DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of the Assistant Secretary for Community Planning and Development 24 CFR Part 570 [Docket No. RÄ93Ä1684; FRÄ3415ÄPÄ01] RIN 2506ÄAB60 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 Community Planning and Development, HUD. ACTION: Proposed rule. SUMMARY: This proposed rule would establish 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 states and units of general local government and institutions of higher education with demonstrated capacity to carry out eligible activities, that jointly submit applications to HUD. DATES: Comment due date: February 28, 1994. ADDRESSES: Interested persons are invited to submit comments regarding the proposed rule the Rules Docket Clerk, Office of General Counsel, room 10276, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410. Comments should refer to the above docket number and title. Copies of all written comments received will be available for public inspection and copying between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket Clerk, at the address listed above. FOR FURTHER INFORMATION CONTACT: Jerome B. Friedman, Technical Assistance Division, Office of Technical Assistance, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410, (202) 708Ä3176. The Telecommunications Device for the Deaf (TDD) number is (202) 708Ä2565. (These are not toll free numbers.) SUPPLEMENTARY INFORMATION: I. Paperwork Reduction Act The information collection requirements contained in this proposed 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. 3501Ä3520). No person may be subjected to a penalty for failure to comply with these information collection requirements until they have been approved and assigned an OMB control number. The OMB control number, when assigned, will be announced in the Federal Register. Information on these collection requirements is provided later in this preamble under Other Matters. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Department of Housing and Urban Development, Rules Docket Clerk, 451 Seventh Street, SW., room 10276, Washington, DC 20410; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Desk Officer for HUD, Washington, DC 20503. II. Background Section 801(c)(2) of the Housing and Community Development Act of 1992 (Pub. L. 102Ä550, 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 states and units of general local government and institutions of higher education with demonstrated capacity to carry out eligible activities under title I that jointly submit applications to HUD. This rule proposes implementation of this new grant authority. For ease of reference, this new program may be called the Joint Community Development (CD) Program. III. Summary of Proposed Rule Following are the highlights of the proposed rule that will govern the grants under the Joint CD Program: 1. A new  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  570.400, which contains general requirements for all special purpose grant programs, applies to this new program as well. Additionally, grantees will have to 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 who the eligible applicants are. It indicates that an application must be filed jointly by an institution of higher education and a state or unit of general local government. This subsection also states that HUD will fund eligible applicants only once every two funding cycles. 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 jurisdiction of one or more units of general local government, then such governments must approve the activity and indicate that it is not inconsistent with their community development plan or program. 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 provide evidence of consistency with a Comprehensive Housing Affordability Strategy (CHAS) 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 programs. 12. Section 570.411(n) provides details on environmental review responsibilities for this program. Other Matters Public Reporting Burden The information collection requirements contained in this proposed rule have been submitted to the Office of Management and Budget under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501Ä3520). The Department has determined that the following provisions contain information collection requirements. c6,L2,i1,s100,10,10,10,10,10 Annual Reporting Burden 24 CFR 570.411 Joint Community Development [col head 1] [col head 1] Number of respondents [col head 1] Number of responses per respondent [col head 1] Total annual responses [col head 1] Hours per response [col head 1] Total hours Application 200 1 200 40 8,000 Quarterly reports 20 4 80 7 560 Final reports 20 1 20 4 80 Recordkeeping 20 1 20 32 640 ===== 9,280 Executive Order 12866 This proposed rule was reviewed by the Office of Management and Budget (OMB) under Executive Order 12866 on Regulatory Planning and Review, issued by the President on September 30, 1993. Any changes made in the proposed rule subsequent to its submission to OMB are identified in the docket file, which is available for public inspection in the Office of the Rules Docket Clerk, room 10276, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410. 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 proposed in this proposed rule would not have Federalism implications when implemented and, thus, are not subject to review under the Order. Nothing in the proposed rule implies any preemption of State or local law, nor does any provision of the proposed 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 proposed rule would 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 Under the Regulatory Flexibility Act (5 U.S.C. 605(b)), the Undersigned hereby certifies that this proposed rule would 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 proposed rule was listed as item 1580 in the Department's Semiannual Agenda of Regulations published on October 25, 1993 (58 FR 56402, 56438) 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 proposed to be amended as follows: PART 570 COMMUNITY DEVELOPMENT BLOCK GRANTS 1. The authority citation for 24 CFR part 570 would continue to read as follows: Authority: 42 U.S.C. 3535(d) and 5300Ä5320. 2. Section 570.411 would be added to subpart E to read as follows:  570.411 Joint Community Development Program. (a) General. Grants under this section will be awarded to states and units of general local government and institutions of higher education having a demonstrated 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 Community Development Program. (b) Definitions. (1) 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. (2) 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 Department of Education. (c) Eligible applicants. States, units of general local government and institutions of higher education. Each application by a state or unit of general local government must be filed jointly in cooperation with an institution of higher education. For all such approved applications, the grant will be made to the state or unit of general local government. Each application by an institution of higher education must be filed by an institution with demonstrated capacity to carry out eligible activities under this part and filed jointly with a state or unit of general local government. For all such approved applications, the grant will be made to the institution of higher education. An eligible applicant will not be funded more frequently than once every other funding cycle. Thus, for the funding cycle after receiving funding, otherwise eligible applicants will not be deemed eligible. A state or unit of general local government will not be funded more frequently than once every other funding cycle even if filing jointly with a different institution of higher education in each cycle. An institution of higher education will not be funded in consecutive funding cycles even if funded one year directly and applying jointly with a state or unit of general local government in the next cycle. HUD may 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. A state, unit of general local government or institution of higher education may carry out eligible activities approved in the joint applications. Where a state or unit of general local government is the recipient, the institution of higher education will serve as a subrecipient. The state or unit of general local government will then be responsible for oversight of and compliance and performance by the institution of higher education and, if necessary, providing assistance to the institution of higher education. Where the institution of higher education is the recipient, it will be responsible for oversight and compliance and the state or unit of local government will serve as a subrecipient. The application will have to clearly delineate the role of each participant in the joint application. The recipient must have a subrecipient agreement with the subrecipient meeting the requirements of  570.503. 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 the grantee. The grantee may include appropriate provisions for its rights of recourse in the subrecipient agreement with the subrecipient. (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 (Pub. L. 101Ä625), 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 where an activity is to take place must approve the activity and state the activity is not inconsistent with its community development plan or program. (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 not inconsistent with its community development plan or program. (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 by 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 of the selection criteria, 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 factors 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 if HUD will use the various possible levels of competition: National and/or regional; entitlement areas vs. non-entitlement areas; and states or units of general local government/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 fair housing and equal opportunity record of the community as indicated by previous HUD monitoring/compliance activity. (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 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. If independent evidence is available to HUD, however, HUD may require further information or assurances to be submitted in order to determine whether the applicant's certifications are satisfactory. (l) Comprehensive Housing Affordability Strategy (CHAS). 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 CHAS of the jurisdiction to be served. (m) Citizen participation. The citizen participation requirements of  570.301 and 570.431 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. 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 the required environmental review when an institution of higher education is the applicant. Dated: December 1, 1993. Mark Gordon, Deputy Assistant Secretary for Community Planning and Development. [FR Doc. 93Ä31651 Filed 12Ä28Ä93; 8:45 am] BILLING CODE 4210Ä29ÄP