[Federal Register Volume 61, Number 161 (Monday, August 19, 1996)]
[Rules and Regulations]
[Pages 42942-42949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20563]
[[Page 42941]]
_______________________________________________________________________
Part II
Department of Agriculture
Rural Housing Service
7 CFR Part 1944
_______________________________________________________________________
Department of Housing and Urban Development
24 CFR Part 700
_______________________________________________________________________
Congregate Housing Services Program: Streamlining; Final Common Rule
Federal Register / Vol. 61, No. 161 / Monday, August 19, 1996 / Rules
and Regulations
[[Page 42942]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 1944
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 700
[Docket No. FR-4033-F-01]
RIN 2501-AC21
Congregate Housing Services Program: Streamlining; Final Rule
AGENCY: Rural Housing Service, (USDA), and Office of the Secretary,
HUD.
ACTION: Final common rule.
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SUMMARY: This document amends the joint USDA and HUD regulations for
the Congregate Housing Services Program (CHSP or Program). In an effort
to comply with the President's regulatory reform initiatives, this rule
will streamline CHSP regulations by eliminating provisions that are
redundant of statutes or are otherwise unnecessary. This final rule
will make CHSP regulations clearer and more concise.
EFFECTIVE DATE: September 18, 1996.
FOR FURTHER INFORMATION CONTACT: With respect to HUD's Congregate
Housing Services Program: Carissa Janis, Program Analyst, Room 6176,
Department of Housing and Urban Development, 451 Seventh Street, SW,
Washington, DC 20410, telephone number (202) 708-3291 (this is not a
toll-free number). With respect to the Rural Housing Service's
Congregate Housing Services Program: Sue M. Harris-Green, Senior Loan
Officer, Rural Housing Service, Department of Agriculture, 14th and
Independence Avenue, S.W., room 5343, Washington, D.C., 20250,
telephone number (202) 720-1660. Hearing- and speech-impaired persons
may access these telephone numbers via TTY by calling the Federal
Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a
memorandum to all Federal departments and agencies regarding regulatory
reinvention. In response to this memorandum, the Department of Housing
and Urban Development conducted a page-by-page review of its
regulations to determine which can be eliminated, consolidated, or
otherwise improved. HUD and USDA have determined that the regulations
for CHSP can be improved and streamlined by eliminating unnecessary
provisions.
Several provisions in the regulations repeat statutory language
from the National Affordable Housing Act (NAHA) of 1990 and the Housing
and Community Development Act of 1992. It is unnecessary to maintain
statutory requirements in the Code of Federal Regulations (CFR), since
those requirements are otherwise fully accessible and binding.
Furthermore, if regulations contain statutory language, HUD and USDA
must amend the regulations whenever Congress amends the statute.
Therefore, this final rule will remove repetitious statutory language
and replace it with a citation to the specific statutory section for
easy reference. Readers of 24 CFR part 700 must have copies of the
appropriate sections of both Acts readily available in order to
effectively read and understand this regulation.
Several other provisions in the regulations apply to more than one
program, and therefore HUD repeated these provisions in different
subparts. This repetition is unnecessary, and updating these provisions
is cumbersome and often creates confusion. Therefore, this final rule
will consolidate these duplicative provisions, maintaining appropriate
cross-references for the reader's convenience.
Justification for Final Rulemaking
HUD generally publishes a rule for public comment before issuing a
rule for effect, in accordance with its own regulations on rulemaking
in 24 CFR part 10. However, part 10 provides for exceptions to the
general rule if the agency finds good cause to omit advance notice and
public participation. The good cause requirement is satisfied when
prior public procedure is ``impracticable, unnecessary, or contrary to
the public interest'' (24 CFR 10.1). HUD and USDA find that good cause
exists to publish this rule for effect without first soliciting public
comment. This rule merely removes unnecessary regulatory provisions and
does not establish or affect substantive policy. Therefore, prior
public comment is unnecessary.
Other Matters
Regulatory Flexibility Act
The Secretary concerned, in accordance with the Regulatory
Flexibility Act (5 U.S.C. 605(b)), has reviewed and approved this final
rule, and in so doing certifies that this rule will not have a
significant economic impact on a substantial number of small entities.
This rule merely streamlines regulations by removing unnecessary
provisions. The rule will have no adverse or disproportionate economic
impact on small businesses.
Unfunded Mandate Reform Act of 1995
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Pub. L.
104-4, established requirements for Federal agencies to assess the
effects of their regulatory actions on state, local, and tribal
governments and the private sector. Under section 202 of the UMRA, the
agencies generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures to state, local, or tribal
governments, in the aggregate, or to the private sector. When such a
statement is needed for a rule, section 205 of the UMRA generally
requires the agencies to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, more cost-effective
or least burdensome alternative that achieves the objectives of the
rule.
This rule contains no Federal mandates (under regulatory provisions
of Title II of the UMRA) for state, local, and tribal governments or
the private sector. Thus, this rule is not subject to the requirements
of sections 202 and 205 of the UMRA.
Environmental Impact
This rulemaking does not have an environmental impact. This
rulemaking simply amends an existing regulation by consolidating and
streamlining provisions and does not alter the environmental effect of
the regulations being amended. A Finding of No Significant Impact with
respect to the environment was made in accordance with HUD regulations
in 24 CFR part 50 that implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332) at the time of
development of regulations implementing CHSP. That finding remains
applicable to this rule and is available for public inspection between
7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules Docket
Clerk, Office of General Counsel, Room 10276, Department of Housing and
Urban Development, 451 Seventh Street, SW, Washington, DC.
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program''. It is the determination of the
RHS that the proposed action does not constitute a major Federal order
significantly affecting the quality of the human environment and in
accordance with the National Environmental Policy Act of
[[Page 42943]]
1969, Pub. L. 91-190, an environmental impact statement is not
required.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this rule
will 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. No programmatic or policy changes
will result from this rule that would affect the relationship between
the Federal Government and State and local governments.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule will not have
the potential for significant impact on family formation, maintenance,
or general well-being, and thus is not subject to review under the
Order. No significant change in existing HUD or USDA policies or
programs will result from promulgation of this rule.
Text of Final Common Rule
The text of the final common rule, as adopted by the agencies in
this document, appears below:
PART ______--CONGREGATE HOUSING SERVICES PROGRAM
Sec.
______.100 Purpose.
______.105 Definitions.
______.110 Announcement of fund availability, application process
and selection.
______.115 Program costs.
______.120 Eligible supportive services.
______.125 Eligibility for services.
______.130 Service coordinator.
______.135 Professional assessment committee.
______.140 Participatory agreement.
______.145 Cost distribution.
______.150 Program participant fees.
______.155 Grant agreement and administration.
______.160 Eligibility and priority for 1978 Act recipients.
______.165 Evaluation of Congregate Housing Services Programs.
______.170 Reserve for supplemental adjustment.
______.175 Other Federal requirements.
$______.100 Purpose.
The requirements of this part augment the requirements of section
802 of the National Affordable Housing Act of 1990 (approved November
28, 1990, Public Law 101-625) (42 U.S.C. 8011), (hereinafter, section
802), as amended by the Housing and Community Development Act of 1992
(Public Law 102-550, approved October 28, 1992), which authorizes the
Congregate Housing Services Program (hereinafter, CHSP or Program).
Sec. ______ .105 Definitions.
In addition to the definitions in section 802(k), the following
definitions apply to CHSP:
Activity of Daily Living (ADL) means an activity regularly
necessary for personal care. (1) The minimum requirements of ADLs
include:
(i) Eating (may need assistance with cooking, preparing or serving
food, but must be able to feed self);
(ii) Dressing (must be able to dress self, but may need occasional
assistance);
(iii) Bathing (may need assistance in getting in and out of the
shower or tub, but must be able to wash self);
(iv) Grooming (may need assistance in washing hair, but must be
able to take care of personal appearance);
(v) Getting in and out of bed and chairs, walking, going outdoors,
using the toilet; and
(vi) Household management activities (may need assistance in doing
housework, grocery shopping or laundry, or getting to and from one
location to another for activities such as going to the doctor and
shopping, but must be mobile. The mobility requirement does not exclude
persons in wheelchairs or those requiring mobility devices.)
(2) Each of the Activities of Daily Living noted in paragraph (1)
of this definition includes a requirement that a person must be able to
perform at a specified minimal level (e.g., to satisfy the eating ADL,
the person must be able to feed himself or herself). The determination
of whether a person meets this minimal level of performance must
include consideration of those services that will be performed by a
person's spouse, relatives or other attendants to be provided by the
individual. For example, if a person requires assistance with cooking,
preparing or serving food plus assistance in feeding himself or
herself, the individual would meet the minimal performance level and
thus satisfy the eating ADL, if a spouse, relative or attendant
provides assistance with feeding the person. Should such assistance
become unavailable at any time, the owner is not obligated at any time
to provide individualized services beyond those offered to the resident
population in general. The Activities of Daily Living analysis is
relevant only with regard to determination of a person's eligibility to
receive supportive services paid for by CHSP and is not a determination
of eligibility for occupancy;
Adjusted income means adjusted income as defined in 24 CFR parts
813 or 913.
Applicant means a State, Indian tribe, unit of general local
government, public housing authority (PHA), Indian housing authority
(IHA) or local nonprofit housing sponsor. A State, Indian tribe, or
unit of general local government may apply on behalf of a local
nonprofit housing sponsor or a for-profit owner of eligible housing for
the elderly.
Area agency on aging means the single agency designated by the
State Agency on Aging to administer the program described in Title III
of the Older Americans Act of 1965 (45 CFR chapter 13).
Assistant Secretary means the HUD Assistant Secretary for Housing-
Federal Housing Commissioner or the HUD Assistant Secretary for Public
and Indian Housing.
Case management means implementing the processes of: establishing
linkages with appropriate agencies and service providers in the general
community in order to tailor the needed services to the program
participant; linking program participants to providers of services that
the participant needs; making decisions about the way resources are
allocated to an individual on the basis of needs; developing and
monitoring of case plans in coordination with a formal assessment of
services needed; and educating participants on issues, including, but
not limited to, supportive service availability, application procedures
and client rights.
Eligible housing for the elderly means any eligible project
including any building within a mixed-use project that was designated
for occupancy by elderly persons, or persons with disabilities at its
inception or, although not so designated, for which the eligible owner
or grantee gives preference in tenant selection (with HUD approval) for
all units in the eligible project (or for a building within an eligible
mixed-use project) to eligible elderly persons, persons with
disabilities, or temporarily disabled individuals. For purposes of this
part, this term does not include projects assisted under the Low-Rent
Housing Homeownership Opportunity program (Turnkey III (24 CFR part
905, subpart G)).
Eligible owner means an owner of an eligible housing project.
[[Page 42944]]
Excess residual receipts mean residual receipts of more than $500
per unit in the project which are available and not committed to other
uses at the time of application to HUD for CHSP. Such receipts may be
used as matching funds and may be spent down to a minimum of $500/unit.
For-profit owner of eligible housing for the elderly means an owner
of an eligible housing project in which some part of the project's
earnings lawfully inure to the benefit of any private shareholder or
individual.
Grantee or Grant recipient means the recipient of funding under
CHSP. Grantees under this Program may be states, units of general local
government, Indian tribes, PHAs, IHAs, and local nonprofit housing
sponsors.
Local nonprofit housing sponsor means an owner or borrower of
eligible housing for the elderly; no part of the net earnings of the
owning organization shall lawfully inure to the benefit of any
shareholder or individual.
Nonprofit includes a public housing agency as that term is defined
in section 3(b)(6) of the United States Housing Act of 1937.
Person with disabilities means a household composed of one or more
persons, at least one of whom is an adult who has a disability. (1) A
person shall be considered to have a disability if such person is
determined under regulations issued by the Secretary to have a
physical, mental, or emotional impairment which:
(i) Is expected to be of long-continued and indefinite duration;
(ii) Substantially impedes his or her ability to live
independently; and
(iii) Is of such a nature that the person's ability could be
improved by more suitable housing conditions.
(2) A person shall also be considered to have a disability if the
person has a developmental disability as defined in section 102(5) of
the Developmental Disabilities Assistance and Bill of Rights Act (42
U.S.C. 6001-7). Notwithstanding the preceding provisions of this
paragraph, the terms ``person with disabilities'' or ``temporarily
disabled'' include two or more persons with disabilities living
together, one or more such persons living with another person who is
determined (under regulations prescribed by the Secretary of HUD) to be
essential to their care or well-being, and the surviving member or
members of any household where at least one or more persons was an
adult with a disability who was living, in a unit assisted under this
section, with the deceased member of the household at the time of his
or her death.
Program participant (participant) means any project resident as
defined in section 802(e)(1) who is formally accepted into CHSP,
receives CHSP services, and resides in the eligible housing project
served by CHSP grant.
Qualifying supportive services means those services described in
section 802(k)(16). Under this Program, ``health-related services''
mean non-medical supervision, wellness programs, preventive health
screening, monitoring of medication consistent with state law, and non-
medical components of adult day care. The Secretary concerned may also
approve other requested supportive services essential for achieving and
maintaining independent living.
Rural Housing Service (RHS) means a credit agency for rural housing
and rural development in the U.S. Department of Agriculture (USDA).
Secretary concerned means (1) The Secretary of Housing and Urban
Development, with respect to eligible federally assisted housing
administered by HUD; and
(2) The Secretary of Agriculture with reference to programs
administered by the Administrator of the Rural Housing Service.
Service coordinator means CHSP staff person responsible for
coordinating Program services as described in section ______.130.
Service provider means a person or organization licensed or
otherwise approved in writing by a State or local agency (e.g.,
Department of Health, Department of Human Services or Welfare) to
provide supportive services.
State agency means the State or an agency or instrumentality of the
State.
State agency on aging means the single agency designated by the
Governor to administer the program described in Title III of the Older
Americans Act of 1965 (See 45 CFR part 13).
Sec. ______.110 Notice of funding availability, application process
and selection.
(a) Notice of funding availability. A Notice of Funding
Availability (NOFA) will be published periodically in the Federal
Register by the Secretary concerned containing the amounts of funds
available, allocation or distribution of funds available among eligible
applicant groups, where to obtain and submit applications, the deadline
for submissions, and further explanation of the selection criteria,
review and selection process. The Secretary concerned will designate
the maximum allowable size for grants.
(b) Selection criteria are set forth in section 802(h)(1) and shall
include additional criteria specified by the Secretary concerned.
Sec. ______.115 Program costs.
(a) Allowable costs. (1) Allowable costs for direct provision of
supportive services includes the provision of supportive services and
others approved by the Secretary concerned for:
(i) Direct hiring of staff, including a service coordinator;
(ii) Supportive service contracts with third parties;
(iii) Equipment and supplies (including food) necessary to provide
services;
(iv) Operational costs of a transportation service (e.g., mileage,
insurance, gasoline and maintenance, driver wages, taxi or bus
vouchers);
(v) Purchase or leasing of vehicles;
(vi) Direct and indirect administrative expenses for administrative
costs such as annual fiscal review and audit, telephones, postage,
travel, professional education, furniture and equipment, and costs
associated with self evaluation or assessment (not to exceed one
percent of the total budget for the activities approved); and
(vii) States, Indian tribes and units of general local government
with more than one project included in the grant may receive up to 1%
of the total cost of the grant for monitoring the projects.
(2) Allowable costs shall be reasonable, necessary and recognized
as expenditures in compliance with OMB Cost Policies, i.e., OMB
Circular A-87, 24 CFR 85.36, and OMB Circular A-128.
(b) Nonallowable costs. (1) CHSP funds may not be used to cover
expenses related to any grantee program, service, or activity existing
at the time of application to CHSP.
(2) Examples of nonallowable costs under the program are:
(i) Capital funding (such as purchase of buildings, related
facilities or land and certain major kitchen items such as stoves,
refrigerators, freezers, dishwashers, trash compactors or sinks);
(ii) Administrative costs that represent a non-proportional share
of costs charged to the Congregate Housing Services Program for rent or
lease, utilities, staff time;
(iii) Cost of supportive services other than those approved by the
Secretary concerned;
(iv) Modernization, renovation or new construction of a building or
facility, including kitchens;
(v) Any costs related to the development of the application and
plan of operations before the effective date of CHSP grant award;
(vi) Emergency medical services and ongoing and regular care from
doctors
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and nurses, including but not limited to administering medication,
purchase of medical supplies, equipment and medications, overnight
nursing services, and other institutional forms of service, care or
support;
(vii) Occupational therapy and vocational rehabilitation services;
or
(viii) Other items defined as unallowable costs elsewhere in this
part, in CHSP grant agreement, and OMB Circular A-87 or 122.
(c) Administrative cost limitation. Grantees are subject to the
limitation in section 802(j)(4).
Sec. ______.120 Eligible supportive services.
(a) Supportive services or funding for such services may be
provided by state, local, public or private providers and CHSP funds. A
CHSP under this section shall provide meal and other qualifying
services for program participants (and other residents and
nonresidents, as described in Sec. ______ .125(a)) that are coordinated
on site.
(b) Qualifying supportive services are those listed in section
802(k)(16) and in section ______ .105.
(c) Meal services shall meet the following guidelines:
(1) Type of service. At least one meal a day must be served in a
group setting for some or all of the participants; if more than one
meal a day is provided, a combination of a group setting and carry-out
meals may be utilized.
(2) Hot meals. At least one meal a day must be hot. A hot meal for
the purpose of this program is one in which the principal food item is
hot at the time of serving.
(3) Special menus. Grantees shall provide special menus as
necessary for meeting the dietary needs arising from the health
requirements of conditions such as diabetes and hypertension. Grantees
should attempt to meet the dietary needs of varying religious and
ethnic backgrounds.
(4) Meal service standards. Grantees shall plan for and provide
meals which are wholesome, nutritious, and each of which meets a
minimum of one-third of the minimum daily dietary allowances as
established by the Food and Nutrition Board of the National Academy of
Sciences-National Research Council (or State or local standards, if
these standards are higher). Grantees must have an annual
certification, prepared and signed by a registered dietitian, which
states that each meal provided under CHSP meets the minimum daily
dietary allowances.
(5) Food stamps and agricultural commodities. In providing meal
services grantees must apply for and use food stamps and agricultural
commodities as set forth in section 802(d)(2)(A).
(6) Preference for nutrition providers: In contracting for or
otherwise providing for meal services grantees must follow the
requirements of section 802(d)(2)(B). These requirements do not
preclude a grantee or owner from directly preparing and providing meals
under its own auspices.
Sec. ______ .125 Eligibility for services.
(a) Participants, other residents, and nonresidents. Such
individuals are eligible either to participate in CHSP or to receive
CHSP services, if they qualify under section 802(e)(1), (4) and (5).
Under this paragraph, temporarily disabled persons are also eligible.
(b) Economic need. In providing services under CHSP, grantees shall
give priority to very low income individuals, and shall consider their
service needs in selecting program participants.
Sec. ______.130 Service coordinator.
(a) Each grantee must have at least one service coordinator who
shall perform the responsibilities listed in section 802(d)(4).
(b) The service coordinator shall comply with the qualifications
and standards required by the Secretary concerned. The service
coordinator shall be trained in the subject areas set forth in section
802(d)(4), and in any other areas required by the Secretary concerned.
(c) The service coordinator may be employed directly by the
grantee, or employed under a contract with a case management agency on
a fee-for-service basis, and may serve less than full-time. The service
coordinator or the case management agency providing service
coordination shall not provide supportive services under a CHSP grant
or have a financial interest in a service provider agency which intends
to provide services to the grantee for CHSP.
(d) The service coordinator shall:
(1) Provide general case management and referral services to all
potential participants in CHSP. This involves intake screening, upon
referral from the grantee of potential program participants, and
preliminary assessment of frailty or disability, using a commonly
accepted assessment tool. The service coordinator then will refer to
the professional assessment committee (PAC) those individuals who
appear eligible for CHSP;
(2) Establish professional relationships with all agencies and
service providers in the community, and develop a directory of
providers for use by program staff and program participants;
(3) Refer proposed participants to service providers in the
community, or those of the grantee;
(4) Serve as staff to the PAC;
(5) Complete, for the PAC, all paperwork necessary for the
assessment, referral, case monitoring and reassessment processes;
(6) Implement any case plan developed by the PAC and agreed to by
the program participant;
(7) Maintain necessary case files on each program participant,
containing such information and kept in such form as HUD and RHS shall
require;
(8) Provide the necessary case files to PAC members upon request,
in connection with PAC duties;
(9) Monitor the ongoing provision of services from community
agencies and keep the PAC and the agency providing the supportive
service informed of the progress of the participant;
(10) Educate grant recipient's program participants on such issues
as benefits application procedures (e.g. SSI, food stamps, Medicaid),
service availability, and program participant options and
responsibilities;
(11) Establish volunteer support programs with service
organizations in the community;
(12) Assist the grant recipient in building informal support
networks with neighbors, friends and family; and
(13) Educate other project management staff on issues related to
``aging-in-place'' and services coordination, to help them to work with
and assist other persons receiving housing assistance through the
grantee.
(e) The service coordinator shall tailor each participant's case
plan to the individual's particular needs. The service coordinator
shall work with community agencies, the grantee and third party service
providers to ensure that the services are provided on a regular,
ongoing, and satisfactory basis, in accordance with the case plan
approved by the PAC and the participant.
(f) Service coordinators shall not serve as members of the PAC.
Sec. ______.135 Professional assessment committee.
(a) General. (1) A professional assessment committee (PAC), as
described in this section, shall recommend services appropriate to the
functional abilities and needs of each eligible project resident. The
PAC shall be either a voluntary committee appointed by the project
management or an agency in the community which provides assessment
services and
[[Page 42946]]
conforms to section 802(e)(3)(A) and (B). PAC members are subject to
the conflict of interest provisions in section ______ .175(b).
(2) The PAC shall utilize procedures that ensure that the process
of determining eligibility of individuals for congregate services
affords individuals fair treatment, due process, and a right of appeal
of the determination of eligibility, and shall ensure the
confidentiality of personal and medical records.
(3) The dollar value of PAC members' time spent on regular
assessments after initial approval of program participants may be
counted as match. If a community agency discharges the duties of the
PAC, staff time is counted as its imputed value, and if the members are
volunteers, their time is counted as volunteer time, according to
sections ______.145(c)(2) (ii) and (iv).
(b) Duties of the PAC. The PAC is required to:
(1) Perform a formal assessment of each potential elderly program
participant to determine if the individual is frail. To qualify as
frail, the PAC must determine if the elderly person is deficient in at
least three ADLs, as defined in section ______.105. This assessment
shall be based upon the screening done by the service coordinator, and
shall include a review of the adequacy of the informal support network
(i.e., family and friends available to the potential participant to
assist in meeting the ADL needs of that individual), and may include a
more in-depth medical evaluation, if necessary;
(2) Determine if non-elderly disabled individuals qualify under the
definition of person with disabilities under section ______.105. If
they do qualify, this is the acceptance criterion for them for CHSP.
Persons with disabilities do not require an assessment by the PAC;
(3) Perform a regular assessment and updating of the case plan of
all participants;
(4) Obtain and retain information in participant files, containing
such information and maintained in such form, as HUD or RHS shall
require;
(5) Replace any members of the PAC within 30 days after a member
resigns. A PAC shall not do formal assessments if its membership drops
below three, or if the qualified medical professional leaves the PAC
and has not been replaced.
(6) Notify the grantee or eligible owner and the program
participants of any proposed modifications to PAC procedures, and
provide these parties with a process and reasonable time period in
which to review and comment, before adoption of a modification;
(7) Provide assurance of nondiscrimination in selection of CHSP
participants, with respect to race, religion, color, sex, national
origin, familial status or type of disability;
(8) Provide complete confidentiality of information related to any
individual examined, in accordance with the Privacy Act of 1974;
(9) Provide all formal information and reports in writing.
(c) Prohibitions relating to the PAC. (1) At least one PAC member
shall not have any direct or indirect relationship to the grantee.
(2) No PAC member may be affiliated with organizations providing
services under the grant.
(3) Individuals or staff of third party organizations that act as
PAC members may not be paid with CHSP grant funds.
(d) Eligibility and admissions. (1) Before selecting potential
program participants, each grantee (with PAC assistance) shall develop
a CHSP application form. The information in the individual's
application is crucial to the PAC's ability to determine the need for
further physical or psychological evaluation.
(2) The PAC, upon completion of a potential program participant's
initial assessment, must make a recommendation to the service
coordinator for that individual's acceptance or denial into CHSP.
(3) Once a program participant is accepted into CHSP, the PAC must
provide a supportive services case plan for each participant. In
developing this plan, the PAC must take into consideration the
participant's needs and wants. The case plan must provide the minimum
supportive services necessary to maintain independence.
(e) Transition-out procedures. The grantee or PAC must develop
procedures for providing for an individual's transition out of CHSP to
another setting. Transition out is based upon the degree of supportive
services needed by an individual to continue to live independently. If
a program participant leaves the program, but wishes to retain
supportive services, he or she may do so, as long as he or she
continues to live in an eligible project, pays the full cost of
services provided, and management agrees (section 802(e)(4) and (5)). A
participant can be moved out of CHSP if he or she:
(1) Gains physical and mental health and is able to function
without supportive services, even if only for a short time (in which
case readmission, based upon reassessment to determine the degree of
frailty or the disability, is acceptable);
(2) Requires a higher level of care than that which can be provided
under CHSP; or
(3) Fails to pay services fees.
(f) Procedural rights of participants. (1) The PAC must provide an
informal process that recognizes the right to due process of
individuals receiving assistance. This process, at a minimum, must
consist of:
(i) Serving the participant with a written notice containing a
clear statement of the reasons for termination;
(ii) A review of the decision, in which the participant is given
the opportunity to present written or oral objections before a person
other than the person (or a subordinate of that person) who made or
approved the termination decision; and
(iii) Prompt written notification of the final decision to the
participant.
(2) Procedures must ensure that any potential or current program
participant, at the time of initial or regular assessment, has the
option of refusing offered services and requesting other supportive
services as part of the case planning process.
(3) In situations where an individual requests additional services,
not initially recommended by the PAC, the PAC must make a determination
of whether the request is legitimately a needs-based service that can
be covered under CHSP subsidy. Individuals can pay for services other
than those recommended by the PAC as long as the additional services do
not interfere with the efficient operation of the program.
Sec. ______ .140 Participatory agreement.
(a) Before actual acceptance into CHSP, potential participants must
work with the PAC and the service coordinator in developing supportive
services case plans. A participant has the option of accepting any of
the services under the case plan.
(b) Once the plan is approved by the PAC and the program
participant, the participant must sign a participatory agreement
governing the utilization of the plan's supportive services and the
payment of supportive services fees. The grantee annually must
renegotiate the agreement with the participant.
Sec. ______ .145 Cost distribution.
(a) General. (1) Grantees, the Secretary concerned, and
participants shall all contribute to the cost of providing supportive
services according to section 802(i)(A)(i). Grantees must contribute at
least 50 percent of program cost, participants must contribute fees
that in total are at least 10 percent of program
[[Page 42947]]
cost, and the Secretary concerned will provide funds in an amount not
to exceed 40 percent.
(2) Section 802(i)(1)(B)(ii) creates a cost-sharing provision
between grantee and the Secretary concerned if total participant fees
collected over a year are less than 10 percent of total program cost.
This provision is subject to availability of appropriated grant funds.
If funds are not available, the grantee must assume the funding
shortfall.
(b) Prohibition on substitution of funds and maintenance of
existing supportive services. Grantees shall maintain existing funding
for and provision of supportive services prior to the application date,
as set forth in section 802(i)(1)(D). The grantee shall ensure that the
activities provided to the project under a CHSP grant will be in
addition to, and not in substitution for, these previously existing
services. The value of these services do not qualify as matching funds.
Such services must be maintained either for the time the participant
remains in CHSP, or for the duration of CHSP grant. The grantee shall
certify compliance with this paragraph to the Secretary concerned.
(c) Eligible matching funds. (1) All sources of matching funds must
be directly related to the types of supportive services prescribed by
the PAC or used for administration of CHSP.
(2) Matching funds may include:
(i) Cash (which may include funds from Federal, State and local
governments, third party contributions, available payments authorized
under Medicaid for specific individuals in CHSP, Community Development
Block Grants or Community Services Block Grants, Older American Act
programs or excess residual funds with the approval of the Secretary
concerned),
(ii) The imputed dollar value of other agency or third party-
provided direct services or staff who will work with or provide
services to program participants; these services must be justified in
the application to assure that they are the new or expanded services of
CHSP necessary to keep the program participants independent. If
services are provided by the state, Indian tribe, unit of general local
government, or local nonprofit housing sponsor, IHA, PHA, or for-profit
or not-for-profit owner, any salary paid to staff from governmental
sources to carry out the program of the grantee and any funds paid to
residents employed by the Program (other than from amounts under a
contract under section ______.155) is allowable match.
(iii) In-kind items (these are limited to 10 percent of the 50
percent matching amount), such as the current market value of donated
common or office space, utility costs, furniture, material, supplies,
equipment and food used in direct provision of services. The applicant
must provide an explanation for the estimated donated value of any item
listed.
(iv) The value of services performed by volunteers to CHSP, at the
rate of $5.00 an hour.
(d) Limitation. (1) The following are not eligible for use as
matching funds:
(i) PHA operating funds;
(ii) CHSP funds;
(iii) Section 8 funds other than excess residual receipts;
(iv) Funds under section 14 of the U.S. Housing Act of 1937, unless
used for service coordination or case management; and
(v) Comprehensive grant funds unless used for service coordination
or case management;
(2) Local government contributions are limited by section
802(i)(1)(E).
(e) Annual review of match. The Secretary concerned will review the
infusion of matching funds annually, as part of the program or budget
review. If there are insufficient matching funds available to meet
program requirements at any point after grant start-up, or at any time
during the term of the grant (i.e., if matching funds from sources
other than program participant fees drop below 50 percent of total
supportive services cost), the Secretary concerned may decrease the
federal grant share of supportive services funds accordingly.
Sec. ______.150 Program participant fees.
(a) Eligible program participants. The grantee shall establish fees
consistent with section ______.145(a). Each program participant shall
pay CHSP fees as stated in paragraphs (d) and (e) of this section, up
to a maximum of 20 percent of the program participant's adjusted
income. Consistent with section 802(d)(7)(A), the Secretary concerned
shall provide for the waiver of fees for individuals who are without
sufficient income to provide for any payment.
(b) Fees shall include: (1) Cash contributions of the program
participant;
(2) Food Stamps; and
(3) Contributions or donations to other eligible programs
acceptable as matching funds under section ______.145(c).
(c) Older Americans Act programs. No fee may be charged for any
meals or supportive services under CHSP if that service is funded under
an Older Americans Act Program.
(d) Meals fees: (1) For full meal services, the fees for residents
receiving more than one meal per day, seven days per week, shall be
reasonable and shall equal between 10 and 20 percent of the adjusted
income of the project resident, or the cost of providing the services,
whichever is less.
(2) The fees for residents receiving meal services less frequently
than as described in paragraph (d)(1) of this section shall be in an
amount equal to 10 percent of the adjusted income of the project
resident, or the cost of providing the services, whichever is less.
(e) Other service fees. The grantee may also establish fees for
other supportive services so that the total fees collected from all
participants for meals and other services is at least 10 percent of the
total cost of CHSP. However, no program participants may be required to
pay more than 20 percent of their adjusted incomes for any combination
of services.
(f) Other residents and nonresidents. Fees shall be established for
residents of eligible housing projects (other than eligible project
residents) and for nonresidents who receive meals and other services
from CHSP under section ______.125(a). These fees shall be in an amount
equal to the cost of providing the services.
Sec. ________.155 Grant agreement and administration.
(a) General. HUD will enter into grant agreements with grantees, to
provide congregate services for program participants in eligible
housing projects, in order to meet the purposes of CHSP.
(b) Term of grant agreement and reservation of amount. A grant will
be for a term of five years and the Secretary concerned shall reserve a
sum equal to the total approved grant amount for each grantee. Grants
will be renewable at the expiration of a term, subject to the
availability of funds and conformance with the regulations in this
part, except as otherwise provided in section ______.160.
(c) Monitoring of project sites by governmental units. States,
Indian tribes, and units of general local government with a grant
covering multiple projects shall monitor, review, and evaluate Program
performance at each project site for compliance with CHSP regulations
and procedures, in such manner as prescribed by HUD or RHS.
(d) Reports. Each grantee shall submit program and fiscal reports
and program budgets to the Secretary concerned in such form and at such
times, as the Secretary concerned requires.
(e) Enforcement. The Secretary concerned will enforce the
obligations of the grantee under the agreement through such action as
may be
[[Page 42948]]
necessary, including terminating grants, recapturing grant funds, and
imposing sanctions.
(1) These actions may be taken for:
(i) A grantee's non-compliance with the grant agreement or HUD or
RHS regulations;
(ii) Failure of the grantee to provide supportive services within
12 months of execution of the grant agreement.
(2) Sanctions include but are not limited to the following:
(i) Temporary withholding of reimbursements or extensions or
renewals under the grant agreement, pending correction of deficiencies
by the grantee;
(ii) Setting conditions in the contract;
(iii) Termination of the grant;
(iv) Substitution of grantee; and
(v) Any other action deemed necessary by the Secretary concerned.
(f) Renewal of grants. Subject to the availability of funding,
satisfactory performance, and compliance with the regulations in this
part:
(1) Grantees funded initially under this part shall be eligible to
receive continued, non-competitive renewals after the initial five-year
term of the grant.
(2) Grantees will receive priority funding and grants will be
renewed within time periods prescribed by the Secretary concerned.
(g) Use of Grant Funds. If during any year, grantees use less than
the annual amount of CHSP funds provided to them for that year, the
excess amount can be carried forward for use in later years.
Sec. ______ .160 Eligibility and priority for 1978 Act recipients.
Grantees funded initially under 42 U.S.C. 8001 shall be eligible to
receive continued, non-competitive funding subject to its availability.
These grantees will be eligible to receive priority funding under this
part if they comply with the regulations in this part and with the
requirements of any NOFA issued in a particular fiscal year.
Sec. ________.165 Evaluation of Congregate Housing Services Programs.
(a) Grantees shall submit annually to the Secretary concerned, a
report evaluating the impact and effectiveness of CHSPs at the grant
sites, in such form as the Secretary concerned shall require.
(b) The Secretaries concerned shall further review and evaluate the
performance of CHSPs at these sites and shall evaluate the Program as a
whole.
(c) Each grantee shall submit a certification with its application,
agreeing to cooperate with and to provide requested data to the entity
responsible for the Program's evaluation, if requested to do so by the
Secretary concerned.
Sec. ________.170 Reserve for supplemental adjustment.
The Secretary concerned may reserve funds subject to section
802(o). Requests to utilize supplemental funds by the grantee shall be
transmitted to the Secretary concerned in such form as may be required.
Sec. ________.175 Other Federal requirements.
In addition to the Federal Requirements set forth in 24 CFR part 5,
the following requirements apply to grant recipient organizations in
this program:
(a) Office of Management and Budget (OMB) Circulars and
Administrative Requirements. The policies, guidelines, and requirements
of OMB Circular No. A-87 and 24 CFR part 85 apply to the acceptance and
use of assistance under this program by public body grantees. The
policies, guidelines, and requirements of OMB Circular No. A-122 apply
to the acceptance and use of assistance under this program by non-
profit grantees. Grantees are also subject to the audit requirements
described in 24 CFR part 44 (OMB Circular A-128).
(b) Conflict of interest. In addition to the conflict of interest
requirements in OMB Circular A-87 and 24 CFR part 85, no person who is
an employee, agent, consultant, officer, or elected or appointed
official of the applicant, and who exercises or has exercised any
function or responsibilities with respect to activities assisted with
CHSP grant funds, or who is 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
the activity, or have an interest in any contract, subcontract, or
agreement with respect thereto, or any proceeds thereunder, either for
himself or herself or for those with whom he or she has family or
business ties during his or her tenure, or for one year thereafter.
CHSP employees may receive reasonable salary and benefits.
(c) Disclosures required by Reform Act. Section 102(c) of the HUD
Reform Act of 1989 (42 U.S.C. 3545(c)) requires disclosure concerning
other government assistance to be made available with respect to the
Program and parties with a pecuniary interest in CHSP and submission of
a report on expected sources and uses of funds to be made available for
CHSP. Each applicant shall include information required by 24 CFR part
12 on form HUD-2880 ``Applicant/Recipient Disclosure/Update Report,''
as required by the Federal Register Notice published on January 16,
1992, at 57 FR 1942.
(d) Nondiscrimination and equal opportunity. (1) The fair housing
poster regulations (24 CFR part 110) and advertising guidelines (24 CFR
part 109);
(2) The Affirmative Fair Housing Marketing Program requirements of
24 CFR part 200, subpart M, and the implementing regulations at 24 CFR
part 108; and
(3) Racial and ethnic collection requirements--Recipients must
maintain current data on the race, ethnicity and gender of program
applicants and beneficiaries in accordance with section 562 of the
Housing and Community Development Act of 1987 and section 808(e)(6) of
the Fair Housing Act.
(e) Environmental requirements. Support services, including the
operating and administrative expenses described in
section________.115(a), are categorically excluded from the
requirements of the National Environmental Policy Act (NEPA) of 1969.
These actions, however, are not excluded from individual compliance
requirements of other environmental statutes, Executive Orders, and
agency regulations where appropriate. When the responsible official
determines that any action under this part may have an environmental
effect because of extraordinary circumstances, the requirements of NEPA
shall apply.
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DEPARTMENT OF AGRICULTURE
Adoption of the Final Common Rule
The agency specific adoption of the final common rule, which
appears at the end of the common preamble, appears below:
RURAL HOUSING SERVICE
7 CFR Part 1944
List of Subjects in 7 CFR Part 1944
Farm labor housing, Migrant labor, Nonprofit organizations, Public
housing, Rent subsidies, and Rural rental housing.
Dated: July 18, 1996.
Jill Long Thompson,
Under Secretary, Rural Development.
Title 7 of the Code of Federal Regulations, part 1944 is amended as
follows:
1. The authority citation for subpart F continues to read as
follows:
Authority: 42 U.S.C. 1480, 8011 and 5 U.S.C. 301.
2. Subpart F, consisting of Secs. 1944.251 [______.100] through
[[Page 42949]]
1944.266 [________.175], is revised to read as set forth at the end of
the common preamble.
PART 1944--HOUSING
Subpart F--Congregate Housing Services Program
Sec.
1944.251 Purpose.
1944.252 Definitions.
1944.253 Announcement of fund availability, application process and
selection.
1944.254 Program costs.
1944.255 Eligible supportive services.
1944.256 Eligibility for services.
1944.257 Service coordinator.
1944.258 Professional assessment committee.
1944.259 Participatory agreement.
1944.260 Cost distribution.
1944.261 Program participant fees.
1944.262 Grant agreement and administration.
1944.263 Eligibility and priority for 1978 Act recipients.
1944.264 Evaluation of Congregate Housing Services Programs.
1944.265 Reserve for supplemental adjustment.
1944.266 Other Federal requirements.
3. The words ``this part'' are revised to read ``this subpart'' in
the following places: Secs. 1944.100, 1944.105 in the definition for
``Eligible housing for the elderly'', 1944.115(b)(2)(viii), 1944.155
(b) introductory text, (f) introductory text and (f)(1), 1944.160, and
1944.175(e).
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 700
List of Subjects in 24 CFR Part 700
Aged, Grant programs--housing and community development,
Individuals with disabilities, Low and moderate income housing,
Nutrition, Public housing, Rent subsidies, Reporting and recordkeeping
requirements, Supportive services.
Title 24 of the Code of Federal Regulations is amended by revising
part 700 to read as set forth at the end of the common preamble.
Dated: March 14, 1996.
Henry G. Cisneros,
Secretary.
PART 700--CONGREGATE HOUSING SERVICES PROGRAM
Sec.
700.100 Purpose.
700.105 Definitions.
700.110 Announcement of fund availability, application process and
selection.
700.115 Program costs.
700.120 Eligible supportive services.
700.125 Eligibility for services.
700.130 Service coordinator.
700.135 Professional assessment committee.
700.140 Participatory agreement.
700.145 Cost distribution.
700.150 Program participant fees.
700.155 Grant agreement and administration.
700.160 Eligibility and priority for 1978 Act recipients.
700.165 Evaluation of Congregate Housing Services Programs.
700.170 Reserve for supplemental adjustment.
700.175 Other Federal requirements.
Authority: 42 U.S.C. 3535(d) and 8011.
[FR Doc. 96-20563 Filed 8-16-96; 8:45 am]
BILLING CODE 3410-07-P; 4210-32-P
