81 FR 38730 - Notice of Neighborhood Stabilization Program; Changes to Closeout Requirements Related to Program Income
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 81, Issue 114 (June 14, 2016)
Federal Register Volume 81, Issue 114 (June 14, 2016)
| Page Range | 38730-38732 | |
| FR Document | 2016-14062 |
[Federal Register Volume 81, Number 114 (Tuesday, June 14, 2016)] [Notices] [Pages 38730-38732] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14062] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-5933-N-01] Notice of Neighborhood Stabilization Program; Changes to Closeout Requirements Related to Program Income AGENCY: Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This notice describes changes to closeout requirements applied to and additional regulations waived for grantees receiving grants under the three rounds of funding under the Neighborhood Stabilization Program who are also grantees under the Community Development Block Grant (CDBG) program. DATES: Effective Date: June 14, 2016. FOR FURTHER INFORMATION CONTACT: Stanley Gimont, Director, Office of Block Grant Assistance, Office of Community Planning and Development, Department of Housing and Urban Development, 451 Seventh Street SW., Room 7286, Washington, DC 20410; telephone number 202-708-3587 (this is not a toll-free number). Persons with hearing or speech impairments may access this number via TTY by calling the Federal Relay Service at 1- 800-877-8339. SUPPLEMENTARY INFORMATION: I. Background The Neighborhood Stabilization Program (NSP) was established by Division B, Title III of the Housing and Economic Recovery Act of 2008 (HERA) (Pub. L. 110-289, approved July 30, 2008), for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. As established by HERA, NSP provided grants to all states and selected local governments on a formula basis. The American Recovery and Reinvestment Act of 2009 (Recovery Act) (Pub. L. 111-5, approved February 17, 2009) authorized additional NSP grants to be awarded to states, local governments, nonprofits and a consortium of nonprofit entities, but on a competitive basis. The Recovery Act also authorized funding for national and local technical assistance providers to support NSP grantees. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd- Frank Act) (Pub. L. 111-203, approved July 21, 2010) authorized a third round of Neighborhood Stabilization grants to all states and select local governments on a formula basis. The purpose of the funds awarded under the three rounds of NSP is to target the stabilization of neighborhoods negatively affected by properties that have been foreclosed upon and abandoned. The notice, Notice of Formula Allocations and Program Requirements for Neighborhood Stabilization Program Formula Grants, published October 19, 2010 (75 FR 64322) (``Unified NSP Notice''), provides further background for these programs, the program principles, and the objectives and outcomes of the NSP program. The Notice of Neighborhood Stabilization Program; Closeout Requirements and Recapture (Closeout Notice), published November 27, 2012 (77 FR 70799), amended the Unified Notice by adding grant closeout and related provisions. In addition, the Notice of Fund Availability (NOFA) for the Neighborhood Stabilization Program 2 under the American Recovery and Reinvestment Act, 2009, 74 FR 21377 (May 7, 2009), as amended by subsequent notices (``NSP2 NOFA''), includes requirements specific to the competitive round of funding under the Recovery Act. II. This Notice The primary purpose of this notice is to revise requirements set forth in the amended Unified NSP Notice and the Closeout Notice to revise the treatment of program income for all three rounds of NSP by allowing NSP program income received by a CDBG recipient to be transferred by the recipient from the NSP program to the CDBG program. After the transfer is carried out, any transferred program income will be subject to the CDBG program income regulations. Following publication of this notice, HUD will update the issued NSP closeout instructions (Notice CPD 14-02) to conform the instructions for consideration of program income during and after closeout of NSP grants. The Closeout Notice generally required that with the exception of de minimis amounts received after grant closeout, program income generated by NSP-assisted activities must continue to be used for NSP uses. In attempting to implement this requirement, HUD has become aware that it is, in many instances, administratively unworkable for NSP grantees and difficult for HUD to oversee effectively. For NSP grantees that are generating a substantial amount of program income, the requirement to use this program income prior to drawing additional funds from the grant's line of credit is also impeding their ability to completely expend their NSP grant funds. Further, some grantees no longer have an adequate pool of NSP-eligible foreclosed or abandoned properties in their target areas although they do have other needs that CDBG funding could be used to address. On HUD's part, with dwindling administrative resources remaining from those provided for the NSP program, the inability to achieve the criteria for grant closeout for these grantees creates a looming oversight issue. Several NSP grantees have asked that HUD reconsider the NSP program income requirements and allow the same flexibility for the NSP program income as is currently allowed for the CDBG Disaster Recovery (CDBG-DR) grants under Public Law 113-2. These requirements allow a grantee to transfer CDBG-DR program income received prior to grant closeout to the recipient's CDBG program. HUD agrees that this solution addresses the issues identified above and so this notice will provide the same flexibility to any NSP grantee that is also a CDBG grantee (entitlement or state) with an open formula entitlement grant or a unit of general local government (UGLG) recipient of a CDBG grant from a state. HUD will not allow transfer of NSP program income to the CDBG program if the transfer will result in the NSP grantee failing to meet the statutory NSP 25 percent set-aside requirement for low-income housing. To prevent such a failure, the grantee must obtain HUD approval by notifying HUD in writing prior to a transfer of program income from NSP to CDBG to permit HUD's review of compliance with the NSP 25 percent requirement. HUD will notify the grantee of any possible issues. Based on the data available, HUD anticipates that issues of this sort will be uncommon. Since this notice applies to grantees receiving grants under any of the three rounds of NSP funding, the terms NSP1, NSP2 or NSP3 are used to describe each of the three funding rounds. When referring to the grants, grantees, assisted activities, and implementation rules under HERA, this notice will use the term ``NSP1.'' When referring to the grants, grantees, assisted activities, and implementation rules under the [[Page 38731]] Recovery Act, this notice will use the term ``NSP2.'' When referring to the grants, grantees, assisted activities, and implementation rules under the Dodd-Frank Act, this notice will use the term ``NSP3.'' Collectively, the grants, grantees, assisted activities, and implementation rules under these three rounds of funding are referred to as NSP. NSP is a component of the CDBG program, authorized under the Housing and Community Development Act of 1974 (HCD Act) (42 U.S.C. 5301 et seq.). III. Authority To Provide Alternative Requirements and Grant Regulatory Waivers 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 funds are to be treated as CDBG funds. HERA, the Recovery Act, and the Dodd-Frank Act authorize the Secretary of HUD to specify alternative requirements to any provision under Title I of the HCD Act except for requirements related to fair housing, nondiscrimination, labor standards, and the environment. Any alternative requirements must be in accordance with the terms of section 2301 of HERA and for the sole purpose of expediting for NSP1 or facilitating the NSP2 or NSP3 use of grant funds. The CDBG requirements will apply to NSP funds except where this or other published notices supersede or amend such requirements. This Notice amends an existing alternative requirement by allowing an NSP grantee that is also a CDBG formula grantee or a State CDBG UGLG grant recipient to transfer NSP program income to the CDBG program rather than limiting the use of such program income to NSP purposes before, at, and after grant closeout. Except as described in this notice and previous notices governing 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. IV. Alternative Requirements and Regulatory Waivers 1. Section N of the Unified NSP Notice and section N of Appendix I of the NSP2 NOFA is amended to add a new subparagraph 4, as follows: ``4. An NSP grantee may transfer NSP program income at any time before, at the time of, or after closeout to its annual CDBG program, or, if it is an UGLG that is also a State CDBG grant recipient, to its State CDBG program. In addition, a State grantee may transfer NSP program income before or at closeout to any annual CDBG-funded activities carried out by a UGLG or Indian tribe within the State. Program income generated by an NSP-assisted activity and received by a CDBG grantee, or received and retained by a CDBG subgrantee, after closeout of the grant that generated the program income, may also be transferred to a grantee's annual CDBG award. Transferred NSP program income will become CDBG program income upon receipt in the Integrated Disbursement and Information System (IDIS). Prior to carrying out a transfer, the grantee must notify HUD in writing of the amount of program income on hand to be transferred, the grant number and activity number associated with the NSP activity that generated the program income, and the name of the CDBG program grantee (or subgrantee, if appropriate) to which the funds will transfer. On receipt of a notification, HUD will review NSP grant information reported in the Disaster Recovery Grant Reporting System (DRGR) for the applicable grant to ensure the grantee is in compliance with the requirement at paragraph E.2.e of the Unified Notice, 75 FR 64331, for NSP1 and NSP3 grantees, and Appendix I of the NSP2 NOFA for NSP2 grantees, and only approve the transfer if use of NSP funds remaining after the transfer will comply with this requirement. After HUD approval, if NSP program income funds have already been receipted in DRGR, the grantee must first revise the DRGR submission to subtract the amounts receipted there prior to receipting any transferred amounts in IDIS. Subsequent to transfer, all transferred program income must be treated (documented, receipted in IDIS, used, and reported on) in accordance with CDBG program requirements. Any NSP program income that is not receipted in IDIS will retain its NSP characteristics and requirements in accordance with published notices governing NSP.'' 2. Section Y(c)(3)(i) of the Unified NSP Notice is amended to read as follows: ``Any NSP program income on deposit in financial institutions at the time the closeout agreement is signed and any NSP program income currently held by subrecipients or consortium members, together with the amounts of any NSP program income that have been transferred to the CDBG program of the grantee or a specified UGLG recipient prior to execution of the closeout agreement.'' 3. Under the ``Background'' subheading in section Z of the Unified NSP Notice, the Program Income paragraphs are amended to read as follows: ``Program Income. NSP program income received before, at the time of, or after closeout may be transferred to an annual CDBG program as provided in section N and transferred funds will become CDBG program income upon receipt in IDIS (such receipt in IDIS will be subsequent to edits to remove receipt of the funds in DRGR, if such receipt was already entered). Upon transfer, CDBG program income will be subject to all CDBG statutory and regulatory requirements for program income. ``Any NSP program income not transferred to CDBG shall, subject to the de minimis exception provided for in section Y, continue to be used in accordance with NSP requirements. The un-transferred funds will retain NSP characteristics and be subject to NSP requirements so the additional flexibility created by the legislation for the creation of financing mechanisms, development of new housing, operation of land banks, and service of families up to 120 percent of Area Median Income (AMI), will remain in place. However, HUD notes that continued acquisition of new land bank property after closeout with NSP program income could undermine the urgency of finding uses for the properties already acquired. Grantees will be required to allocate 25 percent of NSP program income to housing for families with less than 50 percent of AMI when the amount of annual program income received by a grantee is sufficient to make application of this requirement reasonable. After grant closeout, former NSP grantees that are CDBG entitlements or State governments will report at least annually as provided for by HUD, initially in DRGR and later in an enhanced IDIS, on the receipt and use of NSP program income, and the disposition of land-banked properties. These grantees must also include NSP program income in the annual CDBG Action Plan or substantial amendment in accordance with CDBG requirements. All former NSP grantees, including nonprofits and nonentitlement units of general local government receiving funds directly from HUD, must report at least annually in a form acceptable to the Secretary regarding enforcement of any NSP continuing affordability restrictions. Reporting will continue over the course of the minimum period [[Page 38732]] of affordability set forth in HOME program standards at 24 CFR 92.252 (e) and 92.254(a)(4). ``Finally, most program income will be received by CDBG entitlement cities and counties, and by states, which have systems and procedures to manage NSP revenues, which are treated in most respects like CDBG revenues. However, non-profit consortium members in NSP2 grant consortia that receive revenues generated by NSP projects will not have access to the state and municipal CDBG tracking systems. Further, the CDBG regulation and Office of Management and Budget (OMB) circular implemented at 24 CFR 84.24(e) or 2 CFR 200.307(f), as applicable, do not require that non-profit grantees continue to treat revenues generated from use of NSP funds and received after grant closeout as federal funds unless HUD regulations or the terms and conditions of the award provide otherwise. Thus, for NSP2 grantees that are not direct formula CDBG grantees (non-profits and non-entitlement local governments, including those that are part of a consortium), HUD is requiring that revenues generated by projects funded before closeout but received within 5 years after grant closeout must be used for NSP- eligible activities and meet NSP benefit requirements, but no other federal requirements would apply. With the exception of income earned from the sale of NSP-assisted real property or loans, any income earned by such post-closeout use of funds would not be governed by any NSP requirements and would be miscellaneous revenues, although HUD encourages such grantees to apply NSP principles to subsequent uses of the funds.'' 4. The paragraphs in section Z under the ``Requirements'' subheading are amended to read as follows: ``Requirements ``1. Program Income. Gross revenues received by NSP grantees after closeout will be governed by the following requirements: ``a.i. After notifying HUD in writing and receiving prior written approval, the grantee may receipt the amounts to IDIS (after first revising any DRGR entries related to the funds) and add them to the grantee's CDBG program income receipts and all relevant CDBG program income requirements shall then apply. HUD will approve a transfer unless the transfer would result in non-compliance with the requirement at 75 FR 64331, paragraph E.2.e based on the use of the NSP funds that would remain after transfer. ``a.ii. If the amounts are not receipted in IDIS, annual amounts of program income in excess of $25,000 shall be used in accordance with all NSP requirements for eligible NSP properties, uses, and activities, including new construction, financing mechanisms, and management and disposition of land bank property. ``b. If annual NSP program income does not exceed $25,000, the funds shall be used for general administrative costs related to ensuring continued affordability of NSP units or added to the grantee's CDBG program income receipts and the CDBG requirements at 24 CFR 570.500(a)(4) shall apply, which may exclude such amounts from the definition of program income. ``c. NSP program income may provide benefit to individuals and families with incomes up to 120 percent of AMI as permitted in NSP under section II.E; ``d. If a grantee's annual NSP program income exceeds $250,000 (after any transfer of program income to CDBG), 25 percent of the program income shall be used to house individuals or families below 50 percent of AMI; in instances in which a grantee's annual NSP program income does not exceed $250,000, the requirements of paragraph II.E.2.e do not apply. ``e. NSP2 grantees that are not CDBG entitlement communities or States must use post-closeout revenues generated from NSP-assisted activities funded before closeout for NSP purposes. If the grantee does not have another ongoing grant received directly from HUD at the time of closeout, then in accordance with 24 CFR 570.504(b)(5), income received after closeout from the disposition of real property or from loans outstanding at the time of closeout shall not be governed by NSP or CDBG rules, except that such income shall be used for activities that meet one of the national objectives in 24 CFR 570.208 and the eligibility requirements described in section 105 of the HCD Act. The provisions of 24 CFR 570.504(b)(5) are waived to limit its application to income received within 5 years of grant closeout. Any income received 5 years after grant closeout, as well as program income from funds outlaid after the date of the closeout agreement may be used without restriction. Such grantees are encouraged to use such funds in accordance with the principles above. ``f. States may continue to act directly to implement NSP activities post-closeout. ``g. HUD will provide direction to grantees by the date of closeout on procedures for reporting and tracking NSP program income revenues. Tracking will continue in DRGR until IDIS enhancements to allow NSP property registry and program income tracking are developed and released.'' Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance numbers for grants made under NSP are as follows: 14.218; 14.225; and 14.228. Paperwork Reduction Act HUD has approval from 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. Environmental Review A Finding of No Significant Impact (FONSI) 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(2)(C)). The FONSI is available for public inspection between the hours of 8 a.m. and 5 p.m. weekdays in the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 Seventh Street SW., Room 10276, Washington, DC 20410. Due to security measures at the HUD Headquarters building, please schedule an appointment to review the FONSI by calling the Regulations Division at 202-708-3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number via TTY by calling the Federal Relay Service, toll free, at 1-800-877-8339. Dated: May 16, 2016. Harriet Tregoning, Principal Deputy Assistant Secretary for Community Planning and Development. [FR Doc. 2016-14062 Filed 6-13-16; 8:45 am] BILLING CODE 4210-67-P
![38730 Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Notices
Estimated Time per Respondent: 2 awarded to states, local governments, be used for NSP uses. In attempting to
hours. nonprofits and a consortium of implement this requirement, HUD has
Estimated Total Annual Burden nonprofit entities, but on a competitive become aware that it is, in many
Hours: 60,000. basis. The Recovery Act also authorized instances, administratively unworkable
Dated: June 9, 2016. funding for national and local technical for NSP grantees and difficult for HUD
assistance providers to support NSP to oversee effectively. For NSP grantees
Tracey Denning,
grantees. The Dodd-Frank Wall Street that are generating a substantial amount
Agency Clearance Officer, U.S. Customs and
Reform and Consumer Protection Act of program income, the requirement to
Border Protection.
(Dodd- Frank Act) (Pub. L. 111–203, use this program income prior to
[FR Doc. 2016–14002 Filed 6–13–16; 8:45 am]
approved July 21, 2010) authorized a drawing additional funds from the
BILLING CODE 9111–14–P third round of Neighborhood grant’s line of credit is also impeding
Stabilization grants to all states and their ability to completely expend their
select local governments on a formula NSP grant funds. Further, some grantees
DEPARTMENT OF HOUSING AND basis. no longer have an adequate pool of NSP-
URBAN DEVELOPMENT The purpose of the funds awarded eligible foreclosed or abandoned
under the three rounds of NSP is to properties in their target areas although
[Docket No. FR–5933–N–01] target the stabilization of neighborhoods they do have other needs that CDBG
Notice of Neighborhood Stabilization negatively affected by properties that funding could be used to address. On
Program; Changes to Closeout have been foreclosed upon and HUD’s part, with dwindling
Requirements Related to Program abandoned. The notice, Notice of administrative resources remaining from
Income Formula Allocations and Program those provided for the NSP program, the
Requirements for Neighborhood inability to achieve the criteria for grant
AGENCY: Office of the Assistant Stabilization Program Formula Grants, closeout for these grantees creates a
Secretary for Community Planning and published October 19, 2010 (75 FR looming oversight issue.
Development, HUD. 64322) (‘‘Unified NSP Notice’’), Several NSP grantees have asked that
ACTION: Notice. provides further background for these HUD reconsider the NSP program
programs, the program principles, and income requirements and allow the
SUMMARY: This notice describes changes the objectives and outcomes of the NSP same flexibility for the NSP program
to closeout requirements applied to and program. The Notice of Neighborhood income as is currently allowed for the
additional regulations waived for Stabilization Program; Closeout CDBG Disaster Recovery (CDBG–DR)
grantees receiving grants under the three Requirements and Recapture (Closeout grants under Public Law 113–2. These
rounds of funding under the Notice), published November 27, 2012 requirements allow a grantee to transfer
Neighborhood Stabilization Program (77 FR 70799), amended the Unified CDBG–DR program income received
who are also grantees under the Notice by adding grant closeout and prior to grant closeout to the recipient’s
Community Development Block Grant related provisions. In addition, the CDBG program. HUD agrees that this
(CDBG) program. Notice of Fund Availability (NOFA) for solution addresses the issues identified
DATES: Effective Date: June 14, 2016. the Neighborhood Stabilization Program above and so this notice will provide
2 under the American Recovery and the same flexibility to any NSP grantee
FOR FURTHER INFORMATION CONTACT:
Reinvestment Act, 2009, 74 FR 21377 that is also a CDBG grantee (entitlement
Stanley Gimont, Director, Office of (May 7, 2009), as amended by or state) with an open formula
Block Grant Assistance, Office of subsequent notices (‘‘NSP2 NOFA’’), entitlement grant or a unit of general
Community Planning and Development, includes requirements specific to the local government (UGLG) recipient of a
Department of Housing and Urban competitive round of funding under the CDBG grant from a state. HUD will not
Development, 451 Seventh Street SW., Recovery Act. allow transfer of NSP program income
Room 7286, Washington, DC 20410; to the CDBG program if the transfer will
telephone number 202–708–3587 (this II. This Notice
result in the NSP grantee failing to meet
is not a toll-free number). Persons with The primary purpose of this notice is the statutory NSP 25 percent set-aside
hearing or speech impairments may to revise requirements set forth in the requirement for low-income housing. To
access this number via TTY by calling amended Unified NSP Notice and the prevent such a failure, the grantee must
the Federal Relay Service at 1–800–877– Closeout Notice to revise the treatment obtain HUD approval by notifying HUD
8339. of program income for all three rounds in writing prior to a transfer of program
SUPPLEMENTARY INFORMATION: of NSP by allowing NSP program income from NSP to CDBG to permit
income received by a CDBG recipient to HUD’s review of compliance with the
I. Background
be transferred by the recipient from the NSP 25 percent requirement. HUD will
The Neighborhood Stabilization NSP program to the CDBG program. notify the grantee of any possible issues.
Program (NSP) was established by After the transfer is carried out, any Based on the data available, HUD
Division B, Title III of the Housing and transferred program income will be anticipates that issues of this sort will
Economic Recovery Act of 2008 (HERA) subject to the CDBG program income be uncommon.
(Pub. L. 110–289, approved July 30, regulations. Following publication of Since this notice applies to grantees
2008), for the purpose of stabilizing this notice, HUD will update the issued receiving grants under any of the three
communities that have suffered from NSP closeout instructions (Notice CPD rounds of NSP funding, the terms NSP1,
foreclosures and abandonment. As 14–02) to conform the instructions for NSP2 or NSP3 are used to describe each
srobinson on DSK5SPTVN1PROD with NOTICES
established by HERA, NSP provided consideration of program income during of the three funding rounds. When
grants to all states and selected local and after closeout of NSP grants. referring to the grants, grantees, assisted
governments on a formula basis. The The Closeout Notice generally activities, and implementation rules
American Recovery and Reinvestment required that with the exception of de under HERA, this notice will use the
Act of 2009 (Recovery Act) (Pub. L. 111– minimis amounts received after grant term ‘‘NSP1.’’ When referring to the
5, approved February 17, 2009) closeout, program income generated by grants, grantees, assisted activities, and
authorized additional NSP grants to be NSP-assisted activities must continue to implementation rules under the
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of affordability set forth in HOME income in excess of $25,000 shall be property registry and program income
program standards at 24 CFR 92.252 (e) used in accordance with all NSP tracking are developed and released.’’
and 92.254(a)(4). requirements for eligible NSP
‘‘Finally, most program income will Catalog of Federal Domestic Assistance
properties, uses, and activities,
be received by CDBG entitlement cities including new construction, financing The Catalog of Federal Domestic
and counties, and by states, which have mechanisms, and management and Assistance numbers for grants made
systems and procedures to manage NSP disposition of land bank property. under NSP are as follows: 14.218;
revenues, which are treated in most ‘‘b. If annual NSP program income 14.225; and 14.228.
respects like CDBG revenues. However, does not exceed $25,000, the funds shall
non-profit consortium members in NSP2 Paperwork Reduction Act
be used for general administrative costs
grant consortia that receive revenues related to ensuring continued HUD has approval from OMB for
generated by NSP projects will not have affordability of NSP units or added to information collection requirements in
access to the state and municipal CDBG the grantee’s CDBG program income accordance with the Paperwork
tracking systems. Further, the CDBG receipts and the CDBG requirements at Reduction Act of 1995 (44 U.S.C. 3501–
regulation and Office of Management 24 CFR 570.500(a)(4) shall apply, which 3520). OMB approval is under OMB
and Budget (OMB) circular may exclude such amounts from the control number 2506–0165. In
implemented at 24 CFR 84.24(e) or 2 definition of program income. accordance with the Paperwork
CFR 200.307(f), as applicable, do not ‘‘c. NSP program income may provide Reduction Act, HUD may not conduct or
require that non-profit grantees continue benefit to individuals and families with sponsor and a person is not required to
to treat revenues generated from use of incomes up to 120 percent of AMI as respond to, a collection of information,
NSP funds and received after grant permitted in NSP under section II.E; unless the collection displays a valid
closeout as federal funds unless HUD ‘‘d. If a grantee’s annual NSP program control number.
regulations or the terms and conditions income exceeds $250,000 (after any
of the award provide otherwise. Thus, Environmental Review
transfer of program income to CDBG), 25
for NSP2 grantees that are not direct percent of the program income shall be A Finding of No Significant Impact
formula CDBG grantees (non-profits and used to house individuals or families (FONSI) with respect to the
non-entitlement local governments, below 50 percent of AMI; in instances environment has been made in
including those that are part of a in which a grantee’s annual NSP accordance with HUD regulations at 24
consortium), HUD is requiring that
program income does not exceed CFR part 50, which implement section
revenues generated by projects funded
$250,000, the requirements of paragraph 102(2)(C) of the National Environmental
before closeout but received within 5
II.E.2.e do not apply. Policy Act of 1969 (42 U.S.C.
years after grant closeout must be used
‘‘e. NSP2 grantees that are not CDBG 4332(2)(C)). The FONSI is available for
for NSP-eligible activities and meet NSP
entitlement communities or States must public inspection between the hours of
benefit requirements, but no other
use post-closeout revenues generated 8 a.m. and 5 p.m. weekdays in the
federal requirements would apply. With
from NSP-assisted activities funded Regulations Division, Office of General
the exception of income earned from the
before closeout for NSP purposes. If the Counsel, Department of Housing and
sale of NSP-assisted real property or
grantee does not have another ongoing Urban Development, 451 Seventh Street
loans, any income earned by such post-
grant received directly from HUD at the SW., Room 10276, Washington, DC
closeout use of funds would not be
time of closeout, then in accordance 20410. Due to security measures at the
governed by any NSP requirements and
with 24 CFR 570.504(b)(5), income HUD Headquarters building, please
would be miscellaneous revenues,
received after closeout from the schedule an appointment to review the
although HUD encourages such grantees
disposition of real property or from FONSI by calling the Regulations
to apply NSP principles to subsequent
loans outstanding at the time of closeout Division at 202–708–3055 (this is not a
uses of the funds.’’
4. The paragraphs in section Z under shall not be governed by NSP or CDBG toll-free number). Individuals with
the ‘‘Requirements’’ subheading are rules, except that such income shall be speech or hearing impairments may
amended to read as follows: used for activities that meet one of the access this number via TTY by calling
national objectives in 24 CFR 570.208 the Federal Relay Service, toll free, at 1–
‘‘Requirements and the eligibility requirements 800–877–8339.
‘‘1. Program Income. Gross revenues described in section 105 of the HCD Act. Dated: May 16, 2016.
received by NSP grantees after closeout The provisions of 24 CFR 570.504(b)(5) Harriet Tregoning,
will be governed by the following are waived to limit its application to
Principal Deputy Assistant Secretary for
requirements: income received within 5 years of grant Community Planning and Development.
‘‘a.i. After notifying HUD in writing closeout. Any income received 5 years
[FR Doc. 2016–14062 Filed 6–13–16; 8:45 am]
and receiving prior written approval, after grant closeout, as well as program
BILLING CODE 4210–67–P
the grantee may receipt the amounts to income from funds outlaid after the date
IDIS (after first revising any DRGR of the closeout agreement may be used
entries related to the funds) and add without restriction. Such grantees are
them to the grantee’s CDBG program encouraged to use such funds in
DEPARTMENT OF THE INTERIOR
income receipts and all relevant CDBG accordance with the principles above.
program income requirements shall then ‘‘f. States may continue to act directly U.S. Geological Survey
apply. HUD will approve a transfer to implement NSP activities post-
srobinson on DSK5SPTVN1PROD with NOTICES
unless the transfer would result in non- closeout.
[GX.16.CG00.GDQ03.00]
compliance with the requirement at 75 ‘‘g. HUD will provide direction to
FR 64331, paragraph E.2.e based on the grantees by the date of closeout on Agency Information Collection
use of the NSP funds that would remain procedures for reporting and tracking Activities: Request for Comments
after transfer. NSP program income revenues.
‘‘a.ii. If the amounts are not receipted Tracking will continue in DRGR until AGENCY: U.S. Geological Survey (USGS),
in IDIS, annual amounts of program IDIS enhancements to allow NSP Interior.
VerDate Sep<11>2014 19:36 Jun 13, 2016 Jkt 238001 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\14JNN1.SGM 14JNN1](https://thefederalregister.org/doc/81_FR_38844/page/3.svg)
Document Created: 2016-06-14 02:58:29
Document Modified: 2016-06-14 02:58:29
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Contact | Stanley Gimont, Director, Office of Block Grant Assistance, Office of Community Planning and Development, Department of Housing and Urban Development, 451 Seventh Street SW., Room 7286, Washington, DC 20410; telephone number 202-708-3587 (this is not a toll-free number). Persons with hearing or speech impairments may access this number via TTY by calling the Federal Relay Service at 1- 800-877-8339. | |
| FR Citation | 81 FR 38730 |
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