[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Rules and Regulations]
[Pages 17492-17496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9035]



[[Page 17491]]

_______________________________________________________________________

Part IV





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 570



Hispanic-Serving Institutions Work Study Program; Final Rule

Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Rules 
and Regulations

[[Page 17492]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 570

[Docket No. FR-4070-F-03]
RIN 2528-AA06


Hispanic-Serving Institutions Work Study Program

AGENCY: Office of the Assistant Secretary for Policy Development and 
Research, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: On October 2, 1996, HUD published for public comment a Notice 
of Proposed Rulemaking (NPRM) for the Hispanic-serving Institutions 
Work Study Program. A Notice of Funding Availability (NOFA) for Fiscal 
Year (FY) 1996 for the program was separately published on that date. 
The NPRM stated that the requirements contained in the NOFA would 
provide the basis for a new regulatory provision governing HSI-WSP. The 
NPRM also solicited comments on the FY 1996 NOFA which would be used in 
preparing a final rule for the program. This final rule establishes the 
regulatory provisions for the Hispanic-serving Institutions Work Study 
Program (HSI-WSP). Under HSI-WSP, HUD awards grants to public and 
private non-profit Hispanic-serving community colleges for the purpose 
of providing assistance to economically disadvantaged and minority 
students who participate in a community development work study program 
while enrolled in a full-time Community Building Academic program.

EFFECTIVE DATE: May 9, 1997.

FOR FURTHER INFORMATION CONTACT: Jane Karadbil, Office of University 
Partnerships, U.S. Department of Housing and Urban Development, Room 
8110, 451 Seventh Street SW., Washington, D.C. 20410, telephone (202) 
708-1537, extension 218. Hearing or speech-impaired individuals may 
call HUD's TTY number (202) 708-1455, or 1-800-877-8399 (Federal 
Information relay Service TTY). (Other than the ``800'' number, these 
are not toll-free numbers. Ms. Karadbil can also be contacted via the 
Internet at Jane__R.__K<a href="/cdn-cgi/l/email-protection#b5d4c7d4d1d7dcd9f5ddc0d19bd2dac3"><span class="__cf_email__" data-cfemail="711003101513181d311904155f161e07">[email protected]</span></a> .

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act Statement

    The information collection requirements contained in this final 
rule have been submitted to the Office of Management and Budget (OMB) 
for review under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520) and have been assigned OMB control number 2528-0182. An agency 
may not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless the collection displays a valid 
control number.

II. Background

A. Statutory Basis

    The HSI-WSP is authorized by section 107(c) of the Housing and 
Community Development Act of 1974, as amended. 42 U.S.C. Sec. 5307(c). 
This section (which was added by section 501(b)(2) of the Housing and 
Community Development Act of 1987) has served as authorization for the 
Department's Community Development Work Study Program (CDWSP) since 
that program's inception. It provides authority to, ``* * * make grants 
to institutions of higher education, either directly or through 
areawide planning organizations or States, for the purpose of providing 
assistance to economically disadvantaged and minority students who 
participate in community development work study programs and are 
enrolled in full-time graduate or undergraduate programs in community 
and economic development, community planning, or community 
management.''
    Since Fiscal Year 1996, legislative history accompanying the 
Department's appropriations acts has earmarked a portion of the work 
study funds for Hispanic-serving institutions. This final rule 
establishes regulations governing the award of those funds under the 
Hispanic-serving Institutions Work Study Program (HSI-WSP). While CDWSP 
and HSI-WSP are subject to the same statutory requirements, they are 
implemented by different regulatory provisions.

B. The October 2, 1996 NOFA and NPRM

    The October 2, 1996 HSI-WSP NOFA (published at 61 FR 51566) 
announced the requirements that would govern the use of funds earmarked 
for HSI-WSP for fiscal year 1996. The NPRM (published on the same date 
at 61 FR 51557) incorporated the NOFA by reference, stated HUD's 
intention to use the requirements contained in the NOFA as the basis 
for a final rule amending 24 CFR part 570, and invited public comment 
on the announced requirements that were proposed to be used in 
subsequent funding rounds.
    The key requirements of the NOFA were:

--Eligibility was limited to two-year public or private non-profit 
community colleges determined by the U.S. Department of Education to be 
Hispanic-serving Institutions.
--Eligible degree programs were limited to those related to community 
building. The term ``community building academic degree program'' was 
defined to include not only community or economic development, 
community planning, and community management, but also other academic 
programs that promote community or social services.
--Work experiences were required to be in a complementary community 
building job with a State or local government, areawide planning 
organization, Indian tribe, or private nonprofit organization involved 
in community building activities.
--All eligible students were required to be economically disadvantaged, 
regardless of whether they were members of minority groups. Eligible 
students were required to attend the institution full-time, be enrolled 
in an eligible community building degree program, not have attained 
more than half of the credits needed to graduate at the time they enter 
the program, and agree to work at an appropriate placement site 12-20 
hours a week during the academic year and 35-40 hours a week during the 
summer.
--The amount of assistance to be provided per student was a maximum of 
$13,200, which could include tuition and fees for up to two years, a 
work stipend, books, and an allowance of $1,000 per student per year to 
cover the cost of the institution's administration of the program.
--The minimum number of students that could be assisted was three per 
participating institution of higher education and the maximum number 
was ten.

    All of these requirements have been retained in the final rule.

C. Discussion of Public Comments on the NOFA and Clarifying Changes

    There were two public comments--one from the United Cerebral Palsy 
Associations (UCPA) and one from Los Angeles Harbor College, one of the 
institutions eligible for the program.
    UCPA urged applicants to consider work site experiences with United 
Cerebral Palsy affiliates. To the extent that the community building 
academic field may relate to the kind of work UCP affiliates and 
affiliates of other disability organizations are doing, HUD encourages 
applicants to consider these organizations as appropriate placement 
sites.

[[Page 17493]]

    Los Angeles Harbor College recommended that the term ``Tuition and 
Fees'' be expanded to cover the cost of tutoring in order to enable 
students receiving assistance, especially those for whom English is a 
second language, to maintain the required B average. The Department 
agrees that such tutoring may be important for a student and, thus, 
should be an eligible program cost. However, rather than include this 
cost under ``Tuition and Fees,'' it will be included under ``Additional 
Support.''
    In the NPRM and the FY 1996 NOFA, the Department specifically 
requested comments on the proposed rule's requirement that students 
participating in HSI-WSP maintain a B average (as defined by the 
institution), and its lack of a minimum graduation rate requirement. No 
comments were received on these issues, and they remain unchanged in 
the final rule.
    While there were no public comments submitted on the eligibility of 
transfer programs (i.e., those that lead to transfer to a four-year 
institution of higher education for the student's junior year), as 
opposed to those programs that provide terminal degrees (i.e., 
associate degrees), comments concerning this issue were raised in 
several public meetings held on the program. The final rule has been 
clarified to note that transfer programs in community building academic 
disciplines are eligible only if the student is required to declare 
his/her major in this discipline while at the community college. Thus, 
general liberal arts associate degrees, without a major, would not be 
considered eligible transfer programs.
    In addition, the Department has received requests that the 
definition of eligible institutions be amended to include Hispanic-
serving institutions that award BOTH two-year AND four-year degrees. As 
indicated in the FY 1996 NOFA, the Department specifically decided to 
limit eligibility under HSI-WSP to the 89 community colleges providing 
only two-year degrees. Creating a program to serve both two-year and 
four-year institutions would mean two sets of policies and requirements 
because of the different natures of such institutions. In addition, 
many four-year HSIs are universities that are eligible for the general 
Community Development Work Study Program. Thus, the Department chose to 
target community colleges providing only two-year degrees, in order to 
encourage and assist the previously under-served economically 
disadvantaged student population of community colleges to gain entry to 
pre-professional community building career paths. In order to clarify 
the Department's intention that institutions providing BOTH two-year 
and four-year degrees are NOT eligible for HSI-WSP assistance, the 
definition of eligible institution has been modified accordingly. This 
modification is merely a clarification which effects no substantive 
change to the class of institutions that were eligible for HSI-WSP 
under the FY 1996 NOFA.
    Finally, a number of other clarifications have been made which 
result in no substantive change to the rule.

III. Other Matters

A. Environmental Impact

    In accordance with 24 CFR 50.19(b)(9) of the HUD regulations, the 
policies and procedures contained in this rule relate only to training 
grants and technical assistance, and therefore, are categorically 
excluded from the requirements of the National Environmental Policy 
Act.

B. Regulatory Flexibility

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this final rule, and in so 
doing, certifies that it will not have a significant economic impact on 
a substantial number of small entities. The rule only affects 
applicants and participants in the Hispanic-serving Institutions 
Community Work Study Program and will not have any meaningful economic 
impact on any other entity.

C. Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
and procedures contained in this notice will not have substantial 
direct effects on States or their political subdivisions, or the 
relationship between the federal government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. As a result, the notice is not subject to review under the 
Order. Specifically, the notice solicits participation by institutions 
of higher education in creating community development work study 
programs for some of their economically disadvantaged and minority 
students. The notice does not impinge upon the relationships between 
the Federal government and State or local governments.

D. Impact on the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this notice has the 
potential for beneficial impact on family formation, maintenance, and 
general well-being. The program will enable economically disadvantaged 
and minority students to get a college education, helping them to 
become self-sufficient. Accordingly, since the impact on the family is 
beneficial, no further review is necessary.

E. Executive Order 12866

    This final rule was reviewed by the Office of Management and Budget 
under Executive Order 12866, Regulatory Planning and Review. Any 
changes made to the final rule as a result of that review are clearly 
identified in the docket file, which is available for public inspection 
in the office of the Department's Rules Docket Clerk, Room 10276, 451 
Seventh Street, SW., Washington, DC 20410-0500.

F. The Catalog of Federal Domestic Assistance Program

    The Catalog of Federal Domestic Assistance program number is 
14.513.

List of Subjects in 24 CFR Part 570

    Administrative practice and procedure, American Samoa, Community 
development block grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Lead poisoning, Loan 
programs--housing and community development, Low and moderate income 
housing, New communities, Northern Mariana Islands, Pacific Islands 
Trust Territory, Pockets of poverty, Puerto Rico, Reporting and 
recordkeeping requirements, Small cities, Student aid, Virgin Islands.

    Accordingly, 24 CFR part 570 is amended as follows:
    1. The authority citation for part 570 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 5300-5320.

    2. Subpart E is amended to add a new Sec. 570.416 to read as 
follows:


Sec. 570.416  Hispanic-serving institutions work study program.

    (a) Applicability and objectives. HUD makes grants under the 
Hispanic-serving Institutions Work Study Program (HSI-WSP) to public 
and private non-profit Hispanic-serving Institutions (HSI's) of higher 
education for the purpose of providing assistance to economically 
disadvantaged and minority students who participate in a work study 
program while enrolled in full-time community college programs in 
community building, and to provide entry to pre-professional careers in 
these fields.

[[Page 17494]]

    (b) Definitions. The following definitions apply to HSI-WSP:
    Applicant means a public or private non-profit Hispanic-serving 
institution of higher education that offers only two-year degree 
programs, including at least one community building academic degree 
program, and that applies for funding under HSI-WSP.
    Community building means community and economic development, 
community planning, community management, public policy, urban 
economics, urban management, urban planning, land use planning, 
housing, and related fields. Related fields include, but are not 
limited to, administration of justice, child development, and human 
services.
    Community building academic program or academic program means an 
undergraduate associate degree program whose purpose and focus is to 
educate students in community building. The terms ``community building 
academic program'' or ``academic program'' refer to the types of 
academic programs encompassed in the statutory phrase ``community or 
economic development, community planning or community management.'' For 
purposes of HSI-WSP, such programs include, but are not limited to, 
associate degree programs in community and economic development, 
community planning, community management, public administration, public 
policy, urban economics, urban management, urban planning, land use 
planning, housing, and related fields of study. Related fields of study 
that promote community building, such as administration of justice, 
child development, and human services are eligible, while fields such 
as natural sciences, computer sciences, mathematics, accounting, 
electronics, engineering, and the humanities (such as English or 
history) would not be eligible. A transfer program (i.e., one that 
leads to transfer to a four-year institution of higher education for 
the student's junior year) in a community building academic discipline 
is eligible only if the student is required to declare his/her major in 
this discipline while at the community college.
    Community building field means any of the fields of study eligible 
under a community building academic program.
    Economically disadvantaged and minority students means students who 
satisfy all the applicable guidelines established at the participating 
institution of higher education to measure financial need for academic 
scholarship or loan assistance, including, but not limited to, students 
with disabilities and students who are Black, American Indian/Alaska 
Native, Hispanic, Asian/Pacific Islanders, where such students satisfy 
the financial needs guidelines defined above.
    Hispanic-serving institution is an institution of higher education 
that the U.S. Department of Education has determined meets the criteria 
set out at 20 U.S.C. 1059c(b)(1), including the following: an 
institution that has an enrollment of undergraduate full-time students 
that is at least 25 percent Hispanic; in which not less than 50 percent 
of the Hispanic students are low-income individuals (i.e., 150 percent 
of the poverty level) who are first generation college students and 
another 25 percent are either low-income individuals or first 
generation college students. The U.S. Department of Education has 
determined the eligibility of specific institutions as HSIs and has 
issued a list of institutions meeting this definition. A list of HSI-
WSP-eligible community colleges that are included in the Department of 
Education's list of HSIs will appear with each Notice of Funding 
Availability (NOFA) for the program. Only institutions on this list, or 
HSI-WSP-eligible institutions subsequently added to the U.S. Department 
of Education's list prior to that NOFA's application deadline, are 
eligible to apply for HSI-WSP funds.
    HSI-WSP or HSI-WSP program means the Hispanic-serving Institutions 
Work Study program.
    Institution of higher education means a public or private 
educational institution that offers two-year associate degrees in a 
community building academic program and that is accredited by an 
accrediting agency or association recognized by the Secretary of 
Education. Institutions offering BOTH four-year and two-year degrees 
are not eligible for HSI-WSP.
    Recipient means an approved applicant that executes a grant 
agreement with HUD.
    Student means a person attending the institution of higher 
education on a full-time basis, as defined by that institution and 
pursuing an eligible community building degree. Students must have 
attained no more than half of the credits required for their degree at 
the time they first receive assistance under HSI-WSP.
    Student with disabilities means a student who meets the definition 
of a ``person with disabilities'' in the Americans with Disabilities 
Act of 1990.
    (c) Assistance provided--(1) Types of assistance available. HUD 
provides funding in the form of grants to recipients who make 
assistance available to eligible students. Grants are provided to cover 
the costs of student assistance and for an administrative allowance.
    (2) Maximum amount of assistance. The maximum amount that can be 
provided to a student is $13,200 a year, including $1,000 for an 
administrative allowance, subject to the 20% limitation described at 
570.416(c)(4) below. HUD will not set maximums on how much should be 
spent to each eligible expenditure, other than for administrative 
costs. The institution must be able to document that the amounts paid 
are customary for that institution and that it has actually paid that 
amount to the students. If a student is receiving a Pell grant, he/she 
may not receive funding for the same educational support through HSI-
WSP. However, HSI-WSP can substitute for all or part of the Pell grant.
    (3) Student assistance. Grants are provided in the form of student 
stipends, tuition support, and additional support.
    (i) Student stipend. The amount of the student stipend should be 
based on the hourly rate for initial entry positions in the community 
building field and the number of hours worked by the student at the 
work placement assignment. The stipend should be sufficiently high to 
allow the student to earn the full stipend, as determined by the 
recipient, without working over 20 hours per week during the school 
year and 40 hours per week during the summer.
    (ii) Tuition support. The amount of tuition support may not exceed 
the tuition and required fees charged at the participating institution 
of higher education.
    (iii) Additional support. The recipient may provide additional 
support for books, tutoring, and travel related to the academic program 
or work placement assignment. Costs associated with reasonable 
accommodations for students with disabilities including, but not 
limited to, interpreters for the deaf/hard of hearing, special 
equipment, and braille materials are eligible under this category.
    (4) Administrative allowance. HUD provides an allowance to 
recipients to cover the administrative costs of the program. The 
administrative allowance is $1,000 per year for each student 
participating in the program; however, no more than 20 percent of the 
grant may be used for planning and program administrative costs.
    (5) Number of students assisted. The minimum number of students 
that may be assisted is three students per participating institution of 
higher education. The maximum number of students that may be assisted 
is ten students per participating institution of

[[Page 17495]]

higher education; however, a lower maximum or higher minimum may be 
established for a particular funding round by the NOFA announcing the 
availability of the funds.
    (d) Recipient eligibility and responsibilities--(1) Recipient 
eligibility. Public or private Hispanic-serving institutions of higher 
education offering only undergraduate two-year degrees, including 
degrees in at least one community building academic program, are 
eligible for assistance under HSI-WSP. HSIs that offer BOTH two-year 
and four-year degrees are not eligible for HSI-WSP assistance.
    (2) Recipient responsibilities. The recipient is responsible for 
administering the program, for compliance with all program 
requirements, and for coordination of program activities carried out by 
the work placement agencies. The recipient must:
    (i) Recruit students for participation in HSI-WSP. The recipient 
shall establish recruitment procedures that identify eligible 
economically disadvantaged and minority students pursuing careers in 
community building, and make them aware of the availability of 
assistance opportunities. While the program is restricted to HSIs, the 
recipient may neither restrict the program to any particular minority 
group or groups, nor provide any preferential treatment in the 
selection process based on race or ethnicity. Only economically 
disadvantaged students, as defined herein, may be assisted.
    (ii) Select students for participation in HSI-WSP. In selecting 
among the eligible students, the recipient must consider the extent to 
which each student has demonstrated financial need under the applicable 
guidelines established at the institution of higher education; an 
interest in, and commitment to, a career in community building; and the 
ability to satisfactorily complete the academic and work placement 
responsibilities under HSI-WSP. Students must be selected before the 
beginning of the semester for which funding is being provided. If a 
student's participation terminates, the student may not be replaced; 
the grant will be reduced by the amount of unused funds allotted for 
that student.
    (iii) Provide the educational component for participating students.
    (iv) Recruit and select work placement agencies, and negotiate and 
execute an agreement covering each work placement assignment.
    (v) Refer participating students to work placement agencies and 
assist students in the selection of work placement assignments.
    (vi) Assign sufficient staff to administer and supervise the 
program on a day-to-day basis.
    (vii) Encourage participating students to either: obtain post-
graduation employment with a unit of State or local government, an 
areawide planning organization (APO), Indian tribe or nonprofit 
organization engaged in community building; or transfer to a four-year 
institution of higher education to obtain a bachelor's degree in a 
community building academic discipline.
    (viii) Maintain records by racial and ethnic categories for each 
economically disadvantaged and minority student participating in HSI-
WSP.
    (ix) Keep records and make such reports as HUD may require.
    (x) Comply with all other applicable Federal requirements.
    (e) Work placement agencies eligibility and responsibilities--(1) 
Eligibility. To be eligible to participate in HSI-WSP, the work 
placement agency must be an agency of a State or local government, an 
APO, an Indian tribe, or a private nonprofit organization involved in 
community building activities. A work placement site that is part of 
the institution of higher education (e.g., a child care center) can 
only be an eligible site if the services provided by that site are 
offered to people in the broader community outside the institution.
    (2) Responsibilities. Work placement agencies must:
    (i) Provide practical experience and training in the community 
building field to participating students through work placement 
assignments.
    (ii) Consult with the institution of higher education to ensure 
that the student's work placement assignment provides the requisite 
experience and training to meet the required number of work hours 
specified in the student work placement agreement.
    (iii) Provide a sufficient number and variety of work assignments 
to provide participating students with a wide choice of work 
experience.
    (iv) Require each student to devote 12-20 hours per week during the 
regular school year, and 35-40 hours a week during the summer, to the 
work placement assignment. Work placement agencies may provide 
flexibility in the work period, if such a schedule is consistent with 
the requirements of the student's academic program. However, a 
participating student may receive a stipend payment only during the 
period when the student is placed with the work placement agency.
    (v) Comply with all other applicable Federal requirements.
    (vi) Maintain such records as HUD may require.
    (f) Student eligibility and responsibilities. Students apply 
directly to recipients receiving grants under HSI-WSP.
    (1) Eligibility. To be eligible for HSI-WSP, the student:
    (i) Must satisfy all applicable guidelines established at the 
participating institution of higher education to measure financial need 
for academic scholarship or loan assistance.
    (ii) Must be a full-time student enrolled in a community building 
associate degree program at the participating institution of higher 
education. The student must have attained no more than 50 percent of 
the credits required for his/her degree at the time the student first 
receives assistance under this program.
    (iii) Must demonstrate an ability to maintain a satisfactory level 
of performance in community building academic program (i.e., maintain a 
B average, as defined by the institution) and in work placement 
assignments, and comply with the professional standards set by the 
recipient and the work placement agencies.
    (iv) May not have previously participated in HSI-WSP.
    (2) Student responsibilities. Participating students must:
    (i) Enroll or be enrolled in a two-year community building 
associate degree program. A student's academic and work placement 
responsibilities include: Full-time enrollment in an approved academic 
program; maintenance of a satisfactory level of performance in the 
community building academic program and in work placement assignments; 
and compliance with the professional conduct standards set by the 
recipient and by the work placement agency. A satisfactory level of 
academic performance consists of maintaining a B average, as defined by 
the institution. A student's participation in HSI-WSP shall be 
terminated for failure to meet these responsibilities and standards. If 
the student's participation is terminated, the student is ineligible 
for further HSI-WSP assistance.
    (ii) Devote 12-20 hours per week during the regular school year, 
and 35-40 hours a week during the summer, to the work placement 
assignment. Work placement agencies may provide flexibility in the work 
period, if such a schedule is consistent with the requirements of the 
student's academic program. However, a participating student may 
receive a stipend payment only during the period when the student is 
placed with the work placement agency.

[[Page 17496]]

    (iii) Agree to make a good-faith effort to either: obtain 
employment in community building with a unit of State or local 
government, an APO, an Indian tribe, or a non-profit organization; or 
to transfer to a four-year institution of higher education to obtain a 
bachelor's degree in a community building academic discipline. However, 
if the student does not obtain such employment or transfer to a four-
year institution, the student is not required to repay the assistance 
received.
    (g) Notice of funding availability. HUD will solicit grant 
applications from eligible institutions of higher education by 
publishing a notice of funding availability in the Federal Register. 
The notice will:
    (1) Explain how application kits providing specific application 
requirements and guidance may be obtained;
    (2) Specify the place for filing completed applications, and the 
date by which applications must be physically received at that 
location;
    (3) State the amount of funding available under the notice, which 
may include funds recaptured from previously awarded grants;
    (4) Provide other appropriate program information and guidance.
    (h) Agreements.--(1) Grant agreement. The responsibilities of the 
recipient under HSI-WSP will be incorporated in a grant agreement 
executed by HUD and the recipient.
    (2) Student agreement. The recipient and each participating student 
must execute a written agreement incorporating their mutual 
responsibilities under HSI-WSP. The agreement must be executed before 
the student can be enrolled in the program. The Recipient shall 
terminate a student's participation in HSI-WSP for failure to meet the 
responsibilities and standards in the agreement.
    (3) Work placement assignment agreement. The recipient, the 
student, and the work placement agency must execute a written agreement 
covering each work placement assignment. The agreement must address the 
responsibilities of each of the parties, the educational objectives, 
the nature of the supervision, the standards of evaluation, and the 
student's time commitments under the work placement assignment.
    (i) Grant administration.--(1) Initial obligation of funds. When 
HUD selects an application for funding, HUD will obligate funds to 
cover the amount of the approved grant. The term of the award will be 
for two calendar years, unless subsequently altered by HUD at its 
discretion for good cause.
    (2) Disbursement. Recipients will receive grant payments by direct 
deposit on a reimbursement basis. If that is not possible, grant 
payments will be made by U.S. Treasury checks.
    (3) Deobligation. HUD may deobligate amounts for grants if proposed 
activities are not begun or completed within a reasonable period of 
time after selection.
    (j) Other Federal requirements.--(1) Applicability of part 570. 
HSI-WSP shall be subject to the policies and procedures set forth in 
subparts A, K, and O of 24 CFR part 570, as applicable, except as 
modified or limited under the provisions of this Notice. The provisions 
of subparts C and J of part 570 shall not apply to HSI-WSP.
    (2) Uniform Administrative requirements. Recipients under HSI-WSP 
shall comply with the requirements and standards of OMB Circular No. A-
22, ``Cost Principles for Educational Institutions.'' Recipients that 
are private institutions of higher education shall comply with OMB 
Circular A-133, ``Non-Federal Audit Requirements for Institutions of 
Higher Education and Other Nonprofit Institutions,'' which is 
implemented at 24 CFR part 45. Recipients that are public institutions 
of higher education shall comply with OMB Circular A-128, ``Non-Federal 
Audit Requirements for State and Local Governments,'' which is 
implemented at 24 CFR part 44. Audits shall be conducted annually. In 
addition, all recipients under HSI-WSP shall comply with the provisions 
of OMB Circular A-110, ``Uniform Administrative Requirements for Grants 
and Agreements With Institutions of Higher Education, Hospitals and 
Other Non-Profit Organizations,'' which is implemented at 24 CFR part 
84. OMB Circular A-110 shall apply to recipients in its entirety.

    Dated: April 2, 1997.
Michael A. Stegman,
Assistant Secretary for Policy, Development and Research
[FR Doc. 97-9035 Filed 4-8-97; 8:45 am]
BILLING CODE 4210-62-P


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