[Federal Register Volume 59, Number 143 (Wednesday, July 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18262]
[[Page Unknown]]
[Federal Register: July 27, 1994]
_______________________________________________________________________
Part VIII
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Secretary
_______________________________________________________________________
24 CFR Parts 571 and 953
Community Development Block Grants for Indian Tribes and Alaskan Native
Villages; Interim Rule
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary
24 CFR Parts 571 and 953
[Docket No. R-94-1530; FR-2880-I-05]
RIN 2577-AB31
Community Development Block Grants for Indian Tribes and Alaskan
Native Villages
AGENCY: Office of the Secretary, HUD.
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: This interim rule sets forth the requirements and procedures
for awarding Community Development Block Grant (CDBG) funds to Indian
tribes and Alaskan native villages.
Following issuance of a proposed rule on June 21, 1991, the
Department issued an interim rule on April 7, 1992, regarding the
criteria for awarding CDBG funding to Indian tribes and Alaskan native
villages. The Department has decided to issue another interim rule to
address the comments received on the April 7, 1992 interim rule and to
allow the public to see how the rule works in conjunction with the
latest Notice of Fund Availability (NOFA). This interim rule will
enable Indian tribes and Alaskan native villages to meet with
representatives of the HUD Office of Native American Programs (ONAP)
field offices to make suggestions for modification of the regulation
before it is issued in final form.
DATES: Effective date: October 1, 1994.
Comments due date: December 27, 1994.
Expiration date: This interim rule will expire April 1, 1996.
FOR FURTHER INFORMATION CONTACT: Dom Nessi, Director Office of Native
American Programs, Room 4140, Department of Housing and Urban
Development, 451 Seventh Street SW., Washington, DC 20410. (202) 708-
1015. TDD (202) 708-2565. (These are not toll-free numbers.)
ADDRESSES: Interested persons are invited to submit comments regarding
this interim rule to the Rules Docket Clerk, Office of General Counsel,
Room 10276, Department of Housing and Urban Development, 451 Seventh
Street SW., Washington, DC 20410. Communications should refer to the
above docket number and title. A copy of each communication submitted
will be available for public inspection and copying between 7:30 a.m.
and 5:30 p.m. weekdays at the above address.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The information collection requirements contained in this interim
rule have been submitted to the Office of Management and Budget (OMB)
for review under the Paperwork Reduction Act of 1980 and have been
assigned OMB control number 2506-0043.
Background
The authority for the CDBG program for Indian tribes and Alaskan
native villages was previously with the Office of Community Planning
and Development; therefore, all previous issuances refer to it under 24
CFR part 571. However, that authority was transferred recently to the
Office of Public and Indian Housing. Therefore, this interim rule is
placed in 24 CFR part 953, and part 571 is removed.
Section 105 of the Department of Housing and Urban Development
Reform Act of 1989 (Pub. L. 101-235) (``Reform Act''), as amended by
the National Affordable Housing Act (``NAHA''), amended Title I of the
Housing and Community Development Act of 1974 (``1974 Act''), by
transferring the authority for making grants to Indian Tribes from the
section 107 discretionary fund to the allocation and distribution of
funds provisions of Section 106 of the 1974 Act. Under section 106, as
so amended, one percent of the title I appropriation, excluding the
amounts appropriated for use under section 107, is allocated for grants
to Indian Tribes. The allocated amount is to be distributed to Indian
Tribes/Villages on a competitive basis in accordance with selection
criteria ``contained in a regulation promulgated by the Secretary after
notice and public comment.'' The Department issued the proposed rule on
June 21, 1991, at 56 FR 28666, to comply with the requirement for
publication for comment. The Department issued an interim rule, April
7, 1992, at 57 FR 11832, to give the public an additional opportunity
to comment on the interim rule after it has been in effect for one
round of competition. This revised interim rule is issued to address
the comments and will allow the public to see how the interim rule
works in conjunction with the latest NOFA.
Section 102 of the Reform Act requires the Secretary to publish in
the Federal Register a NOFA regarding funding that is available. In
addition to announcing the availability of funds, the NOFA will further
define application procedures and selection criteria.
Relocation and Real Property Acquisition Policies
Section 953.602 describes applicable relocation and real property
acquisition policies, including those implementing the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970 (URA). Under the government-wide URA rule at 49 CFR Part 24, any
person (family, individual, business, nonprofit organizations, or farm)
displaced on or after April 2, 1989 as a direct result of acquisition,
rehabilitation or demolition for a project assisted under this part is
entitled to URA relocation assistance. The acquisition of real property
for a project assisted under this part is also subject to the URA. The
URA policies are described in HUD Handbook 1378, Tenant Assistance,
Relocation and Real Property Acquisition.
Public Comments
The Department of Housing and Urban Development (HUD) received 18
individual comments from 9 sources on the interim rule published on
April 7, 1992. HUD received 6 letters from tribes, and 3 from regional
and private organizations. General comments are discussed below and are
followed by specific comments. The specific comments and the
Department's responses are discussed under ``Specific Comments,''
according to the section where they appear in the interim regulation.
General Comments
Numerous comments were received requesting more tribal involvement
in the development of the final rule and NOFA. Also questioned was the
need for a national NOFA since the program had operated with a regional
competition in the past.
The passage of two statutes, NAHA and the Reform Act, created the
need for a national NOFA and revised rule. These statutes changed the
Indian Community Development Block (ICDBG) program selection process.
The NAHA required the Secretary of HUD to promulgate a regulation
containing selection criteria used to award funds in competitive
programs. The Reform Act restricts the disclosure of information about
HUD programs and discretionary funds. The current interim ICDBG rule
contained changes reflecting the NAHA and Reform Act requirements. As a
result of the written comments received and the consultation sessions
held relative to this interim rule, a second interim rule is being
published to continue the process of refining and developing a final
rule. HUD is committed to involving the public in this process to the
extent practicable. In order to publish a fair and coherent NOFA, HUD
Headquarters consulted extensively with HUD ONAP field offices
throughout the NOFA's development. Since the ONAP field offices are in
frequent contact with the tribes/villages within their jurisdiction,
they were able to provide Headquarters with information on how various
NOFA provisions would be received by ICDBG applicants. Following the
publication of the NOFA and regulation and after the selection process
has been completed, HUD field staff will hold public meetings to get
suggestions on how to improve the NOFA.
To facilitate the Department's ability to more readily respond to
the consultation process, changes to the rating criteria have been made
in this Interim Rule. Sections 953.303, 953.304, and 953.305 have been
modified to permit a wider range of changes to the rating criteria in
the NOFA without changing the regulation. The separate rating criteria
has been eliminated for Public Services activities at Sec. 953.306.
Eligible Public Service activities must still meet the submission
criteria set out in this part.
Specific Comments
Section 953.4 Definitions
Comment: One comment was received concerning the requirement that
the applicant must, when reporting income levels to HUD, include and
identify the distribution of tribal or village income to families,
households or individuals in the definition of low and moderate income
beneficiary. The commenter pointed out the existence of a Federal
statute that might preclude the use of portions of such payments from
being considered income when determining eligibility for federal or
federally assisted programs.
Response: It is recognized that such exclusions may exist and the
statutory mandates will be followed where appropriate. Their existence
would not necessarily indicate the need for additional language
identifying the exclusions. These claimed exclusions would be
identified by the applicant when reporting income to HUD when complying
with this section of the interim rule.
Section 953.5 Eligible Applicants
Comment: One comment was received noting that Indians residing in
urban areas and metropolitan cities and not on reservations do not
receive adequate service or funding from IHS and no service from BIA.
The commenter suggested that if HUD recognized these groups it would be
beneficial in gaining acceptance with other agencies such as IHS and
BIA.
Response: The Department does not have legislative authority to
provide Federal recognition to Indian Tribes or Alaskan Native
Villages, but deals with those tribes and villages recognized by the
Treasury Department and the Bureau of Indian Affairs as stipulated in
this section. The Indian groups residing in urban areas and
metropolitan cities and not on reservations can receive, to the extent
such persons are otherwise eligible as low income persons, benefits
under the regular CDBG programs serving the area where they reside.
The commenter also indicated the desire to establish an entitlement
program for the Indians. This proposal has been considered but cannot
be adopted without amendments to existing legislation. For these
reasons there are no changes proposed in this section of the interim
rule.
Section 953.6 Technical Assistance
Comment: Four commenters requested that HUD give the field offices
latitude in providing more technical assistance on responding to the
NOFA and the submission requirements than presently permitted. Several
felt that the tribes/villages are penalized for not having the
sophistication needed to prepare successful applications. One commenter
felt that the lack of technical assistance resulted in some tribes/
villages not submitting applications for activities they felt were most
appropriate to address their needs because of the uncertainty of their
eligibility or rating. The majority of the commenters felt that
expanded technical assistance was necessary for the tribes/villages to
successfully compete in the program.
Response: The technical assistance provisions of the Reform Act
limit the direct assistance that may be provided by the Department. New
regulations providing in-depth guidance have been issued by the
Department and are expected to more clearly define the technical
assistance role of the Field staff. Technical Assistance during the
application process will be provided to the greatest extent allowed by
the Reform Act.
Section 953.100 Grant Ceilings
Comment: One commenter felt that the method of setting grant
ceilings was not equitable because the established limits in their area
would permit a tribe one fourth their size to apply for the same amount
of grant funds as they could. The commenter proposed a revision to the
method currently utilized by the field office that would increase the
grant amounts they could apply for each funding cycle.
Response: Paragraph (b)(1) of this section gives the Assistant
Secretary final authority to determine grant ceilings for each field
office. Field offices recommend the ceilings for their jurisdiction.
The reason for this process is to ensure that grant ceilings are
appropriate on a national level. The Department has determined that the
present procedure for establishing grant ceilings is the most
appropriate method of establishing these limits and proposes no changes
to this section.
Section 953.101 Regional Allocation of Funds
Comment: Paragraph (c) of this section states that population data
will be used to allocate funds. Commenters asked which data sources HUD
would use to count native populations.
Response: HUD will use Census data. HUD recognizes that Census data
on Indian and Alaskan native populations may be incomplete or
inaccurate. However, these are the only data that are consistently
available, and they are reasonably representative when aggregated by
region. HUD encourages tribes and villages to use their own survey or
other locally collected data in their project applications, after
consulting with the ONAP on appropriate data collection methods, if
they believe these to be more reliable.
Section 953.102 Recaptures
Comment: One commenter suggested that in cases where recaptured
funds became available and are offered to a standby applicant to fund a
previously rated and ranked activity, the applicant should be funded on
the new cost estimate and not the amount applied for initially.
Response: In all cases where recaptured funds are reallocated to
fund a standby application, the Department must insure the criteria
contained in the governing NOFA are met. If the amounts available are
not sufficient to fund the application as proposed, the next highest
ranked application would be considered for funding.
Section 953.300 Application Requirements
Comment: A comment was received that recommended that an applicant
be allowed to submit its application with an unlimited number of
projects but restrict the number approved to the grant limits
established in the NOFA.
Response: This recommendation was considered but not included in
the revisions to the interim rule. The current application process is
intended to promote a competition where all applicants have an equal
chance for funding and not one that depends upon an applicant's ability
to produce large numbers of projects that could be included in their
application. The present application process leaves the decisions on
the type of project to be submitted with the applicant and does not
pass it on to HUD.
Comment: One commenter also expressed a concern about what they
perceived as a short amount of time to submit applications after
publication of the NOFA.
Response: The regulation gives applicants at least 30 days to
submit their applications to the field office. This minimum level was
established so that it is clear that under any circumstance an
applicant would have at least this amount of time to prepare an
application. The NOFA will establish the time in which the applicants
have to prepare and submit their applications. The application
submission deadline will continue to be established by Headquarters,
since the NOFA is issued on a national basis.
In an effort to streamline this regulation, portions of
Sec. 953.300, Application requirements, will be moved to the NOFA.
Since this information is directly related to the competitive process
set out in the NOFA, it is felt that it will be more accessible to
potential applicants in this location.
Section 953.301 Screening and Review of Applications
Comment: One comment was received indicating that the 14-day cure
period was inadequate and should be increased to 20 days from date of
receipt of the field office request.
Response: This process allows applicants to submit only that
information requested by the field office to help clarify the
application. HUD's regulations at 24 CFR 4.105(b)(3) allow authorized
employees, during the selection process, to contact applicants to seek
clarification of the terms of an applicant's submission. HUD policy
requires each NOFA to include a cure period for technical deficiencies
of at least 14 calendar days. Any deficiency that can be cured (e.g.,
the submission of a missing certification) cannot affect the rating of
the application in either a positive or negative way and should by its
nature be readily correctable within the present 14 day period.
Portions of Sec. 953.301, Screening and review of applications,
have been moved from this Interim Rule and will be placed in the NOFA.
This change will provide for more flexibility in meeting the needs of
the program as it continues to evolve and makes the requirements
readily available to the applicant.
Section 953.302 Selection Process
Comment: One commenter suggested that a waiver of the threshold
requirement regarding performance deficiencies described at
Sec. 953.302(a)(2)(ii)(A) be permitted.
Response: The subject provision appears to contain sufficient
flexibility as written. Section 953.7 sets forth the conditions where a
waiver of this interim rule would be permissible. A specific waiver
provision for threshold requirements in the interim rule does not seem
warranted.
Section 953.303 Housing Rating Category
Comment: The first paragraph of this section states that the
applicant shall provide assistance only to tenants/homeowners whose
payments are current, or who are current in a repayment agreement with
HUD. One commenter noted the difficulty in obtaining current payment
information.
Response: The Department expects the applicant to obtain the most
recent payment information it can from the Indian Housing Authority
(IHA). Note that the field office may grant exceptions to this
requirement on a case-by-case basis.
Section 953.304 Community Facilities
Comment: Two commenters proposed that the regulations include
museums, ecomuseums, cultural centers and archeological sites as
appropriate, eligible community facilities.
Response: These are eligible activities under the current
regulations.
Comment: One commenter requested a reconsideration of the portions
of this section that relate to the definition of ``neediest segment of
the population'' in the rating factors for community buildings. This
rating factor required that more than 80% of the beneficiaries be very
low income to receive the maximum points. Fifty-one to 79.9 percent of
the beneficiaries must be very low income to receive moderate points.
Response: This section of the regulation has been revised to
remove this definition of ``neediest segment of the population''.
Section 953.305 Economic Development Rating Category
Comment: One commenter suggested that the regulation is unfair in
providing special opportunities for federally assisted housing
residents.
Response: While this specific language has been removed from the
regulation, it in no way diminishes HUD commitment to empower the poor
residing in federally assisted housing. This factor remains in the NOFA
to encourage applicants to provide opportunities for residents of
federally assisted housing to improve their economic situation while
possibly improving their units.
Comment: Two commenters stated that HUD should specifically allow
tribes to apply for offices and other buildings that are not eligible
as community facilities as economic development activities. While this
activity would not appear to be prohibited by the regulations, there is
not sufficient information provided to make a determination of
eligibility.
Response: Because of the wide range of activities that are
potentially eligible under this program, it is not possible to list
them all in this interim rule. The ONAP field office should be provided
with specific information so that a determination can be made.
Section 953.307 Funding Process
Comment: One commenter questioned the need to re-submit the data
listed at Sec. 953.307(b)(1) if the data had been submitted in the
application and was still valid.
Response: Language has been added to make the pre-award process
optional if HUD has determined that no additional data is needed or
that current data does not need updating.
Comment: Section 953.307(b)(2) of the current regulation gives
successful applicants at least 30 days to provide supporting
documentation at the request of the field office, prior to execution of
the grant agreement. One commenter suggested expanding the 30-day
period because of the difficulty of preparing and submitting such
information to make the application more competitive within the 30-day
time period.
Response: Since the data requested would not be intended to improve
the competitive position of the application, but rather to support the
previously provided information, it was determined that increasing the
30 days would not be appropriate.
Other Changes Made By This Interim Rule
Subpart E--Imminent Threat Grants
Section 953.403, Availability of Funds, has been revised to allow
the Office of Native American Programs to retain up to five percent of
the funds made available by this part at the national level. The NOFA
will specify the amount of Imminent Threat funds to be retained during
each funding cycle. This change is intended to insure the availability
of imminent threat funding throughout the fiscal year.
Section 953.505 Program Income
The program income language in Sec. 570.504, previously
incorporated by reference, has been reproduced in Sec. 953.505 of these
regulations. This will hopefully make the ICDBG Regulation more user
friendly by placing all program income requirements in one location.
Section 953.606 Conflict of Interest
Section 953.606 (e) has been modified to provide for a public
disclosure of the nature of the assistance to be provided and the basis
of the selection of persons to be assisted for housing rehabilitation
or new housing. Evidence of the disclosure must be submitted with the
application.
Other Matters
Justification for Interim Rule
The Department has decided to issue another interim rule to address
the comments received on the April 7, 1992 interim rule and to allow
the public to see how the rule works in conjunction with the latest
Notice of Fund Availability (NOFA). This interim rule will enable
Indian tribes and Alaskan native villages to meet with representatives
of the HUD Office of Native American Programs (ONAP) field offices to
make suggestions for modification of the regulation before it is issued
in final form.
The Department has adopted a policy of setting a date for
expiration of an interim rule unless a final rule is published before
that date. This ``sunset'' provision appears in Sec. 953.1 of the
interim rule and provides that the rule will expire on a date 18 months
from the date of publication.
National Environmental Policy Act
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. 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 at the above address.
Regulatory Flexibility
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this interim rule before publication and
by approving it certifies that this interim rule does not have a
significant economic impact on a substantial number of small entities.
The interim rule establishes criteria for funding eligible recipients
among Indian Tribes/Villages and has no impact on small entities.
Semiannual Agenda
This interim rule was listed as Item No. 1690 in the Department's
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR
20424, 20470) pursuant to Executive Order 12866 and the Regulatory
Flexibility Act.
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
contained in this interim rule would not have substantial direct
effects on States or their political subdivisions, or the relationship
between the federal government and the States, or on the distribution
of power and responsibilities among the various levels of government.
As a result, the interim rule is not subject to review under the Order.
While the interim rule has some direct effects on States and political
subdivisions, those effects are limited to direct implementation of
instructions contained in statutes governing the grant program. Given
the lack of discretion in the Department to refrain from implementing
these statutory instructions, further analysis of federalism concerns
would serve no useful purpose.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this interim rule would
not have potential for significant impact on family formation,
maintenance, and general well-being, and, thus, is not subject to
review under the Order.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance program number is
14.223.
List of Subjects in 24 CFR Part 953
Alaska, Community development block grants, Grant programs--housing
and community development, Reporting and recordkeeping requirements.
Accordingly, and under the authority of 42 U.S.C. 3535(d), title 24
of the Code of Federal Regulations is amended, as follows:
Part 571--[Removed]
1. Part 571 is removed.
2. Part 953, consisting of Secs. 953.1 through 953.704, is added to
read as follows:
PART 953--COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND
ALASKAN NATIVE VILLAGES
Subpart A--General Provisions
Sec.
953.1 Applicability and scope.
953.2 Program objectives.
953.3 Nature of program.
953.4 Definitions.
953.5 Eligible applicants.
953.6 Technical Assistance.
953.7 Waivers.
Subpart B--Allocation of Funds
953.100 General.
953.101 Field Office allocation of funds.
953.102 Recaptures.
Subpart C--Eligible Activities
953.200 General.
953.201 Primary and national objectives.
953.202 Nonprofit organizations.
953.203 Administrative costs.
Subpart D--Single Purpose Grant Application and Selection Process
953.300 Application requirements.
953.301 Screening and review of applications.
953.302 Selection process.
953.303 Housing rating category.
953.304 Community facilities rating category.
953.305 Economic development rating category.
953.306 Public services.
953.307 Funding process.
953.308 Program amendments.
Subpart E--Imminent Threat Grants
953.400 Criteria for funding.
953.401 Application process.
953.402 Environmental review.
953.403 Availability of funds.
Subpart F--Grant Administration
953.500 General.
953.501 Designation of public agency.
953.502 Force account construction.
953.503 Indian preference requirements.
953.504 Grant closeout procedure.
953.505 Program income.
Subpart G--Other Program Requirements
953.600 General.
953.601 Nondiscrimination.
953.602 Relocation and real property acquisition.
953.603 Labor standards.
953.604 Citizen participation.
953.605 Environment.
953.606 Conflict of interest.
Subpart H--Program Performance
953.700 Reports to be submitted by grantee.
953.701 Review of recipient's performance.
953.702 Corrective and remedial actions.
953.703 Reduction or withdrawal of grant.
953.704 Other remedies for noncompliance.
Authority: 42 U.S.C. 3535(d) and 5301 et seq.
Subpart A--General Provisions
Sec. 953.1 Applicability and scope.
The policies and procedures described in this part apply only to
grants to eligible Indian Tribes and Alaskan native villages under the
Community Development Block Grant (CDBG) program for Indian Tribes and
Alaskan native villages.
Expiration of interim rule. This interim rule will expire on April
1, 1996.
Sec. 953.2 Program objectives.
The primary objective of the Indian CDBG (ICDBG) Program and of the
community development program of each grantee covered under this Act is
the development of viable Indian and Alaskan native communities,
including decent housing, a suitable living environment, and economic
opportunities, principally for persons of low- and moderate-income. The
Federal assistance provided in this part is not to be used to reduce
substantially the amount of local financial support for community
development activities below the level of such support prior to the
availability of this assistance.
Sec. 953.3 Nature of program.
The ICDBG Program is competitive in nature. Therefore, selection of
eligible applicants for funds will reflect consideration of the
relative adequacy of applications in addressing locally determined
need. Applicants for funding must have the administrative capacity to
undertake the community development activities proposed, including the
systems of internal control necessary to administer these activities
effectively without fraud, waste, or mismanagement.
Sec. 953.4 Definitions.
Act means Title I of the Housing and Community Development Act of
1974, as amended (42 U.S.C. 5301 et seq.)
Chief executive officer means the elected official or legally
designated official who has the prime responsibility for the conduct of
the affairs of an Indian Tribe or Alaskan native village.
Eligible Indian populations means the most accurate and uniform
population data available from reliable sources for Indian Tribes and
Alaskan native villages eligible under this part.
Extent of overcrowded housing means the number of housing units
with 1.01 or more persons per room, based on data compiled and
published by the United States Bureau of the Census available from the
latest census referable to the same point or period of time.
Extent of poverty means the number of persons whose incomes are
below the poverty level, based on data compiled and published by the
United States Bureau of the Census referable to the same point or
period in time and the latest reports from the Office of Management and
Budget.
Field offices means the HUD Offices of Native American Programs or
other HUD field offices having responsibility for the Indian CDBG
Program.
HUD means the Department of Housing and Urban Development.
ICDBG Program means the Indian Community Development Block Grant
Program.
Identified service area means:
(1) A geographic location within the jurisdiction of a Tribe (but
not the entire jurisdiction) designated in comprehensive plans,
ordinances, or other local documents as a service area;
(2) The Bureau of Indian Affairs (BIA) service area, including
residents of areas outside the geographic jurisdiction of the Tribe; or
(3) The entire area under the jurisdiction of a Tribe which has a
population of members of under 10,000.
Low- and moderate-income beneficiary means a family, household, or
individual whose income does not exceed 80 percent of the median income
for the area, as determined by HUD, with adjustments for smaller and
larger households or families. However, the Secretary may establish
income ceilings higher or lower than 80 percent of the median for the
area on the basis of the Secretary's findings that such variations are
necessary because of unusually high or low household or family incomes.
In reporting income levels to HUD, the applicant must include and
identify the distributions of Tribal or village income to families,
households, or individuals.
Secretary means the Secretary of HUD.
Tribal government, Tribal governing body or Tribal council means
the federally recognized governing body of an Indian Tribe or Alaskan
native village.
Tribal resolution means the formal manner in which the Tribal
government expresses its legislative will in accordance with its
organic documents. In the absence of such organic documents, a written
expression adopted pursuant to Tribal practices will be acceptable.
URA means the Uniform Relocation and Real Property Acquisition
Policies Act of 1970, as amended.
Sec. 953.5 Eligible applicants.
(a) Eligible applicants are any Indian Tribe, band, group, or
nation, including Alaskan Indians, Aleuts, and Eskimos, and any Alaskan
native village of the United States which is considered an eligible
recipient under Title I of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450) or which had been an eligible recipient
under the State and Local Fiscal Assistance Act of 1972 (31 U.S.C.
1221). Eligible recipients under the Indian Self-Determination and
Education Assistance Act will be determined by the Bureau of Indian
Affairs and eligible recipients under the State and Local Fiscal
Assistance Act of 1972 are those that have been determined eligible by
the Department of the Treasury, Office of Revenue Sharing.
(b) Tribal organizations which are eligible under Title I of the
Indian Self-Determination and Education Assistance Act may apply on
behalf of any Indian Tribe, band, group, nation, or Alaskan native
village eligible under that act for funds under this part when one or
more of these entities have authorized the Tribal organization to do so
through concurring resolutions. Such resolutions must accompany the
application for funding. Eligible Tribal organizations under Title I of
the Indian Self-Determination and Education Assistance Act will be
determined by the Bureau of Indian Affairs.
(c) To apply for funding in a given fiscal year, an applicant must
be eligible as an Indian Tribe or Alaskan native village, as provided
in paragraph (a) of this section, or as a Tribal organization, as
provided in paragraph (b) of this section, by the application
submission date. A list of eligible applicants is maintained by each
ONAP field office.
Sec. 953.6 Technical assistance.
On an annual basis, each field office will provide technical
assistance to eligible applicants for these purposes:
(a) To provide eligible applicants with information on how to apply
for funds and how grants will be selected and awarded; and
(b) To inform eligible applicants of changes in the program.
Sec. 953.7 Waivers.
The Secretary may waive any requirement of this part not required
by law whenever it is determined that undue hardship will result from
applying the requirement, and where application of the requirement
would adversely affect the purposes of the Act.
Subpart B--Allocation of Funds
Sec. 953.100 General.
(a) Types of grants. Two types of grants are available under the
Indian CDBG Program.
(1) Single purpose grants provide funds for one or more single
purpose projects consisting of an activity or set of activities
designed to meet a specific community development need. This type of
grant is awarded through competition with other single purpose
projects.
(2) Imminent threat grants alleviate an imminent threat to public
health or safety that requires immediate resolution. This type of grant
is awarded only after a field office determines that such conditions
exist and if funds are available for such grants.
(b) Size of grants--(1) Ceilings. Each field office may recommend
grant ceilings for single purpose grant applications. Field offices
have the option of recommending different ceilings for different size
tribes/villages (e.g. tribes 5,000+ will have one ceiling and tribes
with less than 5,000 will have a smaller ceiling.) Single purpose grant
ceilings for each field office shall be established in the NOFA.
(2) Individual grant amounts. In determining appropriate grant
amounts to be awarded, the field office may take into account the size
of the applicant, the level of demand, the scale of the activity
proposed relative to need and operational capacity, the number of
persons to be served, the amount of funds required to achieve project
objectives and the administrative capacity of the applicant to complete
the activities in a timely manner.
Sec. 953.101 Field Office allocation of funds.
(a) Except as provided in paragraph (b) of this section, funds will
be allocated to the field offices responsible for the program on the
following basis:
(1) Each field office will be allocated $1,000,000 as a base
amount, to which will be added a formula share of the balance of the
Indian CDBG Program funds, as provided in paragraph (a)(2) of this
section.
(2) The amount remaining after the base amount is allocated will be
allocated to each field office based on the most recent data available
from reliable sources referable to the same point or period in time, as
follows:
(i) Forty percent (40%) of the funds will be allocated based upon
each field office's share of the total eligible Indian population;
(ii) Forty percent (40%) of the funds will be allocated based upon
each field office's share of the total extent of poverty among the
eligible Indian population; and
(iii) Twenty percent (20%) of the funds will be allocated based
upon each field office's share of the total extent of overcrowded
housing among the eligible Indian population.
(b) If funds are set aside by statute for a specific purpose in any
fiscal year, the formula in paragraph (a) of this section will apply
unless otherwise specified in the law, or unless it is determined that
the formula is inappropriate to accomplish the purpose, in which case
the Secretary may establish other criteria to determine an allocation
formula for distributing funds to the field offices.
(c) Data used for the allocation of funds will be based upon the
Indian population of those Tribes and villages that are determined to
be eligible ninety (90) days before the beginning of each fiscal year.
Sec. 953.102 Recaptures.
(a) After the rating and ranking process is completed, use of funds
that the field office obtains from recapture of obligated funds from
grantees that fail to meet statutory or regulatory requirements, or
return of unneeded funds, will be determined by the Assistant Secretary
on a case-by-case basis. The funds may be used to fund the highest
ranking unfunded project, an imminent threat, or other uses as
determined by the Assistant Secretary.
(b) Undistributed funds (funds that are unobligated at the
conclusion of the rating and ranking process) will be treated the same
as recaptured funds.
(c) Recaptured and undistributed funds will remain with the field
office that they came from unless the Assistant Secretary determines
there is an overriding reason to redistribute the funds outside of the
field office's jurisdiction.
Subpart C--Eligible Activities
Sec. 953.200 General.
The eligibility requirements of part 570, subpart C of this title--
Eligible Activities--apply to grants under this part, except for those
provisions which are specifically stated as applying only to the
Entitlement Cities or Small Cities--HUD administered programs, and with
the modifications stated in this subpart.
Sec. 953.201 Primary and national objectives.
(a) Not less than 70 percent of the funds of each single purpose
grant must be used for activities that benefit low- and moderate-income
persons under the criteria set forth in Sec. 570.208(a) of this title.
In determining the percentage of funds used for such activities, the
provisions of Sec. 570.200(a)(3)(i), (iv), and (v) of this title shall
apply. The requirements of this paragraph (a) do not apply to imminent
threat grants funded under Subpart E of this part.
(b) In addition to the requirement of paragraph (a) of this
section, each activity must meet one of the national objectives
pursuant to the criteria set forth in Sec. 570.208 of this title.
Sec. 953.202 Nonprofit organizations.
Tribal-based nonprofit organizations replace neighborhood-based
nonprofit organizations under Sec. 570.204(c)(1) of this title. A
Tribal-based nonprofit organization is an association or corporation
duly organized to promote and undertake community development
activities on a not-for-profit basis within an identified service area.
Sec. 953.203 Administrative costs.
(a) For purposes of this part, technical assistance costs
associated with developing the capacity to undertake a specific funded
program activity are not considered administrative costs. Therefore,
these costs are not included in the twenty percent limitation on
planning and administration stated in part 570, subpart C of this
title.
(b) Technical assistance costs cannot exceed ten percent of the
total grant award. As used in this part, ``technical assistance'' means
the transfer of skills and knowledge in planning, developing, and
administering the CDBG program to eligible Indian CDBG recipients who
need them in order to undertake a specific funded program activity.
Subpart D--Single Purpose Grant Application and Selection Process
Sec. 953.300 Application requirements.
(a) Application information. Headquarters shall publish a Notice of
Funding Availability (NOFA) in the Federal Register not less than 30
days before the deadline(s) for application submission. The NOFA will
provide information relating to the date and time for application
submission, the form and content requirements of the application,
specific information regarding the rating and ranking criteria to be
utilized, and any other information pertinent to the application
process.
(b) Costs incurred by applicant. Notwithstanding any provision in
Part 570 of this title, HUD will not reimburse or recognize any costs
incurred before submission of the single purpose grant application to
HUD.
(c) HUD will not normally reimburse or recognize costs incurred
before HUD approval of the application for funding. However, under
unusual circumstances, the field office may consider and approve
written requests to recognize and reimburse costs incurred after
submission of the application where failure to do so would impose undue
hardship on the applicant. Such authorization will be made only before
the costs are incurred and where the requirements for reimbursement
have been met in accordance with 24 CFR 58.22 and with the
understanding that HUD has no obligation whatsoever to approve the
application or to reimburse the applicant should the application be
disapproved.
Sec. 953.301 Screening and review of applications.
Each Field Office will screen and review applications for single
purpose grants in accordance with the requirements specified in the
annual NOFA.
Sec. 953.302 Selection process.
(a) Threshold requirements. (1)(i) In order for applications that
have passed the initial screening tests of Sec. 953.301 to be rated and
ranked, field offices must determine that the following requirements
have been met:
(A) Community development appropriateness.
(1) The costs are reasonable;
(2) The project(s) is appropriate for the intended use; and
(3) The project(s) is usable or achievable (generally within a two-
year period).
(B) Reserved.
(ii) If in the judgment of the field office, available data
indicate that the proposed project(s) costs are unreasonable, is
inappropriate for the intended use, or is not usable generally within
two years, the field office shall determine that the applicant has not
met this threshold requirement, and shall reject such project(s) from
further consideration.
(2) Capacity and performance. The applicant has the capacity to
undertake the proposed program. Additionally, applicants that
previously have participated in the Indian CDBG Program must have
performed adequately or, in cases of previously documented deficient
performance, the applicant must have taken appropriate corrective
action to improve its performance.
(i) Capacity. The applicant possesses, or will acquire, the
managerial, technical, or administrative staff necessary to carry out
the proposed projects. If the field office determines that the
applicant does not have or cannot obtain the capacity to undertake the
project(s), such project(s) will be rejected from further
consideration.
(ii) Performance--(A) Community development. Performance
determinations are made through the field office's normal monitoring
process. Applicants that have been advised in writing of negative
findings on previous grants, for which a schedule of corrective actions
has been established, will not be considered for funding if they are
behind schedule as of the deadline date for filing applications.
(B) Housing assistance. The applicant must not have been found
taking actions to impede the provision or operation of assisted housing
for the low- and moderate-income members of the Tribe or Village. If
inadequate performance is found, and the applicant has been notified in
writing, they may be rejected from further consideration. Performance
determinations are made through the field office's normal monitoring
process.
(C) Audits. An applicant that has an outstanding ICDBG obligation
to HUD that is in arrears, or one that has not agreed to a repayment
schedule, will be disqualified from the current and subsequent
competitions until the obligations are current. An applicant whose
response to an audit finding is overdue or unsatisfactory will be
disqualified from the current and subsequent competitions until the
applicant has taken final action necessary to close the audit
finding(s). The field office administrator may provide exceptions to
this disqualification requirement in cases where the applicant has made
a good faith effort to clear non-monetary audit findings. In no
instance, however, shall an exception be provided when funds are due
HUD, unless a satisfactory arrangement for repayment of the debt has
been made, and payments are current.
(b) Application rating system. (1) Applications that meet the
threshold requirements established in paragraph (a) of this section
will be rated competitively within each field office's jurisdiction.
(c) Periodic NOFAs will weigh and define the rating factors
contained in this subpart. Each field office will rate applications on
the basis of their responsiveness to the factors contained in this
subpart and in the periodic NOFAs.
(d) Set-aside selection of projects. If funds have been set aside
by statute for a specific purpose in any fiscal year, other criteria
pertinent to the set-aside may be used to select projects for funding
from the set-aside.
Sec. 953.303 Housing rating category.
(a)(1) The ``housing rating'' category consists of three
components:
(i) Housing rehabilitation;
(ii) Land to support new housing; and
(iii) New housing construction.
(2) Housing rehabilitation and new housing construction consist of
three parts:
(i) Project need and design;
(ii) Planning and implementation; and
(iii) Leveraging.
(3) Land to support new housing consists of two parts:
(i) Project need; and
(ii) Planning and implementation.
(4) Housing projects will be assigned to the appropriate component
for rating and may receive a maximum of 100 points.
(b) The applicant shall assure that it will use project funds to
rehabilitate units only when the homeowner's payments are current or
the homeowner is current in a repayment agreement that is subject to
approval by the field office. The field office may grant exceptions on
a case-by-case basis to this requirement.
(c) New housing construction can only be implemented through a
nonprofit organization that is eligible under Sec. 953.202 or is
otherwise eligible under Sec. 570.207(b)(3) of this title. All
applicants for new housing construction grants shall adopt, by current
tribal resolution, construction standards prior to submitting an
application. All applications for new housing construction projects
must document that:
(1) No other housing is available in the immediate reservation area
that is suitable for the household(s) to be assisted; and
(2) No other sources can meet the needs of the household(s) to be
served; and
(3) Rehabilitation of the unit occupied by the household to be
housed is not economically feasible; or
(4) The household to be housed currently is in an overcrowded unit
(sharing unit with other household(s)); or
(5) The household to be housed has no current residence.
(d) Housing rehabilitation component. (1) All applicants for
housing rehabilitation projects shall adopt rehabilitation standards
and rehabilitation policies, prior to submitting an application. The
following criteria will be used to rate housing rehabilitation
applications.
(i) Project need and design.
(ii) Planning and implementation.
(iii) Leveraging.
(2) The NOFA will contain the specific housing rehabilitation
rating criteria which are designed to measure need, cost of
rehabilitating houses to a standard condition, benefit to low and
moderate income persons and other factors.
(e) Land to support new housing rating component. (1) The following
criteria will be used to rate applications for land to support new
housing.
(i) Project need.
(ii) Planning and implementation.
(2) The NOFA will contain the specific rating criteria which are
designed to measure need, cost, benefit to low and moderate income
persons and other factors for applications for land to support new
housing.
(f) New housing construction rating component. (1) New housing
construction can only be implemented through a nonprofit organization
that is eligible under Sec. 953.202 or is otherwise eligible under
Sec. 570.207(b)(3) of this title. The following criteria will be used
to rate applications for new housing construction.
(i) Project need and design.
(ii) Planning and implementation.
(iii) Leveraging.
(2) The NOFA will contain the specific rating criteria which are
designed to measure need, cost, benefit to low and moderate income
persons and other factors for applications for new housing
construction.
Sec. 953.304 Community facilities rating category.
(a)(1) The ``community facilities rating'' category consists of two
components:
(i) Infrastructure, such as water, sewer or roads; and
(ii) Buildings, such as a community center or child care facility.
(2) Each component consists of three parts:
(i) Project need and design;
(ii) Planning and implementation; and
(iii) Leveraging.
(3) Community facilities projects will be assigned to the
appropriate component for rating and may receive a maximum of 100
points.
(b) Infrastructure rating component. (1) The following criteria
will be used to rate applications for infrastructure construction.
(i) Project need and design.
(ii) Planning and implementation.
(iii) Leveraging.
(2) The NOFA will contain the specific community facilities-
infrastructure rating criteria which are designed to measure need,
benefit to low and moderate income persons, cost and other factors.
(c) Buildings rating component. (1) The following criteria will be
used to rate applications for buildings.
(i) Project need and design.
(ii) Planning and implementation.
(iii) Leveraging.
(2) The NOFA will contain the specific community facilities-
buildings rating criteria which are designed to measure need, benefit
to low and moderate income persons, cost and other factors.
Sec. 953.305 Economic development rating category.
(a)(1) Economic development assistance may be provided only when an
analysis is done which shows public benefit commensurate with the
assistance to the business can reasonably be expected to result from
the assisted project, and the project has a reasonable chance of
success. The applicant shall demonstrate the need for grant assistance
by providing documentation to support a determination that the
assistance is appropriate to implement an economic development project.
Economic development projects may receive a maximum of 100 points.
(2) The economic development rating category has one component
consisting of four parts.
(i) Project success.
(ii) Organization.
(iii) Leveraging.
(iv) Permanent full time job creation.
(b) The NOFA will contain the specific economic development rating
criteria which are designed to measure need, benefit to low and
moderate income persons, cost and other factors.
Sec. 953.306 Public services.
Public services activities may comprise no more than 15 percent of
the total grant award. Such projects must therefore be submitted with
one or more other projects, which must comprise at least 85 percent of
the total grant award. A public service project will be funded only if
the project(s) with which it is submitted rank high enough to be
funded.
Sec. 953.307 Funding process.
(a) Notification. Field offices will notify applicants of the
actions taken regarding their applications. Grant amounts offered may
reflect adjustments made by the field offices in accordance with
Sec. 953.100(b).
(b) Grant award. (1) As soon as HUD determines that the applicant
has complied with any pre-award requirements and absent information
which would alter the threshold determinations under Sec. 953.302, the
grant will be awarded. These regulations (i.e., 24 CFR Part 953) become
part of the grant agreement.
(2) All grants shall be conditioned upon the completion of all
environmental obligations and approval of release of funds by HUD in
accordance with the requirements of part 58 of this title and, in
particular, subpart J of Part 58 of this title, except as otherwise
provided in:
(i) Section 58.33 of this title, ``Emergencies'';
(ii) Section 58.34 of this title, ``Exempt activities''; or
(iii) Section 58.22 of this title, ``Limitations on activities
pending clearance'' on the commitment of funds and which are
reimbursable under subpart C of part 570 of this title.
(3) HUD may impose other grant conditions where additional actions
or approvals are required prior to the use of funds.
(Approved by the Office of Management and Budget under OMB Control
No. 2506-0043.)
Sec. 953.308 Program amendments.
(a) Grantees shall request prior HUD approval for all program
amendments involving the alteration of existing activities that will
significantly change the scope, location, objective, or class of
beneficiaries of the approved activities, as originally described in
the application.
(b) Amendment requests shall include the information required under
Sec. 953.300(a).
(1) Amendments of $25,000 or more shall address all the rating
parts and subparts of the last rating cycle. Approval is subject to the
following:
(i) A rating equal to or greater than the lowest rating received by
a funded project during the last rating cycle;
(ii) Capability to complete promptly the modified or new
activities;
(iii) Compliance with the requirements of Sec. 953.604 for citizen
participation; and
(iv) The preparation of an amended or new environmental review in
accordance with Part 58 of this title, if there is a significant change
in the scope or location of approved activities.
(2) Amendments of less than $25,000 shall be approved subject to
meeting the requirements of paragraphs (b)(1) (ii),(iii), and (iv) of
this section.
(3) Amendments which address imminent threats to health and safety
shall be reviewed and approved in accordance with the requirements of
Subpart E of this part.
(c) If a program amendment fails to be approved and the original
project is no longer feasible, the grant funds proposed for amendment
shall be returned to HUD.
Subpart E--Imminent Threat Grants
Sec. 953.400 Criteria for funding.
The following criteria apply to requests for assistance under this
subpart:
(a) In response to requests for assistance, the ONAP may make funds
available under this subpart to applicants to alleviate or remove
imminent threats to health or safety that require an immediate
solution. The urgency and immediacy of the threat shall be
independently verified prior to the approval of an application. Funds
may only be used to deal with imminent threats that are not of a
recurring nature and which represent a unique and unusual circumstance,
and which impact on an entire service area.
(b) Funds to alleviate imminent threats may be granted only if the
applicant can demonstrate to the satisfaction of HUD that other local
or Federal funding sources cannot be made available to alleviate the
threat.
(c) The Office of Native American Programs will establish grant
ceilings for imminent threat applications.
Sec. 953.401 Application process.
(a) Letter to proceed. The ONAP may issue the applicant a letter to
proceed to incur costs to alleviate imminent threats to health and
safety only if the assisted activities do not alter environmental
conditions and are for temporary or permanent improvements limited to
protection, repair, or restoration actions necessary only to control or
arrest the effects of imminent threats or physical deterioration.
Reimbursement of such costs is dependent upon HUD approval of the
application.
(b) Applications. Applications shall be submitted in accordance
with Sec. 953.300(a). Applications which meet the requirement of this
section may be approved by the ONAP without competition in accordance
with the applicable requirements of Sec. 953.307.
Sec. 953.402 Environmental review.
In accordance with 24 CFR 58.34(a)(8), grants for imminent threats
to health or safety are exempt from some or all of the environmental
review requirements of part 58 of this title, to the extent provided in
that section.
Sec. 953.403 Availability of funds.
An amount not to exceed five percent of the funds made available by
the NOFA for the ICDBG program may be retained by the Office of Native
American Programs (ONAP) for grants under this part. The amount of
imminent threat funds retained during each funding cycle will stated in
the NOFA. Any remaining funds will be used as if they are a part of the
new allocation of funds. Field offices must correctly indicate,
however, the fiscal year in which the residual funds were originally
allocated when the funds are awarded to applicants.
Subpart F--Grant Administration
Sec. 953.500 General.
The requirements of part 570, subpart J of this title--Grant
Administration--apply to grants under this part except for those
provisions that are specifically stated as applying to the Entitlement
Cities or Small Cities--HUD administered programs, and with the
modifications stated in this subpart.
(Approved by the Office of Management and Budget under OMB Control
No. 2506-0043.)
Sec. 953.501 Designation of public agency.
One or more Tribal departments or authorities may be designated by
the chief executive officer of an Indian Tribe or Alaskan native
village as the operating agency to undertake activities assisted under
this part. The Indian Tribe or Alaskan native village itself, however,
shall be the applicant. Designation of an operating agency does not
relieve the Indian Tribe or Alaskan native village of its
responsibility to assure that the program will be administered in
accordance with all HUD requirements, including these regulations.
Sec. 953.502 Force account construction.
(a) The use of Tribal work forces for construction or renovation
activities performed as part of the activities funded under this part
shall be approved by HUD before the start of project implementation. In
reviewing requests for an approval of force account construction or
renovation, HUD may require that the grantee provide the following:
(1) Documentation to indicate that it has carried out or can carry
out successfully a project of the size and scope of the proposal;
(2) Documentation to indicate that it has obtained or can obtain
adequate supervision for the workers to be utilized;
(3) Information showing that the workers to be utilized are, or
will be, listed on the Tribal payroll and are employed directly by a
unit, department or other governmental instrumentality of the Tribe or
village.
(b) Any and all excess funds derived from the force account
construction or renovation activities shall accrue to the grantee and
shall be reprogrammed for other activities eligible under this part in
accordance with Sec. 953.308(b) or returned to HUD promptly.
(c) Insurance coverage for force account workers and activities
shall, where applicable, include workman's compensation, public
liability, property damage, builder's risk, and vehicular liability.
(d) The grantee shall specify and apply reasonable labor
performance, construction, or renovation standards to work performed
under the force account.
(e) The contracting and procurement standards set forth in 24 CFR
85.36 apply to material, equipment, and supply procurement from outside
vendors under this section, but not to other activities undertaken by
force account. HUD may approve alternative requirements in lieu of
bonding if compliance with the bonding requirements specified in
Sec. 85.36(h) of this title is determined by HUD to be infeasible or
incompatible with the Indian preference requirements set forth in
Sec. 953.503.
(Approved by the Office of Management and Budget under OMB Control
No. 2506-0043.)
Sec. 953.503 Indian preference requirements.
(a) Applicability. HUD has determined that grants under this part
are subject to Section 7(b) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450e(b)), which requires that, to
the greatest extent feasible:
(1) Preference and opportunities for training and employment shall
be given to Indians; and
(2) Preference in the award of contracts and subcontracts shall be
given to Indian organizations and Indian-owned economic enterprises.
(b) Definitions. Indian organizations and Indian-owned economic
enterprises include both of the following:
(1) Any economic enterprise as defined in section 3(e) of the
Indian Financing Act of 1974 (Pub. L. 93-262); that is, ``any Indian-
owned commercial, industrial, or business activity established or
organized for the purpose of profit provided that such Indian ownership
and control shall constitute not less than 51 percent of the
enterprise''; and
(2) Any ``Tribal organizations'' as defined in section 4(c) of the
Indian Self-Determination and Education Assistance Act (Pub. L. 93-
638); that is, ``the recognized governing body of any Indian Tribe; any
legally established organization of Indians which is controlled,
sanctioned or chartered by such governing body or which is
democratically elected by the adult members of the Indian community to
be served by such organizations and which includes the maximum
participation of Indians in all phases of its activities.''
(c) Preference in administration of grant. To the greatest extent
feasible, preference and opportunities for training and employment in
connection with the administration of grants awarded under this part
shall be given to Indians and Alaskan natives.
(d) Preference in contracting. To the greatest extent feasible,
grantees shall give preference in the award of contracts for projects
funded under this part to Indian organizations and Indian-owned
economic enterprises.
(1) Each grantee shall:
(i) Advertise for bids or proposals limited to qualified Indian
organizations and Indian-owned enterprises; or
(ii) Use a two-stage preference procedure, as follows:
(A) Stage 1. Invite or otherwise solicit Indian-owned economic
enterprises to submit a statement of intent to respond to a bid
announcement limited to Indian-owned firms.
(B) Stage 2. If responses are received from more than one Indian
enterprise found to be qualified, advertise for bids or proposals
limited to Indian organizations and Indian-owned economic enterprises;
or
(iii) Develop, subject to HUD field office one-time approval, the
grantee's own method of providing preference.
(2) If the grantee selects a method of providing preference that
results in fewer than two responsible qualified organizations or
enterprises submitting a statement of intent, a bid or a proposal to
perform the contract at a reasonable cost, then the grantee shall:
(i) Re-bid the contract, using any of the methods described in
paragraph (d)(1) of this section; or
(ii) Re-bid the contract without limiting the advertisement for
bids or proposals to Indian organizations and Indian-owned economic
enterprises; or
(iii) If one approvable bid is received, request field office
review and approval of the proposed contract and related procurement
documents, in accordance with 24 CFR 85.36, in order to award the
contract to the single bidder.
(3) Procurements that are within the dollar limitations established
for small purchases under 24 CFR 85.36 need not follow the formal bid
procedures of paragraph (d) of this section, since these procurements
are governed by the small purchase procedures of 24 CFR 85.36. However,
a grantee's small purchase procurement shall, to the greatest extent
feasible, provide Indian preference in the award of contracts.
(4) All preferences shall be publicly announced in the
advertisement and bidding solicitation and the bidding documents.
(5) A grantee, at its discretion, may require information of
prospective contractors seeking to qualify as Indian organizations or
Indian-owned economic enterprises; however, this information need not
be submitted to HUD. Grantees may require prospective contractors to
include the following information prior to submitting a bid or
proposal, or at the time of submission:
(i) Evidence showing fully the extent of Indian ownership, control,
and interest;
(ii) Evidence of structure, management and financing affecting the
Indian character of the enterprise, including major subcontracts and
purchase agreements; materials or equipment supply arrangements; and
management salary or profit-sharing arrangements; and evidence showing
the effect of these on the extent of Indian ownership and interest; and
(iii) Evidence sufficient to demonstrate to the satisfaction of the
grantee that the prospective contractor has the technical,
administrative, and financial capability to perform contract work of
the size and type involved.
(6) The grantee shall incorporate the following clause (referred to
as the Section 7(b) clause) in each contract awarded in connection with
a project funded under this part:
(i) The work to be performed under this contract is on a project
subject to Section 7(b) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450e(b)) (Indian Act). Section 7(b) requires
that to the greatest extent feasible:
(A) Preferences and opportunities for training and employment shall
be given to Indians; and
(B) Preferences in the award of contracts and subcontracts shall be
given to Indian organizations and Indian-owned economic enterprises.
(ii) The parties to this contract shall comply with the provisions
of Section 7(b) of the Indian Act.
(iii) In connection with this contract, the contractor shall, to
the greatest extent feasible, give preference in the award of any
subcontracts to Indian organizations and Indian-owned economic
enterprises, and preferences and opportunities for training and
employment to Indians and Alaskan natives.
(iv) The contractor shall include this Section 7(b) clause in every
subcontract in connection with the project, and shall, at the direction
of the grantee, take appropriate action pursuant to the subcontract
upon a finding by the grantee or HUD that the subcontractor has
violated the Section 7(b) clause of the Indian Act.
(e) Additional Indian preference requirements. A grantee may, with
prior HUD approval, provide for additional Indian preference
requirements as conditions for the award of, or in the terms of, any
contract in connection with a project funded under this part. The
additional Indian preference requirements shall be consistent with the
objectives of the Section 7(b) clause of the Indian Act and shall not
result in a significantly higher cost or greater risk of non-
performance or longer period of performance. The additional Indian
preference requirements permitted by this part do not include the
imposition of geographic preferences or restrictions to the procurement
process.
Sec. 953.504 Grant closeout procedure.
Within 90 days of the date that HUD determines the grant has met
the criteria for closeout, the grantee shall submit to HUD a completed
Financial Status Report (SF-269). In addition, the requirements of
Sec. 570.509 of this title, Grant closeout procedures, apply to the
ICDBG program where applicable.
(Approved by the Office of Management and Budget under OMB Control
No. 2506-0043.)
Sec. 953.505 Program Income.
(a) Disposition of program income received by recipients.
(1) Program income received before grant closeout may be retained
by the recipient if the income is treated as additional CDBG funds
subject to all applicable requirements governing the use of CDBG funds.
(2) If the recipient chooses to retain program income, that income
shall affect withdrawals of grant funds from the U.S. Treasury as
follows:
(i) Program income in the form of repayments to, or interest earned
on, a revolving fund shall be substantially disbursed from the fund
before additional cash withdrawals are made from the U.S. Treasury for
the same activity. (This rule does not prevent a lump sum disbursement
to finance the rehabilitation of privately owned properties as provided
for in Sec. 570.513 of this title.)
(ii) Substantially all other program income shall be disbursed for
eligible activities before additional cash withdrawals are made from
the U.S. Treasury.
(3) Program income on hand at the time of closeout shall continue
to be subject to the eligibility requirements in subpart C of this part
and all other applicable provisions of this part until it is expended.
(4) Unless otherwise provided in any grant closeout agreement, and
subject to the requirements of paragraph (a)(5) of this section, income
received after closeout shall not be governed by the provisions of this
part, except that, if at the time of closeout the recipient has another
ongoing CDBG grant received directly from HUD, funds received after
closeout shall be treated as program income of the ongoing grant
program.
(5) If the recipient does not have another ongoing grant received
directly from HUD at the time of closeout, income received after
closeout from the disposition of real property or from loans
outstanding at the time of closeout shall not be governed by the
provisions of this part, 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 Act.
(b) All other program income received after closeout will not be
governed by the provisions of this part.
Subpart G--Other Program Requirements
Sec. 953.600 General.
The following requirements of 24 CFR part 570, subpart K--Other
Program Requirements--apply to grants under this part.
(a) 24 CFR 570.605, ``National Flood Insurance Program.''
(b) 24 CFR 570.608, ``Lead-based paint.''
(c) 24 CFR 570.609, ``Use of debarred, suspended, or ineligible
contractors or subrecipients.''
(d) 24 CFR 570.610, ``Uniform administrative requirements and cost
principles.'' Non-federally recognized tribes shall follow the
requirements of 24 CFR part 85 and OMB Circulars A-87 and A-128. Copies
of OMB Circulars may be obtained from E.O.P. Publications, room 2200,
New Executive Office Building, Washington, DC 20503, telephone (202)
395-7332. (This is not a toll-free number.) There is a limit of two
free copies.
Sec. 953.601 Nondiscrimination.
(a) Under the authority of section 107(e)(2) of the Act, the
Secretary waives the requirement that recipients comply with section
109 of the Act except with respect to the prohibition of discrimination
based on age, sex, or against an otherwise qualified disabled
individual.
(b) A recipient shall comply with the provisions of title II of
Pub. L. 90-284 (24 U.S.C. 1301--the Indian Civil Rights Act) in the
administration of a program or activity funded in whole or in part with
funds made available under this part. For purposes of this section,
``program or activity'' is defined as any function conducted by an
identifiable administrative unit of the recipient; and ``funded in
whole or in part with funds made available under this part'' means that
community development funds in any amount have been transferred by the
recipient to an identifiable administrative unit and disbursed in a
program or activity.
Sec. 953.602 Relocation and real property acquisition.
(a) Minimize displacement. Consistent with the other goals and
objectives of this part, grantees shall assure that they have taken all
reasonable steps to minimize the displacement of persons (households,
businesses, nonprofit organizations, and farms) as a result of a
project assisted under this part.
(b) Temporary relocation. The following policies cover residential
tenants who will not be required to move permanently but who must
relocate temporarily for the project. Such tenants must be provided:
(1) Reimbursement for all reasonable out-of-pocket expenses
incurred in connection with the temporary relocation, including the
cost of moving to and from the temporarily occupied housing and any
increase in monthly housing costs (e.g., rent/utility costs).
(2) Appropriate advisory services, including reasonable advance
written notice of:
(i) The date and approximate duration of the temporary relocation;
(ii) The location of the suitable, safe and habitable dwelling to
be made available for the temporary period;
(iii) The terms and conditions under which the tenant may occupy a
suitable, decent, safe, and sanitary dwelling in the building/complex
following completion of the repairs; and
(iv) The provisions of paragraph (b)(1) of this section.
(c) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (g) of this section) must be provided relocation
assistance at the levels described in, and in accordance with the
requirements of, the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA)(42 U.S.C. 4601-4655)
and implementing regulations at 49 CFR part 24.
(d) Optional relocation assistance. Under section 105(a)(11) of the
Act, the grantee may provide relocation payments and other relocation
assistance to persons displaced by a project that is not subject to
paragraph (c) of this section. The grantee may also provide relocation
assistance to persons receiving assistance under paragraph (c) of this
section at levels in excess of those required. For assistance that is
not required by State or tribal law, the grantee shall adopt a written
policy available to the public that describes the relocation assistance
that it has elected to furnish and provides for equal relocation
assistance within each class of displaced persons.
(e) Acquisition of real property. The acquisition of real property
for an assisted activity is subject to 49 CFR part 24, subpart B.
Whenever the grantee does not have the authority to acquire the real
property through condemnation, it shall:
(1) Before discussing the purchase price, inform the owner:
(i) Of the amount it believes to be the fair market value of the
property. Such amount shall be based upon one or more appraisals
prepared by a qualified appraiser. However, this provision does not
prevent the grantee from accepting a donation or purchasing the real
property at less than its fair market value.
(ii) That it will be unable to acquire the property if negotiations
fail to result in an amicable agreement.
(2) Request HUD approval of the proposed acquisition price before
executing a firm commitment to purchase the property. The grantee shall
include with its request a copy of the appraisal(s) and, when
applicable, a justification for any proposed acquisition payment that
exceeds the fair market value of the property. HUD will promptly review
the proposal and inform the grantee of it's approval or disapproval.
(f) Appeals. A person who disagrees with the grantee's
determination concerning whether the person qualifies as a ``displaced
person,'' or the amount of relocation assistance for which the person
is eligible, may file a written appeal of that determination with the
grantee. A person who is dissatisfied with the grantee's determination
on his or her appeal may submit a written request for review of that
determination to the HUD Field Office.
(g) Responsibility of grantee. (1) The grantee shall certify that
it will comply with the URA, the regulations at 49 CFR part 24, and the
requirements of this section, (i.e., provide assurance of compliance as
required by 49 CFR part 24). The grantee shall ensure such compliance
notwithstanding any third party's contractual obligation to the grantee
to comply with these provisions.
(2) The cost of required relocation assistance is an eligible
project cost in the same manner and to the same extent as other project
costs. However, such assistance may also be paid for with funds
available to the grantee from any other source.
(3) The grantee shall maintain records in sufficient detail to
demonstrate compliance with this section.
(h) Displaced person. (1) For purposes of this section, the term
``displaced person'' means any person (family, individual, business,
nonprofit organization, or farm) that moves from real property, or
moves his or her personal property from real property, permanently, as
a direct result of rehabilitation, demolition, or acquisition for a
project assisted under this part. This includes any permanent,
involuntary move for an assisted project, including any permanent move
from real property that is made:
(i) After notice by the grantee or property owner to move
permanently from the property, if the move occurs on or after the date
of the submission of an application for financial assistance by the
grantee to HUD that is later approved for the project.
(ii) Before the date of the submission of the application
requesting assistance, if either HUD or the grantee determines that the
displacement directly resulted from acquisition, rehabilitation, or
demolition for the assisted project.
(iii) By a tenant-occupant of a dwelling unit, if any one of the
following three situations occurs:
(A) The tenant moves after execution of the agreement between the
grantee and HUD and the move occurs before the tenant is provided
written notice offering him or her the opportunity to lease and occupy
a suitable, decent, safe, and sanitary dwelling in the same building/
complex upon completion of the project under reasonable terms and
conditions. Such reasonable terms and conditions include a monthly rent
and estimated average monthly utility costs that do not exceed the
greater of
(1) the tenant's monthly rent and estimated average monthly utility
costs before the agreement; or
(2) 30 percent of gross household income; or
(B) The tenant is required to relocate temporarily, does not return
to the building/complex, and either
(1) the tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation or
(2) other conditions of the temporary relocation are not
reasonable; or
(C) The tenant is required to move to another dwelling unit in the
same building/complex but is not offered reimbursement for all
reasonable out-of-pocket expenses incurred in connection with the move,
or other conditions of the move are not reasonable.
(2) Notwithstanding the provisions of paragraph (g)(1) of this
section, a person does not qualify as a ``displaced person'' (and is
not eligible for relocation assistance under the URA or this section),
if:
(i) The person moved into the property after the submission of the
application for financial assistance to HUD, and, before signing a
lease or commencing occupancy, was provided written notice of the
project, its possible impact on the person (e.g., the person may be
displaced, temporarily relocated or suffer a rent increase) and the
fact that the person would not qualify as a ``displaced person'' or for
any assistance provided under this section as a result of the project;
(ii) The person is not displaced, as defined under 49 CFR
24.2(g)(2).
(iii) The grantee determines the person is not displaced as a
direct result of acquisition, rehabilitation, or demolition for an
assisted project. To exclude a person on this basis, HUD must concur in
that determination.
(3) A grantee may ask HUD, at any time, to determine whether a
specific displacement is or would be covered under this section.
(i) Initiation of negotiations. For purposes of determining the
formula for computing the replacement housing assistance to be provided
to a person displaced as a direct result of rehabilitation or
demolition of the real property, the term ``initiation of
negotiations'' means the execution of the agreement covering the
rehabilitation or demolition.
(ii) Reserved.
Sec. 953.603 Labor standards.
In accordance with the authority under section 107(e)(2) of the
Act, the Secretary waives the provisions of section 110 of the Act
(Labor Standards) with respect to this part, including the requirement
that laborers and mechanics employed by the contractor or subcontractor
in the performance of construction work financed in whole or in part
with assistance received under this part be paid wages at rates not
less than those prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with the Davis-Bacon
Act.
Sec. 953.604 Citizen participation.
(a) In order to permit residents of Indian Tribes and Alaskan
native villages to examine and appraise the applicant's application for
funds under this part, the applicant shall follow traditional means of
resident involvement which, at the least, include the following:
(1) Furnishing residents with information concerning the amounts of
funds available for proposed community development and housing
activities and the range of activities that may be undertaken.
(2) Holding one or more meetings to obtain the views of residents
on community development and housing needs. Meetings shall be scheduled
in ways and at times that will allow participation by residents.
(3) Developing and publishing or posting a community development
statement in such a manner as to afford affected residents an
opportunity to examine its contents and to submit comments.
(4) Affording residents an opportunity to review and comment on the
applicant's performance under any active community development block
grant.
(b) Prior to submission of the application to HUD, the applicant
shall certify by an official Tribal resolution that it has met the
requirements of paragraph (a) of this section, and
(1) considered any comments and views expressed by residents and,
if it deems it appropriate, modified the application accordingly, and
(2) made the modified application available to residents.
(c) No part of the requirement under paragraph (a) of this section
shall be construed to restrict the responsibility and authority of the
applicant for the development of the application and the execution of
the grant. Accordingly, the citizen participation requirements of this
section do not include concurrence by any person or group in making
final determinations on the contents of the application.
Sec. 953.605 Environment.
In order to assure that the policies of the National Environmental
Policy Act of 1969 and other provisions of Federal law which further
the purposes of that act (as specified in 24 CFR 58.5) are most
effectively implemented in connection with the expenditure of block
grant funds, the recipient shall comply with the Environment Review
Procedures for the Community Development Block Grant Program (24 CFR
Part 58). Upon completion of the environmental review, the recipient
shall submit a certification and request for release of funds for
particular projects in accordance with 24 CFR part 58.
Sec. 953.606 Conflict of interest.
(a) Applicability. (1) In the procurement of supplies, equipment,
construction, and services by grantees and subrecipients, the conflict
of interest provisions in 24 CFR 85.36 and OMB Circular A-110 shall
apply. Copies of OMB Circulars may be obtained from E.O.P.
Publications, Room 2200, New Executive Office Building, Washington, DC
20503, telephone (202) 395-7332. (This is not a toll-free number.)
There is a limit of two free copies.
(2) In all cases not governed by 24 CFR 85.36 and OMB Circular A-
110, the provisions of this section shall apply. Such cases include the
provision of assistance by the recipient or by its subrecipients to
businesses, individuals, and other private entities under eligible
activities that authorize such assistance (e.g., rehabilitation,
preservation, and other improvements of private properties or
facilities under Sec. 570.202 of this title; or grants, loans, and
other assistance to businesses, individuals, and other private entities
under Sec. 570.203 or Sec. 570.204 of this title).
(b) Conflicts prohibited. Except for the use of ICDBG funds to pay
salaries and other related administrative or personnel costs, the
general rule is that no persons described in paragraph (c) of this
section who exercise or have exercised any functions or
responsibilities with respect to ICDBG activities assisted under this
part or who are in a position to participate in a decision-making
process or gain inside information with regard to such activities, may
obtain a personal or financial interest or benefit from an ICDBG
assisted activity, or have an interest in any contract, subcontract or
agreement with respect thereto, or the proceeds thereunder, either for
themselves or those with whom they have family or business ties, during
their tenure or for one year thereafter.
(c) Persons covered. The conflict of interest provisions of
paragraph (b) of this section apply to any person who is an employee,
agent, consultant, officer, or elected or appointed official of the
recipient, or of any designated public agencies, or subrecipients under
Sec. 570.204 of this title, receiving funds under this part.
(d) Exceptions requiring HUD approval--(1) Threshold requirements.
Upon the written request of a recipient, HUD may grant an exception to
the provisions of paragraph (b) of this section on a case-by-case
basis, when it determines that such an exception will serve to further
the purposes of the Act and the effective and efficient administration
of the recipient's program or project. An exception may be considered
only after the recipient has provided the following:
(i) A disclosure of the nature of the possible conflict,
accompanied by an assurance that there has been public disclosure of
the conflict and a description of how the public disclosure was made;
and
(ii) An opinion of the recipient's attorney that the interest for
which the exception is sought would not violate Tribal laws on conflict
of interest, or applicable State laws.
(2) Factors to be considered for exceptions: In determining whether
to grant a requested exception after the recipient has satisfactorily
met the requirements of paragraph (d)(1) of this section, HUD shall
consider the cumulative effect of the following factors, where
applicable:
(i) Whether the exception would provide a significant cost benefit
or essential expert knowledge to the program or project which would
otherwise not be available;
(ii) Whether an opportunity was provided for open competitive
bidding or negotiation;
(iii) Whether the affected person has withdrawn from his or her
functions or responsibilities, or from the decision-making process,
with reference to the specific assisted activity in question;
(iv) Whether the interest or benefit was present before the
affected person was in a position as described in paragraph (b) of this
section;
(v) Whether undue hardship will result, either to the recipient or
to the person affected, when weighed against the public interest served
by avoiding the prohibited conflict;
(vi) Any other relevant considerations.
(e) Circumstances under which the conflict prohibition does not
apply. (1) In instances where a person who might otherwise be deemed to
be included under the conflict prohibition is a member of a group or
class of beneficiaries of the assisted activity and receives generally
the same interest or benefits as are being made available or provided
to the group or class, the prohibition does not apply, except that if,
by not applying the prohibition against conflict of interest, a
violation of Tribal or State laws on conflict of interest would result,
the prohibition does apply. However, if the assistance to be provided
is housing rehabilitation (or repair) or new housing, a public
disclosure of the nature of the assistance to be provided and the
specific basis for the selection of the proposed beneficiaries must be
made prior to the submission of an application to HUD. Evidence of this
disclosure must be provided as a component of the application.
(2) All records pertaining to the recipient's decision under this
section shall be maintained for HUD review upon request.
Subpart H--Program Performance
Sec. 953.700 Reports to be submitted by grantee.
Grant recipients shall submit an annual status report of progress
made on previously funded open grants at a time determined by the field
office. The status report shall be in narrative form addressing three
areas:
(a) Progress. The progress made in completing approved activities
should be described including a listing of work remaining together with
a revised implementation schedule, if necessary.
(b) Expenditure of funds. A breakdown of funds spent on each major
project activity or category should be provided.
(c) Grantee assessment. If the project(s) has been completed, an
evaluation of the effectiveness of the project in meeting the grantee's
community development needs.
(Approved by the Office of Management and Budget under Control No.
2506-0043.)
Sec. 953.701 Review of recipient's performance.
(a) Objective. HUD will review each recipient's performance to
determine whether the recipient has:
(1) Complied with the requirements of the Act, this part, and other
applicable laws and regulations;
(2) Carried out its activities substantially as described in its
application;
(3) Made substantial progress in carrying out its approved program;
(4) A continuing capacity to carry out the approved activities in a
timely manner; and
(5) The capacity to undertake additional activities funded under
this part.
(b) Basis for review. In reviewing each recipient's performance,
HUD will consider all available evidence which may include, but not be
limited to, the following:
(1) The approved application and any amendments thereto;
(2) Reports prepared by the recipient;
(3) Records maintained by the recipient;
(4) Results of HUD's monitoring of the recipient's performance,
including field evaluation of the quality of the work performed;
(5) Audit reports;
(6) Records of drawdowns on the line of credit;
(7) Records of comments and complaints by citizens and
organizations; and
(8) Litigation.
Sec. 953.702 Corrective and remedial action.
(a) General. One or more corrective or remedial actions will be
taken by HUD when, on the basis of the performance review, HUD
determines that the recipient has not:
(1) Complied with the requirements of the Act, this part, and other
applicable laws and regulations, including the environmental
responsibilities assumed under section 104(g) of title I of the Act;
(2) Carried out its activities substantially as described in its
applications;
(3) Made substantial progress in carrying out its approved program;
or
(4) Shown the continuing capacity to carry out its approved
activities in a timely manner.
(b) Action. The action taken by HUD will be designed, first, to
prevent the continuance of the deficiency; second, to mitigate any
adverse effects or consequences of the deficiency; and third, to
prevent a recurrence of the same or similar deficiencies. The following
actions may be taken singly or in combination, as appropriate for the
circumstances:
(1) Request the recipient to submit progress schedules for
completing approved activities or for complying with the requirements
of this part;
(2) Issue a letter of warning advising the recipient of the
deficiency (including environmental review deficiencies and housing
assistance deficiencies), describing the corrective actions to be
taken, establishing a date for corrective actions, and putting the
recipient on notice that more serious actions will be taken if the
deficiency is not corrected or is repeated;
(3) Advise the recipient that a certification of compliance will no
longer be acceptable and that additional information or assurances will
be required;
(4) Advise the recipient to suspend, discontinue, or not incur
costs for the affected activity;
(5) Advise the recipient to reprogram funds from affected
activities to other eligible activities, provided that such action
shall not be taken in connection with any substantial violation of Part
58 and provided that such reprogramming is subjected to the
environmental review procedures of Part 58 of this title;
(6) Advise the recipient to reimburse the recipient's program
account or line of credit in any amount improperly expended;
(7) Change the method of payment from a line of credit basis to a
reimbursement basis; and/or
(8) Suspend the line of credit until corrective actions are taken.
Sec. 953.703 Reduction or withdrawal of grant.
(a) General. A reduction or withdrawal of a grant under paragraph
(b) of this section will not be made until at least one of the
corrective or remedial actions specified in Sec. 953.702(b) has been
taken and only then if the recipient has not made an appropriate and
timely response. Before making such a grant reduction or withdrawal,
the recipient also shall be notified and given an opportunity within a
prescribed time for an informal consultation regarding the proposed
action.
(b) Reduction or withdrawal. When the field office determines, on
the basis of a review of the grant recipient's performance, that the
objectives set forth in Sec. 953.701(a)(2) or (3) have not been met,
the field office may reduce or withdraw the grant, except that funds
already expended on eligible approved activities shall not be
recaptured.
Sec. 953.704 Other remedies for noncompliance.
(a) Secretarial actions. If the Secretary finds a recipient has
failed to comply with any provision of this part even after corrective
actions authorized under Sec. 953.702 have been applied, the following
actions may be taken provided that reasonable notice and opportunity
for hearing is made to the recipient. (The Administrative Procedure Act
(5 U.S.C. 551 et seq.), where applicable, shall be a guide in any
situation involving adjudications where the Secretary desires to take
actions requiring reasonable notice and opportunity for a hearing.)
(1) Terminate the grant to the recipient;
(2) Reduce the grant to the recipient by an amount equal to the
amount which was not expended in accordance with this part; or
(3) Limit the availability of funds to projects or activities not
affected by such failure to comply; provided, however, that the
Secretary may on due notice revoke the recipient's line of credit in
whole or in part at any time if the Secretary determines that such
action is necessary to preclude the further expenditure of funds for
activities affected by such failure to comply.
(b) Secretarial referral to the Attorney General. If there is
reason to believe that a recipient has failed to comply substantially
with any provision of the Act, the Secretary may refer the matter to
the Attorney General of the United States with a recommendation that an
appropriate civil action be instituted. Upon such a referral, the
Attorney General may bring a civil action in any United States district
court having venue thereof for such relief as may be appropriate,
including an action to recover the amount of the assistance furnished
under this part which was not expended in accordance with this part or
for mandatory or injunctive relief.
Dated: July 18, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-18262 Filed 7-26-94; 8:45 am]
BILLING CODE 4210-32-P
