[Federal Register Volume 63, Number 103 (Friday, May 29, 1998)]
[Notices]
[Pages 29418-29420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14243]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Community Planning and 
Development
[Docket No. FR-4289-N-02]


Funding for Fiscal Year 1997: Capacity Building for Community 
Development and Affordable Housing; Revision

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

ACTION: Notice of funding for fiscal year 1997; revision.

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SUMMARY: The Department recently published a notice of funding, which 
provided $30.2 million assistance through The Enterprise Foundation, 
the Local Initiatives Support Corporation (LISC), Habitat for Humanity, 
and Youthbuild, USA. The funds are to be used for capacity building for 
community development and affordable housing. Among other requirements, 
each dollar of these funds must be matched by three dollars in cash or 
in-kind contributions to be obtained from private sources.
    Today's notice revises policies concerning matching requirements 
and related administrative requirements. These revisions are intended 
to limit HUD environmental review to only those projects that are 
assisted with Federal funds.

FOR FURTHER INFORMATION CONTACT: Penelope G. McCormack, Office of 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Room 7216, Washington DC 20410. 
Telephone Number (202) 708-3176 Ext. 4391, TTY Number: (202) 708-2565. 
(These are not toll-free numbers.)

SUPPLEMENTARY INFORMATION: On January 30, 1998, at 63 FR 5220, the 
Department published a notice that set out the requirements for the 
$30.2 million of funding under the National Community Development 
Initiative through The Enterprise Foundation, the Local Initiatives 
Support Corporation (LISC), Habitat for Humanity, and Youthbuild, USA.

[[Page 29419]]

    This revised policy eliminates the requirement that the grantees 
specify in their work and funding plans when and how the non-federal 
matching resources will be used. The revision also makes clear that 
these non-federal matching resources must still be used for eligible 
activities and that performance reports must include reports on the 
commitment and expenditure of private matching resources utilized 
through the end of the reporting period.
    These changes are intended to reduce burdens on the grantees by 
ensuring that HUD environmental review requirements are triggered only 
when the project involves the use of Federal funds.
    To effect these changes, section 1., Matching Requirements, and 
section 2., Administrative and Other Requirements, of today's notice 
apply in place of section 5., Matching Requirements, and section 6., 
Administrative and Other Requirements, of the January 30, 1998 notice 
(63 FR 5220). All other provisions of the January 30, 1998 notice 
continue to apply.
    To assist the user, this notice contains the complete sections on 
matching requirements and on administrative and other requirements 
rather than just the revised paragraphs.

1. Matching Requirements

    As required by section 4 of the 1993 Act, this $30.2 million 
appropriation is subject to each award dollar being matched by three 
dollars in cash or in-kind contributions to be obtained from private 
sources. Each of the organizations receiving these funds will document 
its proportionate share of matching resources, including resources 
committed directly or by a third party to a grantee or subgrantee after 
June 12, 1997 to conduct eligible activities.
    In-kind contributions shall conform to the requirements of 24 CFR 
84.23.

2. Administrative and Other Requirements

    The award will be governed by 24 CFR part 84 (Uniform 
Administrative Requirements), A-122 (Cost Principles for Nonprofit 
Organizations), and A-133 (Audits of Institutions of Higher Education 
and other Nonprofit Institutions) as implemented at 24 CFR part 45.
    Other requirements will be detailed in the terms and conditions of 
the grant agreement provided to grantees, including the following:
    (a) Each grantee will submit to HUD a specific work and funding 
plan for each community showing when and how the federal funds will be 
used. The work plan must be sufficiently detailed for monitoring 
purposes and must identify the performance goals and objectives to be 
achieved. Within 30 days after submission of a specific work plan, HUD 
will approve the work plan or notify the grantee of matters which need 
to be addressed prior to approval, or the work plan shall be construed 
to be approved. Work plans may be developed for less than the full 
dollar amount and term of the award, but no HUD-funded costs may be 
incurred for any activity until the work plan is approved by HUD. All 
activities are also subject to the environmental requirements in 
paragraph 6.(f) of this notice.
    (b) The grantees shall submit to HUD an annual performance report 
due 90 days after the end of each calendar year, with the first report 
due on March 31, 1999. Performance reports shall include reports on 
both performance and financial progress under work plans and shall 
include reports on the commitment and expenditure of private matching 
resources utilized through the end of the reporting period. Reports 
shall conform to the reporting requirements of 24 CFR part 84. 
Additional information or increased frequency of reporting, not to 
exceed twice a year, may be required by HUD any time during the grant 
agreement if HUD finds such reporting to be necessary for monitoring 
purposes.
    To further the consultation process and share the results of 
progress to date, the Secretary may require grantees to present and 
discuss their performance reports at annual meetings in Washington, DC 
during the life of the award.
    (c) The performance reports must contain the information required 
under 24 CFR part 84, including a comparison of actual accomplishments 
with the objectives and performance goals of the work plans. In the 
work plans each grantee will identify performance goals and objectives 
established for each community in which it proposes to work and 
appropriate measurements under the work plan such as: the number of 
housing units and facilities each CDC/CHDO produces annually during the 
grant period and the average cost of these units. Provided, however, 
that when the activity described in a work plan is not to be undertaken 
in a single community that a report indicating the areas in which the 
activity will be undertaken, along with appropriate goals and 
objectives, will be provided when that information is available. The 
performance reports will also include a discussion of the 
reasonableness of the unit costs; the reasons for slippage if 
established objectives and goals are not met; and additional pertinent 
information.
    (d) A final performance report, in the form described in paragraph 
(c) above, shall be provided to HUD by each grantee within 90 days 
after the completion date of the award.
    (e) Financial status reports (SF-269A) shall be submitted 
semiannually.
    (f) Environmental review. Individual projects to be funded by these 
grants may not be known at the time the overall grants are awarded and 
also may not be known when some of the individual subgrants are made. 
Therefore, in accordance with 24 CFR 50.3(h), the application and the 
grant agreement must provide that no commitment or expenditure of HUD 
or local funds to a HUD-assisted project may be made until HUD has 
completed an environmental review to the extent required under 
applicable regulations and has given notification of its approval in 
accordance with 24 CFR 50.3(h).

Findings and Certifications

    (a) Environmental Impact. A Finding of No Significant Impact with 
respect to the environment has been made in accordance with the 
Department's regulations at 24 CFR part 50, which implements section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332). The Finding of No Significant Impact is available for public 
inspection between 7:30 a.m. and 5:30 p.m. weekdays at the Office of 
the Rules Docket Clerk, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410.
    (b) Federalism. The General Counsel, as the Designated Official 
under section 7(a) of the Executive Order 12612, Federalism, has 
determined that the policies contained in this funding notice will not 
have substantial direct effects on States or their political 
subdivisions or on the distribution of power and responsibilities among 
the various levels of government. Specifically, this notice makes funds 
available through specific entities for specific activities, as 
required by statute, and does not impinge upon the relationships 
between the Federal government, and State and local governments.

    Authority: Sec. 4 of the HUD Demonstration Act of 1993, Pub. L. 
103-120, 42 U.S.C. 9816 note), as amended and Pub. L. 105-18, 111 
Stat 198.


[[Page 29420]]


    Dated: May 22, 1998.
Saul N. Ramirez, Jr.,
Assistant Secretary for Community Planning and Development.
[FR Doc. 98-14243 Filed 5-28-98; 8:45 am]
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