individual's name or personal identifier; and (2) involves computerized
matching of records from a Privacy Act System of Records with any other
records.
This final rule is not affected by the Privacy Act of 1974 as it
does not require the Department to collect information on an
individual's name or other personal identifier or involve computerized
matching of records from a Privacy Act System of Records with any other
records.
Plain Language
We drafted this final rule in plain language.
Therefore, according to the preamble, ETA amends 20 CFR chapter V
by adding part 672 to read as follows:
PART 672--PROVISIONS GOVERNING THE YOUTHBUILD PROGRAM
Subpart A--Purpose and Definitions
Sec.
672.100 What is YouthBuild?
672.105 What are the purposes of the YouthBuild program?
672.110 What definitions apply to this part?
[[Page 9130]]
Subpart B--Funding and Grant Applications
672.200 How are YouthBuild grants funded and administered?
672.205 How does an eligible entity apply for grant funds to operate
a YouthBuild program?
672.210 How are eligible entities selected to receive grant funds?
672.215 How are eligible entities notified of approval for grant
funds?
Subpart C--Program Requirements
672.300 Who is an eligible participant?
672.305 Are there special rules that apply to veterans?
672.310 What eligible activities may be funded under the YouthBuild
program?
672.315 What timeframes apply to participation?
672.320 What timeframes must be devoted to education and workforce
investment or other activities?
672.325 What timeframes apply for follow-up services?
Subpart D--Performance Indicators
672.400 What are the performance indicators for YouthBuild grants?
672.405 What are the required levels of performance for the
performance indicators?
672.410 What are the reporting requirements for YouthBuild grantees?
672.415 What are the due dates for quarterly reporting?
Subpart E--Administrative Rules, Costs, and Limitations
672.500 What administrative regulations apply to the YouthBuild
program?
672.505 How may grantees provide services under the YouthBuild
program?
672.510 What cost limits apply to the use of YouthBuild program
funds?
672.515 What are the cost-sharing or matching requirements of the
YouthBuild program?
672.520 What are considered to be leveraged funds?
672.525 How are the costs associated with real property treated in
the YouthBuild program?
672.530 What participant costs are allowable under the YouthBuild
program?
672.535 What effect do payments to YouthBuild participants have on
eligibility for other Federal need-based benefits?
672.540 What program income requirements apply under the YouthBuild
program?
672.545 Are YouthBuild programs subject to the Davis-Bacon Act labor
standards?
672.550 What are the recordkeeping requirements for YouthBuild
programs?
Subpart F--Additional Requirements
672.600 What are the safety requirements for the YouthBuild Program?
672.605 What are the reporting requirements for youth safety?
672.610 What environmental protection laws apply to the YouthBuild
Program?
672.615 What requirements apply to YouthBuild Housing?
Authority: 29 U.S.C. 2918a.
Subpart A--Purpose and Definitions
Sec. 672.100 What is YouthBuild?
(a) YouthBuild is a workforce development program that provides
employment, education, leadership development, and training
opportunities to disadvantaged and low-income youth between the ages of
16 and 24, most of whom are secondary school drop outs and are either a
member of a low-income family, a foster care youth, a youth offender, a
youth with a disability, a child of an incarcerated parent, or a
migrant youth.
(b) Program participants receive education services that may lead
to either a high school diploma or General Educational Development
(GED). Further, they receive occupational skills training and are
encouraged to pursue a post- secondary education or additional
training, including registered apprenticeship programs. The program is
designed to create a skilled workforce either in the construction
industry, through the rehabilitation and construction of housing for
homeless individuals and families and low- income families, as well as
public facilities, or in other high wage, high-demand jobs. The program
also benefits the larger community because it provides more new and
rehabilitated affordable housing.
Sec. 672.105 What are the purposes of the YouthBuild program?
(a) The overarching goal of the YouthBuild program is to provide
disadvantaged and low-income youth the opportunity to obtain education
and employment skills in local in-demand and high-demand jobs to
achieve economic self-sufficiency. Additionally, the YouthBuild program
has as goals:
(1) To promote leadership skills development and community service
activities. YouthBuild programs will foster the development of
leadership skills and a commitment to community improvement among youth
in low-income communities.
(2) To enable youth to further their education and training.
YouthBuild programs will provide counseling and assistance in obtaining
post-secondary education and/or employment and training placements that
allow youth to further their education and training.
(3) To expand the supply of permanent affordable housing and reduce
the rate of homelessness in communities with YouthBuild programs. The
program seeks to increase the number of affordable housing units
available and to decrease the number of homeless individuals and
families in their communities.
(b) Through these educational and occupational opportunities, to
enable youth participants to provide a valuable contribution to their
communities. The YouthBuild program will add skilled workers to the
workforce by educating and training youth who might have otherwise
succumbed to the negative influences within their environments.
Sec. 672.110 What definitions apply to this part?
Alternative school. The term ``alternative school'' means a school
or program that is set up by a State, school district, or other
community-based entity to serve young people who are not succeeding in
a traditional public school environment. In order for an ``alternative
school'' to qualify as of part of a ``sequential service strategy'' it
must be recognized by the authorizing entity designated by the State,
award a high school diploma or both a high school diploma and a GED
and, must be affiliated with a YouthBuild program.
Community or other public facility. The term ``community or other
public facility'' means those facilities which are either privately
owned by non-profit organizations, including faith-based and community-
based organizations, and publicly used for the benefit of the
community, or publicly owned and publicly used for the benefit of the
community.
Core construction. The term ``core construction'' means activities
that are directly related to the construction or rehabilitation of
residential, community, or other public facilities. These activities
include, but are not limited to, job skills that can be found under the
Standard Occupational Classification System (SOC) major group 47,
Construction and Extraction Occupations, in codes 47-1011 through 47-
4099. These activities may also include, but are not limited to,
construction skills that may be required by green building and
weatherization industries but are not yet standardized. A full list of
the SOC's can be found at the Bureau of Labor Statistics (BLS) Web
site, http://www.bls.gov/soc.
Eligible entity. The term ``eligible entity'' means a public or
private nonprofit agency or organization (including a consortium of
such agencies or organizations), including--
(1) A community-based organization;
(2) A faith-based organization;
(3) An entity carrying out activities under this Title, such as a
local school board;
(4) A community action agency;
[[Page 9131]]
(5) A State or local housing development agency;
(6) An Indian tribe or other agency primarily serving Indians;
(7) A community development corporation;
(8) A State or local youth service or conservation corps; and
(9) Any other entity eligible to provide education or employment
training under a Federal program (other than the program carried out
under this part).
Homeless individual. For purposes of YouthBuild, the definition of
``homeless individual'' at Section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302) applies.
Housing development agency. The term ``housing development agency''
means any agency of a Federal, State or local government, or any
private nonprofit organization, that is engaged in providing housing
for homeless individuals or low-income families.
Income. As defined in 42 U.S.C. 1437a(b), ``income'' is: Income
from all sources of each member of the household, as determined in
accordance with the criteria prescribed by the Secretary of Labor, in
consultation with the Secretary of Agriculture, except that any amounts
not actually received by the family and any amounts which would be
eligible for exclusion under sec. 1382b(a)(7) of the United States
Housing Act of 1937, may not be considered as income under this
paragraph.
Indian; Indian tribe. As defined in 25 U.S.C. 450b of sec. 4 of the
Indian Self- Determination and Education Assistance Act, the term
``Indian'' is a person who is a member of an Indian tribe; and the term
``Indian tribe'' is any Indian tribe, band, nation, or other organized
group or community, including any Alaska Native village or regional or
village corporation as defined in or established pursuant to the Alaska
Native Claims Settlement Act (85 Stat. 688) (43 U.S.C. 1601 et seq.),
which is recognized as eligible for the special programs and services
provided by the United States to Indians because of their status as
Indians.
Individual of limited English proficiency. As defined in 20 U.S.C.
9202(10), an ``individual of limited English proficiency'' is: An adult
or out- of-school youth who has limited ability in speaking, reading,
writing, or understanding the English language, and:
(1) Whose native language is a language other than English; or
(2) Who lives in a family or community environment where a language
other than English is the dominant language.
Low-income family. As defined in 42 U.S.C. 1437a(b)(2), a ``low-
income family'' is: A family whose income does not exceed 80 percent of
the median income for the area, as determined by the Secretary of Labor
with adjustments for smaller and larger families, except that the
Secretary of Labor may establish income ceilings higher or lower than
80 percent of the median for the area if the Secretary finds that such
variations are necessary because of prevailing levels of construction
costs or unusually high or low family incomes. Further, as defined by
42 U.S.C. 1437a(b)(2)(3), the term families includes families
consisting of one person.
Migrant youth. The term ``migrant youth'' means a youth, or a youth
who is the dependent of someone who, during the previous 12 months has:
(1) Worked at least 25 days in agricultural labor that is
characterized by chronic unemployment or underemployment;
(2) Made at least $800 from agricultural labor that is
characterized by chronic unemployment or underemployment, if at least
50 percent of his or her income came from such agricultural labor;
(3) Was employed at least 50 percent of his or her total employment
in agricultural labor that is characterized by chronic unemployment or
underemployment; or
(4) Was employed in agricultural labor that requires travel to a
jobsite such that the farmworker is unable to return to a permanent
place of residence within the same day.
Needs-based stipend. The term ``Needs-based stipends'' means
additional payments (beyond regular stipends for program participation)
that are based on defined needs that enable youth to participate in the
program. To provide needs-based stipends the grantee must have a
written policy in place, which defines: Eligibility; the amounts; and
the required documentation and criteria for payments. This policy must
be applied consistently to all program participants.
Occupational skills training. The term ``Occupational skills
training'' means an organized program of study that provides specific
vocational skills that lead to proficiency in performing the actual
tasks and technical functions required by certain occupational fields
at entry, intermediate, or advanced levels. The occupational skills
training offered in YouthBuild programs must begin upon program
enrollment and be tied to the award of an industry-recognized
credential.
Partnership. The term ``partnership'' means an agreement that
involves a Memorandum of Understanding (MOU) or letter of commitment
submitted by each organization and applicant, as defined in the
YouthBuild Transfer Act, that plan on working together as partners in a
YouthBuild program. Each partner must have a clearly defined role.
These roles must be verified through a letter of commitment, not just a
letter of support, or an MOU submitted by each partner. The letter of
commitment or MOU must detail the role the partner will play in the
YouthBuild Program, including the partner's specific responsibilities
and resources committed, if appropriate. These letters or MOUs must
clearly indicate the partnering organization's unique contribution and
commitment to the YouthBuild Program.
Public housing agency. As defined in 42 U.S.C. 1437a(b), a ``public
housing agency'' is: Any State, county, municipality or other
government entity or public body, or agency or instrumentality of these
entities, that is authorized to engage or assist in the development or
operation of low- income housing.
Registered apprenticeship program. The term ``registered
apprenticeship program'' means:
(1) Registered under the Act of August 16, 1937 (commonly known as
the ``National Apprenticeship Act''; 50 Stat. 664, chapter 663; 20
U.S.C. 50 et seq.); and
(2) A program with a plan containing all terms and conditions for
the qualification, recruitment, selection, employment and training of
apprentices, as required under 29 CFR parts 29 and 30, including such
matters as the requirement for a written apprenticeship agreement.
Sequential service strategy. The term ``sequential service
strategy'' means the educational and occupational skills training plan
developed for individuals who have dropped out of high school and want
to enroll in a YouthBuild program. The plan is designed so that the
individual sequentially enrolls in an alternative school, and after
receiving a year or more of educational services, enrolls in the
YouthBuild program.
Transitional housing. The term ``transitional housing'' means
housing provided for the purpose of facilitating the movement of
homeless individuals to independent living within a reasonable amount
of time. The term includes housing primarily designed to serve
deinstitutionalized homeless individuals and other homeless individuals
who are individuals with
[[Page 9132]]
disabilities or are members of families with children.
Youth in foster care. The term ``youth in foster care'' means youth
currently in foster care or youth who have ever been in foster care.
Youth who is an individual with a disability. The term youth who is
an individual with a disability means a youth with any disability (as
defined in section 3 of the Americans with Disabilities Act of 1990 (42
U.S.C. 12102)) or a student receiving special education and related
services under the Individuals with Disabilities Education Act (IDEA).
Subpart B--Funding and Grant Applications
Sec. 672.200 How are YouthBuild grants funded and administered?
The Secretary uses funds authorized for appropriation under sec.
173A of the Workforce Investment Act (WIA) to administer YouthBuild as
a national program under Title I, Subtitle D of the Act. YouthBuild
grants are awarded to eligible entities, as defined in Sec. 672.110,
through a competitive selection process described in Sec. 672.205.
Sec. 672.205 How does an eligible entity apply for grant funds to
operate a YouthBuild program?
The Secretary announces the availability of grant funds through a
Solicitation for Grant Applications (SGA). The SGA contains
instructions for what is required in the grant application, describes
eligibility requirements, the rating criteria that will be used in
reviewing grant applications, and special reporting requirements to
operate a YouthBuild project.
Sec. 672.210 How are eligible entities selected to receive grant
funds?
In order to receive funds under the YouthBuild program, an eligible
entity applying for funds (applicant) must meet selection criteria
established by the Secretary which include:
(a) The qualifications or potential capabilities of an applicant;
(b) An applicant's potential to develop a successful YouthBuild
program;
(c) The need for an applicant's proposed program, as determined by
the degree of economic distress of the community from which
participants would be recruited (measured by indicators such as
poverty, youth unemployment, and the number of individuals who have
dropped out of secondary school) and of the community in which the
housing and public facilities proposed to be rehabilitated or
constructed are located (measured by indicators such as incidence of
homelessness, shortage of affordable housing, and poverty);
(d) The commitment of an applicant to provide skills training,
leadership development, counseling and case management, and education
to participants;
(e) The focus of a proposed program on preparing youth for
postsecondary education and training opportunities or local in-demand
occupations;
(f) The extent of an applicant's coordination of activities to be
carried out through the proposed program with:
(1) Local boards, One-Stop Career Center operators, and One-Stop
partners participating in the operation of the One-Stop delivery system
involved, or the extent of the applicant's good faith efforts, as
determined by the Secretary, in achieving such coordination;
(2) Public education, criminal justice, housing and community
development, national service, or postsecondary education or other
systems that relate to the goals of the proposed program; and
(3) Employers in the local area.
(g) The extent to which a proposed program provides for inclusion
of tenants who were previously homeless individuals or families in the
rental of housing provided through the program;
(h) The commitment of additional resources to the proposed program
(in addition to the funds made available through the grant) by:
(1) An applicant;
(2) Recipients of other Federal, State, or local housing and
community development assistance who will sponsor any part of the
rehabilitation, construction, operation and maintenance, or other
housing and community development activities undertaken as part of the
proposed program; or
(3) Entities carrying out other Federal, State, or local activities
or activities conducted by Indian tribes, including vocational
education programs, adult and language instruction educational
programs, and job training using funds provided under WIA,
(i) An applicant's ability to enter partnerships with:
(1) Education and training providers including:
(i) The kindergarten through twelfth grade educational system;
(ii) Adult education programs;
(iii) Community and technical colleges;
(iv) Four-year colleges and universities;
(v) Registered apprenticeship programs; and
(vi) Other training entities.
(2) Employers, including professional organizations and
associations. An applicant will be evaluated on the extent to which
employers participate in:
(i) Defining the program strategy and goals;
(ii) Identifying needed skills and competencies;
(iii) Designing training approaches and curricula;
(iv) Contributing financial support; and
(v) Hiring qualified YouthBuild graduates.
(3) The workforce investment system which may include:
(i) State and local workforce investment boards;
(ii) State workforce agencies; and
(iii) One-Stop Career Centers and their cooperating partners.
(4) The juvenile and adult justice systems, and the extent to which
they provide:
(i) Support and guidance for YouthBuild participants with court
involvement;
(ii) Assistance in the reporting of recidivism rates among
YouthBuild participants; and
(iii) Referrals of eligible participants through diversion or re-
entry from incarceration.
(5) Faith-based and community organizations, and the extent to
which they provide a variety of grant services such as:
(i) Case management;
(ii) Mentoring;
(iii) English as a Second Language courses; and
(iv) Other comprehensive supportive services, when appropriate.
(j) The applicant's potential to serve different regions, including
rural areas and States that may not have previously received grants for
YouthBuild programs; and
(k) Such other factors as the Secretary determines to be
appropriate for purposes of evaluating an applicant's potential to
carry out the proposed program in an effective and efficient manner.
(l) The weight to be given to these factors will be described in
the SGA issued under Sec. 672.205.
Sec. 672.215 How are eligible entities notified of approval for grant
funds?
The Secretary will, to the extent practicable, notify each eligible
entity applying for funds no later than 5 months from the date the
application is received, whether the application is approved or
disapproved. In the event additional funds become available, ETA
reserves the right to use such funds to
[[Page 9133]]
select additional grantees from applications submitted in response to
an SGA.
Subpart C--Program Requirements
Sec. 672.300 Who is an eligible participant?
(a) Eligibility criteria. Except as provided in paragraph (b) of
this section, an individual is eligible to participate in a YouthBuild
program if the individual is:
(1) Not less than age 16 and not more than age 24 on the date of
enrollment; and
(2) A school dropout or an individual who has dropped out of school
and reenrolled in an alternative school, if that reenrollment is part
of a sequential service strategy; and
(3) Is one or more of the following:
(i) A member of a low-income family as defined in Sec. 672.110;
(ii) A youth in foster care;
(iii) A youth offender;
(iv) A youth who is an individual with a disability;
(v) The child of a current or formerly incarcerated parent; or
(vi) A migrant youth as defined in Sec. 672.110.
(b) Exceptions. Not more than 25 percent of the participants in a
program, under this section, may be individuals who do not meet the
requirements of paragraph (a)(2) or (3) of this section, if such
individuals:
(1) Are basic skills deficient as defined in section 101(4) of WIA,
even if they have their high school diploma, GED credential, or other
State-recognized equivalent; or
(2) Have been referred by a local secondary school for
participation in a YouthBuild program leading to the attainment of a
secondary school diploma.
Sec. 672.305 Are there special rules that apply to veterans?
Special rules for determining income for veterans are found in 20
CFR 667.255 and for the priority of service provisions for qualified
persons are found in 20 CFR part 1010. Those special rules apply to
covered persons who are eligible to participate in the YouthBuild
program.
Sec. 672.310 What eligible activities may be funded under the
YouthBuild program?
Grantees may provide one or more of the following education and
workforce investment and other activities to YouthBuild participants--
(a) Eligible education activities include:
(1) Services and activities designed to meet the educational needs
of participants, including:
(i) Basic skills instruction and remedial education;
(ii) Language instruction educational programs for individuals with
limited English proficiency;
(iii) Secondary education services and activities, including
tutoring, study skills training, and dropout prevention activities,
designed to lead to the attainment of a secondary school diploma, GED
credential, or other State- recognized equivalent (including recognized
alternative standards for individuals with disabilities);
(iv) Counseling and assistance in obtaining post-secondary
education and required financial aid; and
(v) Alternative secondary school services;
(2) Counseling services and related activities, such as
comprehensive guidance and counseling on drug and alcohol abuse and
referral to appropriate treatment;
(3) Activities designed to develop employment and leadership
skills, which may include community service and peer-centered
activities encouraging responsibility and other positive social
behaviors, and activities related to youth policy committees that
participate in decisionmaking related to the program; and
(4) Supportive services, as defined under Title I of WIA Section
101(46), and provision of need-based stipends, as defined in Sec.
672.110.
(b) Eligible workforce investment activities include:
(1) Work experience and skills training (coordinated, to the
maximum extent feasible, with registered apprenticeship programs) in
housing rehabilitation and construction activities described in
paragraphs (c)(1) and (2) of this section;
(2) Occupational skills training;
(3) Other paid and unpaid work experiences, including internships
and job shadowing; and
(4) Job search assistance.
(c) Other eligible activities include:
(1) Supervision and training for participants in the rehabilitation
or construction of housing, including residential housing for homeless
individuals and families or low-income families, or transitional
housing for homeless individuals and families;
(2) Supervision and training for participants in the rehabilitation
or construction of community or other public facilities, except that,
as provided in Sec. 672.505(b), not more than 10 percent of the funds
awarded for each grant may be used for such supervision and training;
(3) Ongoing training and technical assistance for staff of grant
recipients that is related to developing and carrying out the
YouthBuild program;
(4) Payment of a portion of the administrative costs of the program
as provided in Sec. 672.505(a);
(5) Adult mentoring;
(6) Provision of wages, stipends, or additional benefits to
participants in the program as provided in Sec. 672.530; and
(7) Follow-up services as provided in Sec. 672.325.
Sec. 672.315 What timeframes apply to participation?
An eligible individual selected for participation in the program
must be offered full-time participation in the program for not less
than 6 months and not more than 24 months.
Sec. 672.320 What timeframes must be devoted to education and
workforce investment or other activities?
YouthBuild grantees must structure programs so that participants in
the program are offered:
(a) Eligible education activities, as specified in Sec.
672.310(a), during at least 50 percent of the time during which they
participate in the program; and
(b) Eligible workforce investment activities, as specified in Sec.
672.310(b), during at least 40 percent of the time during which they
participate in the program. Grantees must provide the eligible
workforce investment activities described in Sec. 672.310(b)(1) as
part of their program of eligible workforce investment activities.
(c) The remaining 10 percent of the time of participation can be
used for the activities described in paragraphs (a) and (b) of this
section and/or for leadership development and community service
activities.
Sec. 672.325 What timeframes apply for follow-up services?
Follow-up services must be provided to all YouthBuild participants
for a period of not less than 9 months but no more than 12 months after
participants exit a YouthBuild program. These are services that assist
participants in obtaining or retaining employment, or applying for and
transitioning to post-secondary education or training.
Subpart D--Performance Indicators
Sec. 672.400 What are the performance indicators for YouthBuild
grants?
(a) The performance indicators for YouthBuild grants are:
(1) Placement in employment or education;
(2) Attainment of a degree or certificate;
(3) Literacy and numeracy gains; and
[[Page 9134]]
(4) Such other indicators of performance as may be required by the
Secretary.
(b) We will provide the details of the performance indicators in
administrative guidance.
Sec. 672.405 What are the required levels of performance for the
performance indicators?
(a) Expected levels of performance for each of the common
performance indicators are national standards that are provided in
separately issued guidance. Short-term or other performance indicators
will be provided in separately issued guidance or as part of the SGA or
grant agreement. Performance level expectations are based on available
YouthBuild data and data from similar WIA Youth programs and may change
between grant competitions. The expected national levels of performance
will take into account the extent to which the levels promote
continuous improvement in performance.
(b) The levels of performance established will, at a minimum:
(1) Be expressed in an objective, quantifiable, and measurable
form; and
(2) Indicate continuous improvement in performance.
Sec. 672.410 What are the reporting requirements for YouthBuild
grantees?
Each grantee must provide such reports as are required by the
Secretary in separately issued guidance, including:
(a) The Quarterly Performance Report;
(b) The quarterly narrative progress report;
(c) The financial report; and
(d) Such other reports as may be required by the grant agreement.
Sec. 672.415 What are the due dates for quarterly reporting?
(a) Quarterly reports are due no later than 45 days after the end
of the reporting quarter, unless otherwise specified in the reporting
guidance issued under Sec. 672.410; and
(b) A final financial report is required 90 days after the
expiration of a funding period or the termination of grant support.
Subpart E--Administrative Rules, Costs, and Limitations
Sec. 672.500 What administrative regulations apply to the YouthBuild
program?
Each YouthBuild grantee must comply with the following:
(a) The regulations found in this part.
(b) The general administrative requirements found in 20 CFR part
667, except those that apply only to the WIA Title I-B program and
those that have been modified by this section.
(c) The Department's regulations on government-wide requirements,
which include:
(1) The regulations codifying the Office of Management and Budget's
government-wide grants requirements: Circular A-110 (codified at 2 CFR
part 215), and Circular A-102 at 29 CFR parts 95 and 97, as applicable;
(2) The Department's regulations at 29 CFR part 37, which implement
the nondiscrimination provisions of WIA section 188;
(3) The Department's regulations at 29 CFR parts 93, 94, and 98
relating to restrictions on lobbying, drug free workplace, and
debarment and suspension; and
(4) The audit requirements of OMB Circular A-133 stated at 29 CFR
part 99, as required by 29 CFR 96.11, 95.26, and 97.26, as applicable.
Sec. 672.505 How may grantees provide services under the YouthBuild
program?
Each recipient of a grant under the YouthBuild program may provide
the services and activities described in these regulations either
directly or through subgrants, contracts, or other arrangements with
local educational agencies, postsecondary educational institutions,
State or local housing development agencies, other public agencies,
including agencies of Indian tribes, or private organizations.
Sec. 672.510 What cost limits apply to the use of YouthBuild program
funds?
(a) Administrative costs for programs operated under YouthBuild are
limited to no more than 15 percent of the grant award. The definition
of administrative costs can be found in 20 CFR 667.220.
(b) The cost of supervision and training for participants involved
in the rehabilitation or construction of community and other public
facilities is limited to no more than 10 percent of the grant award.
Sec. 672.515 What are the cost-sharing or matching requirements of
the YouthBuild program?
(a) The cost-sharing or matching requirements applicable to a
YouthBuild grant will be addressed in the grant agreement.
(b) The value of construction materials used in the YouthBuild
program is an allowable cost for the purposes of the required non-
Federal share or match.
(c) The value of land acquired for the YouthBuild program is not an
allowable cost-sharing or match.
(d) Federal funds may not be used as cost-sharing or match
resources except as provided by Federal law.
(e) The value of buildings acquired for the YouthBuild program is
an allowable match, provided that the following conditions apply:
(1) The purchase cost of buildings used solely for training
purposes is allowable; and
(2) For buildings used for training and other purposes, the
allowable amount is determined based on the proportionate share of the
purchase price related to direct training activities.
(f) Grantees must follow the requirements of 29 CFR 95.23 or 29 CFR
97.24 in the accounting, valuation, and reporting of the required non-
Federal share.
Sec. 672.520 What are considered to be leveraged funds?
(a) Leveraged funds may be used to support allowable YouthBuild
program activities and consist of payments made for allowable costs
funded by both non-YouthBuild Federal, and non-Federal, resources which
include:
(1) Costs which meet the criteria for cost-sharing or match in
Sec. 672.515 and are in excess of the amount of cost-sharing or match
resources required;
(2) Costs which would meet the criteria in Sec. 672.515 except
that they are paid for with other Federal resources; and
(3) Costs which benefit the grant program and are otherwise
allowable under the cost principles but are not allowable under the
grant because of some statutory, regulatory, or grant provision,
whether paid for with Federal or non-Federal resources.
(b) The use of leveraged funds must be reported in accordance with
Departmental instructions.
Sec. 672.525 How are the costs associated with real property treated
in the YouthBuild program?
(a) As provided in paragraphs (b) and (c) of this section, the
costs of the following activities associated with real property are
allowable solely for the purpose of training YouthBuild participants:
(1) Rehabilitation of existing structures for use by homeless
individuals and families or low-income families or for use as
transitional housing.
(2) Construction of buildings for use by homeless individuals and
families or low-income families or for use as transitional housing.
(3) Construction or rehabilitation of community or other public
facilities, except, as provided in Sec. 672.510(b), only
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10 percent of the grant award is allowable for such construction and
rehabilitation.
(b) The costs for acquisition of buildings that are used for
activities described in paragraph (a) of this section are allowable
with prior grant officer approval and only under the following
conditions:
(1) The purchase cost of buildings used solely for training
purposes is allowable; and
(2) For buildings used for training and other purposes, the
allowable amount is determined based on the proportionate share of the
purchase cost related to direct training.
(c) The following costs are allowable to the extent allocable to
training YouthBuild participants in the construction and rehabilitation
activities specified in paragraph (a) of this section:
(1) Trainees' tools and clothing including personal protective
equipment (PPE);
(2) On-site trainee supervisors;
(3) Construction management;
(4) Relocation of buildings; and
(5) Clearance and demolition.
(d) Architectural fees, or a proportionate share thereof, are
allowable when such fees can be related to items such as architectural
plans or blueprints on which participants will be trained.
(e) The following costs are unallowable:
(1) The costs of acquisition of land.
(2) Brokerage fees.
Sec. 672.530 What participant costs are allowable under the
YouthBuild program?
Allowable participant costs include:
(a) The costs of payments to participants engaged in eligible work-
related YouthBuild activities.
(b) The costs of payments provided to participants engaged in non-
work- related YouthBuild activities.
(c) The costs of needs-based stipends.
(d) The costs of supportive services.
(e) The costs of providing additional benefits to participants or
individuals who have exited the program and are receiving follow-up
services, which may include:
(1) Tuition assistance for obtaining college education credits;
(2) Scholarships to an Apprenticeship, Technical, or Secondary
Education program; and
(3) Sponsored health programs.
Sec. 672.535 What effect do payments to YouthBuild participants have
on eligibility for other Federal need-based benefits?
Under 20 CFR 667.272(c), allowances, earnings, and payments to
individuals participating in programs under Title I of WIA are not
considered as income for purposes of determining eligibility for and
the amount of income transfer and in-kind aid furnished under any
Federal or Federally-assisted program based on need other than as
provided under the Social Security Act (42 U.S.C. 301).
Sec. 672.540 What program income requirements apply under the
YouthBuild program?
(a) Except as provided in paragraph (b) of this section, program
income requirements, as specified in the applicable Uniform
Administrative Requirements at 29 CFR 95.24 and 97.25, apply to
YouthBuild grants.
(b) Revenue from the sale of buildings rehabilitated or constructed
under the YouthBuild program to homeless individuals and families and
low-income families is not considered program income. Grantees are
encouraged to use that revenue for the long-term sustainability of the
YouthBuild program.
Sec. 672.545 Are YouthBuild programs subject to the Davis-Bacon Act
labor standards?
(a) YouthBuild programs and grantees are subject to Davis-Bacon
labor standards requirements under the circumstances set forth in
paragraph (b) of this section. In those instances where a grantee is
subject to Davis-Bacon requirements, the grantee must follow applicable
requirements in the Department's regulations at 29 CFR parts 1, 3, and
5, including the requirements contained in the Davis-Bacon contract
provisions set forth in 29 CFR 5.5.
(b) YouthBuild participants are subject to Davis-Bacon Act labor
standards when they perform Davis-Bacon-covered laborer or mechanic
work, defined at 29 CFR 5.2, on Federal or Federally-assisted projects
that are subject to the Davis-Bacon Act labor standards. The Davis-
Bacon prevailing wage requirements apply to hours worked on the site of
the work.
(c) YouthBuild participants who are not registered and
participating in a training program approved by the Employment and
Training Administration must be paid not less than the applicable wage
rate on the wage determination for the classification of work actually
performed.
Sec. 672.550 What are the recordkeeping requirements for YouthBuild
programs?
(a) Grantees must follow the recordkeeping requirements specified
in the Uniform Administrative Requirements, at 29 CFR 95.53 and 29 CFR
97.42, as appropriate.
(b) Grantees must maintain such additional records related to the
use of buildings constructed or rehabilitated with YouthBuild funds as
specified in the grant agreement or in the Department's guidance.
Subpart F--Additional Requirements
Sec. 672.600 What are the safety requirements for the YouthBuild
program?
(a) YouthBuild Grantees must comply with 20 CFR 667.274, which
applies Federal and State health and safety standards to the working
conditions under WIA-funded projects and programs. These health and
safety standards include ``hazardous orders'' governing child labor
under 29 CFR part 570 prohibiting youth ages 16 and 17 from working in
identified hazardous occupations.
(b) YouthBuild grantees are required to:
(1) Provide comprehensive safety training for youth working on
YouthBuild construction projects;
(2) Have written, jobsite-specific, safety plans overseen by an on-
site supervisor with authority to enforce safety procedures;
(3) Provide necessary personal protective equipment to youth
working on YouthBuild projects; and
(4) Submit required injury incident reports.
Sec. 672.605 What are the reporting requirements for youth safety?
YouthBuild grantees must ensure that YouthBuild program sites
comply with the Occupational Safety and Health Administration's (OSHA)
reporting requirements in 29 CFR part 1904. A YouthBuild grantee is
responsible for sending a copy of OSHA's injury incident report form,
to U.S. Department of Labor, Employment and Training Administration
within 7 days of any reportable injury suffered by a YouthBuild
participant. The injury incident report form is available from OSHA and
can be downloaded at http://www.osha.gov/recordkeeping/RKforms.html.
Reportable injuries include those that result in death, days away from
work, restricted work or transfer to another job, medical treatment
beyond first aid, or loss of consciousness.
Sec. 672.610 What environmental protection laws apply to the
YouthBuild program?
YouthBuild Program grantees are required, where applicable, to
comply with all environmental protection statutes and regulations.
[[Page 9136]]
Sec. 672.615 What requirements apply to YouthBuild housing?
(a) YouthBuild grantees must ensure that all residential housing
units which are constructed or rehabilitated using YouthBuild funds
must be available solely for:
(1) Sale to homeless individuals and families or low-income
families;
(2) Rental by homeless individuals and families or low-income
families;
(3) Use as transitional or permanent housing for the purpose of
assisting in the movement of homeless individuals and families to
independent living; or
(4) Rehabilitation of homes for low-income homeowners.
(b) For rentals of residential units located on the property which
are constructed or rehabilitated using YouthBuild funds:
(1) The property must maintain at least a 90 percent level of
occupancy for low-income families. The income test will be conducted
only at the time of entry for each available unit or rehabilitation of
occupant-owned home. If the grantee cannot find a qualifying tenant to
lease the unit, the unit may be leased to a family whose income is
above the income threshold to qualify as a low-income family but below
the median income for the area. Leases for tenants with higher incomes
will be limited to not more than two years. The leases provided to
tenants with higher incomes are not subject to the termination clause
that is described in paragraph (b)(2) of this section.
(2) The property owner must not terminate the tenancy or refuse to
renew the lease of a tenant occupying a residential rental housing unit
constructed or rehabilitated using YouthBuild funds except for serious
or repeated violations of the terms and conditions of the lease, for
violation of applicable Federal, State or local laws, or for good
cause. Any termination or refusal to renew the lease must be preceded
by not less than a 30-day written notice to the tenant specifying the
grounds for the action. The property owner may waive the written notice
requirement for termination in dangerous or egregious situations
involving the tenant.
(c) All transitional or permanent housing for homeless individuals
or families or low-income families must be safe and sanitary. The
housing must meet all applicable State and local housing codes and
licensing requirements in the jurisdiction in which the housing is
located.
(d) For sales or rentals of residential housing units constructed
or rehabilitated using YouthBuild funds, YouthBuild grantees must
ensure that owners of the property record a restrictive covenant at the
time that an occupancy permit is issued against such property which
includes the use restrictions set forth in paragraphs (a), (b), and (c)
of this section and incorporates the following definitions at Sec.
672.110: Homeless Individual; Low- Income Housing; and Transitional
Housing. The term of the restrictive covenant must be at least 10 years
from the time of the issuance of the occupancy permit, unless a time
period of more than 10 years has been established by the grantee. Any
additional stipulations imposed by a grantee or property owner should
be clearly stated in the covenant.
(e) Any conveyance document prepared in the 10-year period of the
restrictive covenant must inform the buyer of the property that all
residential housing units constructed or rehabilitated using YouthBuild
funds are subject to the restrictions set forth in paragraphs (a), (b),
(c), and (d) of this section.
Signed at Washington, DC, this 26th day of January 2012.
Jane Oates,
Assistant Secretary, Employment and Training Administration.
[FR Doc. 2012-2373 Filed 2-14-12; 8:45 am]
BILLING CODE 4510-FT-P