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

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

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

1. Matching Requirements

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

2. Administrative and Other Requirements

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

Findings and Certifications

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

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

Dated: May 22, 1998. Saul N. Ramirez, Jr., Assistant Secretary for Community Planning and Development. [FR Doc. 98-14243 Filed 5-28-98; 8:45 am] BILLING CODE 4210-29-P