§ 1942.381 - Regional commission grants.

Grants are sometimes made by regional commissions for projects eligible for FmHA or its successor agency under Public Law 103-354 assistance. FmHA or its successor agency under Public Law 103-354 has agreed to administer such funds in a manner similar to administering FmHA or its successor agency under Public Law 103-354 assistance.

(a) When FmHA or its successor agency under Public Law 103-354 has funds in the project, no charge will be made for administering regional commission funds.

(b) When FmHA or its successor agency under Public Law 103-354 has no loan or grant funds in the project, an administrative charge will be made pursuant to the Economy Act of 1932, as amended (31 U.S.C. 1535). A fee of 5 percent of the first $50,000 of a regional commission grant and 1 percent of any amount over $50,000 will be paid FmHA or its successor agency under Public Law 103-354 by the commission.

(1) Appalachian Regional Commission (ARC). Exhibit A of this subpart will be followed in determining the responsibilities of FmHA or its successor agency under Public Law 103-354. The ARC Federal Cochairman and the FmHA or its successor agency under Public Law 103-354 State Director will provide each other with the necessary notification and certification.

(2) Other regional commissions. Title V of the Public Works and Economic Development Act of 1965 authorizes other commissions similar to ARC. Exhibit B of this subpart will be used to develop a separate project management agreement between FmHA or its successor agency under Public Law 103-354 and the commission for each project. The agreement should be prepared by the FmHA or its successor agency under Public Law 103-354 State Director as soon as notification is received that a commission grant will be made and the amount is confirmed.

(c) Regional commission grants should be obligated as soon as possible in accordance with § 1942.5(d) of subpart A of part 1942 of this chapter, except that the announcement procedure referred to in § 1942.5(d)(6) is not applicable. Regional commission grants will be obtained from the Finance Office in the same manner as FmHA or its successor agency under Public Law 103-354 funds are obtained.