52772 Federal Register / Vol. 75, No. 166 / Friday, August 27, 2010 / Notices 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5435–N–01] 

Notice of Neighborhood Stabilization 

Program Reallocation Process 

Changes 

AGENCY: Office of the Secretary, HUD. 

ACTION: Notice. 

SUMMARY: This Notice describes the 

applicable corrective actions, recapture 

process, the reallocation formula, and 

the waivers of regulations granted to 

grantees under Title III of Division B of 

the Housing and Economic Recovery 

Act of 2008, for the purpose of assisting 

in the redevelopment of abandoned and 

foreclosed homes under the Emergency 

Assistance for Redevelopment of 

Abandoned and Foreclosed Homes 

heading. This notice affects grantees 

receiving grants under the first round of 

funding under the Neighborhood 

Stabilization Program, which is referred 

to throughout this notice as NSP1. As 

described in the Supplementary 

Information section of this notice, HUD 

is authorized by statute to specify 

alternative requirements and make 

regulatory waivers for this purpose. This 

notice advises the public that HUD is 

revising the recapture policy of the 

October 6, 2008, NSP1 Notice, as 

amended, in a manner that affects the 

consequences of failing to meet the 18- 

month deadline for using NSP1 funds. 

DATES: Effective Date: August 23, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Stanley Gimont, Director, Office of 

Block Grant Assistance, Department of 

Housing and Urban Development, 451 

Seventh Street, SW., Room 7286, 

Washington, DC 20410, telephone 

number 202–708–3587. Persons with 

hearing or speech impairments may 

access this number via TTY by calling 

the Federal Information Relay Service at 

800–877–8339. FAX inquiries may be 

sent to Mr. Gimont at 202–401–2044. 

(Except for the ‘‘800’’ number, these 

telephone numbers are not toll-free.) 

SUPPLEMENTARY INFORMATION: 

Authority To Provide Alternative 

Requirements and Grant Regulatory 

Waivers 

Title III of Division B of the Housing 

and Economic Recovery Act, 2008 (Pub. 

L. 110–289, approved July 30, 2008), as 

amended, (HERA) appropriated $3.92 

billion for emergency assistance for 

redevelopment of abandoned and 

foreclosed homes and residential 

properties, and provides under a rule of 

construction that, unless HERA states 

otherwise, the grants are to be 

considered Community Development 

Block Grant (CDBG) funds. The grant 

program under Title III is commonly 

referred to as NSP, and the first round 

of NSP funding is referred to as NSP1. 

When referring to a provision of the 

appropriations statute itself, this notice 

will refer to HERA; when referring to 

the grants, grantees, assisted activities, 

and implementation rules affected by 

this notice, this notice will use the term 

NSP1. 

HERA authorizes the Secretary to 

specify alternative requirements to any 

provision under Title I of the Housing 

and Community Development Act of 

1974, as amended, (the HCD Act) except 

for requirements related to fair housing, 

nondiscrimination, labor standards, and 

the environment (including lead-based 

paint), in accordance with the terms of 

section 2301 of HERA and for the sole 

purpose of expediting the use of grant 

funds. The CDBG requirements will 

apply to NSP except where this notice 

supersedes or amends such 

requirements. This Notice does not 

specify any new alternative 

requirements to statutory requirements. 

Except as described in this notice and 

previous notices governing the NSP, 

statutory and regulatory provisions 

governing the CDBG program, including 

those at 24 CFR part 570 subpart I for 

states or, for CDBG entitlement 

communities, including those at 24 CFR 

part 570 subparts A, C, D, J, K, and O, 

as appropriate, apply to the use of these 

funds. (The State of Hawaii was 

allocated funds and will be subject to 

part 570, subpart I, as modified by this 

notice.) 

Substantive Revisions 

NSP1 grantees are statutorily required 

to use NSP1 funds within 18 months 

from the date HUD signed their grant 

agreement. HUD has defined ‘‘use’’ to 

mean obligation of funds for approved 

activities. The primary purpose of this 

notice is to amend the reallocation 

provision of the October 6, 2008, Notice, 

73 FR 58330 (NSP1 Notice), which 

noted that the ordinary CDBG 

reallocation statutory requirement 

would apply in the event of any 

recapture of NSP1 funds for 

noncompliance with program 

requirements. This Notice provides 

instead for a range of corrective actions, 

in accordance with 24 CFR 

570.900(b)(5) and (6), for failure to meet 

the 18-month use requirements; and for 

any recaptured funds to remain in the 

NSP1 program and to be reallocated in 

accordance with the formula in 

Attachment A. The formula will 

reallocate funds to communities with 

the most current need for support in 

addressing neighborhoods destabilized 

by foreclosed and abandoned homes 

and may take into account prior 

allocations of NSP1 and NSP2 already 

serving those communities. This Notice 

further addresses how grantees who 

have funds recaptured will meet the 

requirement that 25 percent of NSP1 

funds support units affordable to 

households whose incomes are 50 

percent of area median income or less. 

The substantive revisions made by 

this notice follow. The Federal Register 

page number identifies where the 

language to be revised can be found in 

the October 6, 2008, notice. 

A. Reallocation Process 

Background 

In the NSP1 Notice, HUD noted in 

paragraph I.B. Formula Reallocation, 

that if a jurisdiction failed to meet the 

requirement to use its NSP1 funds in 18 

months, HUD would recapture the 

funds and reallocate them in accordance 

with the CDBG reallocation provisions 

of the HCD Act at 42 U.S.C. 5306(c)(4). 

This provision of the HCD Act 

specifically applies to funds recaptured 

under the authority of 42 U.S.C. 5304(e) 

and 5311 of the HCD Act. However, 

upon further reflection, HUD has 

determined that 42 U.S.C. 5306(c)(4) 

does not apply to recaptures under 

NSP1 and therefore NSP funds are not 

required to be reallocated to major 

disaster areas. As the 18-month deadline 

approaches, HUD is updating this 

provision to limit the negative effects on 

communities that, although they may 

not have had the capacity to meet the 

deadline, still have great need for 

neighborhood stabilization funding. 

Therefore, HUD is revising the NSP1 

Notice’s provisions to provide a process 

for addressing a grantee’s failure to meet 

the 18-month use requirement and to 

state that any recaptured funds will be 

reallocated to provide additional NSP 

grants on a formula basis. This Notice 

explains how HUD will proceed to 

restrict further obligation of NSP funds 

the day after the 18-month use deadline 

and provide grantees the opportunity to 

submit additional information regarding 

the NSP funds subject to a finding and 

potential corrective action or sanction. 

Following the review and before 

selecting a corrective or remedial action, 

HUD will, in accordance with 24 CFR 

570.905 and 570.493, consider the 

grantee’s continuing capacity to carry 

out the grant. 

HUD has a range of possible 

corrective actions available in the 

regulations at 24 CFR 570.910 and 

570.495. Additional guidance is 

provided in the Community Planning 

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and Development Monitoring Handbook 

6509.2, Rev-6. HUD may also provide 

targeted technical assistance when it 

determines that the grantee is in need of 

such assistance to complete its program 

successfully. 

In many instances, HUD anticipates 

that NSP grantees failing to meet the use 

deadline will face a choice of (a) 

entering into a memorandum of 

agreement with the Department or (b) 

recapturing of unobligated amounts. 

Based largely on the grantee’s NSP1 

performance and the amount of 

unobligated funds, HUD may enter into 

a memorandum of agreement designed 

to improve the grantee’s performance 

and enable use of the funds for the 

purposes intended in the NSP1 Notice. 

A few very low capacity grantees may 

be required to demonstrate that they 

have acquired stronger program 

partners, such as proven nonprofit or 

for-profit developers, before HUD will 

allow further use of NSP1 funds. To 

ensure uniform national application of 

corrective actions, HUD will issue 

guidance to field offices regarding 

corrective actions for NSP1 grantees that 

fail to meet the deadline for use of 

funds, and corrective actions may be 

reviewed by headquarters staff. Failure 

on the grantee’s part to achieve use of 

funds or to meet the terms of the 

memorandum of agreement may lead to 

recapture of funds. 

States with unused funds will be 

subject to a recapture of unused 

amounts up to $19.6 million. This is 

because the NSP1 allocation formula 

provided $19.6 million to each state 

regardless of the state’s relative need for 

funds. Local governments received 

funds strictly based on their formula 

need. States received the $19.6 million 

base payment plus any need-based 

formula increment. Therefore, if a state 

has unused NSP1 funds up to $19.6 

million, HUD will recapture and 

reallocate those funds to a higher need 

location based on a strictly need-driven 

formula. After HUD determines the 

recapture amount, any remaining 

unused state grant funds in excess of 

$19.6 million will be addressed under 

the additional corrective actions, as 

described above. 

To address concerns that some 

grantees may inflate obligation amounts 

for projects before the deadline, then 

withdraw from or reduce these 

obligations after the deadline as a 

strategy for meeting the fund use 

requirement by the deadline, HUD staff 

will be reviewing a sample of obligation 

documents. (Note that HUD recognizes 

that grantees will not be able to budget 

perfectly and has provided guidance 

allowing a reasonable contingency for 

each project.) HUD field staff may 

request removal of the obligation blocks 

in the reporting system after assessment 

of a grantee’s performance, if the field 

staff determines the grantee is not high 

risk consistent with this notice. 

Finally, the Notice addresses 

enforcement of the grantee’s statutory 

obligation to spend at least 25 percent 

of NSP1 funds on housing for persons 

at or below 50 percent area median 

income. 

Revised Requirement 

Section I.B.2. of the NSP1 Notice at 

page 58331 is amended to read as 

follows: 

2. a. HUD will block each grantee’s 

ability to obligate NSP1 grant funds in 

the Disaster Recovery Grant Reporting 

System (DRGR) on the first business day 

after the statutory 18-month deadline for 

use of funds. HUD will notify the 

grantee of this action by electronic mail. 

Grantees will not be able to obligate 

grant funds after the deadline without 

requesting and receiving permission 

from HUD, until HUD determines that 

the grantee is not high risk consistent 

with this notice. The grantee will still be 

able to expend grant funds obligated 

before the deadline. Receipt and use of 

any program income will also be 

unaffected. 

b. Any grantee that fails to obligate an 

amount equal to or greater than its 

initial grant amount may submit 

information to HUD, for up to 30 days 

following its 18-month deadline, 

documenting any additional obligation 

of funds not already recorded in the 

DRGR system and demonstrating to 

HUD that the obligation occurred on or 

before the 18-month deadline. Before 

the 18-month deadline, each grantee 

should also review its recorded 

obligations and notify HUD within 30 

days following the deadline of any 

necessary adjustments to the amount 

and the reason for such an adjustment. 

For example, the grantee has become 

aware that an obligation amount that 

was previously recorded for an 

acquisition will not proceed, therefore a 

downward adjustment is necessary. 

c. After the deadline, if any grantee 

needs to decrease or increase the 

amount of grant funds obligated to an 

activity, it must first ask HUD to remove 

the DRGR block on changing the amount 

obligated. If the amount of decrease is 

more than 15 percent of the obligation 

for any activity, the grantee must submit 

to HUD a written request that clearly 

demonstrates with compelling 

information that factors beyond the 

grantee’s reasonable control caused the 

need to withdraw or decrease after the 

deadline. If HUD agrees to grant the 

request, it will restore the grantee’s 

ability to obligate grant funds in DRGR. 

If HUD does not grant the request, the 

grantee must either complete the 

activity as originally obligated or the 

amount previously obligated for that 

activity will be recaptured. HUD may 

also remove the obligations block 

following risk assessment of the grantee 

or a review of some or all of a grantee’s 

obligation documentation. 

d. Before HUD determines the 

appropriate corrective action or 

recaptures grant funds, HUD will review 

the submitted information, consider the 

grantee’s capacity as described in 24 

CFR 570.905 and 24 CFR 570.493, and 

the grantee’s continuing need for the 

funds. 

e. Following the review, HUD will 

proceed to notify the grantee of the 

selected corrective action it is required 

to undertake. 

f. HUD will recapture and reallocate 

up to $19.6 million from any state 

grantee with unused NSP grant funds. 

Additional corrective actions may be 

taken related to any amount of unused 

funds greater than $19.6 million. 

g. HUD will reallocate recaptured 

funds in accordance with the 

reallocation formula described in 

Attachment A. A grantee receiving a 

reallocation must apply for the grant in 

accordance with the NSP1 Notice. A 

nonentitlement grant recipient that is 

not required to submit a consolidated 

plan to HUD under the CDBG program 

will prepare an abbreviated plan. The 

substance of an abbreviated plan must 

include all the required elements that 

entitlement communities provide as 

part of an NSP Action Plan substantial 

amendment as described under Section 

II.B.2. 

h. Each grantee must meet the 

statutory requirement to expend 25 

percent of its grant amount for activities 

that will provide housing for 

households whose income is at or under 

50 percent of area median income. This 

cannot occur unless the funds are first 

obligated to activities for this purpose, 

or program income is received and used 

for eligible activities. Therefore, if a 

grantee fails to obligate or record 

program income use of at least 25 

percent of its original grant amount for 

activities that will provide housing for 

households whose income is at or under 

50 percent of area median income, HUD 

may issue a concern or a finding of 

noncompliance. HUD will require as a 

corrective action that the grantee either 

adjust its remaining NSP1 planned 

activities to ensure that 25% of the 

original NSP1 formula grant amount and 

program income supports activities 

providing housing to households with 

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incomes at or under 50 percent of area 

median income, or make a firm 

commitment to provide such housing 

with nonfederal funds in an amount 

sufficient to offset any deficiency to 

comply with the requirement before the 

expenditure deadline for the NSP1 

grant. 

i. The NSP1 Notice allows each 

grantee to use up to ten percent of its 

NSP1 grant for general administration 

and planning activities. If HUD 

recaptures funds from a grant, this 

percentage limitation will still apply to 

the remaining grant funds, reducing the 

amount available for administration 

activities. 

B. Changes to Pre-Grant Process 

Background 

With this notice, HUD is establishing 

the pre-grant process for the NSP 

reallocation grants. The formula is 

published in Attachment A. HUD will 

announce the reallocation amounts after 

completing the recapture process for all 

states that have failed to meet the 18- 

month use requirement. Additional 

reallocation announcements will be 

made only if HUD recaptures funds 

from grantees who fail to comply with 

any memorandum of agreement or grant 

conditions. At the time of each 

announcement, CDBG grantees 

receiving NSP1 reallocations may 

immediately begin to prepare and 

submit action plan substantial 

amendments or abbreviated plans for 

NSP1 funds, in accordance with this 

notice and the original NSP1 Notice. 

(Insular areas should follow the 

requirements for entitlement 

communities.) 

To receive NSP1 reallocation funding, 

grantees must submit an action plan 

substantial amendment to HUD in 

accordance with this notice by no later 

than the deadline in the allocation 

announcement. Any unit of general 

local government in a nonentitlement 

area receiving an allocation must submit 

an abbreviated plan under 24 CFR 

91.235 to HUD by the same deadline. 

An abbreviated plan will have 

essentially the same content as a NSP1 

substantial amendment, although the 

certifications will be different. 

In the October 6, 2008 NSP1 Notice, 

HUD encouraged each local jurisdiction 

receiving an allocation to carefully 

consider its administrative capacity to 

use the funds within the statutory 

deadline. HUD is encouraging each local 

jurisdiction receiving reallocated fund 

to consider its administrative capacity. 

To support this consideration, HUD is 

providing a self-assessment tool that 

grantees may find useful in better 

understanding their capacity to 

undertake and manage NSP1 activities. 

This is the same self-assessment tool 

that is used for NSP Technical 

Assistance (NSP–TA) purposes and it 

will allow HUD to more rapidly identify 

capacity gaps and technical assistance 

needs and to provide appropriate 

technical assistance. Although HUD 

suggests that every grantee complete 

and submit the self-assessment with its 

substantial amendment, HUD will 

require some grantees to complete and 

submit such a self-assessment as a 

special condition of receiving funding. 

HUD also provided regulatory waivers 

and alternative requirements to allow 

joint requests among contiguous 

entitlement communities and to allow 

joint requests between an entitlement 

community and a state. Any two or 

more contiguous units of general local 

government may make a joint request to 

HUD to implement a joint NSP1 

program with reallocated funds. A 

jurisdiction need not have a joint 

agreement with an urban county under 

the regular CDBG entitlement program 

or have joint request with a local 

government or state for the original 

NSP1 allocation to request a joint 

program for NSP1 reallocation funding. 

Potential requestors should contact 

HUD as soon as possible (as far as 

possible in advance of publishing a 

proposed substantial amendment or 

abbreviated plan) for technical 

guidance. The requestors will specify 

which jurisdiction will receive the 

funds and administer the combined 

grant on behalf of the requestors; in the 

case of a joint request between a local 

government jurisdiction and a state, the 

state will administer the combined 

grant. (Grantees choosing this option 

should consider the Consolidated Plan 

and citizen participation implications of 

this approach. The lead entity’s 

substantial amendment will cover all 

participating members. The citizen 

participation process must include 

citizens of all jurisdictions participating 

in the joint program.) 

Given the rule of construction in 

HERA that NSP funds generally are 

construed as CDBG program funds, 

subject to CDBG program requirements, 

HUD generally will treat reallocated 

NSP funds as a special allocation of 

Fiscal Year (FY) 2010 CDBG funding for 

grantees receiving an allocation for the 

first time. This has important 

consequences for local governments 

presently participating in an existing 

urban county program, and for 

metropolitan cities that have joint 

agreements with urban counties. HUD 

will consider any existing cooperation 

agreements between a local government 

and an urban county governing FY2010 

CDBG funding (for purposes of either an 

urban county or a joint program) to 

automatically cover NSP funding as 

well. These cooperation agreements will 

continue to apply to the use of NSP 

funds for the duration of the NSP grant, 

just as cooperation agreements covering 

regular CDBG Entitlement program 

funds continue to apply to any use of 

the funds appropriated during the 3- 

year period covered by the agreements. 

For example, a local government 

presently has a cooperation agreement 

covering a joint program or participation 

in an urban county for Federal FYs 

2009, 2010 and 2011. The local 

government may choose to discontinue 

its participation with the county at the 

end of the applicable qualification 

period for future CDBG entitlement 

funding. However, the existing 

cooperation agreement covers the NSP 

funding until expended and the county 

will still be responsible for any NSP 

projects funded in that community, and 

for any NSP funding the local 

government receives from the county, 

until those funds are expended and the 

funded activities are completed. 

A third method of cooperating is also 

available, and may be required by HUD 

in some jurisdictions that HUD 

determines have high need for NSP 

funds and low capacity to implement 

some or all planned NSP activities in 

the required timeframes. HUD may 

condition some NSP reallocations on 

such cooperation being demonstrated to 

HUD’s satisfaction before execution of a 

grant agreement. A jurisdiction may 

apply for its entire grant and 

immediately enter into a subrecipient 

agreement with another jurisdiction, an 

NSP2 grantee, or a nonprofit entity with 

capacity to administer the grant. 

Finally, some communities with a 

great need for neighborhood 

stabilization support do not have the 

capacity to design and deliver a 

successful NSP program. HUD can 

identify these communities before 

execution of a grant agreement based on 

NSP, CDBG, or HOME program 

performance or information from 

technical assistance providers. In these 

cases, HUD may reallocate funds to such 

communities but will take actions 

designed to ensure appropriate and 

timely use of grant funds. HUD will 

condition their grants on the grantee’s 

acceptance of technical assistance, as 

evidenced by an executed technical 

assistance work plan or by a 

memorandum of agreement with HUD. 

In either such document, the 

responsibilities and roles of the grantee, 

HUD, and HUD’s technical assistance 

providers will be described—including 

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a specific scope of work and schedule— 

and duly executed before HUD signs the 

grant agreement for the reallocation 

award. 

At the time HUD publishes the 

reallocation amounts, it will also 

publish a specific date for a recipient to 

complete and submit a substantial 

amendment to its annual action plan or 

an abbreviated plan. A grantee that 

wishes to initially submit its action plan 

amendment to HUD electronically in the 

DRGR system rather than via paper may 

do so by contacting its local field office 

for the DRGR submission directions. 

Paper submissions to HUD also will be 

allowed, although each grantee must set 

up its action plan in DRGR before the 

deadline for the first required 

performance report after receiving a 

grant. 

HUD will review each grantee 

submission for completeness and 

consistency with the requirements of 

this notice and will disapprove 

incomplete and inconsistent action plan 

amendments and abbreviated plans. 

HUD will allow revision and 

resubmission of a disapproved 

amendment or abbreviated action plan 

in accordance with 24 CFR 91.500 so 

long as any such resubmission is 

received by HUD 45 days or less 

following the date of first disapproval. 

In combination, these requirements 

provide the following expedited steps 

for NSP grants: 

• Proposed action plan amendment or 

abbreviated plan published via the 

usual methods and on the Internet for 

no less than 15 calendar days of public 

comment; 

• Final action plan amendment or 

abbreviated plan posted on the Internet 

and submitted to HUD by the deadline 

indicated in the allocation 

announcement (grant application 

includes Standard Form 424 (SF–424) 

and certifications); 

• HUD expedites review; 

• HUD accepts the plan and prepares 

a cover letter, grant agreement, and 

grant conditions; 

• Grantee meets any conditions 

required before HUD’s execution of the 

grant agreement. 

• Grant agreement signed by HUD 

and immediately transmitted to the 

grantee; 

• Grantee signs and returns the grant 

agreements; 

• HUD establishes the line of credit 

and the grantee requests and receives 

DRGR access; 

• After completing the environmental 

review(s) pursuant to 24 CFR part 58 

and, as applicable, receiving from HUD 

or the state an approved Request for 

Release of Funds and certification, the 

grantee may draw-down funds from the 

line of credit. 

As with the initial allocation process, 

the action plan substantial amendment, 

abbreviated plan and citizen 

participation alternative requirements 

will permit an expedited grant-making 

process, but one that still provides for 

public notice, appraisal, examination, 

and comment on the activities proposed 

for the use of NSP grant funds. 

Revised Requirements 

Section II.B.4.a of the NSP1 Notice on 

page 58334 is amended to add the 

following at the end: To receive an NSP 

reallocation, a grantee must submit to 

HUD for approval an NSP application 

by the deadline indicated in the 

allocation announcement. This 

submission will include a signed 

standard Federal form SF–424, signed 

certifications, and a substantial action 

plan amendment or abbreviated plan 

meeting the requirements of paragraph b 

below. (24 CFR 91.505 is waived to the 

extent necessary to require submission 

of the substantial amendment to HUD 

for approval in accordance with this 

Notice.) 

Section II.B.5–6 of the NSP1 Notice 

on beginning on page 58334 is amended 

to add: 5. 

c. Local jurisdictions receiving 

reallocation funds may enter into joint 

agreements in accordance with 5.a. or 

b., regardless of whether the local 

jurisdiction had a joint agreement for 

the original NSP allocation. 

6. b. Any cooperation agreement 

between a unit of general local 

government and a county, concerning 

either a joint program or participation in 

an urban county under 24 CFR 570.307 

or 570.308, and governing CDBG funds 

appropriated for federal FY 2010, will 

be considered to incorporate and apply 

to NSP reallocated funding. Any such 

cooperation agreements will continue to 

apply to the use of NSP funds until the 

NSP funds are expended and the NSP 

grant is closed out. Grantees should note 

that certain provisions in existing 

cooperation agreements that govern 

FY2010 CDBG funding may be 

inconsistent with parts of HERA and 

this notice. For instance, set minimum 

and/or maximum allocation amounts 

may conflict with priority distributions 

to areas of greatest need identified in the 

grantee’s action plan substantial 

amendment. Conforming amendments 

should be made to existing cooperation 

agreements, as necessary, to comply 

with HERA and this notice. 

C. Change to Timeliness of Use 

Requirement 

The requirements of paragraph M. 

Timeliness of use and expenditure of 

NSP funds of the NSP1 Notice will 

apply to reallocation grants. Grantees 

are reminded that section of HERA 

2301(c)(1) provides that any grantee 

receiving a grant: 

‘‘* * *shall, not later than 18 months after 

the receipt of such amounts, use such 

amounts to purchase and redevelop 

abandoned and foreclosed homes and 

residential properties.’’ 

HUD has defined the term ‘‘use’’ to 

include obligation of funds. 

Revised Requirement 

Section II.M. of the NSP1 Notice on 

page 58340 is amended to add 

paragraph 3 after paragraph 2: 

3. Grantees receiving a reallocation of 

funds must comply with the 18-month 

use requirement. 

D. Certifications 

Background 

HUD is substituting alternative 

certifications. The alternative 

certifications are tailored to NSP1 grants 

and remove certifications and references 

that are appropriate only to the annual 

CDBG formula program. 

Requirements 

Section II.T. of the NSP1 Notice 

starting on page 58342 is amended to 

read as follows: Certifications for states 

and for entitlement communities, 

alternative requirement. Although the 

NSP is being implemented as a 

substantial amendment to the current 

annual action plan, HUD is requiring 

submission of this alternative set of 

certifications as a conforming change, 

reflecting alternative requirements and 

waivers under this notice. Each 

jurisdiction will submit the following 

certifications: 

1. Affirmatively furthering fair 

housing. The jurisdiction certifies that it 

will affirmatively further fair housing, 

which means that it will conduct an 

analysis to identify impediments to fair 

housing choice within the jurisdiction, 

take appropriate actions to overcome the 

effects of any impediments identified 

through that analysis, and maintain 

records reflecting the analysis and 

actions in this regard. 

2. Anti-displacement and relocation 

plan. The applicant certifies that it has 

in effect and is following a residential 

anti-displacement and relocation 

assistance plan. 

3. Anti-lobbying. The jurisdiction 

must submit a certification with regard 

to compliance with restrictions on 

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lobbying required by 24 CFR part 87, 

together with disclosure forms, if 

required by that part. 

4. Authority of jurisdiction. The 

jurisdiction certifies that the 

consolidated plan is authorized under 

state and local law (as applicable) and 

that the jurisdiction possesses the legal 

authority to carry out the programs for 

which it is seeking funding, in 

accordance with applicable HUD 

regulations and other program 

requirements. 

5. Consistency with plan. The 

jurisdiction certifies that the housing 

activities to be undertaken with NSP 

funds are consistent with its 

consolidated plan. 

6. Acquisition and relocation. The 

jurisdiction certifies that it will comply 

with the acquisition and relocation 

requirements of the Uniform Relocation 

Assistance and Real Property 

Acquisition Policies Act of 1970, as 

amended (42 U.S.C. 4601), and 

implementing regulations at 49 CFR part 

24, except as those provisions are 

modified by the notice for the NSP 

program published by HUD. 

7. Section 3. The jurisdiction certifies 

that it will comply with section 3 of the 

Housing and Urban Development Act of 

1968 (12 U.S.C. 1701u), and 

implementing regulations at 24 CFR part 

135. 

8. Citizen participation. The 

jurisdiction certifies that it is in full 

compliance and following a detailed 

citizen participation plan that satisfies 

the requirements of Sections 24 CFR 

91.105 or 91.115, as modified by NSP 

requirements. 

9. Following a plan. The jurisdiction 

certifies it is following a current 

consolidated plan (or Comprehensive 

Housing Affordability Strategy) that has 

been approved by HUD. 

10. Use of funds. The jurisdiction 

certifies that it will comply with Title III 

of Division B of the Housing and 

Economic Recovery Act of 2008, as 

amended, by using all of its grant funds 

within 18 months of receipt of the grant. 

11. The jurisdiction certifies: 

a. That all of the NSP funds made 

available to it will be used with respect 

to individuals and families whose 

incomes do not exceed 120 percent of 

area median income; and 

b. The jurisdiction will not attempt to 

recover any capital costs of public 

improvements assisted with CDBG 

funds, including Section 108 loan 

guaranteed funds, by assessing any 

amount against properties owned and 

occupied by persons of low- and 

moderate-income, including any fee 

charged or assessment made as a 

condition of obtaining access to such 

public improvements. However, if NSP 

funds are used to pay the proportion of 

a fee or assessment attributable to the 

capital costs of public improvements 

(assisted in part with NSP funds) 

financed from other revenue sources, an 

assessment or charge may be made 

against the property with respect to the 

public improvements financed by a 

source other than CDBG funds. In 

addition, with respect to properties 

owned and occupied by moderateincome (but not low-income) families, 

an assessment or charge may be made 

against the property with respect to the 

public improvements financed by a 

source other than NSP funds if the 

jurisdiction certifies that it lacks NSP or 

CDBG funds to cover the assessment. 

12. Excessive force. The jurisdiction 

certifies that it has adopted and is 

enforcing: 

a. A policy prohibiting the use of 

excessive force by law enforcement 

agencies within its jurisdiction against 

any individuals engaged in nonviolent 

civil rights demonstrations; and 

b. A policy of enforcing applicable 

state and local laws against physically 

barring entrance to, or exit from, a 

facility or location that is the subject of 

such nonviolent civil rights 

demonstrations within its jurisdiction. 

13. Compliance with antidiscrimination laws. The jurisdiction 

certifies that the NSP grant will be 

conducted and administered in 

conformity with Title VI of the Civil 

Rights Act of 1964 (42 U.S.C. 2000d), 

the Fair Housing Act (42 U.S.C. 3601– 

3619), and implementing regulations. 

14. Compliance with lead-based paint 

procedures. The jurisdiction certifies 

that its activities concerning lead-based 

paint will comply with the requirements 

of part 35, subparts A, B, J, K, and R of 

this title. 

15. Compliance with laws. The 

jurisdiction certifies that it will comply 

with applicable laws. 

Note on Statutory Limitation on 

Distribution of Funds 

Section 2304 of HERA states that none 

of the funds made available under this 

Title or title IV shall be distributed to an 

organization that has been indicted for 

a violation under Federal law relating to 

an election for Federal office; or an 

organization that employs applicable 

individuals. Section 2304 defines 

applicable individuals. 

Information Collection Approval 

HUD has approval from the Office of 

Management and Budget (OMB) for 

information collection requirements in 

accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3520). OMB approval is under OMB 

control number 2506–0165. In 

accordance with the Paperwork 

Reduction Act, HUD 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. 

Duration of Funding 

The appropriation accounting 

provisions in 31 U.S.C. 1551–1557, 

added by section 1405 of the National 

Defense Authorization Act for Fiscal 

Year 1991 (Pub. L. 101–510), limit the 

availability of certain appropriations for 

expenditure. Such a limitation may not 

be waived. The appropriations acts for 

NSP grants direct that these funds be 

available until expended. However, the 

Department is imposing a shorter 

deadline on the expenditure of NSP 

funds in this notice. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance numbers for grants made 

under NSP1 are as follows: 14.218; 

14.225; and 14.228. 

Finding of No Significant Impact 

A Finding of No Significant Impact 

with respect to the environment has 

been made in accordance with HUD 

regulations at 24 CFR part 50, which 

implement section 102(2)(C) of the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4332(C)(2)). The 

Finding of No Significant Impact is 

available for public inspection between 

8 a.m. and 5 p.m. weekdays in the 

Office of the Rules Docket Clerk, Office 

of General Counsel, Department of 

Housing and Urban Development, 451 

Seventh Street, SW., Room 10276, 

Washington, DC 20410–0500. 

Dated: August 23, 2010. 

Mercedes M. Ma ́ rquez, 

Assistant Secretary for Community Planning 

and Development. 

[FR Doc. 2010–21402 Filed 8–26–10; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Land Management 

[CACA 048649, LLCAD06000, L51010000.

FX0000, LVRWB09B2490] 

Notice of Availability of the Draft 

Environmental Impact Statement for 

the Desert Sunlight Holdings, LLC 

Desert Sunlight Solar Farm Project and 

Possible California Desert 

Conservation Area Plan Amendment 

AGENCY: Bureau of Land Management, 

Interior. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES