[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19229]
[[Page Unknown]]
[Federal Register: August 9, 1994]
_______________________________________________________________________
Part V
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Assistant Secretary for Housing--Federal Housing
Commissioner
_______________________________________________________________________
24 CFR Part 261
Federally Assisted Low Income Housing Drug Elimination Program;
Proposed Rule
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Housing--Federal Housing
Commissioner
24 CFR Part 261
(Docket No. R-94-1741; FR-3467-P-01)
RIN 2502-AG07
Federally Assisted Low Income Housing Drug Elimination Program
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement the Assisted Housing Drug
Elimination Program, as authorized by section 581 of the National
Affordable Housing Act (NAHA) (approved November 28, 1990, Pub. L. 101-
625) and section 161 of the Housing and Community Development Act of
1992 (HCDA 1992) (Pub. L. 102-550, approved October 28, 1992). The
program authorizes HUD to make grants to owners of federally assisted
low income housing for use in eliminating drug-related crime and/or the
problems associated with it.
DATES: Comments due date: October 11, 1994.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule to the Rules Docket Clerk, Office of General
Counsel, Room 10276, Department of Housing and Urban Development, 451
Seventh Street, S.W., Washington, D.C. 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.
Comments received by facsimile machine (FAX) will not be accepted.
FOR FURTHER INFORMATION CONTACT: Lessley Wiles, Office of Multifamily
Housing Management, Operations Division, (202) 708-0216 (voice) or
(202) 708-3938 (TDD for speech or hearing-impaired). (These are not
toll free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act Statement
The information collection requirements contained in this rule have
been approved by the Office of Management and Budget, under section
3504(h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520),
and assigned OMB control number 2502-0476.
I. Background
The Public Housing Drug Elimination Program was first authorized by
Chapter 2, Subtitle C, Title V of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11901-11908). Implementing regulations for this program were
issued by HUD and codified at 24 CFR 961. Applicants eligible to
receive grants under this program were public housing agencies (PHAs),
including Indian housing authorities (IHAs).
Section 581 of the National Affordable Housing Act (NAHA) (approved
November 28, 1990, Pub. L. 101-625) amended the Drug Elimination
Program in a number of ways, including the addition of authorization to
make grants to private, for-profit and nonprofit owners of federally
assisted low-income housing for use in eliminating drug-related crime.
The statutory program requirements for the Public and Indian Housing
Drug Elimination Program and the Assisted Housing Drug Elimination
Program are identical, although the Department is permitted to
establish other criteria, in addition to those applicable to public and
Indian housing, for the evaluation of funding applications submitted by
owners of federally assisted low-income housing. The statute provides
that such additional criteria shall be designed only to reflect--(1)
relevant differences between the financial resources and other
characteristics of public housing authorities and owners of federally
assisted low-income housing, or (2) relevant differences between the
problem of drug-related crime in public housing and the problem of
drug-related crime in federally assisted low-income housing. Comments
are specifically invited on what additional criteria consistent with
the guidance, cited above, provided by the statute would be appropriate
for selecting grant recipients.
This rule would implement the Assisted Housing Drug Elimination
Program. It follows the statute and the rule for the Public and Indian
Housing Drug Elimination Program very closely. The main difference from
the Public and Indian Housing Drug Elimination Program is in the level
of detail provided in the rule. To permit the Department to be more
responsive in the targeting of resources under this program, which have
generally been made available at a much lower level than for public and
Indian housing, this rule would provide for more flexibility in Notices
of Funding Availability (NOFAs) concerning the scope of submission
requirements and eligible activities for any particular funding round.
II. Other Matters
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with the Department's regulations at 24 CFR
Part 50 which implement Section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332). The Finding of No Significant
Impact is available for public inspection between 7:30 a.m. and 5:30
p.m. weekdays at the Office of the Rules Docket Clerk, Room 10276,
Department of Housing and Urban Development, 451 Seventh Street, S.W.,
Washington, DC 20410.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act
(5 U.S.C. 605(b)), has reviewed this rule before publication and by
approving it certifies that this rule does not have a significant
economic impact on a substantial number of small entities. The rule
would provide grants to eliminate drug-related crime in federally
assisted low-income housing. Although small entities in the form of
owners of federally assisted low-income housing could participate in
the program, the rule is not intended to and would not have a
significant economic impact on them.
Family
The General Counsel, as the Designated Official for Executive Order
12606, the Family, has determined that the provisions of this rule have
the potential for a positive, although indirect, impact on family
formation, maintenance and general well-being within the meaning of the
Order. The proposed rule would implement a program that would encourage
owners of federally assisted low-income housing to develop a plan for
addressing the problem of drug-related crime, and to make available
grants to carry out this plan. As such, the program is intended to
improve the quality of life of federally assisted low-income housing
residents, including families, by reducing the incidence of drug-
related crime.
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 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 and, therefore,
the provisions of this rule do not have ``federalism implications''
within the meaning of the Order. The rule implements a program that
encourages owners of federally assisted low-income housing to develop a
plan for addressing the problem of drug-related crime, and makes
available grants to help them carry out their plans. As such, the
program would help combat serious drug-related crime problems in their
housing. In addition, further review under the Order is unnecessary,
since the rule generally tracks the statute and involves little
implementing discretion.
This proposed rule was listed as Item No. 1562 in the Department's
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR
20424, 20442) under Executive Order 12866 and the Regulatory
Flexibility Act.
The Assisted Housing Drug Elimination Program is listed in the
Catalog of Federal Domestic Assistance as number 14-854.
List of Subjects in 24 CFR Part 261
Drug abuse, Drug traffic control, Grant programs--housing and
community development, Grant programs--low and moderate income housing,
Reporting and recordkeeping requirements.
For the reasons set out in the preamble, title 24, chapter II, of
the Code of Federal Regulations is amended by adding part 261,
consisting of Sec. Sec. 261.1 through 261.29, to read as follows:
PART 261--ASSISTED HOUSING DRUG ELIMINATION PROGRAM
Subpart A--General
Sec.
261.1 Purpose and scope.
261.5 Definitions.
Subpart B--Use of Grant Funds
261.10 Applicants and activities.
Subpart C--Application and Selection
261.15 Application selection and requirements.
261.18 Resident comments on grant application.
Subpart D--Grant Administration
261.26 Grant administration.
261.28 Grantee reports.
261.29 Other Federal requirements.
Authority: 42 U.S.C. 3535(d) and 11901 et seq.
Subpart A--General
Sec. 261.1 Purpose and scope.
The purposes of the Assisted Housing Drug Elimination Program are
to:
(a) Eliminate drug-related crime and the problems associated with
it in and around the premises of federally assisted, low-income
housing;
(b) Encourage owners of federally assisted, low-income housing to
develop a plan that includes initiatives that can be sustained over a
period of several years for addressing drug-related crime and/or the
problems associated with it in and around the premises of assisted
housing proposed for funding under this part; and
(c) Make available federal grants to help owners of federally
assisted, low-income housing carry out their plans.
Sec. 961.5 Definitions.
Act means The United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.)
Chief executive officer of a State or a unit of general local
government means the elected official, or the legally designated
official, who has the primary responsibility for the conduct of that
entity's governmental affairs. Examples of the ``chief executive
officer'' of a unit of general local government are: the elected mayor
of a municipality; the elected county executive of a county; the
chairperson of a county commission or board in a county that has no
elected county executive; or the official designated pursuant to law by
the governing body of the unit of general local government. The chief
executive officer of an Indian tribe is the tribal governing official.
Controlled substance means a drug or other substance or immediate
precursor included in schedule I, II, III, IV, or V of section 102 of
the Controlled Substances Act (21 U.S.C. 802). The term does not
include distilled spirits, wine, malt beverages or tobacco as those
terms are defined in Subtitle E of the Internal Revenue Code of 1954.
Drug intervention means a process to identify assisted housing
resident drug users and assist them in modifying their behavior and/or
refer them to drug treatment to eliminate drug abuse.
Drug prevention means a process to provide goods and services
designed to alter factors, including activities, environmental
influences, risks and expectations, that lead to drug abuse.
Drug-related crime means the illegal manufacture, sale,
distribution, use, or possession with intent to manufacture, sell,
distribute, or use, a controlled substance.
Drug treatment means a program for the residents of an applicant's
development that strives to end drug abuse and to eliminate its
negative effects through rehabilitation and relapse prevention.
Federally assisted, low-income housing (includes the term
``assisted housing'' as used in this rule) means housing assisted
under:
(1) Section 221(d)(3), section 221(d)(4) or 236 of the National
Housing Act (12 U.S.C. 1701 et seq.). (Note: However, section 221(d)(4)
and section 221(d)(3) market rate projects without project-based
assistance contracts are not considered federally assisted low-income
housing. Therefore, section 221(d)(4) and section 221(d)(3) market rate
projects with tenant-based assistance contracts are not considered
federally assisted low-income housing and are not eligible for
funding.);
(2) Section 101 of the Housing and Urban Development Act of 1965
(12 U.S.C. 1701s); or
(3) Section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f note) (not including tenant-based assistance).
Governmental jurisdiction means the unit of general local
government, State, or area of operation of an Indian tribe in which the
housing development administered by the applicant is located.
HUD or Department means the United States Department of Housing and
Urban Development.
In and around means within, or adjacent to, the physical boundaries
of a housing development.
Local law enforcement agency means a police department, sheriff's
office, or other entity of the governmental jurisdiction that has law
enforcement responsibilities for the community at large, including the
housing developments owned by the applicant.
Problems associated with drug-related crime means the negative
physical, social, educational and economic impact of drug-related crime
on assisted housing residents, and the deterioration of the assisted
housing environment because of drug-related crime.
Resident Organization (RO) means an incorporated or unincorporated
nonprofit organization or association that meets each of the following
requirements:
(1) It must be representative of the residents it purports to
represent;
(2) It may represent residents in more than one housing
development, but it must fairly represent residents from each
development that it represents;
(3) It must adopt written procedures providing for the election of
specific officers on a regular basis (but at least once every three
years);
(4) It must have a democratically elected governing board. The
voting membership of the board must consist of residents of the
development or developments that the resident organization represents.
Single State Agency means an agency responsible for licensing and
monitoring State or tribal drug abuse programs.
State means any of the several States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States, or any agency or instrumentality of a
State exclusive of local governments. The term does not include any
public or Indian housing agency under the United States Housing Act of
1937 (42 U.S.C. 1437 et seq.)
Unit of general local government means any city, county, town,
municipality, township, parish, village, local public authority or
other general purpose political subdivision of a State.
Subpart B--Use of Grant Funds
Sec. 261.10 Applicants and activities.
Applicants and activities eligible for funding under the Assisted
Housing Drug Elimination Program are listed in this section. The
applicants and activities eligible under any particular funding round
may be limited in a Notice of Funding Availability (NOFA) published in
the Federal Register. Additional details concerning eligible and
ineligible applicants and activities will also be published in the
NOFAs for this program.
(a) Eligible applicants. The applicant must be the owner of a
federally assisted low-income housing project under: (1) Section
221(d)(3), section 221(d)(4) or 236 of the National Housing Act (12
U.S.C. 1701 et seq.). (Note: However, section 221(d)(4) and section
221(d)(3) market rate projects without project-based assistance
contracts are not considered federally assisted low-income housing.
Therefore, section 221(d)(4) and section 221(d)(3) market rate projects
with tenant-based assistance contracts are not considered federally
assisted low-income housing and are not eligible for funding.);
(2) Section 101 of the Housing and Urban Development Act of 1965
(12 U.S.C. 1701s); or
(3) Section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f note) (not including tenant-based assistance).
(b) Eligible activities. An application for funding under this
program may be for one or more of the following eligible activities, as
further specified in program NOFAs:
(1) Employment of security personnel.
(2) Reimbursement of local law enforcement agencies for additional
security and protective services.
(3) Physical improvements to enhance security.
(4) Employment of one or more individuals:
(i) To investigate drug-related crime, and the problems associated
with it, on or about the real property comprising any federally
assisted, low-income housing project; and
(ii) To provide evidence relating to such crime in any
administrative or judicial proceeding.
(5) The provision of training, communications equipment, and other
related equipment for use by voluntary tenant patrols acting in
cooperation with local law enforcement officials.
(6) Drug-abuse prevention, intervention and treatment programs to
reduce the use of drugs.
(7) Continuation of current program activities. Current or previous
Assisted Housing Drug Elimination Program grant recipients may apply,
on the same basis as other applicants, for grants to continue their
grant activities or implement other program activities. The Department
will evaluate an applicant's performance under any previous Drug
Elimination Program grants within the past five years. Subject to
evaluation and review are the applicant's financial and program
performance; reporting and special condition compliance; accomplishment
of stated goals and objectives under the previous grant; and program
adjustments made in response to previous ineffective performance. If
the evaluation discloses a pattern under past grants of ineffective
performances with no corrective measures attempted, it will result in a
deduction of points from the current application. Since this is a
competitive program, HUD does not guarantee continued funding of any
previously funded Drug Elimination Program Grant.
Subpart C--Application and Selection
Sec. 261.15 Application selection and requirements.
(a) Selection criteria. HUD will review each application that it
determines meets the requirements of this part and assign points in
accordance with the selection criteria. The number of points that an
application receives will depend on the extent to which the application
is responsive to the information requested in Notices of Funding
Availability (NOFAs) published for this program. Each application
submitted for a grant under this part will be evaluated on the basis of
the following selection criteria:
(1) First criterion: the extent of the drug-related crime problem
in the applicant's development or developments proposed for assistance.
(2) Second criterion: the quality of the plan to address the crime
problem in the developments proposed for assistance, including the
extent to which the plan includes initiatives that can be sustained
over a period of several years.
(3) Third criterion: the capability of the applicant to carry out
the plan.
(4) Fourth criterion: the extent to which tenants, the local
government and the local community support and participate in the
design and implementation of the activities proposed to be funded under
the application.
(b) Plan requirement. Each application must include a plan for
addressing the problem of drug-related crime and/or the problems
associated with drug-related crime on the premises of the housing for
which the application is being submitted. For applications that cover
more than one housing development, the plan does not have to address
each development separately if the same activities will apply to each
development. Only where program activities will differ from one
development to another must the plan address each development
separately.
(c) Notice of Funding Availability. HUD will publish Notices of
Funding Availability (NOFAs) in the Federal Register, as appropriate,
to inform the public of the availability of grant amounts under this
part. NOFAs will provide specific guidance with respect to the grant
process, including the deadlines for the submission of grant
applications; the limits (if any) on maximum grant amounts; the
eligible applicants and activities; the information that must be
submitted to permit HUD to score each of the selection criteria; the
maximum number of points to be awarded for each selection criterion;
the contents of the plan for addressing the problem of drug-related
crime that must be included with the application; the listing of any
certifications and assurances that must be submitted with the
application; and the process for ranking and selecting applicants.
NOFAs will also include any additional information, factors, and
requirements that the Department has determined to be necessary and
appropriate to provide for the implementation and administration of the
program under this part.
(Approved by the Office of Management and Budget under control number
2502-0476).
(d) Environmental review. Grants under this part are categorically
excluded from review under the National Environmental Policy Act of
1969 (NEPA) (42 U.S.C. 4321), in accordance with 24 CFR 50.20(p).
However, prior to an award of grant funds under this part, HUD will
perform an environmental review to the extent required by HUD's
environmental regulations at 24 CFR part 50, including the applicable
related authorities at 24 CFR 50.4.
Sec. 261.18 Resident comments on grant application.
The applicant must provide the residents of developments proposed
for funding under this part, as well as any resident organizations that
represent those residents, with a reasonable opportunity to comment on
its application for funding under this program. The applicant must give
these comments careful consideration in developing its plan and
application as well as in the implementation of funded programs. Copies
of all written comments submitted must be maintained by the grantee for
three years.
Subpart D--Grant Administration
Sec. 261.26 Grant administration.
(a) General. Each grantee is responsible for ensuring that grant
funds are administered in accordance with the requirements of this
part, any Notice of Funding Availability (NOFA) issued for this
program, 24 CFR part 85, applicable laws and regulations, applicable
OMB circulars, HUD fiscal and audit controls, grant agreements, grant
special conditions, the grantee's approved budget (SF-424A), budget
narrative, plan, and activity timetable.
(b) Grant term extensions. (1) Grant term. Terms of the grant
agreement may not exceed 12 months, unless an extension is approved by
the local HUD Office. The maximum extension allowable for any grant is
6 months. Any funds not expended at the end of the grant term shall be
remitted to HUD.
(2) Extension. Grantees may be granted an extension of the grant
term in response to a written request for an extension stating the need
for the extension and indicating the additional time required.
(3) Receipt. The request must be received by the local HUD Office
before the termination of the grant, and requires approval by the local
HUD Office with jurisdiction over the grantee.
(4) Term. The maximum extension allowable for any program period is
6 months. Requests for retroactive extension of program periods will
not be considered. Only one extension will be permitted. Extensions
will only be considered if the extension criteria of paragraph (5) of
this section are met by the grantee at the time the request for the
extension of the deadline is submitted for approval.
(5) Extension criteria. The following criteria must be met by the
grantee when submitting a request to extend the expenditure deadline
for a program or set of programs.
(i) Financial status reports. There must be on file with the local
HUD Office current and acceptable Financial Status Reports, SF-269As.
(ii) Grant agreement special conditions. All grant agreement
special conditions must be satisfied except those conditions that must
be fulfilled in the remaining period of the grant. This also includes
the performance and resolution of audit findings in a timely manner.
(iii) Justification. A narrative justification must be submitted
with the program extension request. Complete details must be provided,
including the circumstances which require the proposed extension, and
explanation of the impact of denying the request.
(6) HUD action. The local HUD Office will take action on an
extension request within 15 working days after receipt of the request.
(c) Duplication of funds. To prevent duplicate funding of any
activity, the grantee must establish controls to assure that an
activity or program that is funded by other HUD programs, or programs
of other Federal agencies, shall not also be funded by the Drug
Elimination Program. The grantee must establish an auditable system to
provide adequate accountability for funds that it has been awarded. The
grantee is responsible for ensuring that there is no duplication of
funds.
(d) Insurance. Each grantee is required to obtain adequate
insurance coverage to protect itself against any potential liability
arising out of the eligible activities under this part. In particular,
applicants are required to assess their potential liability arising out
of the employment or contracting of security personnel, law enforcement
personnel, investigators, and drug treatment providers, and the
establishment of voluntary tenant patrols; to evaluate the
qualifications and training of the individuals or firms undertaking
these functions; and to consider any limitations on liability under
State or local law. Grantees are required to obtain liability insurance
to protect the members of the voluntary tenant patrol against potential
liability as a result of the patrol's activities under
Sec. 261.10(b)(5). Voluntary tenant patrol liability insurance costs
are eligible program expenses. Subgrantees are required to obtain their
own liability insurance.
(e) Failure to implement program. If the grant plan, approved
budget and timetable, as described in the approved application, are not
operational within 60 days of the grant agreement date, the grantee
must report by letter to the local HUD Office the steps being taken to
initiate the plan and timetable, the reason for the delay, and the
expected starting date. Any timetable revisions which resulted from the
delay must be included. The local HUD Office will determine if the
delay is acceptable, approve/disapprove the revised plan and timetable,
and take any additional appropriate action.
(f) Sanctions. (1) HUD may impose sanctions if the grantee:
(i) Is not complying with the requirements of 24 CFR part 261 or of
other applicable Federal law;
(ii) Fails to make satisfactory progress toward its drug
elimination goals, as specified in its plan and as reflected in its
performance and financial status reports under Sec. 261.28;
(iii) Does not establish procedures that will minimize the time
elapsing between drawdowns and disbursements;
(iv) Does not adhere to grant agreement requirements or special
conditions;
(v) Proposes substantial plan changes to the extent that, if
originally submitted, would have resulted in the application not being
selected for funding;
(vi) Engages in the improper award or administration of grant
subcontracts;
(vii) Does not submit reports; or
(viii) Files a false certification.
(2) HUD may impose the following sanctions:
(i) Temporarily withhold cash payments pending correction of the
deficiency by the grantee or subgrantee;
(ii) Disallow all or part of the cost of the activity or action not
in compliance;
(iii) Wholly or partly suspend or terminate the current award for
the grantee's or subgrantee's program;
(iv) Require that some or all of the grant amounts be remitted to
HUD;
(v) Condition a future grant and elect not to provide future grant
funds to the grantee until appropriate actions are taken to ensure
compliance;
(vi) Withhold further awards for the program or
(vii) Take other remedies that may be legally available.
Sec. 261.28 Grantee reports.
Grantees are responsible for managing the day-to-day operations of
grant and subgrant supported activities. Grantees must monitor grant
and subgrant supported activities to assure compliance with applicable
Federal requirements and that performance goals are being achieved.
Grantee monitoring must cover each program, function or activity of the
grant.
(a) Final performance report. (1) Evaluation. Grantees are required
to provide the local HUD Office with a final cumulative performance
report that evaluates the grantee's overall performance against its
plan. This report shall include in summary form (but is not limited to)
the following: any change or lack of change in crime statistics or
other indicators drawn from the applicant's plan assessment (such as
vandalism, etc.) and an explanation of any difference; successful
completion of any of the strategy components identified in the
applicant's plan; a discussion of any problems encountered in
implementing the plan and how they were addressed; an evaluation of
whether the rate of progress meets expectations; a discussion of the
grantee's efforts in encouraging resident participation; a description
of any other programs that may have been initiated, expanded or deleted
as a result of the plan, with an identification of the resources and
the number of people involved in the programs and their relation to the
plan.
(2) Reporting period. The final performance report shall cover the
period from the date of the grant agreement to the termination date of
the grant agreement. The report is due to the local HUD Office within
90 days after termination of the grant agreement.
(b) Semi-annual financial status reporting requirements.
(1) Form. The grantee shall provide a semi-annual financial status
report. The grantee shall use the SF-269A, Financial Status Report-Long
Form, to report the status of funds for non-construction programs. The
grantee shall use SF-269A, Block 12, ``Remarks,'' to report on the
status of programs, functions or activities within the program.
(2) Reporting period. Semi-annual financial status reports (SF-
269A) covering the first 180 days of funded activities must be
submitted to the local HUD Office between 190 and 210 days after the
date of the grant agreement. If the SF-269A is not received on or
before the due date (210 days after the date of the grant agreement) by
the local HUD Office, grant funds will not be advanced until the
reports are received.
(c) Final financial status report (SF-269A).
(1) Cumulative summary. The final report will be a cumulative
summary of expenditures to date and must indicate the exact balance of
unexpended funds. The grantee must remit all Drug Elimination Program
funds (including any unexpended funds) owed to HUD within 90 days after
the termination of the grant agreement.
(2) Reporting period. The final financial status report shall cover
the period from the date of the grant agreement to the termination date
of the grant agreement. The report is due to the local HUD Office
within 90 days after the termination of the grant agreement.
(d) Report submission. The grantee shall submit all required
reports to the local HUD Office.
Sec. 261.29 Other Federal requirements.
Use of grant funds requires compliance with the following
additional Federal requirements:
(a) Nondiscrimination and equal opportunity. The following
nondiscrimination and equal opportunity requirements apply to this
program:
(1) The requirements of The Fair Housing Act (42 U.S.C. 3601-19)
and implementing regulations issued at 24 CFR part 100; Executive Order
11063 (Equal Opportunity in Housing) and implementing regulations at 24
CFR Part 107; and Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d-2000d-4) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 CFR part 1;
(2) The prohibitions against discrimination on the basis of age
under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and
implementing regulations at 24 CFR part 146, and the prohibitions
against discrimination against handicapped individuals under section
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing
regulations at 24 CFR part 8;
(3) The requirements of Executive Order 11246 (Equal Employment
Opportunity) and the regulations issued under the Order at 41 CFR
chapter 60;
(4) The requirements of section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701u), (Employment Opportunities
for Lower Income Persons in Connection with Assisted Projects); and
(5) The requirements of Executive Orders 11625, 12432, and 12138.
Consistent with HUD's responsibilities under these Orders, recipients
must make efforts to encourage the use of minority and women's business
enterprises in connection with funded activities.
(b) Use of debarred, suspended or ineligible contractors. Use of
grant funds under this program requires compliance with the provisions
of 24 CFR part 24 relating to the employment, engagement of services,
awarding of contracts, or funding of any contractors or subcontractors
during any period of debarment, suspension, or placement in
ineligibility status.
(c) Flood insurance. Grants will not be awarded for proposed
activities that involve acquisition, construction, reconstruction,
repair or improvement of a building or mobile home located in an area
that has been identified by the Federal Emergency Management Agency
(FEMA) as having special flood hazards unless:
(1) The community in which the area is situated is participating in
the National Flood Insurance Program in accordance with 44 CFR parts
59-79; or
(2) Less than a year has passed since FEMA notification to the
community regarding such hazards; and
(3) Flood insurance on the structure is obtained in accordance with
section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4001).
(d) Lead-based paint. (1) Scope. The provisions of section 302 of
the Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. 4821-4846, and
implementing regulations apply to all housing constructed or
substantially rehabilitated before January 1, 1978, and for which
assistance under this part is being used for physical improvements to
enhance security under Sec. 261.10(b)(3).
(2) Exceptions. The following activities are not covered by this
section:
(i) Installation of security devices;
(ii) Other similar types of single-purpose programs that do not
involve physical repairs or remodeling of applicable surfaces of
residential structures; or
(iii) Any non-single purpose rehabilitation that does not involve
applicable surfaces and that does not exceed $3,000 per unit.
(e) Conflicts of interest. No person, as described in paragraphs
(1) and (2) of this section, may obtain a personal or financial
interest or benefit from an activity funded under this program, or have
an interest in any contract, subcontract, or agreement with respect
thereto, or the proceeds thereunder, either for him 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:
(1) Who is an employee, agent, consultant, officer, or elected or
appointed official of the grantee that receives assistance under the
program and who exercises or has exercised any functions or
responsibilities with respect to assisted activities; or
(2) Who is in a position to participate in a decision making
process or gain inside information with regard to such activities.
(f) Drug Free Workplace Act of 1988. The requirements of the Drug-
Free Workplace Act of 1988 at 24 CFR part 24, subpart F apply to this
program.
(g) Anti-lobbying provisions under section 319. The use of funds
under this part is subject to the disclosure requirements and
prohibitions of section 319 of the Department of the Interior and
Related Agencies Appropriations Act for Fiscal Year 1990 (31 U.S.C.
1352), and implementing regulations at 24 CFR part 87. These
authorities prohibit recipients and subrecipients of Federal contracts,
grants, cooperative agreements and loans from using appropriated funds
for lobbying the Executive or Legislative Branches of the Federal
Government in connection with a specific, contract, grant, or loan. The
prohibition also covers the awarding of contracts, grants, cooperative
agreements, or loans unless the recipient has made an acceptable
certification regarding lobbying. Under 24 CFR part 87, applicants,
recipients, and subrecipients of assistance exceeding $100,000 must
certify that no Federal funds have been or will be spent on lobbying
activities in connection with the assistance. However, since grantees
sometimes may expect to receive additional grant funds through
reallocations, all potential grantees are required to submit the
certification, and to make the required disclosure if the grant amount
exceeds $100,000. The law provides substantial monetary penalties for
failure to file the required certification or disclosure.
(h) Intergovernmental review. The requirements of Executive Order
12372 and the regulations issued under the order at 24 CFR part 52, to
the extent provided by Federal Register notice in accordance with 24
CFR 52.3 apply to this program.
Dated: June 30, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 94-19229 Filed 8-8-94; 8:45 am]
BILLING CODE 4210-27-P
