Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52671 

By direction of the Commission. 

Donald S. Clark, 

Secretary 

[FR Doc. 2010–21202 Filed 8–26–10; 7:35 am] 

BILLING CODE 6750–01–C 

DEPARTMENT OF LABOR 

Employment and Training 

Administration 

20 CFR Part 672 

RIN 1205–AB49 

YouthBuild Program 

AGENCY: Employment and Training 

Administration, Labor. 

ACTION: Notice of proposed rulemaking 

with request for comments. 

SUMMARY: The Employment and 

Training Administration (ETA) of the 

U.S. Department of Labor (Department) 

is issuing this Notice of Proposed 

Rulemaking (NPRM) 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 proposed rule 

clarifies the requirements of the 

Transfer Act for YouthBuild program 

providers and participants. The 

proposed rule would set standards 

under which YouthBuild program 

providers would 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. 

DATES: Interested persons are invited to 

submit comments on this proposed rule. 

To ensure consideration, comments 

must be received on or before October 

26, 2010. 

ADDRESSES: You may submit comments, 

identified by Regulatory Information 

Number (RIN) 1205–AB49, by any one 

of the following methods: 

Federal e-Rulemaking Portal: http:// 

www.regulations.gov. Follow the Web 

site instructions for submitting 

comments. 

Mail and hand delivery/courier: 

Written comments, disk, and CD–ROM 

submissions may be mailed to Thomas 

M. Dowd, Administrator, Office of 

Policy Development and Research, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Room N–5641, 

Washington, DC 20210. 

The Department will not accept emailed or faxed comments. 

Instructions: Label all submissions 

with RIN 1205–AB49. 

Please submit your comment by only 

one method. Please be advised that the 

Department will post all comments 

received on http://www.regulations.gov 

without making any change to the 

comments, or redacting any 

information. The http:// 

www.regulations.gov Web site is the 

Federal e-rulemaking portal and all 

comments posted there are available 

and accessible to the public. Therefore, 

the Department recommends that 

commenters safeguard any personal 

information such as Social Security 

Numbers, personal addresses, telephone 

numbers, and e-mail addresses included 

in their comments as such information 

may become easily available to the 

public via the http:// 

www.regulations.gov Web site. It is the 

responsibility of the commenter to 

safeguard any such personal 

information. 

Also, please note that due to security 

concerns, postal mail delivery in 

Washington, DC may be delayed. 

Therefore, the Department encourages 

the public to submit comments on 

http://www.regulations.gov. 

Docket: All comments on this 

proposed rule will be available on the 

http://www.regulations.gov Web site 

and can be found using RIN 1205–AB49. 

The Department also will make all the 

comments it receives available for 

public inspection by appointment 

during normal business hours at the 

above address. If you need assistance to 

review the comments, the Department 

will provide you with appropriate aids 

such as readers or print magnifiers. The 

Department will make copies of the rule 

available, upon request, in large print, 

Braille and electronic file on computer 

disk. The Department will consider 

providing the rule in other formats upon 

request. To schedule an appointment to 

review the comments and/or obtain the 

rule in an alternative format, contact the 

Office of Policy Development and 

Research at (202) 693–3700 (this is not 

a toll-free number). You may also 

contact this office at the address listed. 

FOR FURTHER INFORMATION CONTACT: 

Thomas M. Dowd, Administrator, Office 

of Policy Development and Research, 

U.S. Department of Labor, 200 

Constitution Avenue, NW., Room N– 

5641, Washington, DC 20210; telephone 

(202) 693–3700 (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 (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

The Preamble of this proposed rule is 

organized as follows: 

I. Background—provides a brief description 

of the development of the proposed rule 

II. Section-by-Section Review of the Proposed 

Rule—summarizes and discusses the 

structure and requirements of the 

YouthBuild Program 

III. Administrative Section—sets forth the 

applicable regulatory requirements 

I. Background 

On September 22, 2006, the 

YouthBuild Transfer Act, Public Law 

109–281 (Transfer Act) 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 lowincome 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 under 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. 

In addition to transferring the 

administration of the program from 

HUD to the Department, the Transfer 

Act expands the activities authorized 

under the YouthBuild program to 

include many activities authorized 

under the WIA Title I youth formula 

program. The transfer maintains all the 

goals of the YouthBuild program as 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52672 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

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 

incorporates technical modifications to 

the YouthBuild program to make it 

consistent with WIA’s job training, 

education, and employment goals. 

Moreover, the Transfer Act 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 Transfer Act authorizes the 

Department to use performance 

indicators developed for Federal youth 

employment and training programs to 

enhance the accountability of 

YouthBuild programs. 

Although the construction and 

rehabilitation of affordable housing 

continues to be a major component of 

the YouthBuild training program, the 

Department’s main focus is to prepare 

at-risk youth for employment. 

Therefore, the Department has increased 

the emphasis on the education and 

occupational skill training provided by 

YouthBuild programs. Specifically, the 

occupational skill training offered in 

YouthBuild programs must begin upon 

program enrollment and be tied to the 

award of an industry recognized 

credential; i.e., what someone receives 

after successful completion of the 

National Center for Construction 

Education and Research’ program, the 

Home Builder’s Institute’s (HBI) HPACT 

curriculum, or the Building Trades 

Multi-Craft Core curriculum. 

The Transfer Act also places emphasis 

on coordinating training with registered 

apprenticeship programs, which will 

allow participants to enter such 

programs upon exiting YouthBuild. 

Additionally, the Transfer Act permits 

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 Transfer Act authorizes 

these and other new activities to better 

assist at-risk youth in preparing for 

employment. 

The Department has administered the 

YouthBuild program, including making 

grants, for more than three years since 

the passage of the Transfer Act. In 

drafting these regulations, the 

Department relies on the knowledge 

gained from administering these grants, 

along with its experience gained in 

developing the WIA Youth Program. 

The Transfer Act retains the out-ofschool 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, youth in foster 

care, youth offenders, youths with a 

disability, children of an incarcerated 

parent, or migrant youths. In addition, 

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 General 

Education Development (GED) degree 

but test as basic skills deficient to 

participate in a YouthBuild program. 

II. Section-by-Section Review of the 

Proposed Rule 

Subpart A—Purpose and Definitions 

What is YouthBuild? (§ 672.100) 

This section describes the YouthBuild 

program. YouthBuild is a workforce 

development program that provides 

employment, education, leadership 

development, and training opportunities 

to disadvantaged youth. The program 

also benefits the larger community 

because it provides new and 

rehabilitated affordable housing. 

The program recruits youth between 

the ages of 16 and 24. The youth are 

school dropouts and are either: A 

member of a low-income family, a youth 

in foster care, a youth offender, a youth 

who is an individual with a disability, 

a child of an incarcerated parent, or a 

migrant youth. In addition, to ensure 

that other at-risk youths have access to 

the program, the Transfer Act includes 

a 25 percent eligibility exception. 

Program participants are given the 

chance to earn their high school 

diploma or pass their GED tests, to 

participate in the occupational skills 

training, and are provided with the 

opportunity to pursue post-secondary 

education and training, including 

registered apprenticeship programs. 

The program creates a sense of selfworth for its participants by providing 

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. 

What are the purposes of the 

YouthBuild program? (§ 672.105) 

This section describes the purposes of 

the YouthBuild program. The 

overarching goal of the YouthBuild 

program is to offer disadvantaged youth 

the opportunity to obtain education and 

useful employment skills to enter the 

labor market. Construction encompasses 

this goal, and serves as a platform to 

provide skills training and education to 

YouthBuild participants. 

In addition to the goal listed above, 

another essential element of the 

YouthBuild program is the provision of 

counseling and assistance in obtaining 

post-secondary education and/or 

employment and training placements 

that allow youth to further their 

education and training. Further, youth 

also have the ability to participate in 

leadership development and community 

service activities. The program seeks to 

increase the number of affordable 

housing units available to alleviate the 

rate of homelessness in communities 

with YouthBuild programs. Another 

goal of YouthBuild is to foster the 

development of leadership skills and a 

commitment to community 

improvement among youth in lowincome communities. Through these 

opportunities, youth can contribute to 

their communities both through 

workforce participation and housing 

development. 

What definitions apply to this part? 

(§ 672.110) 

The definitions that are listed in this 

section are specific to the YouthBuild 

program. As an amendment to the 

Workforce Investment Act, other 

definitions that apply to the YouthBuild 

Program are defined under sec. 101 of 

WIA, 29 U.S.C. 2801 and at 20 CFR part 

660. 

Alternative School: To determine the 

educational status and therefore 

eligibility of a youth to participate in 

YouthBuild, 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. 

An ‘‘alternative school’’ must be 

recognized by the authorizing entity 

designated by the State. The school 

must award a high school diploma. 

‘‘Alternative schools’’ must be affiliated 

with YouthBuild programs in order to 

qualify as part of a ‘‘sequential service 

strategy.’’ 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52673 

Community or Other Public Facility: 

The term ‘‘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. 

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 Department Bureau of Labor 

Statistics (BLS) Web site, http:// 

www.bls.gov/soc. 

Eligible Entity: The term ‘‘eligible 

entity’’ describes the types of 

organizations that are permitted to 

apply for a YouthBuild grant. The 

definition of ‘‘eligible entity’’ was 

provided in the YouthBuild Transfer 

Act. 

Homeless Individual: The definition 

of ‘‘homeless individual’’ comes from 

the McKinney-Vento Homeless 

Assistance Act. 42 U.S.C. 11302. This 

term is defined in the YouthBuild 

Transfer Act. 

Housing Development Agency: The 

term ‘‘housing development agency’’ is 

defined in the YouthBuild Transfer Act. 

Income: The definition of ‘‘income’’ 

comes from the United States Housing 

Act of 1937. 42 U.S.C. 1437a(b). Under 

§ 3(b) of the YouthBuild Transfer Act 

(29 U.S.C. 2918(a)), the determination of 

income is made in accordance with 

guidance provided by the Secretary of 

Labor (Secretary), in consultation with 

the Secretary of Agriculture. 

Indian; Indian Tribe: The definitions 

of ‘‘Indian’’ and ‘‘Indian tribe’’ are taken 

from the Indian Self-Determination and 

Education Assistance Act. 25 U.S.C. 

450b. These terms are defined in the 

YouthBuild Transfer Act. 

Individual of Limited English 

Proficiency: The definition of an 

‘‘individual of limited English 

proficiency’’ means an eligible 

participant who meets the criteria 

derived from the Adult Education and 

Family Literacy Act. 20 U.S.C. 9202(10). 

This term is defined in the YouthBuild 

Transfer Act. 

Low-Income Family: The definition of 

the term ‘‘low-income family’’ is taken 

from the United States Housing Act of 

1937. 42 U.S.C. 1437a(b)(2). As defined, 

a ‘‘low-income family’’ is: 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. This term is defined in the 

YouthBuild Transfer Act. Under HUD’s 

YouthBuild program, one of the 

eligibility criteria for participants was 

that the individual must be a very lowincome individual or a member of a 

‘‘very low-income family.’’ However, the 

YouthBuild Transfer Act requires only 

that an individual be a member of a 

‘‘low-income family’’ or fall into one of 

the new categories prescribed by the 

Transfer Act. The definition of ‘‘lowincome family’’ in the proposed rule 

subsumes the definition of ‘‘very lowincome family’’ in HUD’s YouthBuild 

regulations and broadens the pool of 

eligible participants. This definition 

applies not only to the eligibility of 

participants but also to the requirement 

that any residential units constructed or 

rehabilitated using YouthBuild funds 

must be used to house homeless 

individuals and families or low-income 

families. 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 who, or a youth 

who is the dependent of someone who, 

during the previous 12 months has: 

(a) Worked at least 25 days in 

agricultural labor that is characterized 

by chronic unemployment or 

underemployment; 

(b) 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; 

(c) Was employed at least 50 percent 

of his or her total employment in 

agricultural labor that is characterized 

by chronic unemployment or 

underemployment; or 

(d) Was employed in agricultural 

labor that requires travel to a jobsite 

such that the worker is unable to return 

to a permanent place of residence 

within the same day. 

This definition is adapted from 

guidance for determining eligibility of 

migrant and seasonal farmworkers for 

the National Farmworker Jobs Program 

in Department of Labor, Farmworker 

Bulletin 00–02, NFJP Eligibility Policy 

Guidance (2000). 

Needs-Based Stipend: ‘‘needs-based 

stipends’’ are additional payments 

(beyond regular stipends for program 

participation) that are based on defined 

needs that enable a youth to participate 

in the program. To provide ‘‘needs-based 

stipends’’, the grantee must have a 

written policy in place, which defines: 

(a) Eligibility; (b) the amounts; and (c) 

the required documentation and criteria 

for payments. This policy must be 

applied consistently to all program 

participants. 

Occupational Skills Training: 

‘‘Occupational skills training’’ means an 

organized program of study that 

provides specific vocational skills that 

lead to proficiency in performing 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 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 MOU submitted by each 

partner. The letter of commitment or 

MOU must detail the role the partner 

will play in the YouthBuild Program, 

including specific responsibilities and 

resources committed, if appropriate. 

These letters or MOU’s must clearly 

indicate the partnering organization’s 

unique contribution and commitment to 

the YouthBuild Program. This term is 

not in the YouthBuild Transfer Act but 

was added to the regulations. An 

applicant’s ability to enter into 

partnerships with education and 

training providers, employers, the 

workforce investment system, the 

juvenile justice system and faith-based 

and community organizations will be a 

criteria in selecting grantees. 

Registered Apprenticeship Program: 

The term ‘‘registered apprenticeship 

program’’ is defined in the YouthBuild 

Transfer Act and means 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. To the extent 

that 29 CFR part 30 is amended, such 

amendments shall apply to the 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52674 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

determination of what is a ‘‘registered 

apprenticeship program’’. 

Sequential Service Strategy: The term 

‘‘sequential service strategy’’ defines 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 first enrolls in an 

alternative school, and, after receiving a 

year or more of educational services, 

enrolls in a YouthBuild program. A 

youth will only be eligible for the 

YouthBuild program under the 

sequential service strategy if the 

alternative school is affiliated with a 

YouthBuild program. 

The Office of Inspector General 

suggested that a definition be provided 

for ‘‘sequential service strategy’’ either 

through guidance or in the regulations 

after its Audit of the YouthBuild 

Recovery grants. The reason for their 

suggestion was that grantees should be 

provided guidance on the meaning of 

provisions in both the American 

Recovery and Reinvestment Act, Public 

Law 111–5 (2009) and the 2009 

Omnibus Appropriations Act, Public 

Law 111–8 (2009) that broaden the WIA 

YouthBuild school dropout provision 

for Program Years 2008 and 2009. We 

agree and, therefore, have added 

definitions to clarify the terms 

‘‘alternative school’’ and ‘‘sequential 

service strategy’’ as used in those 

statutory provisions. 

Transitional Housing: The term 

‘‘transitional housing’’ is defined in the 

YouthBuild Transfer Act. 

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. The YouthBuild Transfer 

Act uses the term ‘‘youth in foster care 

(including youth aging out of foster 

care).’’ The U.S. Department of Health 

and Human Services (HHS) has 

recommended that the term be changed 

to youth who have ever been in foster 

care. We accept this new definition as 

we believe it is consistent with the 

statutory definition and is clearer and 

explains how the program uses the term. 

Youth Who is an Individual with a 

Disability: The term Youth who is an 

Individual with a Disability means an 

individual between the ages 16–24 who 

is an individual with a disability as 

defined by Section 101 of the Workforce 

Investment Act or a student receiving 

special education and related services 

under the Individuals with Disabilities 

Education Act (IDEA). 

Subpart B—Funding and Grant 

Applications 

How are YouthBuild grants funded and 

administered? (§ 672.200) 

This section describes how 

YouthBuild grants are funded and 

administered. The YouthBuild program 

is funded through appropriations 

authorized under 29 U.S.C. 2918a(h). 

YouthBuild will be administered as a 

national program with grants awarded 

through a competitive selection process, 

similar to the YouthBuild 

‘‘implementation grants’’ formerly 

administered by HUD. It is noteworthy 

that the authority to issue ‘‘planning 

grants,’’ which was formerly authorized 

under the Cranston-Gonzalez Act, was 

not retained in the Transfer Act as 

Congress considered planning grants no 

longer necessary to administer the 

current program. 

How does an eligible entity apply for 

grant funds to operate a YouthBuild 

program? (§ 672.205) 

This section describes in general 

terms the process the Department will 

use to select grantees. We propose to 

select grantees through a competitive 

process. The directions for applying for 

grants will be issued in a Solicitation for 

Grant Applications (SGA) which will 

describe the eligibility requirements and 

rating criteria for the competition. 

Essentially, all of the grant 

application requirements to operate a 

YouthBuild program have been 

retained, but several new requirements 

are now added by the Transfer Act and 

these regulations. Among the new 

requirements, an applicant is required 

to provide labor market information for 

the local market area where the grant 

will be used and to provide projections 

on career opportunities in local 

industries, such as the construction 

industry. In addition, an applicant’s 

statement of qualifications must 

describe its relationships with the 

workforce investment system and with 

employers. HUD required a description 

of the manner in which eligible youth 

will be recruited and selected as 

YouthBuild participants, including 

arrangements with required partners. 

Newly added to the list as a 

requirement, is a description of the 

arrangements that will be made with the 

local workforce board, One-Stop 

operators, and faith-based organizations 

to recruit YouthBuild participants. HUD 

only required such a description for 

community-based organizations. Other 

new requirements are that applicants 

describe how they will meet common 

performance measures for youth 

programs, identify the role of employers 

in the program, and describe their 

ability to grant industry-recognized 

skills-based certifications. All of these 

requirements will be described in the 

SGA through which grantees are 

selected. 

How are eligible entities selected to 

receive grant funds? (§ 672.210) 

This section describes the selection 

criteria for selecting grantees. The 

selection criteria that the Secretary may 

use to make grant determinations have 

been expanded from HUD’s selection 

criteria. The new factors, which are 

specified in the Transfer Act and are in 

addition to existing criteria, include the 

applicant’s focus on preparing youth for 

postsecondary education or careers in 

demand occupations; the extent to 

which the applicant will coordinate 

with the workforce investment system, 

employers, and educational institutions 

in conducting their YouthBuild 

activities; the applicant’s ability to serve 

different regions, including rural areas 

and States without prior YouthBuild 

programs. The weights given to these 

criteria will be specified in the SGA. 

Additionally, in the event additional 

funds become available, ETA reserves 

the right to use such funds to select 

additional grantees from applications 

submitted in response to a SGA. 

The Department has added to the 

selection criteria one factor not listed in 

the Transfer Act. Applicants will be 

evaluated on their ability to attract 

partners. Examples of partners are 

educational and training providers, 

employers, the workforce investment 

system, the juvenile justice system, 

disability service providers, and faithbased organizations as partners. While 

the selection criteria already emphasize 

the applicants’ ability to coordinate 

with these groups, a partnership is a 

more formal commitment in which the 

applicant and its partner agree to work 

together, signified by a memorandum of 

understanding or letter of commitment 

indicating the partnering organization’s 

unique contribution and commitment to 

the YouthBuild Program. The 

complexity of the YouthBuild program 

requires that entities engage in 

meaningful partnerships throughout 

their community to ensure the success 

of the participants as they transition 

from the program into post-secondary 

employment or education as well as 

ensure the successful construction or 

rehabilitation of affordable housing. 

How are eligible entities notified of 

approval for grant funds? (§ 672.215) 

The Secretary, to the extent 

practicable, must notify each applicant 

of the approval or disapproval of its 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52675 

grant application not later than 5 

months after the date of the receipt of 

the application. This is a change from 

the 4-month notification timeframe 

under the HUD program and reflects 

differences in the grant award process at 

the Department. 

Grants will be awarded for a 3-year 

period of performance. This includes 

2 years of core program operations 

(education, workforce investment skills 

training, and other activities such as 

youth leadership development) plus at 

least 9 months of follow-up support 

services and tracking of participant 

outcomes. In the event additional funds 

become available, ETA reserves the right 

to use such funds to select additional 

grantees from applications submitted in 

response to the SGA. 

Subpart C—Program Requirements 

Who is an eligible participant? 

(§ 672.300) 

This section sets out the participant 

eligibility requirements. The 

requirements that at least 75 percent of 

participants must be between the ages of 

16 and 24 years on the date of 

enrollment and must be school dropouts 

are continued under the YouthBuild 

Transfer Act. Later statutes provided 

that a YouthBuild program may serve an 

individual who has dropped out of 

school and reenrolled in an alternative 

school, if that reenrollment is part of a 

sequential service strategy. 

Previously, under the HUD 

regulations, an eligible participant was 

also required to be a very low-income 

individual or a member of a very lowincome family using the definition of 

income, adjusted for certain exclusions 

as determined by the United States 

Housing Act of 1937. The Department 

proposes to revise the previous 

requirement by now requiring that a 

participant be a member of a lowincome family using the definition of 

income, adjusted for certain exclusions 

as determined by the United States 

Housing Act of 1937. As specified in the 

Transfer Act, an eligible participant may 

also be a youth in foster care, a youth 

offender (including any youth between 

the ages of 16 and 24 who has been 

convicted through either a juvenile or 

adult criminal justice system), a youth 

who is an individual with a disability, 

a child of an incarcerated parent, or a 

migrant youth. 

Also continuing under the 

YouthBuild Transfer Act is the 

exception provision that no more than 

25 percent of the participants may be 

individuals who do not meet the general 

income or educational needs 

requirement, providing that they are 

academically deficient in one of two 

areas. The first area is that high school 

graduates or those who already have a 

GED but who are ‘‘basic skills deficient’’ 

may participate in the program under 

this exception. The term basic skills 

deficient has the same definition as it 

does in section 101 of WIA. It is ‘‘an 

individual that has English reading, 

writing, or computing skills at or below 

the 8th grade level on a generally 

accepted standardized test or a 

comparable score on a criterionreferenced test.’’ The second area of the 

exception refers to youth who are still 

enrolled in a secondary school and are 

referred by that school to participate in 

a YouthBuild program that leads to the 

attainment of a secondary school 

diploma. 

Are there special rules that apply to 

veterans? (§ 672.305) 

The priority of service provisions for 

qualified persons under Department of 

Labor regulations at 20 CFR part 1010 

apply to the YouthBuild program as a 

Department of Labor job training 

program. Accordingly, youth who are 

eligible participants for the YouthBuild 

programs, and are also covered persons 

under 20 CFR part 1010, must receive 

priority of service. The special rule for 

determining low-income status for 

veterans which is found at 20 CFR 

667.225 also applies. 

What eligible activities may be funded 

under the YouthBuild program? 

(§ 672.310) 

The HUD regulations included 

provisions for education and job 

training activities, including work 

experience and skills training, as 

eligible activities under YouthBuild 

grants. The Transfer Act outlines new 

education and workforce investment 

activities permitted under the 

YouthBuild program such as 

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; and 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. Grantees have discretion on 

which of these activities to offer and 

may also offer additional activities. 

However, as explained in § 672.320, the 

Department requires that every grantee 

offer as part of its program the activities 

listed in § 672.310(b)(1): Work 

experience and skills training in 

housing rehabilitation and construction. 

With the transfer of the YouthBuild 

program to the Department, there is 

wider access to workforce-related 

programs administered by the 

Department. Therefore, the Department 

proposes to place an emphasis on 

coordinating training with registered 

apprenticeship programs, which will 

allow participants to enter such 

programs after exiting YouthBuild. 

YouthBuild programs are permitted to 

use some funds to pay for supervision 

and training costs to allow participants 

to develop skills and obtain work 

experience through the rehabilitation or 

construction of community or other 

public facilities. As a result, by 

expanding the use of funds for 

participant services related to the 

rehabilitation or construction of 

community or public facilities, job 

training and career opportunities for 

YouthBuild participants will be 

enhanced. 

What timeframes apply to participation? 

(§ 672.315) 

The participation parameters for 

individuals participating in a 

YouthBuild program are unchanged 

under the Transfer Act. Participants 

must be offered full-time participation 

for a period of at least 6 months and not 

more than 24 months. 

What timeframes must be devoted to 

education and workforce investment or 

other activities? (§ 672.320) 

The Department proposes to require 

YouthBuild grantees to structure 

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 and workforce 

investment activities during at least 40 

percent of the remaining time. The latter 

is a new requirement under the Transfer 

Act. Only the requirement that 50 

percent of participant time be for 

educational activities had existed under 

the HUD program. 

The remaining 10 percent can be used 

for educational, construction-related 

occupational skills training, and/or 

leadership development as well as 

community service activities. Grantees 

should establish a program structure 

that is used consistently throughout the 

program cycle. 

Within these timeframes, YouthBuild 

grantees can generally determine which 

educational, workforce or other 

activities to offer participants. However, 

the Department has determined that the 

work experience and skills training in 

rehabilitation and construction set out 

in § 672.310(b)(1) are an essential part of 

the YouthBuild program and that every 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52676 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

YouthBuild grantee must include such 

activities as part of its workforce 

activities. YouthBuild was designed as a 

program that provides disadvantaged 

youth with both education and skills in 

occupations in demand while fostering 

a commitment to community 

development and expanding the supply 

of affordable housing to homeless 

individuals or families or low-income 

families. The White House Task Force 

for Disadvantaged Youth Final Report 

emphasized that, at its core, YouthBuild 

is an employment and training program 

and, as the Report recommended, the 

Transfer Act transferred authority for 

YouthBuild to the Department of Labor 

to provide greater coordination with 

existing workforce programs. 

To fully achieve the intent of the 

Transfer Act, the Department has 

interpreted the Act to require that work 

experience and skills training in 

housing construction and rehabilitation 

be part of every YouthBuild program. 

However, this may present a challenge 

for YouthBuild programs in placing 

participants in the construction industry 

when demand for construction workers 

in a local area is low, as it is in the 

current economic landscape. In 

addition, many youth can benefit from 

the YouthBuild program, but are not 

interested ultimately in entering 

construction careers. Many current 

grantees have expressed an interest in 

expanding their program training 

beyond construction for these reasons. 

Therefore, we are seeking comments on 

whether YouthBuild should continue to 

focus on construction skills training or 

if the skills training should be expanded 

to other industry areas. 

What timeframes apply for follow-up 

services? (§ 672.325) 

The Department proposes to require 

YouthBuild grantees to provide followup services for a period of not less than 

3 quarters after exit (nine months) and 

not to exceed 12 months after exit. 

Follow-up services are services that 

help YouthBuild participants transition 

successfully from the program into 

education and/or employment. This 

specificity is added to the regulations 

because of the recognition that youth 

exiting the program may require 

additional services in order to maintain 

the positive gains they achieved while 

enrolled. Follow-up services include 

supportive services and may also 

include, but are not limited, activities 

such as counseling services, job search 

assistance, and checking-in on 

participants after they have left the 

program. Additionally, programs are 

required to report on participants who 

have exited the program for 3 quarters 

after exit to ensure their successful 

transition into employment or education 

and to collect data on the performance 

indicators required by the Department. 

In accordance with the Department’s 

instructions, individual YouthBuild 

programs determine participant exit 

dates based on participant completion 

of the program requirements for 

educational and workforce investment 

activities or other activities. 

Subpart D—Performance Indicators 

What are the performance indicators for 

YouthBuild grants? (§ 672.400) 

All YouthBuild grantees must report 

on the three youth common 

performance indicators currently used 

to assess performance in the WIA 

Formula Youth Program. These 

indicators as described in Departmental 

guidance (TEGL No. 17–05) are 

placement in employment or education, 

attainment of a degree or certificate, and 

literacy and numeracy gains. These 

performance indicators will help the 

Department to identify early potential 

for successful outcomes from grantees 

and sets forth one set of indicators to be 

used for both reporting purposes and 

WIA section 136 performance 

accountability purposes. They will also 

allow grantees to better serve the 

eligible populations under this program. 

The Secretary may require grantees to 

track other performance indicators, 

including short-term performance 

indicators such as enrollment rate, 

number of initial job placements, 

number obtained High-School Diploma 

or GED, and provide this data to the 

Department in quarterly performance 

reports required under § 672.410. The 

Department will provide the details of 

the performance indicators in 

administrative guidance. 

What are the required levels of 

performance for the performance 

indicators? (§ 672.405) 

Each YouthBuild grantee must meet 

certain levels of performance 

established by the Department for each 

of the common performance measures 

described in § 672.400. In determining 

annual performance levels for the 

YouthBuild program, the Department 

reviews previous year’s performance 

and also compares performance levels 

with similar WIA youth workforce 

development programs. 

The levels of performance established 

must, at a minimum: 

(a) Be expressed in an objective, 

quantifiable, and measurable form; and 

(b) Lead to continuous improvement 

in performance. 

Expected national levels of 

performance for each of the common 

performance indicators, and any other 

performance indicators, will be 

established at a later date and provided 

in separately issued guidance. 

Generally, these other performance 

indicators are established, short-term 

indicators specified in the SGA or 

individual grant agreement and 

comprised of individual YouthBuild 

program data used by the Department to 

gauge individual program progress 

toward performance outcomes. 

Performance level expectations are 

based on available YouthBuild data and 

data from similar WIA Youth programs. 

The expected national levels of 

performance will take into account the 

extent to which the levels promote 

continuous improvement in 

performance. 

What are the reporting requirements for 

YouthBuild grantees? (§ 672.410) 

The Department proposes to require 

that each grantee receiving funds under 

this program must provide three 

quarterly reports to the Department: 

(a) The Quarterly Performance Report 

(QPR); 

(b) The quarterly narrative progress 

report; and 

(c) The financial report. 

Also, the Department may require a 

grantee to provide additional reports, as 

part of a grant agreement. These 

additional reports will assist the 

Department in the effective 

administration of YouthBuild. 

The QPR will be generated by a Webbased system programmed exclusively 

for YouthBuild grantees to use. This 

Web-based system is a tool used to 

capture agency-specific processes and 

data that occur throughout the grant’s 

lifecycle and helps the Department and 

the grantee with the various reporting 

requirements specified in § 672.410. 

This system will be the main system of 

data entry for all grantees, including all 

case management information, which 

the grantee will use to produce the QPR 

for submission to the Department. The 

QPR and narrative reports must be 

submitted electronically each quarter 

via this Web-based system. The 

financial report also will be submitted 

electronically via the Web-based system 

in accordance with reporting 

instructions issued by ETA. Grantees 

will be trained in all necessary reporting 

systems during the initial award phase. 

What are the due dates for quarterly 

reporting? (§ 672.415) 

The QPR and narrative reports are due 

no later than 45 days after the end of 

each quarter unless otherwise specified 

in reporting instructions. A final 

financial report is required 90 days after 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52677 

the expiration of a funding period or the 

termination of grant support. 

Subpart E—Administrative Rules, Costs 

and Limitations 

What administrative regulations apply 

to the YouthBuild program? (§ 672.500) 

This proposed section incorporates 

the administrative requirements of WIA 

that are applicable to YouthBuild grants, 

which include requirements relating to 

fiscal and administrative rules, audit, 

allowable costs/cost principles, 

debarment and suspension, a drug-free 

workplace, restrictions on lobbying, 

treatment of individuals with 

disabilities, and nondiscrimination. 

The nondiscrimination regulations 

incorporated by this section, 29 CFR 

part 37, broadly prohibit all forms of 

discrimination for WIA Title I programs, 

which include YouthBuild. 29 CFR 37.5 

states that ‘‘[n]o individual in the United 

States may, on the grounds of race, 

color, religion, sex, national origin, age, 

disability, political affiliation or belief, 

and for beneficiaries only, citizenship or 

participation in any WIA Title Ifinancially assisted program or activity, 

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 Ifunded program or activity.’’ The 

regulations also require that grantees 

provide reasonable accommodations to 

youth who are individuals with 

disabilities. 29 CFR 37.8. For grantees 

unsure of how to best accommodate 

youth who are individuals with 

disabilities in their program, the 

Department recommends that the 

grantees consult with the Job 

Accommodation Network, a free service 

of the Department’s Office of Disability 

Employment Policy that provides 

employers with technical assistance on 

accommodating different disabilities. 

In addition to prohibiting 

discrimination, YouthBuild grantees 

have positive requirements to ensure 

equal opportunity and prevent 

discrimination in their programs. 

YouthBuild grantees are required by 29 

CFR 37.29 through 37.32 to disseminate 

an equal opportunity policy. 

YouthBuild grantees must also ensure 

that they provide universal access to 

their programs, including advertising 

the program in a manner that targets 

various populations, sending notices 

about openings in programs to 

community service groups that serve 

various populations, and consulting 

with community service groups on ways 

to improve outreach and service to 

various populations. 29 CFR 39.42. 

YouthBuild grantees are also required 

to comply with all generally applicable 

laws and implementing regulations that 

apply to the grantees or their 

participants, including, for example, for 

participants who are Youth Who are 

Individuals with Disabilities and 

participate in secondary education 

programs, the administrative provisions 

of the Individuals with Disabilities 

Improvement Act, 34 CFR 300.320 

through 34 CFR 300.324, which require 

that grantees provide Youth Who are 

Individuals with Disabilities who enter 

the program with an appropriate 

transition plan corresponding to their 

individual needs. 

How may grantees provide services 

under the YouthBuild program? 

(§ 672.505) 

This proposed section restates the 

provisions of the Transfer Act which 

authorize grantees to provide services 

directly or to enter into sub-grants, 

contracts, or other arrangements with 

various public and private entities to 

provide services under the YouthBuild 

program. 

What cost limits apply to the use of 

YouthBuild program funds? (§ 672.510) 

This proposed section restates the 

provisions of the YouthBuild Transfer 

Act which set the administrative cost 

limit at 15 percent of the grant award 

and the cost of supervision and training 

for participants in the rehabilitation or 

construction of community and other 

public facilities to no more than 10 

percent of the grant award. 29 U.S.C. 

2918a(c)(2)(C) and (D). 

What are the cost-sharing or matching 

requirements of the YouthBuild 

program? (§ 672.515) 

The YouthBuild Transfer Act 

authorizes the Department to require the 

grantee to make available to the program 

additional resources from its own 

resources or from other sources such as 

businesses, non-profit organizations, or 

non-Federal public entities that can 

provide funds or in-kind services. Costsharing or match requirements will be 

addressed in the grant agreement, and 

described in the SGA. However, a few 

match requirements are addressed in 

particular in this section. 

Construction materials may be 

counted toward meeting the required 

non-Federal match share under the 

YouthBuild program. The value of 

buildings acquired for the YouthBuild is 

an allowable cost-share or match cost to 

the extent that the building is used for 

training. The value of land acquired for 

the YouthBuild program is not an 

allowable cost-sharing or match cost. 

This proposed section also 

incorporates the cost-sharing and 

matching provisions set forth in the 

Uniform Administrative Requirements, 

which define composition, use, and 

valuation of required match 

contributions. Although it is addressed 

in the Uniform Administrative 

requirements, because it is such a 

common question, the regulations 

restate the prohibition at 29 CFR 

95.23(a)(5) and 97.24(b), against Federal 

funds being used as part of the costsharing or match amount proposed by a 

prospective applicant. 

What are considered to be leveraged 

funds? (§ 672.520) 

This proposed section addresses the 

use of additional monies, known as 

leveraged funds, to support grant 

activities. Leveraged funds include costs 

that could be an allowable match but are 

in excess of the match requirement or 

costs that do not meet the cost-sharing 

and match requirements set forth in the 

Uniform Administrative Requirements. 

To be considered leveraged funds, they 

must be otherwise allowable costs under 

the cost principles which have been 

used by the grantee to support grant 

activity. For example, another Federal 

grant used by the grantee or sub-grantee 

to support otherwise allowable activities 

under the YouthBuild program could 

not be counted toward the match 

requirement but would be considered a 

leveraged fund. 

The amount, commitment, nature and 

quality of the leveraged funds described 

in the grant application will be a factor 

in evaluating grants in the SGA. 

Grantees will also be required to report 

the use of such funds through their 

financial report and quarterly narrative 

report. 

How are the costs associated with real 

property treated in the YouthBuild 

program? (§ 672.525) 

This proposed section specifies which 

costs associated with real property are 

allowable and unallowable under the 

YouthBuild program. The costs 

associated with the acquisition of 

buildings to be rehabilitated for training 

purposes are allowable under the same 

proportionate share conditions that 

apply under the match provision at 

§ 672.515, but only with prior grant 

officer approval. The costs related to 

construction and/or rehabilitation 

associated with the training of 

participants are allowable. The costs 

associated with the acquisition of land 

are not allowable. 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52678 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

1Sarua A, Philips P, Lillquist D, Sesek R, ‘‘Fatal 

Injuries to Construction Workers in the U.S.,’’ 

American Journal of Industrial Medicine, 2003. 2Runyon CW, Dal Santo J, Schulman M, 

Lipscomb HJ, Harris TA, ‘‘Work Hazards and 

Workplace Safety Violations Experienced by 

Adolescent Construction Workers,’’ Archives of 

Pediatric and Adolescent Medicine, 2006. 

What participant costs are allowable 

under the YouthBuild program? 

(§ 672.530) 

Payments to participants for workrelated and non-work-related 

YouthBuild Activities, supportive 

services, needs-based stipends, and 

additional benefits are allowable 

participant costs. A needs-based stipend 

is not a regular stipend, which is paid 

to participants in lieu of wages while 

they are in training. Needs-based 

stipends are additional payments 

(beyond regular stipends for program 

participation) that are based on defined 

needs to enable youth to participate in 

the YouthBuild program. To provide 

‘‘needs-based stipends’’, the grantee 

must have a written policy in place, 

which defines: (a) Eligibility; (b) the 

amounts; and (c) the required 

documentation and criteria for 

payments. This policy must be applied 

consistently to all program participants. 

What effect do payments to YouthBuild 

participants have on eligibility for other 

Federal needs-based benefits? 

(§ 672.535) 

Under 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). The 

Department wants to assure grantees 

and participants that their participation 

in the YouthBuild program should not 

disqualify them from participating in 

other Federally-sponsored needs-based 

programs that are available to them. 

What program income requirements 

apply to the YouthBuild program? 

(§ 672.540) 

This proposed section provides that 

the program income provisions of the 

Uniform Administrative Requirements 

apply to the YouthBuild program. In 

addition, this proposed section specifies 

that the revenue from the sale or rental 

of buildings rehabilitated or constructed 

under the YouthBuild program to 

homeless individuals and families or 

low-income families, as specified in 

section 672.615, is not considered 

program income. Grantees are 

encouraged to use such revenue for the 

long-term sustainability of the 

YouthBuild effort. 

Are YouthBuild programs subject to the 

Davis-Bacon Act labor standards? 

(§ 672.545) 

Davis-Bacon labor standards apply to 

Federal construction contracts and 

many Federally-assisted construction 

projects under the provisions of the 

Davis-Bacon Act and numerous related 

Acts that authorize Federal assistance 

for construction. YouthBuild programs 

and grantees are subject to Davis-Bacon 

labor standards in certain 

circumstances. The Department has 

determined that YouthBuild 

participants are subject to Davis-Bacon 

labor standards when they perform 

Davis-Bacon-covered laborer or 

mechanic work on Federal or Federallyassisted projects that are subject to 

Davis-Bacon labor standards. When a 

YouthBuild participant works on a 

project subject to Davis-Bacon labor 

standards, the Davis-Bacon labor 

standards, including prevailing wage 

requirements, apply to the hours 

worked on the site of the work. 

This may present a challenge to 

YouthBuild programs that view these 

types of construction projects as 

valuable training sites for their youth 

since many contractors may be reluctant 

to pay prevailing wage rates for youth 

trainees who are in the process of 

learning and developing their skill set. 

The regulations implementing the 

Davis-Bacon Act contain a provision 

that allows for Department-certified 

training programs to pay less than the 

applicable prevailing wage rate to 

trainees. As stipulated by 29 CFR 

5.5(a)(4)(ii), ‘‘trainees’’ are not permitted 

to be paid less than the predetermined 

rate for the work performed unless they 

are employed under and individually 

registered in a program which has 

received prior approval, evidenced by a 

formal certification by the U.S. 

Department of Labor, Employment and 

Training Administration. 

What are the recordkeeping 

requirements for YouthBuild programs? 

(§ 672.550) 

This proposed section sets forth the 

requirements for maintaining records 

under the YouthBuild program, 

including requirements for records 

related to the use of buildings 

constructed or rehabilitated with 

YouthBuild funds which will be 

specified in the grant agreement. 

Grantees must follow the recordkeeping 

requirements in the Uniform 

Administrative Regulations, codified at 

29 CFR 95.53 and 29 CFR 97.42, as 

appropriate. 

Grantees must maintain such 

additional records as specified in the 

grant agreement related to the use of 

buildings constructed or rehabilitated 

with YouthBuild funds. Recordkeeping 

requirements vary for different classes 

of records. 

Subpart F—Additional Agency 

Requirements 

What are the safety requirements for the 

YouthBuild program? (§ 672.600) 

On November 14, 2006, the 

Department 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. The Department received four 

comments relating to safety issues in 

response to the Federal Register notice, 

including comments from the National 

Institute for Occupational Safety and 

Health (NIOSH), the Department’s 

Occupational Safety and Health 

Administration (OSHA), the University 

of California at Berkeley Labor 

Occupational Health Program, and the 

University of North Carolina Injury 

Prevention Research Center. 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 NIOSH comments 

referenced a review of OSHA 

investigations of fatally injured teenage 

construction workers between 1984 and 

1998 which found that approximately 

half of the 76 investigations of deaths to 

youth under 18 involved apparent 

violations of child labor laws.1 The 

NIOSH comments also referenced a 

survey in North Carolina of youth ages 

16 and 17 working in construction that 

found that 84 percent of the youth had 

performed at least one task clearly 

prohibited by child labor laws, while 47 

percent had performed three or more 

tasks prohibited by child labor laws.2

NIOSH recommended that the 

Department comprehensively integrate 

worker safety and associated training 

into the YouthBuild program by 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52679 

incorporating the following 

requirements in the program: 

(a) Comprehensive, documented 

training on construction safety for youth 

working on YouthBuild projects, 

including requirements for youth to 

demonstrate knowledge and proficiency 

in hazard identification, abatement, and 

safe work practices; 

(b) Compliance with Federal and State 

child labor laws and occupational safety 

and health regulations; 

(c) Written, jobsite specific, safety 

plans overseen by an on-site supervisor 

with the knowledge, skills, and 

authority to correct safety and health 

hazards and enforce the site-specific 

safety plan; 

(d) Provision of necessary personal 

protective equipment to youth working 

on YouthBuild projects; and 

(e) Reporting of all injuries and 

illnesses to youth working on 

YouthBuild projects, along with 

documentation on remedial measures to 

prevent future similar injuries and help 

ensure that YouthBuild is a model 

program that takes active steps for 

participant safety and health. 

The comments from OSHA similarly 

stressed the importance of safety 

training and identification of worksite 

hazards. OSHA’s comments 

recommended that YouthBuild grantees 

should demonstrate an effective, 

comprehensive occupational safety and 

health management system that 

includes four basic elements: 

(a) Management leads the way in 

emphasizing safety; 

(b) The worksite is continuously 

analyzed to identify existing and 

potential hazards; 

(c) Methods to prevent or control 

existing hazards are put in place; and 

(d) Managers, supervisors, and 

participants are trained in safety 

practices, including new-hire training 

and ongoing weekly or daily safety 

training. 

The comments from the University of 

California and the University of North 

Carolina both strongly recommended 

that YouthBuild grantees be subject to 

the hazardous orders in the child labor 

regulations. 

Based upon the concerns raised by 

these commenters, the Department is 

proposing to require that YouthBuild 

grantees not only comply with Federal 

and State health and safety standards, 

including the hazardous orders in the 

child labor regulations, but also 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 procedure; provide necessary 

personal protective equipment to youth 

working on YouthBuild projects; and 

submit injury incident reports to the 

Department. The intent of these 

proposed regulations 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. 

YouthBuild grantees must adhere to 

all safety guidelines, laws and 

regulations required by all Federal, State 

and local laws which include the 

Department’s OSHA regulations, as well 

as the Department’s Wage and Hour 

Division’s (WHD) child labor 

regulations. Among other things, these 

provisions prohibit youth ages 16 and 

17 from working in identified hazardous 

occupations. Occupations prohibited for 

16 and 17 year-olds under these 

‘‘hazardous orders’’ relating to 

construction include, but are not limited 

to, operating circular saws, working on 

or about roofs, performing demolition 

work, excavating and trenching, 

operating a fork lift or a hoist, and 

driving a motor vehicle on the job. 

What are the reporting requirements for 

youth safety? (§ 672.605) 

The Department places high priority 

on the safety of YouthBuild 

participants. The comments by NIOSH 

about the design of the YouthBuild 

program specifically recommend that 

the Department require the ‘‘reporting of 

all injuries and illnesses to youth 

working on YouthBuild projects, along 

with documentation on remedial 

measures to prevent future similar 

injuries and help ensure that 

YouthBuild is a model program that 

takes active steps for participant safety 

and health.’’ 

By requiring grantees to complete and 

file injury incident reports for accidents 

incurred by youth while working on 

YouthBuild projects, the Department 

will be able to determine whether youth 

are being properly trained under safe 

conditions while participating in the 

YouthBuild program. 

The working conditions of 

YouthBuild participants are subject to 

Federal and State health and safety 

standards under 20 CFR 667.274. Such 

standards include requirements under 

29 CFR part 1904 that employers in the 

construction industry and other nonexempt industries record occupational 

injuries and illnesses and keep these 

reports on file for 5 years. These reports 

include individual incident reports, a 

log of injuries, and an annual summary 

of incidents. In addition, YouthBuild 

grantees must send a copy of the 

incident reports to the Department 

within 7 days of the incident. Requiring 

YouthBuild grantees to submit incident 

reports of occupational injuries and 

illnesses to the Department will serve to 

emphasize to grantees and their staff the 

importance of safety. The Department 

will be able to use the incident reports 

to respond in a timely manner to require 

corrective actions at particular sites. 

Corrective actions may include any of 

the following: requiring grantees to 

modify or improve safety training; alert 

all YouthBuild sites of hazards 

identified in incident reports; and, in 

some cases, to sanction or close sites in 

which a flagrant safety violation or 

pattern of violations has resulted in a 

serious accident. 

What environmental protection laws 

apply to the YouthBuild program? 

(§ 672.610) 

All YouthBuild worksites are 

expected to be in compliance with all 

applicable Federal, State, and local 

environmental protection laws, as 

YouthBuild participants spend a large 

portion of their training time on 

YouthBuild worksites. 

It should be noted that the regulations 

implementing HUD’s YouthBuild 

program contained environmental 

procedures which governed HUD’s 

determination of whether any 

environmental thresholds in the 

agency’s National Environmental Policy 

Act (NEPA) regulations would be 

exceeded as a result of funding the 

‘‘lease, acquisition, rehabilitation, or 

new construction of real property that is 

proposed for housing project 

development.’’ 24 CFR 585.307(a). 

However, HUD’s environmental 

procedures expressly did not apply to 

‘‘HUD’s approval of grants where the 

applicant proposes to use YouthBuild 

funds solely to cover any costs for 

classroom and/or on-the-job 

construction training and supportive 

services.’’ Id. 

The Department considers the 

construction and rehabilitation-related 

activities authorized under the Transfer 

Act to be on-the-job training, rather than 

construction or rehabilitation, which is 

consistent with HUD’s previous 

administration of the program. As a 

result, the Department has chosen not to 

include specific environmental 

procedures for the YouthBuild program 

in this proposed regulation. However, 

the absence of environmental 

procedures does not affect the 

Department’s on-going obligation to 

comply with NEPA and the 

Department’s NEPA regulations at 29 

CFR part 11. Therefore, grantees are 

expected to be familiar and comply with 

NEPA, State, and local environmental 

regulations. 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52680 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

What requirements apply to YouthBuild 

housing? (§ 672.615) 

One of the priorities of the 

YouthBuild program is to provide 

transitional and affordable housing to 

homeless individuals and families. The 

Transfer Act made the changes to the 

housing requirements that would allow 

the Department to focus on the 

workforce aspect of the YouthBuild 

program and at the same time maintain 

the integrity of the housing initiative. 

The Transfer Act maintains some basic 

rental and homeownership restrictions, 

which are similar to the major 

restrictions specified in the CranstonGonzalez Act (42 U.S.C. 12899d); 

however, many of the more extensive 

restrictions were eliminated. The 

Transfer Act does stipulate that 

YouthBuild residential properties must 

be available solely for rental by, or sale 

to, homeless individuals and families or 

low-income families, and/or for use as 

transitional or permanent housing for 

homeless individuals and families 

transitioning to independent living. The 

Department has interpreted this 

stipulation to require that YouthBuild 

residential properties be inhabited by 

homeless individuals and families or 

low-income families. Therefore, in 

addition to constructing or 

rehabilitating housing to sell or rent to 

new low-income family tenants, 

YouthBuild grantees may rehabilitate 

residences already occupied by lowincome families. 

As administrator of the YouthBuild 

program, it is the Department’s 

responsibility to ensure that YouthBuild 

funds are only used for the housing 

purposes stipulated in the Transfer Act. 

Additionally, we are concerned with 

minimizing the enforcement burden on 

grantees in order to emphasize the 

training and employment purposes of 

the programs. In order to accomplish 

these goals, a new requirement is being 

proposed in order to create a selfenforcing mechanism to ensure 

compliance with the YouthBuild 

housing limitations. The HUD 

regulations required the restrictions be 

in place for 10 years and that if the 

property was sold before the 

termination of the time period, any 

conveyance document require that the 

new owner abide by the restrictions. 

The Department’s new requirement is 

that grantees ensure that a restrictive 

covenant be recorded with the 

appropriate local office or agency 

against the property limiting the use of 

residential units constructed or 

rehabilitated using YouthBuild funds to 

housing for homeless individuals and 

families and low-income families. 

The restrictive covenant must also 

include the additional conditions that 

apply to housing in § 672.615(b)–(c). It 

should be noted that a grantee and/or 

property owner may choose to include 

additional stipulations to the restrictive 

covenant, depending on their standard 

business practices. 

This restrictive covenant must be 

recorded at the time of the issuance of 

the occupancy permit. The duration of 

the covenant is a minimum of 10 years 

from the issuance of the occupancy 

permit, unless a longer time period has 

been established by the grantee. In the 

event that the covenant has not expired 

before any later sale of the property, any 

conveyance document must contain the 

covenant for the time remaining. 

Grantees will be required to provide 

verification to the Department that a 

restrictive covenant has been recorded, 

through the submission of a copy of the 

deed with the restrictive covenant 

before the end of the grant period. 

The covenant requirement applies to 

all newly constructed or rehabilitated 

residential units funded with 

YouthBuild funds when they are for sale 

or rent. When a grantee rehabilitates the 

home of a low-income homeowner, 

there is no sale or rental and therefore 

the homeowner is not required to record 

a restrictive covenant. 

All grantees or property owner must 

make a good faith effort to rent the 

property to homeless individuals and 

families or low-income families. 

Grantees or property owners 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. Except for dangerous 

or egregious situations involving the 

tenant, 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. 

Grantees and/or property owners who 

are rehabilitating or constructing houses 

for the purposes of transitional or 

permanent housing for homeless 

individuals and families and lowincome families under the YouthBuild 

program will be required to ensure that 

the housing is safe and sanitary. The 

housing must also meet any applicable 

State and local housing codes and 

licensing requirements in the 

jurisdiction in which the housing is 

located. Transitional housing is a 

necessary factor in community 

improvement and development. The 

Department believes that this provision 

of transitional housing will not only 

help individuals establish ties to the 

community but also encourage their 

participation in the local labor market. 

The YouthBuild program is designed 

to provide workforce training and 

education through the rehabilitation and 

construction of low-income housing for 

the community. This section balances 

the Department’s duty to focus on 

training and education in order to 

prepare a skilled workforce with its 

duty to ensure that the housing 

provided by each grantee will remain 

available for the purposes of lowincome occupancy for a specified length 

of time. 

III. 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 which will describe the impact 

of the proposed rule on small entities. 

Section 605 of the RFA allows an 

agency to certify a rule, in lieu of 

preparing an analysis, if the proposed 

rulemaking 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 proposed 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). The Department does not 

believe that the proposed rule will have 

a significant economic impact on a 

substantial number of these small 

entities. The Department has certified 

this to the Chief Counsel for Advocacy, 

Small Business Administration, 

pursuant to the Regulatory Flexibility 

Act. Primary issues affected by the 

proposed 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, 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52681 

organizations apply for Federal grant 

funds. The costs that might be thought 

to be increased by the proposed rule are 

participant safety, worksite 

environmental standards, and a required 

follow-up time period for YouthBuild 

enrollees, all of which may be paid for 

with grant funds. 

The proposed rule would require 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 

measures are standard requirements for 

all Federally-funded construction 

worksites across the United States. The 

requirements should 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 Department is 

requiring 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 proposed rule also requires a 

minimum 9-month follow-up period for 

enrollees who exit the YouthBuild 

program. While this is a new 

requirement in the proposed rule, one of 

the mandatory program reporting 

requirements already in place for 

YouthBuild requires a minimum 9- 

month follow-up period for participants. 

As a result, the 9-month follow-up 

period requirement should already be 

followed by all YouthBuild programs 

and will not add to the existing program 

costs. 

Finally, 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. 

Accordingly, the Department certifies 

that this proposed rule will not have a 

significant economic impact on a 

substantial number of small entities. 

The Department explicitly invites 

comments from members of the public 

who believe there will be a significant 

economic impact on 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 proposed 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 the 

Office of Management and Budget 

(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 customers 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. The 

Department has determined that this 

proposed rule contains no new 

information collection requirements. 

The Department estimates that the 

public reporting burden for this 

collection of information will amount to 

16,280 hours. This total includes all 

paperwork in regard to this proposed 

rule over the course of one program year 

for all grantees nationwide. 

Executive Order 12866 

Executive Order 12866 requires that 

for each ‘‘significant regulatory action’’ 

proposed by the Department, the 

Department conduct an assessment of 

the proposed regulatory action and 

provide OMB with the proposed 

regulation and the requisite assessment 

prior to publishing the regulation. A 

significant regulatory action is defined 

to include an action that will have an 

annual effect on the economy of $100 

million or more, as well as an action 

that raises a novel legal or policy issue. 

The regulatory requirements defined 

and implemented by this proposed rule 

for this grant program will not have an 

annual effect on the economy of $100 

million or more but do raise novel 

policy issues. With the transfer of the 

program from HUD to the Department, 

there have been changes from what was 

required under the ‘‘Hope for Youth’’, 

the original YouthBuild program located 

in the Cranston-Gonzalez National 

Affordable Housing Act of 1992. 

Primarily, the transfer allowed for a 

change of focus from a purely housing 

initiative to one more focused on job 

and skills training and low-income 

housing creation. Therefore this 

proposed rule has been submitted to 

OMB for review. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531) 

directs agencies to assess the effects of 

Federal regulatory actions on State, 

local, and tribal governments, and the 

private sector. This NPRM 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 proposed 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 lowWReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52682 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

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. 

The Department is committed to 

upholding the integrity of the 

YouthBuild program in all its aspects 

and believes that a restrictive covenant 

is the best way to meet the purpose of 

the legislation with regard to housing 

for homeless individuals and families 

and low-income families. 

Executive Order 12988—Civil Justice 

This proposed regulation has been 

drafted and reviewed in accordance 

with Executive Order 12988, Civil 

Justice Reform, and will not unduly 

burden the Federal court system. The 

proposed regulation 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 proposed 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 prior to 

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 proposed rule addresses a 

voluntary grant program, YouthBuild, 

which is administered by the 

Department. We conclude that this 

proposed 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 

The Department has reviewed this 

proposed 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 

proposed rule will not have a significant 

impact on the quality of the human 

environment, and, thus, the Department 

has 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 the Department to assess the 

impact of this proposed rule on family 

well-being. A rule that is determined to 

have a negative effect on families must 

be supported with an adequate 

rationale. 

The Department has assessed this 

proposed rule and determines that it 

will not have a negative effect on 

families. Indeed, we maintain that this 

proposed rule will strengthen families 

by providing low-income housing and 

occupational training for low-income 

families and others. 

Executive Order 13211 

This proposed 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 regulation is not affected by the 

Privacy Act of 1974 as it does not 

require the collection of information by 

the Department of an individual’s name 

or other personal identifier or involves 

computerized matching of records from 

a Privacy Act System of Records with 

any other records. 

Plain Language 

The Department drafted this proposed 

rule in plain language. 

List of Subjects in 20 CFR Part 672 

Apprenticeship, Construction, 

Education, High growth, Homeless, 

Housing, Labor, Low-income, Safety, 

Training, Transitional housing, and 

Youth. 

For the reasons discussed in the 

preamble, the Department proposes to 

add 20 CFR 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? 

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 followup 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? 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52683 

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 

§ 672.100 What is YouthBuild? 

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, who 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. 

Program participants receive education 

services that may lead to either a high 

school diploma or General Education 

Development (GED). Further, they 

receive occupational skills training and 

are encouraged to pursue a postsecondary 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 lowincome families, as well as public 

facilities, or in other high wage, highdemand jobs. The program also benefits 

the larger community because it 

provides more new and rehabilitated 

affordable housing. 

§ 672.105 What are the purposes of the 

YouthBuild program? 

(a) The overarching goal of the 

YouthBuild program is to enable 

disadvantaged and low-income youth 

the opportunity to obtain education and 

employment skills necessary to achieve 

economic self-sufficiency. Additionally, 

the YouthBuild program has as goals: 

(1) 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 lowincome communities. 

(2) 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) Reduce the rate of homelessness in 

communities with YouthBuild 

programs. The program seeks to increase 

the number of affordable housing units 

available to decrease the number of 

homeless individuals and families in 

their communities. 

(b) Through these newfound 

educational and occupational 

opportunities, youth participants will 

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. 

§ 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. 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 in order to qualify 

as part of a ‘‘sequential service strategy.’’ 

Community or other public facility: 

The term ‘‘community or other public 

facility’’ means those facilities which are 

publicly owned and publicly used for 

the benefit of the community. This term 

may also encompass facilities used by 

the program but only if the facility is 

available for public entry and use. 

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; 

(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: As defined in 42 

U.S.C. 11302 of the McKinney-Vento 

Homeless Assistance Act, a ‘‘homeless 

individual’’ is: 

(1) An individual who lacks a fixed, 

regular, and adequate night time 

residence; and 

(2) An individual who has a primary 

night time residence that is— 

(i) A supervised publicly or privately 

operated shelter designed to provide 

temporary living accommodations 

(including welfare hotels, congregate 

shelters, and transitional housing for the 

mentally ill); 

(ii) An institution that provides a 

temporary residence for individuals 

intended to be institutionalized; or 

(iii) A public or private place not 

designed for, or ordinarily used as, a 

regular sleeping accommodation for 

human beings. 

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. 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52684 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

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 SelfDetermination 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 outof-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 

per centum of the median for the area 

if the Secretary of Labor 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 need-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 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 MOU submitted by each 

partner. The letter of commitment or 

MOU must detail the role the partner 

will play in the YouthBuild Program, 

including specific responsibilities and 

resources committed, if appropriate. 

These letters or MOU’s 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 lowincome 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. 

(3) To the extent that 29 CFR part 30 

is amended, such amendments apply to 

the ‘‘registered apprenticeship program’’ 

for Youthbuild. 

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 

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 

§ 672.200 How are YouthBuild grants 

funded and administered? 

The Secretary uses funds authorized 

for appropriation under sec. 173A of the 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52685 

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 § 672.110, 

through a competitive selection process 

described in § 672.205. 

§ 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. 

§ 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, and education to 

participants; 

(e) The focus of a proposed program 

on preparing youth for postsecondary 

education and training opportunities or 

in-demand occupations in the 

construction industry; 

(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 justice system, and 

the extent to which it provides: 

(i) Support and guidance for 

YouthBuild participants with court 

involvement; and 

(ii) Assists in the reporting of 

recidivism rates among YouthBuild 

participants. 

(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 § 672.205. 

§ 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 

select additional grantees from 

applications submitted in response to an 

SGA. 

Subpart C—Program Requirements 

§ 672.300 Who is an eligible participant? 

(a) Except as provided in paragraph 

(b) of this section, an individual is 

eligible to participate in a YouthBuild 

program if such 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 § 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 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52686 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

(vi) A migrant youth as defined in 

§ 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 (a)(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. Referrals from secondary 

schools to YouthBuild programs that 

provide only a GED degree are not 

allowed. 

§ 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. 

§ 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 Staterecognized 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 decision-making 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 § 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 (c)(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 § 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 § 672.505(a); 

(5) Adult mentoring; 

(6) Provision of wages, stipends, or 

additional benefits to participants in the 

program as provided in § 672.530; and 

(7) Follow-up services as provided in 

§ 672.325. 

§ 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. 

§ 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 § 672.310(a), during at least 

50 percent of the time during which 

they participate in the program; and 

(b) Eligible workforce investment 

activities such as those specified in 

§ 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 § 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. 

§ 672.325 What timeframes apply for 

follow-up services? 

Follow-up services must 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. 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 

§ 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 

(4) Such other indicators of 

performance as may be required by the 

Secretary. 

(b) The Department will provide the 

details of the performance indicators in 

administrative guidance. 

§ 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 

will be established at a later date and 

will be provided in separately issued 

guidance. Short-term or other 

performance indicators will be 

established at a later date and 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 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52687 

promote continuous improvement in 

performance. 

(b) The levels of performance 

established must, at a minimum: 

(1) Be expressed in an objective, 

quantifiable, and measurable form; and 

(2) Indicate continuous improvement 

in performance. 

§ 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. 

§ 672.415 What are the due dates for 

quarterly reporting? 

Each grantee must provide quarterly 

reports such that: 

(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 § 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 

§ 672.500 What administrative regulations 

apply to the YouthBuild program? 

(a) The regulations found in this part. 

(b) The general administrative 

requirements found in 20 CFR part 667, 

except those which apply only to the 

WIA Title I–B program and those which 

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 (relocated to 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, and 

restrictions on lobbying, drug free 

workplace, and debarment and 

suspension; 

(4) The audit requirements of the 

OMB Circular A–133 stated at 29 CFR 

part 99, as required by 29 CFR 96.11, 

95.26 and 97.26, as applicable. 

§ 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. 

§ 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. 

§ 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. 

§ 672.520 What are considered to be 

leveraged funds? 

(a) Leveraged funds used to support 

allowable YouthBuild program activities 

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 § 672.515 and 

are in excess of the amount of costsharing or match resources required; 

(2) Costs which would meet the 

criteria in § 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. 

§ 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 § 672.510(b), only 

10% 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) 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; 

(2) On-site trainee supervisors; 

(3) Construction management; 

(4) Relocation of buildings; and 

(5) Clearance and demolition. 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

52688 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 

(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 for land. 

(2) Brokerage fees. 

§ 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 workrelated YouthBuild activities. 

(b) The costs of payments provided to 

participants engaged in non-workrelated YouthBuild activities. 

(c) The costs of Needs-based stipends 

(d) The costs of supportive services. 

(e) The costs of providing additional 

benefits to participants, 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. 

§ 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). 

§ 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 or rental 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 such revenue for the 

long-term sustainability of the 

YouthBuild effort. 

§ 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 in certain 

circumstances. 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 DavisBacon contract provisions set forth in 29 

CFR 5.5. 

(b) YouthBuild participants are 

subject to Davis-Bacon Act labor 

standards when they perform DavisBacon-covered laborer or mechanic 

work on Federal or Federally-assisted 

projects that are subject to the DavisBacon Act labor standards. The DavisBacon prevailing wage requirements 

apply to hours worked on the site of the 

work. 

(1) YouthBuild participants may be 

classified as ‘‘trainees’’ on Davis-Bacon 

contracts only when they are employed 

in and are individually registered in a 

program which has received prior 

approval, evidenced by formal 

certification by the U.S. Department of 

Labor, Employment and Training 

Administration. The Davis-Bacon 

contract clauses set forth in 29 CFR 

5.5(a)(4)(ii) provide further rules and 

requirements regarding the use of 

trainees on Davis-Bacon covered 

contracts. 

(2) 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. 

§ 672.550 What are the recordkeeping 

requirements for YouthBuild programs? 

(a) Grantees must follow the 

recordkeeping requirements specified in 

the Uniform Administrative 

Regulations, 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 

§ 672.600 What are the safety 

requirements for the YouthBuild program? 

(a) The working conditions of 

YouthBuild participants are subject to 

health and safety standards under 20 

CFR 667.274. Such 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. 

§ 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. The 

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. 

§ 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. 

§ 672.615 What requirements apply to 

YouthBuild housing? 

(a) YouthBuild grantees must ensure 

that all residential housing units located 

on the property 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 lowincome homeowners. 

(b) For rentals of residential units 

located on the property which are 

constructed or rehabilitated using 

YouthBuild funds: 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Proposed Rules 52689 

(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 one or two years. The leases 

provided to tenants with higher incomes 

will not be 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 

§ 672.110: Homeless Individual; LowIncome 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 19th day of 

August 2010. 

Jane Oates, 

Assistant Secretary, Employment and 

Training Administration. 

[FR Doc. 2010–21097 Filed 8–26–10; 8:45 am] 

BILLING CODE 4510–FT–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 401 

[Docket No. FR–5304–P–01] 

RIN 2502–AI75 

Multifamily Housing Reform and 

Affordability Act: Projects Eligible for a 

Restructuring Plan; When Eligibility Is 

Determined 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Proposed rule. 

SUMMARY: HUD seeks public comment 

on HUD’s determination of the point in 

time at which an assisted project 

covered by the Multifamily and Assisted 

Housing Reform and Affordability Act is 

eligible for restructuring. Additionally, 

HUD proposes to amend its regulation, 

which provides a cross-reference to the 

statutory list of the types of projects that 

are eligible for mortgage restructuring, 

to incorporate that list into the 

regulation. HUD is initiating this 

rulemaking in accordance with a court 

decision. 

DATES: Comments Due Date: October 26, 

2010. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this proposed rule to the Regulations 

Division, Office of General Counsel, 

Department of Housing and Urban 

Development, 451 7th Street, SW., 

Room 10276, Washington, DC 20410– 

0500. Communications must refer to the 

above docket number and title. There 

are two methods for submitting public 

comments. All submissions must refer 

to the above docket number and title. 

1. Submission of Comments by Mail. 

Comments may be submitted by mail to 

the Regulations Division, Office of 

General Counsel, Department of 

Housing and Urban Development, 451 

7th Street, SW., Room 10276, 

Washington, DC 20410–0500. 

2. Electronic Submission of 

Comments. Interested persons may 

submit comments electronically through 

the Federal eRulemaking Portal at 

http://www.regulations.gov. HUD 

strongly encourages commenters to 

submit comments electronically. 

Electronic submission of comments 

allows the commenter maximum time to 

prepare and submit a comment, ensures 

timely receipt by HUD, and enables 

HUD to make them immediately 

available to the public. Comments 

submitted electronically through the 

http://www.regulations.gov Web site can 

be viewed by other commenters and 

interested members of the public. 

Commenters should follow the 

instructions provided on that site to 

submit comments electronically. 

Note: To receive consideration as public 

comments, comments must be submitted 

through one of the two methods specified 

above. Again, all submissions must refer to 

the docket number and title of the rule. 

No Facsimile Comments. Facsimile 

(FAX) comments are not acceptable. 

Public Inspection of Public 

Comments. All properly submitted 

comments and communications 

submitted to HUD will be available for 

public inspection and copying between 

8 a.m. and 5 p.m. weekdays at the above 

address. Due to security measures at the 

HUD Headquarters building, an advance 

appointment to review the public 

comments must be scheduled by calling 

the Regulations Division at 202–708– 

3055 (this is not a toll-free number). 

Individuals with speech or hearing 

impairments may access this number 

through TTY by calling the Federal 

Information Relay Service, toll free, at 

800–877–8339. Copies of all comments 

submitted are available for inspection 

and downloading at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Theodore Toon, Deputy Assistant 

Secretary, Office of Affordable Housing 

Preservation (OAHP), Department of 

Housing and Urban Development, 451 

Seventh Street, SW., Room 6230, 

Washington, DC 20024, telephone 

number 202–708–0001 (this is not a tollfree number). Persons with hearing or 

speech impairments may access this 

number via TTY by calling the toll-free 

Federal Information Relay Service at 

800–877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Multifamily Assisted Housing 

Reform and Affordability Act (42 U.S.C. 

1437f note) (MAHRA) introduced a 

Mark-to-Market program designed to 

preserve housing affordability, while 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS