17492 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Rules and Regulations

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

JanelR.lKaradbil@hud.gov .

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. § 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.
Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Rules and Regulations 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 fouryear 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 twoyear 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 preprofessional 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 selfsufficient. 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

§ 570.416 to read as follows:

§ 570.416 Hispanic-serving institutions

work study program.

(a) Applicability and objectives. HUD

makes grants under the Hispanicserving 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.
17494 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Rules and Regulations

(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 twoyear 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 lowincome 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–WSPeligible 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 fulltime 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
Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Rules and Regulations 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.
17496 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Rules and Regulations

(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