[Federal Register Volume 60, Number 34 (Tuesday, February 21, 1995)]
[Rules and Regulations]
[Pages 9734-9748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4119]
[[Page 9733]]
_______________________________________________________________________
Part III
Department of Housing and Urban Development
_______________________________________________________________________
Office of the Assistant Secretary for Community Planning and
Development
_______________________________________________________________________
24 CFR Part 585
Opportunities for Youth: Youthbuild Program; Final Rule
Federal Register / Vol. 60, No. 34 / Tuesday, February 21, 1995 /
Rules and Regulations
[[Page 9734]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Community Planning and
Development
24 CFR Part 585
[Docket No. R-95-1675; FR-3450-F-02]
RIN 2506-AB52
Opportunities for Youth: Youthbuild Program
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This is the final rule for the Youthbuild Program. The
Youthbuild Program provides funding assistance for a wide range of
multi-disciplinary activities and services to assist economically
disadvantaged young adults. The opportunities are designed to help
disadvantaged young adults who have dropped out of high school to
obtain the education and employment skills necessary to achieve
economic self-sufficiency and develop leadership skills and a
commitment to community development in low-income communities.
Implementation grant funds can be used to fund eligible educational and
supportive services and activities composed of basic skills instruction
and remedial education, employment skills and leadership development,
and counseling, referral and support services. Planning grant funds can
be used to develop a Youthbuild program that includes the activities of
an implementation grant.
Another important objective of the Youthbuild program is to expand
the supply of permanent affordable housing for homeless persons and
members of low- and very low-income families. By giving disadvantaged
young adults participating in the program meaningful on-site training
experiences constructing or rehabilitating housing as a community
service, they are helping to meet the housing needs of homeless and
low-income families in their community.
EFFECTIVE DATE: March 23, 1995.
FOR FURTHER INFORMATION CONTACT: The Office of Economic Development,
Department of Housing and Urban Development, Room 7136, 451 Seventh
Street, SW, Washington, DC 20410. Telephone (202) 708-2035; TDD (202)
708-1455. (These telephone numbers are not toll-free.)
SUPPLEMENTARY INFORMATION:
I. Information Collection Requirements
The information collection requirements contained in this rule have
been approved under the Paperwork Reduction Act of 1980 (44 U.S.C.
3501-3520) by the Office of Management and Budget (OMB) and have been
assigned OMB control number 2506-0142; expiration date August 31, 1996.
II. Background
Section 164 of the Housing and Community Development Act of 1992
(Pub.L. 102-550) authorized the Youthbuild program under subtitle D of
title IV of the National Affordable Housing Act (42 U.S.C. 8011). On
September 23, 1993, the Department published a proposed rule (58 FR
49830) and a Notice of Funds Availability (NOFA) (58 FR 49849) for this
program.
The Department is now publishing the final rule to be effective 30
days from the date of publication. This final rule does not contain the
detailed selection criteria and application processing steps contained
in the NOFA for Fiscal Year 1993. Information appropriate for a
specific funding competition will now be contained in the NOFA
published for the current competition and will not be part of the final
rule. The final rule published here is presented in its entirety to
reflect the addition of section numbers and all modifications made as a
result of public comments and as a result of the Department's
experience in running the first competition for Youthbuild grant fund.
III. Discussion of Public Comments on Proposed Rule
The Department received public comments from seven organizations
(one state agency, one local government agency, two housing authorities
and three nonprofit organizations) in response to the proposed rule
published on September 23, 1993, at 58 FR 49830. The following
discussion summarizes the comments and provides HUD's responses to
those comments.
Comment: Participant eligibility should be extended to include
juvenile offenders held in custody at state-operated training
facilities. These juveniles meet the qualifications of economically
disadvantaged young adults who have dropped out of high school and are
in need of assistance to obtain education and employment skills. [one
state agency]
Response: Such juvenile offenders would be eligible for a
Youthbuild program without any changes to the regulations.
Comment: The paragraph entitled ``Lease'' included in the
provisions on tenant protections under ``Project-related restrictions
applicable to Youthbuild residential rental housing'' [Sec. 585.309
(b)(1)] calls for a model lease to become an addendum to the grant
agreement, remaining in force for ten years. Housing authorities and
other owners may have to make changes in lease provisions as required
by HUD and state statutes. Provisions must be made to amend leases.
[one housing authority]
Response: For grants covered by the requirements of section
585.309(b)(1), if the provisions of the model lease change, such
changes will require approval by HUD. No change to the regulations is
needed.
Comment: There is a conflict between Sec. 585.309(b)(2) and 24 CFR
966.4(a)(1) and (3) relating to the rules to be followed by a Public
Housing Authority for termination of tenancy. [one housing authority]
Response: The provisions of 24 CFR part 966 take precedence for
public housing authorities.
Comment: Does the Youthbuild program require a justification of new
construction through market and/or feasibility studies? [one nonprofit
organization]
Response: No.
Comment: Is a mixed use project an eligible Youthbuild activity
and, and if so, are there specific criteria involved? [one nonprofit
organization]
Response: Mixed-use projects are eligible as long as the Youthbuild
dollars are only used in conjunction with the housing and housing
related facilities. See definition of ``related facilities'' in
Sec. 585.4.
Comment: Does the Youthbuild program require that one-third of the
housing units assisted be accessible to handicapped people? [one
nonprofit organization]
Response: Youthbuild applicants are required to certify that they
will comply with the requirements of Section 504 of the Rehabilitation
Act of 1973, which specifies the handicapped accessibility standards
for housing created with Federal funds.
Comment: Several sources questioned HUD's use of 10 years to define
``the remaining useful life'' of a Youthbuild assisted property. One
commenter thought that 10 years was too long and two thought it was too
short. [one housing authority and two nonprofit organizations.]
Response: HUD considered a longer period, but found that a 10-year
period [[Page 9735]] was consistent with similar HUD programs. Any
Youthbuild recipient organization that wishes to impose longer
restrictions on the use of a property could do so on its own.
Comment: HUD should not limit tenants with incomes between 60 and
80 percent of the area median income to only one year. This restriction
should be removed. [two public housing authorities]
Response: HUD agrees that the one year limit may be too restrictive
and has raised it to two years in Sec. 585.309(a).
Comment: When project-related restrictions apply to Youthbuild
residential rental housing, the requirement that units be advertised
for low-income people should be reduced from 90-day periods to 60-day
periods. [one housing authority]
Response: Because the maximum length of time that a tenant with an
income between 60 and 80 percent of the area median income is allowed
to rent a Youthbuild-assisted building has been raised from one to two
years (see above), HUD believes it is necessary to maintain the 90-day
requirement to ensure availability to lower-income tenants.
Comment: When a recipient has successfully completed the activities
of a planning grant, it would be rare for such an investment of time
and money to yield no workable program. HUD should guarantee that all
planning recipients be awarded an implementation grant in the next
funding cycle. [one public housing authority]
Response: While HUD agrees that a planning recipient will likely
have a viable project at the end of its planning grant term, it may
need additional time to be ready to implement a program that is
superior to those of other applicants that did not receive planning
grants. Further, given the number of planning grants awarded during the
first funding round, there are insufficient funds to award
implementation grants to each planning grant recipient. Each funding
round is statutorily required to be a competition for funds, and
fairness dictates that each application for funding be evaluated on its
merits, regardless of whether the applicant received a previous
planning grant. HUD also believes that the process of planning for a
Youthbuild implementation grant is a valuable exercise, whether or not
a HUD-funded Youthbuild implementation program is the result.
Comment: HUD should not require programs to channel participants
into programs leading to a high school diploma or post-secondary
education, because some participants may not be capable of reaching
those goals and such expectations may lead them to drop out of the
program. [one public housing authority]
Response: HUD believes that earning a high school diploma or its
equivalent is crucial to achieving self-sufficiency. However, the
educational component of the program does not require that participants
achieve a high school equivalency, but merely requires recipients to
provide services and activities designed to meet the basic education
needs of participants. This requirement is sufficiently flexible to
allow recipients to provide educational services that are appropriate
to their individual participants.
Comment: HUD should not require applicants for planning grants to
present information on the need for the program, considering that
feasibility studies are eligible activities under the planning grant.
[one public housing authority]
Response: Need, based on distress of the community, is a statutory
selection criterion and is fundamentally different from feasibility
studies. To present information on the degree of economic distress in a
community in response to the Need rating criterion, an applicant must
do research on the poverty, unemployment, dropout rate, and other
factors currently existing in the community. Feasibility studies are
eligible activities under the planning grant. Instead of assessing the
current level of economic distress of the community, a feasibility
study would focus on the physical environment, housing stock, and the
social, human, and financial resources available for a Youthbuild
program.
Comment: Given that HUD may approve more than the $1 million
maximum if the application proposes to serve a large number of
participants, HUD should indicate whether the number of participants is
a factor in the rating of an application, and, if so, should specify
the average expected number of participants. [one public housing
authority]
Response: HUD does not have strict participant enrollment
requirements but does consider the reasonableness of cost per student
in rating program quality and feasibility. HUD also recognizes that
costs may vary depending on the location of the program.
Comment: HUD should allow program recipients to make stipends high
enough to compete with illegal endeavors by participants. [one public
housing authority]
Response: HUD does not stipulate a stipend level, and leaves the
amount up to the individual applicants. Unreasonable and excessive
stipend levels will be considered in rating program quality and
feasibility.
Comment: HUD should state in the rule that stipends may not result
in a rent increase for program participants. [one public housing
authority]
Response: The enabling statute and rule state that the Youthbuild
program is subject to section 142 of the Job Training Partnership Act.
Section 142(b) of the JTPA states that such wages and stipends are not
considered as income for any Federal or Federally-assisted program
based on need, other than those under the Social Security Act.
Comment: HUD should strike the requirement that applicants may not
commit or expend State, local or other funds to undertake property
acquisition, rehabilitation or construction until a grant agreement is
executed by HUD. [one city housing agency]
Response: This provision only applies when Youthbuild funds have
been requested to acquire, rehabilitate, or newly construct a property.
The purpose is to allow HUD to conduct an environmental review on the
property, which the statute requires to be done before an application
can be approved. Applicants that expend their own or other funds on a
proposed property are in jeopardy of using their funds on a property
that could potentially be deemed ineligible as a result of the
environmental review. If an applicant proposes to fund the acquisition,
rehabilitation, or new construction entirely with non-Youthbuild funds,
there is no restriction on using those funds before notification of
grant award. Section 585.307(a)(3) has been changed to clarify this
distinction.
Comment: The provision that makes Davis-Bacon prevailing wage rates
not applicable to program participants should be expanded to include
state and local wage rate restrictions. [one city housing agency]
Response: The provision making Davis-Bacon wage rates inapplicable
to Youthbuild trainees is required by a specific statutory provision.
HUD has no authority to declare State and local wage regulations
inapplicable on the basis of an employee's status as a Youthbuild
trainee. However, in this final rule, the Department has revised the
provision in the proposed rule regarding the need to apply Davis-Bacon
prevailing wage rates to Youthbuild trainees where additional Federal
assistance is provided. Subsequent to the issuance of the proposed
rule, the Department's attention was drawn to a decision of the United
States Department of Labor's Wage Appeals Board in in the matter of
[[Page 9736]] 100 Court Ave. Street Project, Kurtz Building, UDAG Proj.
No. B-83-AA-19-0020, Des Moines, Iowa (WAB Case No. 88-9, March 16,
1990). That case concerned a project involving training under the Job
Training Partnership Act (JTPA), which excludes trainees from Davis-
Bacon requirements, as well as assistance under the Urban Development
Action Grant (UDAG) program, which has its own Davis-Bacon provisions.
The Wage Appeals Board determined that JTPA's statutory Davis-Bacon
exclusion for trainees applied to exclude a JTPA trainee from Davis-
Bacon rate requirements even where the trainee was employed on the UDAG
project. Since the Housing and Community Development Act of 1992
applies the JTPA Davis-Bacon provision (and its exclusion of trainees
from Davis-Bacon rates) to the Youthbuild program, the Department has
concluded that the Wage Appeals Board's ruling is applicable to the
Youthbuild program. Accordingly, the final rule provides that Davis-
Bacon wage rates are not applicable to Youthbuild trainees, regardless
of whether other Federal assistance is involved. However, neither the
JTPA provision nor the Wage Appeals Board decision excludes trainees
from wage rates other than Davis-Bacon wage rates. Therefore, the rule
notes that Youthbuild trainees must be paid HUD-determined wage rates
on public and Indian housing work where those rates would be applicable
to trainees under the United States Housing Act of 1937 (e.g., on work
such as ``non-routine maintenance''). However, where HUD wage rates are
applicable to trainees, the rates determined by HUD to apply to
Youthbuild trainees will be trainee wage rates rather than
journeyperson rates.
Comment: Limitations on profit imposed on housing should not apply
to projects which are owned by governmental agencies. [one city housing
agency]
Response: This is a statutory restriction, that has been
interpreted to apply only when construction is financed, in whole or in
part, with Youthbuild funds. (See Sec. 585.309)
Comment: The rule should include all of the essential purposes of
the program that were stated in the legislation. [one nonprofit
organization]
Response: The purpose of the Youthbuild program in Sec. 585.2 has
been revised accordingly.
Comment: HUD should state that construction site supervisors
essential for the training of the participants are not considered
construction or rehabilitation costs. [one nonprofit organization]
Response: Section 585.306 has been added to make that
clarification.
Comment: Related facilities which stand alone should be considered
appropriate construction sites for trainees. [one nonprofit
organization]
Response: HUD construes the term ``housing and related facilities''
to mean residential property, which does not include stand-alone
facilities that do not include housing.
Comment: The definition of the term ``self-sufficiency'' should be
providing for oneself and one's immediate ``dependents,'' not
``family.'' [one nonprofit organization]
Response: The definition of ``self-sufficiency'' has been deleted
from the final rule.
Comment: In the list of ``Other activities'' as delineated in the
discussion of program components, ``short-term placement with private
contractors as internships to enhance the participant's preparation for
unsubsidized employment'' should be added. [one nonprofit organization]
Response: The list of ``other activities'' is not exclusive, and a
variety of other activities can be done under this heading.
Comment: The Corporation for National and Community Service should
be added to the list of other Federal entities from which applicants
are encouraged to enlist support. [one nonprofit organization]
Response: The list of potential resources in Sec. 585.105 comes
from the statute, and is not intended to be a comprehensive list or
limitation of all possible resources that can be used in the program.
Comment: The requirements for the Performance Evaluation Report and
Quarterly Progress Report should include additional information. [one
nonprofit organization]
Response: All specific reporting elements of the required reports
have been deleted from the Rule and are now contained in Youthbuild
Program Reports (HUD-40201).
Comment: Additional points should be given for counseling and
leadership development services; the points for housing resources and
the housing priority points seem excessive; the requirements for public
support are not realistic. [one nonprofit organization]
Response: The rule has been amended to state only the statutory
rating criteria. The point awards and subcategories of statutory and
administratively imposed criteria will be announced for each
competition in the NOFA for that fiscal year.
Comment: The discussion of Geographic Diversity provides that lower
ranked applications will be selected if any of the 10 HUD Regions
receive substantially fewer awards; this language does not reflect the
differences in need and interest between the HUD regions. [one
nonprofit organization]
Response: HUD regions have been abolished under the Department's
recent reorganization. HUD reserves the right to invoke this provision
to ensure fairness and meet the needs of distressed communities.
Other Matters
a. Environmental Impact. A Finding of No Significant Impact with
respect to the environment for this rule 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, Office of the General Counsel, Department of Housing and Urban
Development, Room 10276, 451 Seventh Street, S.W., Washington, D.C.
20410.
b. 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
would not have a significant economic impact on a substantial number of
small entities because the Youthbuild program affects primarily
economically disadvantaged young adults by providing assistance for a
wide range of multi-disciplinary activities to assist those young
adults. The opportunities are designed to help disadvantaged young
adults who have dropped out of high school to obtain the education and
employment skills necessary to achieve economic self-sufficiency and
develop leadership skills and a commitment to community development in
low-income communities. A related objective of the program is to add to
the supply of permanent affordable housing for homeless persons and
members of low- and very low-income families by giving young adults
participating in the program meaningful on-site training experiences in
construction and rehabilitation of housing. It is anticipated that
fewer than 120 projects will receive assistance under this program.
c. 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 does not have ``federalism
implications'' because it [[Page 9737]] does not have substantial
direct effects on the States (including their political subdivisions),
or on the distribution of power and responsibilities among the various
levels of government.
d. Executive Order 12606, the Family. The General Counsel, as the
Designated Official under Executive Order 12606, the Family, has
determined that some of the policies of this rule would have a
potential significant impact on family formation, maintenance, and
general well-being. The expected expansion of the housing supply for
homeless and low- and very-low income persons and the provision of
opportunities to economically disadvantaged young adults to enhance
their education and employment skills will provide a positive impact on
the family maintenance and general well-being. However since the impact
on the family is beneficial and the rule involves very little HUD
discretion, no further review is necessary.
e. Semi-Annual Agenda of Regulations. This rule was listed as item
number 1843 in the Department's Semiannual Agenda of Regulations
published on November 14, 1994 (59 FR 57632, 57663) in accordance with
Executive Order 12866 and the Regulatory Flexibility Act.
f. Catalog of Federal Domestic Assistance. The Catalog of Federal
Domestic Assistance Program number assigned to this program is 14.243.
List of Subjects in 24 CFR Part 585
Grant programs--housing and community development, Homeless, Low-
and very low-income families, Reporting and record keeping
requirements.
Accordingly, Subchapter C of Chapter V of Title 24 of the Code of
Federal Regulations is amended to add a new part 585, consisting of
subparts A through F, to read as follows:
PART 585--YOUTHBUILD PROGRAM
Subpart A--General
Sec.
585.1 Authority.
585.2 Program purpose.
585.3 Program components.
585.4 Definitions.
Subpart B--Application and Grant Award Process
585.100 Notice of funds availability.
585.101 Emergency funds.
585.102 Application requirements.
585.103 Combined planning and implementation applications.
585.104 Selection criteria.
585.105 Support of other Federal, State, local or private entities.
585.106 Selection process.
585.107 Prohibition of disclosure.
Subpart C--Youthbuild Planning Grants
585.201 Purpose.
585.202 Award limits.
585.203 Grant term.
585.204 Locational considerations.
585.205 Eligible activities.
Subpart D--Youthbuild Implementation Grants
585.301 Purpose.
585.302 Award limits.
585.303 Grant term.
585.304 Locational considerations.
585.305 Eligible activities.
585.306 Designation of costs.
585.307 Environmental procedures and standards.
585.308 Relocation assistance and real property acquisition.
585.309 Project-related restrictions applicable to Youthbuild
residential rental housing.
585.310 Project-related restrictions applicable to Youthbuild
transitional housing for the homeless.
585.311 Project-related restrictions applicable to Youthbuild
homeownership housing.
585.312 Wages, labor standards, and nondiscrimination.
585.313 Labor standards.
Subpart E--Administration
585.401 Recordkeeping by recipients.
585.402 Grant agreement.
585.403 Reporting requirements.
585.404 Program changes.
585.405 Obligation and deobligation of funds.
585.406 Primarily religious organizations.
Subpart F--Applicability of Other Federal Requirements
585.501 Application of OMB Circulars.
585.502 Certifications.
585.503 Conflict of interest.
585.504 Use of debarred, suspended, or ineligible contractors.
Authority: 42 U.S.C. 3535(d) and 8011.
Subpart A--General
Sec. 585.1 Authority.
(a) General. The Youthbuild program is authorized under subtitle D
of title IV of the National Affordable Housing Act (42 U.S.C. 8011), as
added by section 164 of the Housing and Community Development Act of
1992 (Pub. L. 102-550).
(b) Authority restriction. No provision of the Youthbuild program
may be construed to authorize any agency, officer, or employee of the
United States to exercise any direction, supervision, or control over
the curriculum, program of instruction, administration, or personnel of
any educational institution, school, or school system, or over the
selection of library resources, textbooks, or other printed or
published instructional materials used by any educational institution
or school system participating in a Youthbuild program.
Sec. 585.2 Program purpose.
The purposes of the Youthbuild program are:
(a) To provide economically disadvantaged young adults with
opportunities to obtain education, employment skills and meaningful on-
site work experience as a service to their communities and a means to
achieve self-sufficiency;
(b) To foster the development of leadership skills and commitment
to community; and
(c) To expand the supply of permanent affordable housing for
homeless and low- and very low-income persons by providing planning
grants for program design and implementation grants for carrying out a
Youthbuild Program.
Sec. 585.3 Program components.
A Youthbuild implementation program uses comprehensive and multi-
disciplinary approaches designed to prepare young adults who have
dropped out of high school for educational and employment opportunities
by employing them as construction trainees on work sites for housing
designated for homeless persons and low- and very low-income families.
A Youthbuild planning grant is designed to give recipients sufficient
time and financial resources to develop a comprehensive Youthbuild
program that can be effectively implemented. Youthbuild programs must
contain the three components described in paragraphs (a), (b) and (d)
of this section. Other activities described in paragraph (c) of this
section are optional:
(a) Educational Services, including:
(1) Services and activities designed to meet the basic educational
needs of participants. For example, a Youthbuild program may include
basic skills instruction and remedial education, bilingual education
for individuals with limited English proficiency, secondary educational
services and activities designed to lead to the attainment of a high
school diploma or its equivalency (GED), or counseling and assistance
in attaining post-secondary education and required financial aid;
(2) Vocational classroom courses geared to construction terminology
and concepts; and
(3) Strategies to coordinate with local trade unions and
apprenticeship programs where possible.
(b) Leadership Training, Counseling and Other Support Activities,
including:
(1) Activities designed to develop employment and leadership
skills, including support for youth councils; [[Page 9738]]
(2) Counseling services to assist trainees in personal, health,
housing, child care, family or legal problems and/or referral services
to appropriate social service resources;
(3) Support services and stipends necessary to enable individuals
to participate in the program and, for a period not to exceed 12 months
after completion of training, to assist participants through continued
support services;
(4) Job development and placement activities and post-graduation
follow-up assistance; and
(5) Pre-employment training plan aimed at developing job seeking
skills.
(c) Other activities. A local program may be designed to include
other, special activities such as:
(1) Entrepreneurial training and courses in small business
development;
(2) Assistance to correct learning disabilities; or
(3) Drivers' education courses.
(d) On-site training, through actual housing rehabilitation and/or
construction work. This component must include:
(1) Access to housing sites where construction/ rehabilitation work
is being carried out;
(2) Work site training plan for a closely supervised construction
site;
(3) Construction or rehabilitation plan and timetable; and
(4) Approaches to work site safety.
(e) The Youthbuild implementation program must be structured so
that 50 percent of each full-time participant's time is spent in
educational services and activities [paragraphs (a), (b), and (c) of
this section] and 50 percent is spent in on-site training [paragraph
(d) of this section]. Youthbuild planning grant applications must
contain strategies, plans and approaches to be used during the planning
process to ultimately implement these program requirements.
Sec. 585.4 Definitions.
As used in this part:
1937 Act means the United States Housing Act of 1937.
1992 Act means the Housing and Community Development Act of 1992.
Access to housing applies to Youthbuild implementation grants
required to document that the program has access to the housing
project(s) for young adult on-site training, e.g. program participants
have permission to work on the housing site.
Adjusted income has the meaning given the term ``adjusted income''
in section 3(b) of the United States Housing Act of 1937.
Applicable residential rental housing quality standards shall mean
those standards of the applicable HUD or other Federal, State or local
program providing assistance for residential rental housing involved in
a Youthbuild implementation grant as used under section 455(a),
Youthbuild Program Requirements, of the Act.
Applicant means a public or private nonprofit agency, including:
(1) A community-based organization;
(2) An administrative entity designated under section 103(b)(1)(B)
of the Job Training Partnership Act;
(3) A community action agency;
(4) A State or local housing development agency;
(5) A community development corporation;
(6) A public and/or Indian housing authority and resident
management corporations, resident councils and resident organizations;
(7) A State or local youth service or conservation corps; and
(8) Any other entity (including States, units of general local
government, and Indian Tribes) eligible to provide education and
employment training.
Combined Youthbuild application means the submission by an
applicant of a single application to HUD for a planning and
implementation grant request for one Youthbuild program.
Community Based Organization means a private nonprofit organization
that:
(1) Maintains, through significant representation on the
organization's governing board or otherwise, accountability to low-
income community residents and, to the extent practicable, low-income
beneficiaries of programs receiving assistance under this subtitle; and
(2) Has a history of serving the local community or communities
where a program receiving assistance under this subtitle is located.
Consolidated Plan means the document that is submitted to HUD that
serves as the planning documents (comprehensive housing affordability
strategy and community development plan) of the jurisdiction and an
application for funding under any of the Community Planning and
Development formula grant programs which is prepared in accordance with
the process described in 24 CFR part 91.
Full-Time Participation for program eligible participants is
limited to not less than 6 months and not more than 24 months.
Graduates are those participants who have completed the full-time
education/on-site training components of a Youthbuild program and who
are eligible to take advantage of meaningful opportunities in continued
education, in owning their own businesses, in meaningful employment or
in other means by which the participant can attain economic self-
sufficiency.
Homeless Act means the Stewart B. McKinney Homeless Assistance Act,
as amended, (42 U.S.C. 11301 et seq.).
Homeless individual has the meaning given the term in section 103
of the Stewart B. McKinney Homeless Assistance Act.
Housing development agency means any agency of a State or local
government, or any private nonprofit organization that provides housing
for homeless or low-income families.
Indian Tribe has the same meaning given such term in section
102(a)(17) of the Housing and Community Development Act of 1974 [42
U.S.C. 5302(a)(17)].
Individual who has dropped out of high school means an individual
who is neither attending any school nor subject to a compulsory
attendance law and who has not received a secondary school diploma or a
certificate of equivalency for such diploma.
Institution of Higher Education has the meaning given the term in
section 120(a) of the Higher Education Act of 1965.
JTPA means the Job Training Partnership Act (P.L. 102-235), as
amended.
Limited-English proficiency has the meaning given the term in
section 7003 of the Bilingual Education Act.
Low-income Family has the meaning given the term in section 3(b) of
the United States Housing Act of 1937.
Offender means any adult or juvenile with a record of arrest or
conviction for a criminal offense.
Participant means:
(1) An individual who is:
(i) 16 to 24 years of age, inclusive, at time of enrollment;
(ii) A very low-income individual or a member of a very low-income
family; and
(iii) An individual who has dropped out of high school.
(2) An exception of not more than 25 percent of all full-time
participants is permitted for young adults who do not meet the
program's income or educational requirements but who have educational
needs despite attainment of a high school diploma or its equivalent.
Private Nonprofit Organization means any private nonprofit
organization that:
(1) Is organized and exists under Federal, State, local, or tribal
law;
(2) Has no part of its earnings inuring to the benefit of any
individual, corporation, or other entity;
(3) Has a voluntary board;
(4) Has an accounting system or has designated a fiscal agent in
accordance [[Page 9739]] with requirements established by HUD; and
(5) Practices nondiscrimination in the provision of assistance.
Project-related restrictions mean Youthbuild housing restrictions
applicable only in cases where a Youthbuild implementation grant is
providing assistance to residential rental, transitional or
homeownership housing projects for specific costs relating to property
acquisition, architectural and engineering fees, construction,
rehabilitation, operating costs, or replacement reserves.
Recipient means any entity that receives assistance under this
part.
Related facilities include cafeterias or dining halls, community
rooms or buildings, child care centers, appropriate recreation
facilities, and other essential service facilities that are physically
attached to the housing to be constructed or rehabilitated. Related
facilities which stand alone are not appropriate construction sites for
trainees.
Secretary means the Secretary of Housing and Urban Development.
State means any of the several States, the District of Columbia,
the Commonwealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, the Virgin Islands, Guam, American Samoa, the Trust
Territories of the Pacific Islands, or any other territory or
possession of the United States.
Title IV means title IV of the National Affordable Housing Act, as
amended (42 U.S.C. 1437).
Transitional housing means a project that has as its purpose
facilitating the movement of homeless individuals and families to
permanent housing within a reasonable amount of time (usually 24
months). Transitional housing includes housing primarily designed to
serve deinstitutionalized homeless individuals and other homeless
individuals with mental or physical disabilities and homeless families
with children.
Useful life shall mean a period of 10 years upon construction
completion and issuance of an occupancy permit applicable to a
residential rental, transitional or homeownership property acquired,
constructed or rehabilitated (including architectural and engineering
fees), or maintained (i.e., operating costs or replacement reserves),
in whole or in part, with Youthbuild implementation grant funds (as
used in section 455(a), Youthbuild Program Requirements, of the Act).
Very low-income family has the meaning given the term in section
3(b) of the United States Housing Act of 1937.
Subpart B--Application and Grant Award Process
Sec. 585.100 Notice of funds availability.
When funds are made available for assistance, HUD will publish a
notice of funds availability (NOFA) in the Federal Register in
accordance with the requirements of 24 CFR part 12. The notice will:
(a) Give the location for obtaining application packages, which
will provide the application requirements and specify the application
deadline for the competition;
(b) State the amount of funding available and the kind of grants to
be funded under the notice;
(c) Describe the factors relative to each selection criteria and
the weight or relative importance given to each criteria as they will
be applied to the competition announced in the notice; and
(d) Provide other appropriate program information and guidance.
Sec. 585.101 Emergency funds.
(a) The Secretary may reserve up to five percent of each Fiscal
Year's program funds for implementation grants for emergency purposes
to respond quickly to vital needs to stimulate the provision of
services to disadvantaged young adults and to expand the supply of
affordable housing for the homeless and low- and very low-income
persons.
(b) Unforeseen emergency needs may result from natural and other
disasters including hurricanes, tornadoes, earthquakes, fires, floods,
etc. Other unpredictable and sudden circumstances, such as civil
disturbances, may affect the provision of services to young adults or
result in housing deprivation and increased demand for housing for low-
income persons and the homeless. The Secretary will determine whether
the emergency is of sufficient severity to warrant use of Youthbuild
funds.
(c) The Secretary will establish a separate and expedited process
to award funds for emergency purposes. Specific instructions governing
the use of these funds may be published by notice in the Federal
Register, as necessary. If the set-aside funds are not used for
emergency purposes by the time that awards for each fiscal year's funds
are to be announced, these funds will be made available for the general
implementation grant competition for that year.
Sec. 585.102 Application requirements.
Applications for grants must be submitted in the form prescribed by
HUD in the application kit, must meet the requirements of this part,
and must be submitted within the time period established by HUD in the
NOFA or application kit. HUD reserves the right to reject applications
from any applicant with an outstanding obligation to HUD that is in
arrears or for which a payment schedule has not been agreed to, or
whose response to an audit finding is overdue or unsatisfactory.
Applicants should refer to the Youthbuild application package for
further instructions.
(Approved by the Office of Management and Budget under control
number 2506-0142)
Sec. 585.103 Combined planning and implementation applications.
(a) If permitted in the NOFA, applicants may apply for both types
of grants using one application. In such competitions, the application
package will provide instructions on submitting a combined Youthbuild
application. Combined planning and implementation grant applications
will compete separately during the competition, based on the criteria
defined in the NOFA. In such cases, an implementation grant request
will be disqualified from the implementation grant competition if its
companion planning grant request is not selected for the planning grant
competition. However, any implementation grant request failing to be
selected under the implementation grant competition will not cause its
companion planning grant application to be disqualified from the
planning grant competition provided the planning grant qualifies and
HUD has determined that the activities proposed in the planning grant
request stand alone and are not contingent upon activities proposed in
the implementation grant request.
(b) When both parts of a combined application are approved, the
receipt of the implementation grant award is conditioned upon the
successful completion of the eligible activities funded by the planning
grant and submission of the recipient's plan and performance evaluation
report to HUD for approval. Upon HUD approval, reserved implementation
grant funds would be released to the recipient in accordance with the
grant agreement.
(Approved by the Office of Management and Budget under control
number 2506-0142)
Sec. 585.104 Selection criteria.
HUD will review applications and assign rating scores based upon
the following criteria, which will be [[Page 9740]] described in more
detail in the notice published in the Federal Register for each funding
competition:
(a) Capability.
(b) Need.
(c) Program quality and feasibility.
(d) Program resources.
(e) Housing program priority points (Implementation only).
(f) Other factors: HUD may use additional factors to rate an
application as defined in the NOFA for an individual competition.
Sec. 585.105 Support of other Federal, State, local or private
entities.
Applicants are encouraged to use existing housing programs
administered by HUD or other Federal, State, local or private housing
programs as part of their Youthbuild programs. Use of other Federal,
State, local or private funds for vocational, adult and bilingual
education programs or for job training under the JTPA Act and the
Family Support Act of 1988 is also encouraged. The selection process
for Youthbuild grants described in a NOFA provides for applicants to
receive points where grant applications contain evidence of proposed
plans to finance, in whole or in part, Youthbuild activities from other
Federal, State, local, or private sources.
Sec. 585.106 Selection process.
(a) Clarification of Application Information: Procedures for
clarifying application information or curing deficiencies in technical
information that does not affect an applications's score will be
explained in the notice of funds availability. For implementation
applications such deficiencies include, but are not limited to:
(1) Failure to structure the proposed Youthbuild program so that
fifty percent of the time spent by program participants is devoted to
educational services and activities and fifty percent to on-site
training;
(2) Failure to target the outreach and recruitment efforts to be
used by the program to disadvantaged young adults between the ages of
16 and 24 years;
(3) Failure to identify the housing to be used for the on-site
training;
(4) Incomplete documentation showing that the applicant has
obtained access to the housing site(s) if the applicant does not own
the site(s).
(5) Failure to designate the housing to be produced in conjunction
with the program for the use of the homeless and low- and very low-
income families.
(b) Potential environmental disqualification: HUD reserves the
right to disqualify an implementation application where one or more
environmental thresholds are exceeded and it is determined that the
environmental review cannot be conducted and satisfactorily completed
by HUD within the HUD review period. (Refer to Sec. 585.307,
Environmental procedures and standards, for further information.)
(c) Selecting applicants. HUD will rank applications according to
total points assigned. Applications will be selected for funding from
the rank order. However, HUD reserves the right to select lower rated
applications if necessary to achieve geographic diversity.
(d) Breaking tie scores. The NOFA for the funding round will
indicate which selection criteria will be used to break a tie if two or
more applications receive the same number of points and sufficient
funds are not available to fund all such applications.
(e) Reduction in requested grant amount. HUD will approve an
application for an amount lower than the amount requested or adjust
line items in the proposed budget within the amount requested (or both)
if it determines that:
(1) The amount requested for one or more eligible activities is not
supported in the application or is unreasonable related to the service
or activity proposed for the population to be served or the housing to
be provided;
(2) An activity proposed for funding does not qualify as an
eligible activity;
(3) The amount requested exceeds the cost limitation established
for a Youthbuild grant; or
(4) There are insufficient funds remaining to fund the applicant's
original grant request.
(f) Notification of approval or disapproval. After completion of
the ranking and selection of applications, but no later than four
months after the date applications are due under the applicable NOFA,
HUD will notify the selected applicants and the applicants that have
not been selected. HUD's notification to the applicant of the grant
award amount, based on the approved application, will constitute a
preliminary approval by HUD, subject to HUD and recipient execution of
a grant agreement to initiate program activities.
Sec. 585.107 Prohibition of disclosure.
The selection process for assistance under this part is subject to
the prohibition of disclosure of covered information regarding the
selection process, as described in 24 CFR part 4. Applicants for or
recipients of assistance who have received covered selection
information may be subject to appropriate sanctions.
Subpart C--Youthbuild Planning Grants.
Sec. 585.201 Purpose.
HUD will award Youthbuild planning grants to eligible applicants
for the purpose of developing Youthbuild programs in accordance with
subtitle D of title IV of the National Affordable Housing Act.
Applications will be selected in a national competition in accordance
with the selection process described in the current NOFA.
Sec. 585.202 Award limits.
Maximum awards. The maximum amount of a Youthbuild planning grant
is $150,000 unless a lower amount is established in the NOFA. HUD may
for good cause approve a grant in a higher amount.
Sec. 585.203 Grant term.
Funds awarded for planning grants are expected to be used within 12
months of the effective date of the planning grant agreement. The award
of a Youthbuild planning grant does not obligate HUD to fund the
implementation of the program upon completion of the approved planning
activities (unless the companion implementation grant was submitted as
a combined application and funded in the implementation grant
competition).
Sec. 585.204 Locational considerations.
HUD will not approve multiple applications for planning grants in
the same jurisdiction unless it determines that the jurisdiction is
sufficiently large to justify approval of more than one application.
Sec. 585.205 Eligible activities.
Planning grant activities to develop a Youthbuild program may
include:
(a) The undertaking of studies and research efforts to determine
the feasibility and need for a Youthbuild program in a selected
location including whether a proposed program can meet the education
and training needs of young adults, aid in the expansion of affordable
housing to meet the needs of the community, and achieve financial
feasibility;
(b) The formation and establishment of a consortium among Federal,
State, or local training and education programs, service providers,
housing programs and providers including but not limited to homeless
providers, housing owners, developers, and other organizations
necessary for the establishment of a Youthbuild program;
(c) The preliminary identification and potential selection of
housing for the Youthbuild program including an assessment of the type
of housing [[Page 9741]] program to be used and the method by which
program participants will have access to the housing project;
(d) The planning and identification of resources required for basic
skills instruction and education, job training and job development,
leadership and employment skills development, counseling, referral, and
other related support services that will be provided as part of the
Youthbuild program;
(e) The preparation of an application for an implementation grant.
(f) Preliminary architectural and engineering (A & E) work for the
Youthbuild proposed housing including:
(1) The development of cost and time estimates associated with the
amount of work to be done through new construction or the
rehabilitation of existing housing;
(2) Technical studies to evaluate environmental problems and to
determine whether mitigation is feasible on the potential site; and
(3) The identification and initiation of the permit process
required to commence work on the selected site;
(g) The planning and development of multi-disciplinary educational
and employment training curricula, leadership development training,
counseling, and other supportive services and activities for the
Youthbuild program including the identification and training of staff
assigned to each program component;
(h) The identification and establishment of relationships with
local unions, apprenticeship programs, housing owners, local employers
and public or private community organizations for job training,
development, and placement opportunities;
(i) Administration. Youthbuild funds for administrative costs may
not exceed 15 percent of the total amount of Youthbuild program and
project costs or such higher percentage as HUD determines is necessary
to support capacity development by a private nonprofit organization.
Subpart D--Youthbuild Implementation Grants
Sec. 585.301 Purpose.
HUD will award Youthbuild implementation grants to eligible
applicants for the purpose of carrying out Youthbuild programs in
accordance with subtitle D of title IV of the National Affordable
Housing Act. Applications will be selected in a national competition in
accordance with the selection process described in the current NOFA.
Sec. 585.302 Award limits.
Maximum awards. The maximum award for a Youthbuild implementation
grant will be defined in the NOFA for each competition and may vary by
competition. HUD may for good cause approve a grant in a higher amount
than the specified limit.
Sec. 585.303 Grant term.
Funds awarded for implementation grants are expected to be used
within 30 months of the effective date of the implementation grant
agreement.
Sec. 585.304 Locational considerations.
Each application for an implementation grant may only include
activities to carry out one Youthbuild program, i.e., to start a new
Youthbuild program or to fund new classes of Youthbuild participants
for an existing program. The same applicant organization may submit
more than one application in the current competition if the proposed
programs are in different jurisdictions. HUD will not approve multiple
applications for implementation grants in the same jurisdiction unless
it determines that the jurisdiction is sufficiently large to justify
approval of more than one application.
Sec. 585.305 Eligible activities.
Implementation grant activities to conduct a Youthbuild program may
include:
(a) Acquisition of housing and related facilities to be used for
the purposes of providing homeownership, residential rental housing, or
transitional housing for the homeless and low- and very low-income
persons and families;
(b) Architectural and engineering work associated with Youthbuild
housing;
(c) Construction of housing and related facilities to be used for
the purposes of providing homeownership, residential rental housing, or
transitional housing for the homeless and low- and very low-income
persons and families;
(d) Rehabilitation of housing and related facilities to be used for
the purposes of providing homeownership, residential rental housing, or
transitional housing for the homeless and low- and very low-income
persons and families;
(e) Operating expenses and replacement reserves for the housing
assisted in the Youthbuild program;
(f) Relocation payments and other assistance required to comply
with Sec. 585.308, legal fees, and construction management;
(g) Outreach and recruitment activities, emphasizing special
outreach efforts to be undertaken to recruit eligible young women
(including young women with dependent children);
(h) Education and job training services and activities including
work experience, basic skills instruction and remedial education,
bilingual education; secondary education leading to the attainment of a
high school diploma or its equivalent; counseling and assistance in
attaining post-secondary education and required financial aid;
(i) Wages, benefits and need-based stipends provided to
participants;
(j) Leadership development, counseling, support services, and
development of employment skills;
(k) Defraying costs for the ongoing training and technical
assistance needs of the recipient that are related to developing and
carrying out a Youthbuild program;
(l) Job placement (including entrepreneurial training and business
development), counseling, and support services for a period not to
exceed 12 months after completion of training to assist participants;
and
(m) Administration. Youthbuild funds for administrative costs may
not exceed 15 percent of the total amount of Youthbuild program and
project costs or such higher percentage as HUD determines is necessary
to support capacity development by a private nonprofit organization.
Sec. 585.306 Designation of costs.
The following budget items are to be considered training or other
costs under the Youthbuild implementation grant and should not be
considered costs associated with acquisition, rehabilitation, or new
construction for the purposes of Secs. 585.307, 585.309, 585.310, and
585.311.
(a) Trainees' tools and clothing.
(b) Participant stipends and wages.
(c) On-site trainee supervisors.
(d) Construction management.
(e) Relocation costs.
(f) Legal fees.
(g) Clearance and demolition.
Sec. 585.307 Environmental procedures and standards.
(a) Environmental procedures. Applicants are encouraged to select
hazard-free and problem-free properties for their Youthbuild projects.
Environmental procedures apply to HUD approval of implementation grants
when the applicant proposes to use Youthbuild funds to cover any costs
for the lease, acquisition, rehabilitation, or new construction of real
property that is proposed for housing project development.
Environmental procedures do not apply to HUD [[Page 9742]] approval of
implementation grants when applicants propose to use their Youthbuild
funds solely to cover any costs for classroom and/or on-the-job
construction training and supportive services. For those applicants
that propose to use their Youthbuild funds to cover any costs of the
lease, acquisition, rehabilitation, or new construction of real
property, the applicant shall submit all relevant environmental
information in its application to support HUD decision-making in
accordance with the following environmental procedures and standards.
(1) Before any Youthbuild implementation application that requests
funds for acquisition, rehabilitation, or construction can be selected
for funding, HUD shall determine whether any environmental thresholds
are exceeded in accordance with 24 CFR part 50, which implements the
National Environmental Policy Act (NEPA) and the related Federal
environmental laws and authorities listed under 24 CFR 50.4.
(i) If HUD determines that one or more of the thresholds are
exceeded, HUD shall conduct a compliance review of the issue and, if
appropriate, establish mitigating measures that the applicant shall
carry out for the property;
(ii) In performing its review, HUD may use previously issued
environmental reviews prepared by local, State, or other Federal
agencies for the proposed property;
(iii)(A) The application for the Youthbuild implementation grant
shall provide HUD with:
(1) Applicant documentation for environmental threshold review; and
(2) Any previously issued environmental reviews prepared by local,
State, or other Federal agencies for the proposed property.
(B) The applicant is encouraged to contact the local community
development agency to obtain any previously issued environmental
reviews for the proposed property as well as for other relevant
information that can be used in the applicant documentation for the
environmental threshold review. In using previous reviews by other
sources, HUD must, however, conduct the environmental analysis and
prepare the environmental review and be responsible for any required
environmental findings.
(2) HUD reserves the right to disqualify any application where one
or more environmental thresholds are exceeded if HUD determines that
the compliance review cannot be conducted and satisfactorily completed
within the HUD review period for applications.
(3) If Youthbuild funds are requested for acquisition,
rehabilitation, or construction, applicants are prohibited from
committing or expending State, local or other funds to undertake
property acquisition (including lease), rehabilitation or construction
under this program until notification of grant award.
(b) Environmental thresholds: HUD shall determine whether a NEPA
environmental assessment is required. Also, HUD shall determine whether
the proposed property triggers thresholds for the applicable Federal
environmental laws and authorities listed under 24 CFR 50.4 as follows:
(1) For minor rehabilitation of a building and any property
acquisition (including lease), Federal environmental laws and
authorities may apply when the property is:
(i) Located within designated coastal barrier resources;
(ii) Contaminated by toxic chemicals or radioactive materials;
(iii) Located within a floodplain;
(iv) A building for which flood insurance protection is required;
(v) Located within a runway clear zone at a civil airport or within
a clear zone or accident potential zone at a military airfield; or
(vi) Listed on, or eligible for listing on, the National Register
of Historic Places; located within, or adjacent to, an historic
district, or is a property whose area of potential effects includes a
historic district or property.
(2) For major rehabilitation of a building and also for substantial
improvement in floodplains, in addition to paragraphs (b)(1) (i)
through (vi) of this section, other Federal environmental laws and
authorities may apply when the property:
(i) Has significant impact to the human environment;
(ii) Is a project involving five or more dwelling units severely
noise-impacted; or
(iii) Affects coastal zone management.
(3) For new construction, conversion or increase in dwelling unit
density, in addition to paragraphs (b)(1) (i) through (vi) and
paragraphs (b)(2) (i) through (iii) of this section, other Federal
environmental laws and authorities may apply when the property:
(i) Is located near hazardous industrial operations handling fuels
or chemicals of an explosive or flammable nature;
(ii) Affects a sole source aquifer;
(iii) Affects endangered species; or
(iv) Is located within a designated wetland.
(c) Qualified data sources. The environmental threshold information
provided by applicants must be from qualified data sources. A qualified
data source means any Federal, State, or local agency with expertise or
experience in environmental protection (e.g., the local community
development agency; the local planning agency; the State environmental
protection agency; the State Historic Preservation Officer) or any
other source qualified to provide reliable information on the
particular property.
(d) Minor rehabilitation means proposed fixing and repairs:
(1) Whose estimated cost is less than 75 percent of the property
value after completion;
(2) That does not involve changes in land use from residential to
nonresidential, or from nonresidential to residential;
(3) That does not involve the demolition of one or more buildings,
or parts of a building, containing the primary use served by the
property; and
(4) That does not increase unit density more than 20 percent.
Sec. 585.308 Relocation assistance and real property acquisition.
The Youthbuild program is subject to the provisions of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended (URA) and implementing regulations at 49 CFR part 24.
HUD Handbook 1378, Tenant Assistance, Relocation and Real Property
Acquisition, available from the Relocation and Real Estate Division at
the address listed in this section, describes these policies and
procedures. Any occupied property used in a Youthbuild program is
subject to the URA regardless of the source of the property or
construction funds. The URA requires recipients to provide relocation
assistance to persons (families, individuals, businesses, and nonprofit
organizations) that are displaced as a direct result of acquisition,
rehabilitation or demolition for an assisted project. Property
occupants who are not displaced also have certain rights. Therefore, if
a proposed Youthbuild implementation program involves occupied
property, before submitting the application the applicant should
consult with staff of the Relocation and Real Estate Division, Office
of Community Planning and Development, Department of Housing and Urban
Development, Room 7154, 451 Seventh Street, SW, Washington, DC 20410;
telephone: (202) 708-0336. TDD: (202) 708-1455. Fax: (202) 708-1744.
(These are not toll-free numbers.) [[Page 9743]]
Sec. 585.309 Project-related restrictions applicable to Youthbuild
residential rental housing.
Where the award of a Youthbuild implementation grant includes the
eligible activities of acquisition, architectural and engineering fees,
construction, rehabilitation, operating costs or replacement reserves
for residential rental units, and where the costs for these activities
are to be funded, in whole or in part, from the Youthbuild grant award,
the recipient shall be required to comply with the following Youthbuild
project-related restrictions for a period of not less than 10 years:
(a) Occupancy by low- and very low-income families. (1) For the 10
year period of the residential rental Youthbuild project, the recipient
or rightful owner will be required to maintain at least a 90 percent
level of occupancy for individuals and families with incomes less than
60 percent of the area median income, adjusted for family size--``the
90 percent category.'' The recipient or rightful owner must offer each
available rental unit to the 60 percent of area median income group for
an advertising period of not less than 90 days upon each vacancy
occurrence throughout the 10 year period. Community-wide advertisements
for tenants of this income group must be conducted.
(2) In order to maintain the financial stability of the project and
to provide flexibility in averting long-term vacancies in the 90
percent category, the rightful owner is permitted, under certain
circumstances described below, to execute temporary two year leases
with individuals and families with incomes between 60 and 80 percent of
the area median income. This temporary deviation is permitted when no
qualifying tenant (with an income of 60 percent or less of median)
leases the unit upon the end of the 90 day advertising period. The
owner may then advertise the unit to individuals and families with
incomes less than 80 percent of the area median income, adjusted for
family size, for another advertisement period of 90 days. Temporary
leases for tenants whose incomes are between 60 and 80 percent of the
area median income (exclusive of the 10 percent allowance) shall be
limited to two years. Temporary tenants are not covered by Youthbuild
tenant protections regarding termination of tenancy [paragraph (b)(2)
of this section], tenant selection plan [paragraph (b)(4) of this
section] and tenant participation plan [paragraph (d) of this section].
(3) The remaining 10 percent of the units must be made available to
and occupied by low-income families--``the 10 percent category.'' The
income test must be conducted for both the 90 percent and 10 percent
categories only at time of entry for each unit available for occupancy.
(b) Tenant protections. Upon submission of the implementation grant
application, the applicant or rightful owner of the residential rental
units covered under this paragraph shall certify to the following
tenant protections:
(1) Lease. As part of the Youthbuild implementation grant
application, the applicant or rightful owner of the property shall
provide a model lease containing terms and conditions acceptable to
HUD. The model lease shall become an addendum to the executed grant
agreement and shall remain in force for a period of 10 years. The lease
between a tenant and the owner of residential rental housing shall be
for a period of not less than one year, unless otherwise mutually
agreed to by the tenant and the owner, and shall contain such terms and
conditions as HUD determines to be appropriate. Any change to a lease
must be approved by HUD.
(2) Termination of tenancy. Upon submission of the implementation
grant application, the applicant or other rightful owner of the
property must certify that the following restrictions will be applied
to all lease terminations initiated by the owner. The restrictions must
state that an owner shall not terminate the tenancy or refuse to renew
the lease of a tenant occupying a Youthbuild residential rental housing
unit except for serious or repeated violations of the terms and
conditions of the lease, or for violation of applicable Federal, State,
or local laws, or for other good cause. Any termination or refusal to
renew the lease must be preceded by not less than 30 days by the
owner's service upon the tenant of a written notice specifying the
grounds for the action. With regard to leases for tenants in units
controlled by public housing authorities, 24 CFR part 966 shall take
precedence over this provision.
(3) Maintenance and replacements. Upon submission of the
implementation grant application, the applicant or rightful owner of
Youthbuild residential rental housing must certify that the premises
will be maintained in compliance with all applicable housing quality
standards and local code requirements for the 10 year period. HUD's
Section 8 housing quality standards apply when no other public
assistance is involved other than the Youthbuild grant. In other cases,
the applicable HUD or other Federal, State or local program guidelines
shall apply.
(4) Tenant selection. The applicant or rightful owner of Youthbuild
residential rental housing must develop and adopt a tenant selection
plan containing selection policies and criteria that are consistent
with HUD requirements. The tenant selection plan shall remain in force
for the 10 year period. Upon submission of the implementation grant
application, the applicant or owner of the property must certify that
the plan complies with the following HUD requirements:
(i) The plan is consistent with the purpose of providing housing
for homeless and very low-income families and individuals;
(ii) The plan is reasonably related to program eligibility and the
applicant's or owner's ability to perform the obligations of the lease;
(iii) The plan gives reasonable consideration to the housing needs
of families that would qualify for a preference under section
6(c)(4)(A) of the United States Housing Act of 1937;
(iv) The plan provides for the selection of tenants from a written
waiting list in the chronological order of their application, to the
extent practicable, and for the prompt notification in writing of any
rejected applicant of the grounds for any rejection; and
(v) The plan acknowledges that a family holding tenant-based
assistance under section 8 of the United States Housing Act of 1937
will not be refused tenancy because of the status of the prospective
tenant as a holder of such assistance.
(c) Limitation on rental payments. Upon submission of the
implementation grant application, the applicant or other rightful owner
of Youthbuild residential rental housing project involved in a
Youthbuild program shall certify that tenants in each rental unit shall
be not required to pay rent in excess of the amount provided under
section 3(a) of the United States Housing Act of 1937.
(d) Tenant participation plan. The Youthbuild program shall require
a tenant participation plan applicable to the rightful owner of
Youthbuild residential rental housing, provided such owner is a
nonprofit public or private organization. Upon submission of the
implementation grant application, the nonprofit owner shall certify
that the tenant participation plan is the plan to be adopted and
followed for tenant participation in management decisions for the 10
year period.
(e) Limitations on profit. Youthbuild residential rental housing
projects [[Page 9744]] meeting the requirements of this section shall
be restricted from producing profit in excess of the following
limitations:
(1) Monthly rental limitation. The aggregate monthly rental for
each eligible project may not exceed the operating costs of the project
(including debt service, management, adequate reserves, and other
operating costs) plus a 6 percent return on any equity investment of
the project owner.
(2) Profit limitations on partners. A nonprofit organization
receiving Youthbuild assistance for a residential rental housing
project shall agree to use any profit received from the operation,
sale, or other disposition of the project for the purposes of providing
housing for low- and moderate-income families. Profit-motivated
partners in a nonprofit partnership may receive:
(i) Not more than a 6 percent return on their equity investment
from project operations; and
(ii) Upon disposition of the project, not more than an amount equal
to their initial equity investment plus a return on that investment
equal to the increase in the Consumer Price Index for the geographic
location of the project since the time of the initial investment of
such partner in the project.
(f) Restrictions on conveyance. Conveyance restrictions apply to
Youthbuild residential rental housing project(s) meeting the
requirements of this section. Ownership of the property may not be
conveyed unless the instrument of conveyance requires a subsequent
owner to comply with the same restrictions imposed upon the original
owner for the balance of the 10 year period.
(g) Ten year restriction. The restrictions listed in paragraphs (a)
through (f) of this section shall remain in force for a period of not
less than 10 years after construction completion and issuance of an
occupancy permit for all Youthbuild residential rental housing projects
receiving Youthbuild assistance.
(Approved by the Office of Management and Budget under control
number 2506-0142)
Sec. 585.310 Project-related restrictions applicable to Youthbuild
transitional housing for the homeless.
Where the award of a Youthbuild implementation grant includes the
eligible activities of acquisition, architectural and engineering fees,
construction, rehabilitation, operating costs or replacement reserves
of transitional housing units, and where the costs for these activities
are funded, in whole or in part, with Youthbuild grant funds, the
housing project shall be required to comply with the following
Youthbuild project-related restrictions:
(a) Limitations on profit. (1) Youthbuild transitional housing
projects meeting the requirements of this section shall be restricted
from producing profit in excess of the following limitations:
(i) Monthly rental limitation. The aggregate monthly rental for
each Youthbuild project may not exceed the operating costs of the
project (including debt service, management, adequate reserves, and
other operating costs) plus a six (6) percent return on any equity
investment of the project owner.
(ii) Profit limitations on partners. A nonprofit organization
receiving Youthbuild assistance for a housing project shall agree to
use any profit received from the operation, sale, or other disposition
of the project for the purposes of providing housing for low- and
moderate-income families.
(2) Profit-motivated partners in a nonprofit partnership may
receive:
(i) Not more than a six (6) percent return on their equity
investment from project operations; and
(ii) Upon disposition of the project, not more than an amount equal
to their initial equity investment plus a return on that investment
equal to the increase in the Consumer Price Index for the geographic
location of the project since the time of the initial investment of
such partner in the project.
(b) Restrictions on conveyance. Conveyance restrictions apply to
Youthbuild transitional housing projects meeting the requirements of
this section. Ownership of the property may not be conveyed unless the
instrument of conveyance requires a subsequent owner to comply with the
same restrictions imposed upon the original owner for the balance of
the 10 year period.
(c) Program requirements for Transitional housing. (1) Youthbuild
transitional housing projects meeting the requirements of this section
shall adhere to the requirements regarding service delivery, housing
standards and rent limitations applicable to comparable housing
receiving assistance under the Transitional Housing component of the
Supportive Housing Program (title IV of the Stewart B. McKinney
Homeless Assistance Act).
(2) The Secretary may waive these requirements to permit the
conversion of a Youthbuild transitional housing project to a permanent
housing project only if such housing complies with the Youthbuild
project-related restrictions for residential rental housing projects
found in Sec. 585.309.
(d) Ten Year Restriction. The restrictions listed in paragraphs A
through C of this section shall remain in force for a period of not
less than 10 years after construction completion and issuance of an
occupancy permit for a Youthbuild transitional housing project
receiving Youthbuild assistance.
Sec. 585.311 Project-related restrictions applicable to Youthbuild
homeownership housing.
Where the award of a Youthbuild implementation grant includes the
eligible activities of acquisition, architectural and engineering fees,
construction, or rehabilitation of homeownership housing, and where the
costs for these activities are to be funded, in whole or in part, with
Youthbuild grant funds, the housing project shall be required to comply
with the following Youthbuild project-related restrictions:
(a) Program compliance. Each homeownership project meeting the
requirements of this section shall comply with the requirements of the
HOPE II or HOPE III programs authorized under subtitles B or C
respectively of title IV of the National Affordable Housing Act.
(b) Restrictions on conveyance. Conveyance restrictions apply to
Youthbuild homeownership housing projects meeting the requirements of
this part. Ownership of the property may not be conveyed unless the
instrument of conveyance requires a subsequent owner to comply with the
same restrictions imposed upon the original owner for the balance of
the 10 year period.
(c) Ten Year Restriction. The restrictions listed in paragraphs (a)
and (b) of this section shall remain in force for a period of not less
than 10 years after construction completion and issuance of an
occupancy permit for Youthbuild homeownership housing projects meeting
the requirements of this part.
Sec. 585.312 Wages, labor standards, and nondiscrimination.
Sections 142 (wages and benefits), 143 (labor standards), and 167
(nondiscrimination) of the Job Training Partnership Act shall apply to
Youthbuild programs as if the programs were conducted under the Job
Training Partnership Act. This provision may not be construed to
prevent Youthbuild recipients from using funds from non-Federal sources
to increase wages and benefits under such programs, if appropriate.
Sec. 585.313 Labor standards.
(a) Trainees. Davis-Bacon prevailing wage rate requirements are not
applicable to trainees on housing [[Page 9745]] projects or in training
programs assisted by Youthbuild grant funds, regardless of whether
other Federal assistance is involved. However, where the trainees'
performance of public and Indian housing work is subject to HUD-
determined prevailing wage rates under Section 12 of the United States
Housing Act of 1937, trainees must be paid HUD-determined wage rates;
as a matter of policy, the wage rates determined by HUD to apply to
Youthbuild trainees will be the trainee wage rates rather than
journeyperson rates.
(b) Laborers and mechanics other than Youthbuild Trainees. (1) All
laborers and mechanics (other than Youthbuild trainees) employed by
contractors or subcontractors in any construction, alteration or
repair, including painting and decorating, of housing that is assisted
by a Youthbuild grant shall be paid 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 (40
U.S.C. 276a through 276a-5). The employment of such laborers and
mechanics on assisted housing shall be subject to the provisions of the
Contract Work Hours and Safety Standards Act (40 U.S.C. 327 through
333). Where these requirements are applicable, recipients, sponsors,
owners, contractors and subcontractors must comply with all related
Department of Labor and HUD rules, regulations and requirements.
(2) The labor standards requirements in paragraph (b)(1) of this
section do not apply where a Youthbuild grant is provided solely for
classroom and/or on-the-job training and supportive services for
Youthbuild trainees, and the grant does not include costs for housing
project development involving acquisition (including lease),
rehabilitation or new construction of real properties; however, if
other Federal programs provide assistance to the housing project, labor
standards apply to laborers and mechanics other than Youthbuild
trainees to the extent required by the other Federal programs.
Applicants need to review applicable Federal regulations to determine
which relevant requirements apply to their individual situations.
Subpart E--Administration
Sec. 585.401 Recordkeeping by recipients.
(a) Each recipient of a planning or implementation Youthbuild grant
award must keep records that will facilitate an effective audit to
determine compliance with program requirements and that fully disclose:
(1) The amount and disposition by the recipient of the planning or
implementation Youthbuild grants received, including sufficient records
that document the reasonableness, accuracy and necessity of each
expenditure;
(2) The amount and disposition of proceeds, if any, from financing
obtained in connection with the Youthbuild program, e.g., housing sales
to eligible low-income families, property sales to other public or
private entities;
(3) The total cost from all sources of funding for the Youthbuild
program including all educational, training, counseling, placement, and
housing activities and services;
(4) The amount and nature of any other assistance, including cash,
property, services, materials, in-kind contributions or other items
contributed as a condition of receiving an implementation grant;
(5) Any other proceeds received for, or otherwise used in
connection with, the Youthbuild program.
(6) Participant information. The recipient must maintain records on
each Youthbuild participant, including such information as age, high
school drop out status, income level, gender, employment status, and
racial and ethnic characteristics.
(7) Housing information. If Youthbuild grant funds are used for
acquisition, architectural and engineering fees, construction,
rehabilitation, operating costs or replacement reserves for housing
used in a Youthbuild program, the recipient must maintain records on
family size, income, and racial and ethnic characteristics of families
renting or purchasing Youthbuild properties.
(8) Relocation Assistance and Real Property Acquisition. The
recipient shall maintain records sufficient to demonstrate compliance
with relocation assistance and real property acquisition requirements,
as described in Chapter 6 of HUD Handbook 1378, Tenant Assistance,
Relocation and Real Property Acquisition. See Sec. 585.308.
(b) Implementation grant recipients must submit reports pursuant to
Section 3 regulations at 24 CFR part 135.
(c) Access by HUD and the Comptroller General. For purposes of
audit, examination, monitoring, and evaluation, each recipient must
give HUD (including any duly authorized representatives and the
Inspector General) and the Comptroller General of the United States
(and any duly authorized representatives) access to any books,
documents, papers, and records of the recipient that are pertinent to
assistance received.
(Approved by the Office of Management and Budget under control
number 2506-0142)
Sec. 585.402 Grant agreement.
(a) General. The recipient will provide education and job training
in accordance with the requirements of this part as incorporated in a
grant agreement executed by HUD and the recipient.
(b) Enforcement. HUD will enforce the obligations in the grant
agreement through such actions as may be appropriate, including
repayment of funds that have already been disbursed to the recipient.
Sec. 585.403 Reporting requirements.
(a) Quarterly Progress Reports. Each recipient of a Youthbuild
grant must submit a report on a quarterly basis. The form and substance
of the quarterly progress report will be provided to recipients. The
Performance Evaluation Report noted in paragraph (b) of this section
will constitute the final Quarterly Report.
(b) Performance Evaluation Report. Each recipient of a Youthbuild
grant must submit a Performance Evaluation Report on activities
undertaken and completed in accordance with the grant agreement. The
form and substance of the Performance Evaluation Report shall be
provided to recipients.
(Approved by the Office of Management and Budget under control
number 2506-0142)
Sec. 585.404 Program changes.
(a) There are three basic types of changes that recipients may wish
to make to their programs:
(1) Grant Agreement amendments.
(2) Material changes, which include, but are not limited to changes
in housing sites, changes in significant participating parties, and
changes in approved activities. All material changes require HUD
approval.
(3) Self-implementing program changes, which may include changes in
recipient staffing and content of curriculum. All self-implementing
changes require documentation in the recipient's files.
(b) Approval for Grant Agreement Amendments and material changes is
contingent upon the application ranking remaining high enough after the
approved change to have been competitively selected for funding in the
year the application was selected.
Sec. 585.405 Obligation and deobligation of funds.
(a) Obligation of funds. When HUD and the applicant execute a grant
[[Page 9746]] agreement, funds are obligated to carry out approved
activities consistent with Secs. 585.205 or 585.305 of this part and in
accordance with the grant agreement.
(b) Increases. After the initial obligation of funds, HUD will not
make revisions to increase the amount obligated.
(c) Deobligation. (1) HUD may deobligate all or parts of grants if
the grant amounts are not expended within the term of the grant or if
there is a condition of default as defined in the grant agreement.
(2) HUD may award deobligated funds to applications previously
submitted in response to the most recently published NOFA, and in
accordance with subpart B of this part.
Sec. 585.406 Primarily religious organizations.
(a) Provision of assistance to primarily religious organizations.
(1) HUD will provide Youthbuild assistance to a recipient that is a
primarily religious organization if it agrees to provide housing,
educational and training activities or supportive services in a manner
that is free from religious influences and in accordance with the
following principles:
(i) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or
give employment preference to persons on the basis of religion;
(ii) It will not discriminate against any person applying for
Youthbuild activities, supportive services or housing on the basis of
religion and will not limit such activities or services or give
preference to persons on the basis of religion; and
(iii) It will provide no religious instruction or counseling,
conduct no religious worship or services, engage in no religious
proselytizing, and exert no other religious influence in the provision
of housing, education, training activities, or support services.
(2) HUD will provide Youthbuild assistance to a recipient that is a
primarily religious organization if the assistance will not be used to
construct or rehabilitate a property to be owned by the recipient,
except as described in paragraph (b) of this section.
(b) Rehabilitation and new construction of structures owned by a
primarily religious organization. Grant funds may be used to
rehabilitate or newly construct a structure owned by a primarily
religious organization if the following conditions are met:
(1) The structure (or portion of the structure) that is to be
rehabilitated or newly constructed with HUD assistance has been leased
to a recipient that is an existing or newly established wholly secular
organization which may be established by the primarily religious
organization under the provision of paragraph (c) of this section;
(2) The HUD assistance is provided to the wholly secular
organization (and not the primarily religious organization) to make the
improvements;
(3) The leased structure will be used exclusively for secular
purposes available to all persons regardless of religion;
(4) The lease payments paid to the primarily religious organization
do not exceed the fair market rent of the structure before any
rehabilitation was completed;
(5) The portion of the costs of any improvements that benefit any
unleased portion of the structure will be allocated to, and paid for
by, the primarily religious organization;
(6) The primarily religious organization agrees that, if the
recipient does not retain the use of the leased premises for wholly
secular purposes for the useful life of the improvements, the primarily
religious organization will pay an amount equal to the residual value
of the improvements to the secular organization, and the secular
organization will remit the amount to HUD.
(c) Assistance to a wholly secular private nonprofit organization
established by a primarily religious organization.
(1) A primarily religious organization may establish a wholly
secular private nonprofit organization to serve as a recipient. The
wholly secular organization may be eligible to receive other forms of
assistance available under this part.
(i) The wholly secular organization must agree to provide housing
and support services in a manner that is free from religious influences
and in accordance with the principles set forth in paragraph (a) of
this section.
(ii) The wholly secular organization may enter into a contract with
the primarily religious organization to operate the housing or to
provide support services. In such a case, the primarily religious
organization must agree in the contract to carry out its contractual
responsibilities in a manner free from religious influences and in
accordance with the principles set forth in paragraph (a) of this
section.
(iii) The rehabilitation or new construction grants are subject to
the requirements of paragraph (a) of this section.
(2) HUD will not require the primarily religious organization to
establish the wholly secular organization before the selection of its
application. In such a case, the primarily religious organization may
apply on behalf of the wholly secular organization. The application
will be reviewed on the basis of the primarily religious organization's
financial responsibility and capacity, and its commitment to provide
appropriate resources to the wholly secular organization after
formation. Access to the housing site is demonstrated if the primarily
religious organization provides a commitment to transfer control of the
site to the wholly secular organization after its formation. If such an
application is selected for funding, the obligation of funds will be
conditioned upon the establishment of a wholly secular organization
that meets the definition of private nonprofit organization in
Sec. 585.4.
Subpart F--Applicability of Other Federal Requirements
Sec. 585.501 Application of OMB Circulars.
(a) The policies, guidelines and requirements of OMB Circular Nos.
A-87 (Cost Principles Applicable to Grants, Contracts and other
Agreements with State and Local Governments) and 24 CFR part 85
(Administrative Requirements for Grants and Cooperative Agreements to
State, Local and Federally Recognized Indian Tribal Governments) apply
to the award, acceptance and use of assistance under the program by
applicable entities, and to the remedies for non-compliance, except
where inconsistent with the provisions of NAHA, other Federal statutes
or this part. 24 CFR part 84 (Grants and Cooperative Agreements with
Institutions of Higher Education, Hospitals, and other Nonprofit
Organizations), OMB Circular A-122 (Cost Principles Applicable to
Grants, Contracts and other Agreements with Nonprofit Institutions),
and, as applicable, OMB Circular A-21 (Cost Principles for Educational
Institutions) apply to the acceptance and use of assistance by covered
organizations, except where inconsistent with the provisions of NAHA,
other Federal statutes or this part. Recipients are also subject to the
audit requirements of 24 CFR part 44 (Audit Requirements for State and
Local Governments) and 24 CFR part 45 (Audit Requirements for
Institutions of Higher Education and other Nonprofit Institutions), as
applicable. HUD may perform or require additional audits as it finds
necessary or appropriate.
(b) Copies of OMB Circulars may be obtained from E.O.P.
Publications, Room 2200, New Executive Office [[Page 9747]] Building,
Washington, DC 20503, telephone (202) 395-7332. (This is not a toll-
free number.) There is a limit of two free copies.
Sec. 585.502 Certifications.
In addition to the standard assurances of compliance with Federal
rules and OMB Circulars contained in applications for Federal grant
assistance, applicants must also make the following certifications:
(a) Consolidated Plan. (1) Applicants that are States or units of
general local government. The applicant must have a HUD-approved
Consolidated Plan in accordance with 24 CFR part 91 for the current
year and must submit a certification that the proposed activities are
consistent with the HUD-approved Consolidated Plan.
(2) Applicants that are not States or units of general local
government. The applicant must submit a certification by the
jurisdiction or jurisdictions in which the proposed program will be
located that the applicant's proposed activities are consistent with
the jurisdiction's current HUD-approved Consolidated Plan. A required
certification must be made by the unit of general local government if
it is required to have, or has, a Consolidated Plan. Otherwise the
certification may be made by the State.
(3) The Insular Areas of Guam, the Virgin Islands, American Samoa
and the Northern Mariana Islands are not required to have a
Consolidated Plan or to make a Consolidate Plan certification. An
application by an Indian tribe or other applicant for a Youthbuild
program that will be located on a reservation of an Indian tribe does
not require a certification by the tribe or State. However, where an
Indian tribe or an Indian Housing Authority (IHA) is the applicant for
a Youthbuild program that will not be located on a reservation, the
requirement for a certification by the jurisdiction or jurisdictions in
which the Youthbuild program will be located under the preceding
paragraph applies.
(b) Fair Housing and Equal Opportunity. A certification that the
applicant is in compliance and will continue to comply with the
requirements of the Fair Housing Act, title VI of the Civil Rights Act
of 1964, section 504 of the Rehabilitation Act of 1973, and the Age
Discrimination Act of 1975, and will affirmatively further fair
housing, or, in the case of a Youthbuild application from an Indian
tribe or an Indian Housing Authority (IHA), a certification that the
applicant will comply with the Indian Civil Rights Act (25 U.S.C. 1301
et seq.), section 504 of the Rehabilitation Act of 1973, and the Age
Discrimination Act of 1975.
(c) Drug-free workplace. A certification that the applicant will
comply with the requirements of the Drug-Free Workplace Act of 1988 (42
U.S.C. 701) and HUD's implementing regulations at 24 CFR part 24,
subpart F.
(d) Employment opportunities. A certification that the applicant
will comply with the requirements of section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 17017), as implemented by 24 CFR
part 135. Section 3 requires that employment and other economic
opportunities generated by HUD assisted housing and community
development programs shall, to the greatest extent feasible, be
directed toward section 3 residents and business concerns.
(e) Anti-lobbying. In accordance with the disclosure requirements
and prohibitions of section 319 of the Department of Interior and
Related Agencies Appropriations Act for Fiscal Year 1990 (31 U.S.C.
1352) (The Byrd Amendment) and the implementing regulations at 24 CFR
part 87, applicants for and recipients 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. Applicants and
recipients must also disclose where nonappropriated funds have been
spent or committed for lobbying activities if those activities would be
prohibited if paid with appropriated funds. Substantial monetary
penalties may be imposed for failure to file the required certification
or disclosure.
(f) Relocation Assistance and Real Property Acquisition. A
certification that the applicant will comply with the requirements of
the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, as amended (URA), and implementing regulations at
49 CFR part 24 and HUD Handbook 1378, Tenant Assistance, Relocation and
Real Property Acquisition. See Sec. 585.308.
(g) Use of Housing. A certification that the housing to be
produced in conjunction with the Youthbuild program is to be provided
for the homeless and low- and very low-income families.
(h) Lead-Based Paint. A certification that the applicant will
comply with the requirements of the Lead-Based Paint Poisoning
Prevention Act and implementing regulations at 24 CFR part 35.
(i) State and Local Standards. A certification that all educational
programs and activities supported with funds provided under this
subtitle shall be consistent with applicable State and local
educational standards. Standards and procedures with respect to the
awarding of academic credit and certifying educational attainment in
such programs shall be consistent with applicable State and local
educational standards.
(j) Labor Standards. A certification that the applicant and related
parties will comply with the provisions of the Davis-Bacon Act, as
amended (40 U.S.C. 276a through 276a-5), the Contract Work Hours and
Safety Standards Act (40 U.S.C. 327 through 333), and HUD Handbook
1344.1, Revision 1, Federal Labor Standards in Housing and Community
Development Programs, as applicable, available from the Office of
Assistant to the Secretary for Labor Relations, room 7118, 451 Seventh
Street, SW., Washington, DC 20410; Telephone (202) 708-0370; FAX, (202)
619-8022; TDD, (202) 708-1455. (These are not toll-free numbers).
(Approved by the Office of Management and Budget under control
number 2506-0142)
Sec. 585.503 Conflict of interest.
(a) (1) In addition to the conflict of interest requirements in 24
CFR parts 84 and 85, no person who is an employee, agent, consultant,
officer, or elected or appointed official of the recipient or
cooperating entity named in the application and who exercises or has
exercised any functions or responsibilities with respect to assisted
activities, 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 financial interest or benefit from the activity, or have an
interest in any contract, subcontract, or agreement with respect
thereto, or the 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, except that a resident of an
eligible property may acquire an ownership interest.
(2) Exception. HUD may grant an exception to the exclusion in
paragraph (a)(1) of this section on a case-by-case basis when it
determines that such an exception will serve to further the purposes of
the Youthbuild program. An exception may be considered only after the
applicant or recipient has provided a disclosure of the nature of the
conflict, accompanied by an assurance that there has been public
disclosure of the conflict, a description of how the public disclosure
was made, and an opinion of the applicant's or recipient's attorney
that the interest for which the exception is sought would not violate
State or local law. In determining whether to [[Page 9748]] grant a
requested exception, HUD will consider the cumulative effect of the
following factors, where applicable:
(i) Whether the exception would provide a significant cost benefit
or an essential degree of expertise to the Youthbuild program that
would otherwise not be available;
(ii) Whether an opportunity was provided for open competitive
bidding or negotiation;
(iii) Whether the person affected is a member of a group or class
intended to be the beneficiaries of the activity and the exception will
permit such person to receive generally the same interests or benefits
as are being made available or provided to the group or class;
(iv) Whether the affected person has withdrawn from his or her
functions or responsibilities, or the decision-making process, with
respect to the specific activity in question;
(v) Whether the interest or benefit was present before the affected
person was in a position as described in paragraph (a)(2) of this
section;
(vi) Whether undue hardship will result either to the applicant,
recipient, or the person affected when weighed against the public
interest served by avoiding the prohibited conflict; and
(vii) Any other relevant considerations.
(b) [Reserved]
Sec. 585.504 Use of debarred, suspended, or ineligible contractors.
The provisions of 24 CFR part 24 apply 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.
Dated: February 7, 1995.
Andrew Cuomo,
Assistant Secretary for Community Planning and Development.
[FR Doc. 95-4119 Filed 2-17-95; 8:45 am]
BILLING CODE 4210-29-P
