15836 Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

Office of the Assistant Secretary for

Policy Development and Research

24 CFR Part 570

[Docket No. R–95–1684; FR–3415–F–03]

Joint Community Development

Program: Institutions of Higher

Education and States/Units of General

Local Government; Special Purpose

Grants

AGENCY: Office of the Assistant

Secretary for Policy Development and

Research, HUD.

ACTION: Final rule.

SUMMARY: This final rule establishes the

requirements and procedures for

awarding and administering special

purpose grants under Title I of the

Housing and Community Development

Act of 1974, as amended by the Housing

and Community Development Act of

1992, to institutions of higher education

or to States and units of general local

government and institutions of higher

education jointly submitting

applications to HUD. Institutions of

higher education must demonstrate that

they have the capacity to carry out

eligible activities.

EFFECTIVE DATE: April 26, 1995.

FOR FURTHER INFORMATION CONTACT: Jane

Karadbil, Office of University

Partnerships, Department of Housing

and Urban Development, 451 Seventh

Street SW., Washington, DC 20410,

(202) 708–1537. The

Telecommunications Device for the Deaf

(TDD) number is (202) 708–1455. (These

are not toll free numbers.)

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act

The information collection

requirements contained in this final rule

have been submitted to the Office of

Management and Budget for review

under the provisions of the Paperwork

Reduction Act of 1980 (44 U.S.C. 3501–

3520) and have been assigned OMB

approval number 2535–0084.

II. Background

Section 801(c)(2) of the Housing and

Community Development Act of 1992

(Pub. L. 102–550, approved October 28,

1992) amended Section 107 of Title I of

the Housing and Community

Development Act of 1974 (42 U.S.C.

5301 et seq.) to add a new category of

special purpose grants. This new

program authorizes grants to institutions

of higher education or to States and

units of general local government and

institutions of higher education that

jointly submit applications to HUD.

Institutions of higher education must

demonstrate capacity to carry out

eligible activities under Title I. This rule

implements this new grant authority.

For ease of reference, this new program

may be called the Joint Community

Development (CD) Program.

III. Summary of Final Rule

Following are the highlights of the

rule that will govern the grants under

the Joint CD Program:

1. A new section 570.411 is being

added to Subpart E, Special Purpose

Grants, of the Community Development

Block Grant (CDBG) regulations to

govern grants under this program. It

should be noted that section 570.400,

which contains general requirements for

all special purpose grant programs,

applies to this new program as well.

Additionally, grantees must comply

with the Americans with Disabilities

Act of 1990.

2. Section 570.411(b) provides

definitions for ‘‘demonstrated capacity’’

and ‘‘institutions of higher education.’’

3. Section 570.411(c) defines eligible

applicants. It indicates that an

application must be filed either by an

institution of higher education or jointly

by an institution of higher education

and a State or unit of general local

government. This subsection also states

that HUD will not fund an applicant

twice for the same kinds of activities.

4. Section 570.411(d) spells out the

role of each participant in the joint

applications.

5. Section 570.411(e) defines the

eligible activities as those eligible under

the basic CDBG regulations found in

subpart C of part 570. It also makes clear

that these activities may be designed to

assist residents of colonias to improve

living conditions and standards within

colonias.

6. Section 570.411(f) indicates that the

program will be run competitively

through publication of a Notice of

Funding Availability (NOFA).

7. Section 570.411(g) provides that

when an institution of higher education

or a State which is a joint applicant

proposes to carry out an activity within

the entitlement jurisdiction of one or

more units of general local government,

then such governments must approve

the activity and certify that it is

consistent with their consolidated plan

(see 24 CFR part 91).

8. Section 570.411(h) provides a

general description of what will be

contained in each NOFA.

9. Sections 570.411 (i) and (j) detail

the selection criteria that HUD will use

to evaluate applications under each

NOFA competition.

10. Section 570.411(l) spells out that

an applicant proposing housing

activities will have to submit a

certification that the activities are

consistent with the Consolidated Plan of

the jurisdiction to be served.

11. Section 570.411(m) deals with the

citizen participation requirement under

the Joint CD Program. It is a modified

version of the basic CDBG requirement

and is similar to that used in other

special purpose grant programs.

12. Section 570.411(n) provides

details on environmental review

responsibilities for this program.

IV. Discussion of Public Comments

A proposed rule was published in the

Federal Register on December 29, 1993,

at 58 FR 68795, and the public was

given 60 days in which to submit

comments. Three comments were

received on the proposed rule: one from

a university, one from a city and one

from an association of institutions of

higher education. Following are the

comments made and HUD’s response to

each comment.

Comment. The definition of eligible

institution of higher education should

be broadened to include community

colleges.

Response. Community colleges

generally do not have the capacity to

undertake the kinds of activities that

will be eligible under this program.

With a limited amount of funds and a

very large number of qualified four-year

institutions applying for these funds, it

would be unfair to community colleges

to have them expend time and costs to

prepare applications when their chances

of being successful are very limited.

Therefore, the proposed definition was

not changed.

Comment. The rule should spell out

in greater detail the program objectives

and not leave this for the Notice of

Funding Availability (NOFA).

Response. The precise program

objectives may change from time-totime. Each NOFA will spell out the

precise objective for that competition.

Therefore, the objectives will not be

included in the rule but in the NOFA.

Comment. Grants should be limited to

those institutions that meet the Federal

definition of ‘‘urban’’ universities.

Response. There is no Federal

government-wide definition of urban

universities. The definition cited by the

commenter is not a Federal definition

but restricted to a specific program in

the U.S. Department of Education. The

Joint CD program has no statutory

provision limiting grants to urban

universities, nor does HUD feel that
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations 15837

such a restriction is appropriate, given

the interest of many different kinds of

institutions of higher education in

addressing CDBG needs. Therefore, the

comment was not accepted.

Comment. All applications from

States or units of local governments

must demonstrate support from an

institution of higher education.

Response. Such a demonstration of

support is inherent in the requirement

that applications from governments

must be filed jointly with an institution

of higher education. HUD does not

believe that any further demonstration

of support is needed or desirable.

Comment. Two commenters indicated

that the provision in section 570.411(c)

that eligible applicants will be funded

only every other funding cycle is not

clear. They questioned whether grants

would be for one year or two year

periods.

Response. A funding cycle is

determined each time HUD issues a

NOFA. A decision regarding the length

of the grant will be made at the time

each NOFA is issued and delineated in

the NOFA. Since HUD expects that each

NOFA may deal with different priorities

and eligible activities, it is not prudent

to identify the project period in the

regulations. In addition, HUD has

revised the requirement that eligible

applicants be funded only every other

funding cycle to prohibit grantees that

are institutions of higher education from

receiving any subsequent grants from

NOFAs with the same program

objectives as those for which they

received funding. State or local

governments may apply in subsequent

cycles in which the NOFA contains the

same program objectives as long as they

apply with a different institution of

higher education. The need for these

funds is great, as is the number of

institutions and governments interested

in applying. HUD believes that it would

be unwise to concentrate the funds

among a few institutions.

V. Other Matters

Executive Order 12612, Federalism

The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that the policies in this rule

do not have Federalism implications

and, thus, are not subject to review

under the Order. Nothing in the rule

implies any preemption of State or local

law, nor does any provision of the rule

disturb the existing relationship

between the Federal Government and

State and local governments.

Executive Order 12606, the Family

The General Counsel, as the

designated Official under Executive

Order 12606, has determined that this

rule does not have potential significant

impact on family formation,

maintenance, and general well-being,

and, thus, is not subject to review under

the Order.

Environmental Finding

A Finding of No Significant Impact

with regard to the environment has been

made in accordance with HUD

regulations in 24 CFR part 50, which

implement section 102(2)(C) of the

National Environmental Policy Act of

1969, 42 U.S.C. 4321. The Finding of No

Significant Impact is available for public

inspection between 7:30 a.m. and 5:30

p.m. weekdays in the Office of the Rules

Docket Clerk, Room 10276, 451 Seventh

Street, SW., Washington, DC 20410.

Regulatory Flexibility

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)), has reviewed this rule before

publication and by approving it certifies

that this rule does not have a significant

economic impact on a substantial

number of small entities inasmuch as

the entities funded under this program

will be relatively few in number.

Consequently, HUD does not believe

that a significant number of small

entities will be affected by this program.

The application requirements associated

with funding under the program have

been kept to the minimum necessary for

administration of grant funds, and the

Department does not believe it is

necessary or appropriate to alter these

requirements as they apply to small

entities who may be prospective

grantees.

Semiannual Agenda

This final rule was listed as item 1849

in the Department’s Semiannual Agenda

of Regulations published on November

14, 1994 (59 FR 57632, 57665) under

Executive Order 12866 and the

Regulatory Flexibility Act.

Catalog of Federal Domestic Assistance

The Joint Community Development

Program is listed in the Catalog of

Federal Domestic Assistance under

number 14.242.

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:

PART 570—COMMUNITY

DEVELOPMENT BLOCK GRANTS

1. The authority citation for 24 CFR

part 570 continues to read as follows:

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

5320.

2. Section 570.411 is added to subpart

E, to read as follows:

§ 570.411 Joint Community Development

Program.

(a) General. Grants under this section

will be awarded to institutions of higher

education or to States and local

governments applying jointly with

institutions of higher education.

Institutions of higher education must

demonstrate the capacity to carry out

activities under Title I of the Housing

and Community Development Act of

1974. For ease of reference, this program

may be called the Joint CD Program.

(b) Definitions.

Demonstrated capacity to carry out

eligible activities under Title I means

recent satisfactory activity by the

institution of higher education’s staff

designated to work on the program,

including subcontractors and

consultants firmly committed to work

on the proposed activities, in Title I

programs or similar programs without

the need for oversight by a State or unit

of general local government.

Institution of higher education means

a college or university granting 4-year

degrees and accredited by a national or

regional accrediting agency recognized

by the U.S. Department of Education.

(c) Eligible applicants. Institutions of

higher education or States and units of

general local government jointly with

institutions of higher education may

apply. Institutions of higher education

with demonstrated capacity to carry out

eligible activities under Title I may

apply on their own, without the joint

participation of a State or unit of general

local government. States or unit of

general local governments must file

jointly with an institution of higher

education. For these approved joint

applications, the grant will be made to

the State or unit of general local

government and the institution of higher

education jointly. If an eligible

applicant is an institution of higher

education, it will not be funded more
15838 Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations

than once for the same kinds of

activities. These grantees may not

receive funding under a subsequent

NOFA if it has the same program

objectives as the one under which the

grantee previously received funding.

However, a State or unit of general local

government is eligible to apply if it files

jointly with a different institution of

higher education in each NOFA cycle.

HUD may further limit the type of

eligible applicant to be funded. Any

such limitations will be contained in the

Notice of Funding Availability

described below in paragraph (h) of this

section.

(d) Role of participants in joint

applications. An institution of higher

education and a State or unit of general

local government may carry out eligible

activities approved in joint applications.

Where there are joint applicants, the

grant will be made to both and both will

be responsible for oversight,

compliance, and performance. The

application will have to clearly

delineate the role of each applicant in

the joint application. Any funding

sanctions or other remedial actions by

HUD for noncompliance or

nonperformance, whether by the State

or unit of general local government or

by the institution of higher education,

shall be taken against both grantees.

(e) Eligible activities. Activities that

may be funded under this section are

those eligible under 24 CFR Part 570—

Community Development Block Grants,

Subpart C—Eligible Activities. These

activities may be designed to assist

residents of colonias, as defined in

Section 916(d) of the Cranston-Gonzalez

National Affordable Housing Act (42

U.S.C. 5306 note), to improve living

conditions and standards within

colonias. HUD may limit the activities

to be funded. Any such limitations will

be contained in the Notice of Funding

Availability described in paragraph (h)

of this section.

(f) Applications. Applications will

only be accepted from eligible

applicants in response to a publication

of a Notice of Funding Availability

(NOFA) published by HUD in the

Federal Register.

(g) Local approval. (1) Where an

institution of higher education is the

applicant, each unit of general local

government that is an entitlement

jurisdiction where an activity is to take

place must approve the activity and

certify that the activity is consistent

with its Consolidated Plan.

(2) Where a State is the joint applicant

and it proposes to carry out an activity

within the jurisdiction of one or more

units of general local government, then

each such unit must approve the

activity and state that the activity is

consistent with its Consolidated Plan.

(3) These approvals and findings must

accompany each application and may

take the form of a letter by the chief

executive officer of each unit of general

local government affected or a

resolution of the legislative body of each

such unit of general local government.

(h) NOFA contents. The NOFA will

describe any special objectives sought to

be achieved by the funding to be

provided, including any limitations on

the type of activities to be funded to

achieve the objectives, any limitations

on the type of eligible applicants, and

points to be awarded to each of the

selection criteria and any special factors

to be evaluated in assigning points

under the selection criteria to achieve

the stated objectives. The NOFA will

also state the deadline for the

submission of applications, the total

funding available for the competition,

the period of performance and the

maximum and minimum amount of

individual grants. The NOFA will also

state which of the various possible

levels of competition HUD will use:

national and/or regional or entitlement

areas vs. non-entitlement areas; and

States or units of general local

government vs. institutions of higher

education vs. institutions of higher

education with a demonstrated capacity.

The NOFA will include further

information and instructions for the

submission of acceptable applications to

HUD.

(i) Selection criteria. Each application

submitted under this section will be

evaluated by HUD using the following

criteria:

(1) The extent to which the applicant

addresses the objectives published in

the NOFA and demonstrates how the

proposed activities will have a

substantial impact in achieving the

objectives.

(2) The extent of the needs to be

addressed by the proposed activities,

particularly with respect to benefiting

low- and moderate-income persons and

residents of colonias, where applicable.

(3) The feasibility of the proposed

activities, i.e., their technical and

financial feasibility, for achieving the

stated objectives.

(4) The capability of the applicant to

carry out satisfactorily the proposed

activities in a timely fashion, including

satisfactory performance in carrying out

any previous HUD-assisted projects or

activities.

(5) The extent of commitment to fair

housing and equal opportunity, as

indicated by such factors as previous

HUD monitoring/compliance activity,

actions to promote minority- and

women-owned business enterprise,

affirmatively furthering fair housing

issues, and nondiscriminatory delivery

of services.

(j) Selection discretion. HUD retains

the right to exercise discretion in

selecting projects in a manner that

would best serve the program objectives,

with consideration given to the needs of

States and units of general local

government and institutions of higher

education, types of activities proposed,

an equitable geographical distribution,

and program balance. The NOFA will

state whether HUD will use this

discretion in any specific competition.

(k) Certifications. (1) Certifications,

including those indicating that

applicants have adhered to all civil

rights requirements under subpart K of

this part and the Americans with

Disabilities Act of 1990, required to be

submitted by applicants shall be as

prescribed in the NOFA.

(2) In the absence of independent

evidence which tends to challenge in a

substantial manner the certifications

made by the applicant, the required

certifications will be accepted by HUD.

However, if independent evidence is

available, HUD may require further

information or assurances to be

submitted in order to determine

whether the applicant’s certifications

are satisfactory.

(l) Consolidated plan. An applicant

that proposes any housing activities as

part of its application will be required

to submit a certification that these

activities are consistent with the

Consolidated Plan of the jurisdiction to

be served.
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations 15839

(m) Citizen participation. The citizen

participation requirements of

§§ 570.301, 570.431, 570.485(c) and

570.486(a) are modified to require the

following: The applicant must certify

that citizens likely to be affected by the

project regardless of race, color, creed,

sex, national origin, familial status, or

handicap, particularly low- and

moderate-income persons, have been

provided an opportunity to comment on

the proposal or application.

(n) Environmental and

Intergovernmental Review. The

requirements for Intergovernmental

Reviews do not apply to these awards.

When required, an environmental

review in accordance with 24 CFR part

58 must be carried out by the State or

unit of general local government when

it is the applicant. HUD will conduct

any required environmental review

when an institution of higher education

is the applicant.

(Approved by the Office of Management and

Budget under control number 2535–0084)

Dated: March 17, 1995.

Henry G. Cisneros,

Secretary.

[FR Doc. 95–7401 Filed 3–24–95; 8:45 am]

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