Notice of Neighborhood Stabilization Program Reallocation Process Changes, 52772-52776 [2010-21402]
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DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5435–N–01]
Notice of Neighborhood Stabilization
Program Reallocation Process
Changes
Office of the Secretary, HUD.
Notice.
AGENCY:
ACTION:
This Notice describes the
applicable corrective actions, recapture
process, the reallocation formula, and
the waivers of regulations granted to
grantees under Title III of Division B of
the Housing and Economic Recovery
Act of 2008, for the purpose of assisting
in the redevelopment of abandoned and
foreclosed homes under the Emergency
Assistance for Redevelopment of
Abandoned and Foreclosed Homes
heading. This notice affects grantees
receiving grants under the first round of
funding under the Neighborhood
Stabilization Program, which is referred
to throughout this notice as NSP1. As
described in the Supplementary
Information section of this notice, HUD
is authorized by statute to specify
alternative requirements and make
regulatory waivers for this purpose. This
notice advises the public that HUD is
revising the recapture policy of the
October 6, 2008, NSP1 Notice, as
amended, in a manner that affects the
consequences of failing to meet the 18month deadline for using NSP1 funds.
DATES: Effective Date: August 23, 2010.
FOR FURTHER INFORMATION CONTACT:
Stanley Gimont, Director, Office of
Block Grant Assistance, Department of
Housing and Urban Development, 451
Seventh Street, SW., Room 7286,
Washington, DC 20410, telephone
number 202–708–3587. Persons with
hearing or speech impairments may
access this number via TTY by calling
the Federal Information Relay Service at
800–877–8339. FAX inquiries may be
sent to Mr. Gimont at 202–401–2044.
(Except for the ‘‘800’’ number, these
telephone numbers are not toll-free.)
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Authority To Provide Alternative
Requirements and Grant Regulatory
Waivers
Title III of Division B of the Housing
and Economic Recovery Act, 2008 (Pub.
L. 110–289, approved July 30, 2008), as
amended, (HERA) appropriated $3.92
billion for emergency assistance for
redevelopment of abandoned and
foreclosed homes and residential
properties, and provides under a rule of
construction that, unless HERA states
otherwise, the grants are to be
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considered Community Development
Block Grant (CDBG) funds. The grant
program under Title III is commonly
referred to as NSP, and the first round
of NSP funding is referred to as NSP1.
When referring to a provision of the
appropriations statute itself, this notice
will refer to HERA; when referring to
the grants, grantees, assisted activities,
and implementation rules affected by
this notice, this notice will use the term
NSP1.
HERA authorizes the Secretary to
specify alternative requirements to any
provision under Title I of the Housing
and Community Development Act of
1974, as amended, (the HCD Act) except
for requirements related to fair housing,
nondiscrimination, labor standards, and
the environment (including lead-based
paint), in accordance with the terms of
section 2301 of HERA and for the sole
purpose of expediting the use of grant
funds. The CDBG requirements will
apply to NSP except where this notice
supersedes or amends such
requirements. This Notice does not
specify any new alternative
requirements to statutory requirements.
Except as described in this notice and
previous notices governing the NSP,
statutory and regulatory provisions
governing the CDBG program, including
those at 24 CFR part 570 subpart I for
states or, for CDBG entitlement
communities, including those at 24 CFR
part 570 subparts A, C, D, J, K, and O,
as appropriate, apply to the use of these
funds. (The State of Hawaii was
allocated funds and will be subject to
part 570, subpart I, as modified by this
notice.)
Substantive Revisions
NSP1 grantees are statutorily required
to use NSP1 funds within 18 months
from the date HUD signed their grant
agreement. HUD has defined ‘‘use’’ to
mean obligation of funds for approved
activities. The primary purpose of this
notice is to amend the reallocation
provision of the October 6, 2008, Notice,
73 FR 58330 (NSP1 Notice), which
noted that the ordinary CDBG
reallocation statutory requirement
would apply in the event of any
recapture of NSP1 funds for
noncompliance with program
requirements. This Notice provides
instead for a range of corrective actions,
in accordance with 24 CFR
570.900(b)(5) and (6), for failure to meet
the 18-month use requirements; and for
any recaptured funds to remain in the
NSP1 program and to be reallocated in
accordance with the formula in
Attachment A. The formula will
reallocate funds to communities with
the most current need for support in
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addressing neighborhoods destabilized
by foreclosed and abandoned homes
and may take into account prior
allocations of NSP1 and NSP2 already
serving those communities. This Notice
further addresses how grantees who
have funds recaptured will meet the
requirement that 25 percent of NSP1
funds support units affordable to
households whose incomes are 50
percent of area median income or less.
The substantive revisions made by
this notice follow. The Federal Register
page number identifies where the
language to be revised can be found in
the October 6, 2008, notice.
A. Reallocation Process
Background
In the NSP1 Notice, HUD noted in
paragraph I.B. Formula Reallocation,
that if a jurisdiction failed to meet the
requirement to use its NSP1 funds in 18
months, HUD would recapture the
funds and reallocate them in accordance
with the CDBG reallocation provisions
of the HCD Act at 42 U.S.C. 5306(c)(4).
This provision of the HCD Act
specifically applies to funds recaptured
under the authority of 42 U.S.C. 5304(e)
and 5311 of the HCD Act. However,
upon further reflection, HUD has
determined that 42 U.S.C. 5306(c)(4)
does not apply to recaptures under
NSP1 and therefore NSP funds are not
required to be reallocated to major
disaster areas. As the 18-month deadline
approaches, HUD is updating this
provision to limit the negative effects on
communities that, although they may
not have had the capacity to meet the
deadline, still have great need for
neighborhood stabilization funding.
Therefore, HUD is revising the NSP1
Notice’s provisions to provide a process
for addressing a grantee’s failure to meet
the 18-month use requirement and to
state that any recaptured funds will be
reallocated to provide additional NSP
grants on a formula basis. This Notice
explains how HUD will proceed to
restrict further obligation of NSP funds
the day after the 18-month use deadline
and provide grantees the opportunity to
submit additional information regarding
the NSP funds subject to a finding and
potential corrective action or sanction.
Following the review and before
selecting a corrective or remedial action,
HUD will, in accordance with 24 CFR
570.905 and 570.493, consider the
grantee’s continuing capacity to carry
out the grant.
HUD has a range of possible
corrective actions available in the
regulations at 24 CFR 570.910 and
570.495. Additional guidance is
provided in the Community Planning
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and Development Monitoring Handbook
6509.2, Rev-6. HUD may also provide
targeted technical assistance when it
determines that the grantee is in need of
such assistance to complete its program
successfully.
In many instances, HUD anticipates
that NSP grantees failing to meet the use
deadline will face a choice of (a)
entering into a memorandum of
agreement with the Department or (b)
recapturing of unobligated amounts.
Based largely on the grantee’s NSP1
performance and the amount of
unobligated funds, HUD may enter into
a memorandum of agreement designed
to improve the grantee’s performance
and enable use of the funds for the
purposes intended in the NSP1 Notice.
A few very low capacity grantees may
be required to demonstrate that they
have acquired stronger program
partners, such as proven nonprofit or
for-profit developers, before HUD will
allow further use of NSP1 funds. To
ensure uniform national application of
corrective actions, HUD will issue
guidance to field offices regarding
corrective actions for NSP1 grantees that
fail to meet the deadline for use of
funds, and corrective actions may be
reviewed by headquarters staff. Failure
on the grantee’s part to achieve use of
funds or to meet the terms of the
memorandum of agreement may lead to
recapture of funds.
States with unused funds will be
subject to a recapture of unused
amounts up to $19.6 million. This is
because the NSP1 allocation formula
provided $19.6 million to each state
regardless of the state’s relative need for
funds. Local governments received
funds strictly based on their formula
need. States received the $19.6 million
base payment plus any need-based
formula increment. Therefore, if a state
has unused NSP1 funds up to $19.6
million, HUD will recapture and
reallocate those funds to a higher need
location based on a strictly need-driven
formula. After HUD determines the
recapture amount, any remaining
unused state grant funds in excess of
$19.6 million will be addressed under
the additional corrective actions, as
described above.
To address concerns that some
grantees may inflate obligation amounts
for projects before the deadline, then
withdraw from or reduce these
obligations after the deadline as a
strategy for meeting the fund use
requirement by the deadline, HUD staff
will be reviewing a sample of obligation
documents. (Note that HUD recognizes
that grantees will not be able to budget
perfectly and has provided guidance
allowing a reasonable contingency for
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each project.) HUD field staff may
request removal of the obligation blocks
in the reporting system after assessment
of a grantee’s performance, if the field
staff determines the grantee is not high
risk consistent with this notice.
Finally, the Notice addresses
enforcement of the grantee’s statutory
obligation to spend at least 25 percent
of NSP1 funds on housing for persons
at or below 50 percent area median
income.
Revised Requirement
Section I.B.2. of the NSP1 Notice at
page 58331 is amended to read as
follows:
2. a. HUD will block each grantee’s
ability to obligate NSP1 grant funds in
the Disaster Recovery Grant Reporting
System (DRGR) on the first business day
after the statutory 18-month deadline for
use of funds. HUD will notify the
grantee of this action by electronic mail.
Grantees will not be able to obligate
grant funds after the deadline without
requesting and receiving permission
from HUD, until HUD determines that
the grantee is not high risk consistent
with this notice. The grantee will still be
able to expend grant funds obligated
before the deadline. Receipt and use of
any program income will also be
unaffected.
b. Any grantee that fails to obligate an
amount equal to or greater than its
initial grant amount may submit
information to HUD, for up to 30 days
following its 18-month deadline,
documenting any additional obligation
of funds not already recorded in the
DRGR system and demonstrating to
HUD that the obligation occurred on or
before the 18-month deadline. Before
the 18-month deadline, each grantee
should also review its recorded
obligations and notify HUD within 30
days following the deadline of any
necessary adjustments to the amount
and the reason for such an adjustment.
For example, the grantee has become
aware that an obligation amount that
was previously recorded for an
acquisition will not proceed, therefore a
downward adjustment is necessary.
c. After the deadline, if any grantee
needs to decrease or increase the
amount of grant funds obligated to an
activity, it must first ask HUD to remove
the DRGR block on changing the amount
obligated. If the amount of decrease is
more than 15 percent of the obligation
for any activity, the grantee must submit
to HUD a written request that clearly
demonstrates with compelling
information that factors beyond the
grantee’s reasonable control caused the
need to withdraw or decrease after the
deadline. If HUD agrees to grant the
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request, it will restore the grantee’s
ability to obligate grant funds in DRGR.
If HUD does not grant the request, the
grantee must either complete the
activity as originally obligated or the
amount previously obligated for that
activity will be recaptured. HUD may
also remove the obligations block
following risk assessment of the grantee
or a review of some or all of a grantee’s
obligation documentation.
d. Before HUD determines the
appropriate corrective action or
recaptures grant funds, HUD will review
the submitted information, consider the
grantee’s capacity as described in 24
CFR 570.905 and 24 CFR 570.493, and
the grantee’s continuing need for the
funds.
e. Following the review, HUD will
proceed to notify the grantee of the
selected corrective action it is required
to undertake.
f. HUD will recapture and reallocate
up to $19.6 million from any state
grantee with unused NSP grant funds.
Additional corrective actions may be
taken related to any amount of unused
funds greater than $19.6 million.
g. HUD will reallocate recaptured
funds in accordance with the
reallocation formula described in
Attachment A. A grantee receiving a
reallocation must apply for the grant in
accordance with the NSP1 Notice. A
nonentitlement grant recipient that is
not required to submit a consolidated
plan to HUD under the CDBG program
will prepare an abbreviated plan. The
substance of an abbreviated plan must
include all the required elements that
entitlement communities provide as
part of an NSP Action Plan substantial
amendment as described under Section
II.B.2.
h. Each grantee must meet the
statutory requirement to expend 25
percent of its grant amount for activities
that will provide housing for
households whose income is at or under
50 percent of area median income. This
cannot occur unless the funds are first
obligated to activities for this purpose,
or program income is received and used
for eligible activities. Therefore, if a
grantee fails to obligate or record
program income use of at least 25
percent of its original grant amount for
activities that will provide housing for
households whose income is at or under
50 percent of area median income, HUD
may issue a concern or a finding of
noncompliance. HUD will require as a
corrective action that the grantee either
adjust its remaining NSP1 planned
activities to ensure that 25% of the
original NSP1 formula grant amount and
program income supports activities
providing housing to households with
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incomes at or under 50 percent of area
median income, or make a firm
commitment to provide such housing
with nonfederal funds in an amount
sufficient to offset any deficiency to
comply with the requirement before the
expenditure deadline for the NSP1
grant.
i. The NSP1 Notice allows each
grantee to use up to ten percent of its
NSP1 grant for general administration
and planning activities. If HUD
recaptures funds from a grant, this
percentage limitation will still apply to
the remaining grant funds, reducing the
amount available for administration
activities.
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B. Changes to Pre-Grant Process
Background
With this notice, HUD is establishing
the pre-grant process for the NSP
reallocation grants. The formula is
published in Attachment A. HUD will
announce the reallocation amounts after
completing the recapture process for all
states that have failed to meet the 18month use requirement. Additional
reallocation announcements will be
made only if HUD recaptures funds
from grantees who fail to comply with
any memorandum of agreement or grant
conditions. At the time of each
announcement, CDBG grantees
receiving NSP1 reallocations may
immediately begin to prepare and
submit action plan substantial
amendments or abbreviated plans for
NSP1 funds, in accordance with this
notice and the original NSP1 Notice.
(Insular areas should follow the
requirements for entitlement
communities.)
To receive NSP1 reallocation funding,
grantees must submit an action plan
substantial amendment to HUD in
accordance with this notice by no later
than the deadline in the allocation
announcement. Any unit of general
local government in a nonentitlement
area receiving an allocation must submit
an abbreviated plan under 24 CFR
91.235 to HUD by the same deadline.
An abbreviated plan will have
essentially the same content as a NSP1
substantial amendment, although the
certifications will be different.
In the October 6, 2008 NSP1 Notice,
HUD encouraged each local jurisdiction
receiving an allocation to carefully
consider its administrative capacity to
use the funds within the statutory
deadline. HUD is encouraging each local
jurisdiction receiving reallocated fund
to consider its administrative capacity.
To support this consideration, HUD is
providing a self-assessment tool that
grantees may find useful in better
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understanding their capacity to
undertake and manage NSP1 activities.
This is the same self-assessment tool
that is used for NSP Technical
Assistance (NSP–TA) purposes and it
will allow HUD to more rapidly identify
capacity gaps and technical assistance
needs and to provide appropriate
technical assistance. Although HUD
suggests that every grantee complete
and submit the self-assessment with its
substantial amendment, HUD will
require some grantees to complete and
submit such a self-assessment as a
special condition of receiving funding.
HUD also provided regulatory waivers
and alternative requirements to allow
joint requests among contiguous
entitlement communities and to allow
joint requests between an entitlement
community and a state. Any two or
more contiguous units of general local
government may make a joint request to
HUD to implement a joint NSP1
program with reallocated funds. A
jurisdiction need not have a joint
agreement with an urban county under
the regular CDBG entitlement program
or have joint request with a local
government or state for the original
NSP1 allocation to request a joint
program for NSP1 reallocation funding.
Potential requestors should contact
HUD as soon as possible (as far as
possible in advance of publishing a
proposed substantial amendment or
abbreviated plan) for technical
guidance. The requestors will specify
which jurisdiction will receive the
funds and administer the combined
grant on behalf of the requestors; in the
case of a joint request between a local
government jurisdiction and a state, the
state will administer the combined
grant. (Grantees choosing this option
should consider the Consolidated Plan
and citizen participation implications of
this approach. The lead entity’s
substantial amendment will cover all
participating members. The citizen
participation process must include
citizens of all jurisdictions participating
in the joint program.)
Given the rule of construction in
HERA that NSP funds generally are
construed as CDBG program funds,
subject to CDBG program requirements,
HUD generally will treat reallocated
NSP funds as a special allocation of
Fiscal Year (FY) 2010 CDBG funding for
grantees receiving an allocation for the
first time. This has important
consequences for local governments
presently participating in an existing
urban county program, and for
metropolitan cities that have joint
agreements with urban counties. HUD
will consider any existing cooperation
agreements between a local government
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and an urban county governing FY2010
CDBG funding (for purposes of either an
urban county or a joint program) to
automatically cover NSP funding as
well. These cooperation agreements will
continue to apply to the use of NSP
funds for the duration of the NSP grant,
just as cooperation agreements covering
regular CDBG Entitlement program
funds continue to apply to any use of
the funds appropriated during the 3year period covered by the agreements.
For example, a local government
presently has a cooperation agreement
covering a joint program or participation
in an urban county for Federal FYs
2009, 2010 and 2011. The local
government may choose to discontinue
its participation with the county at the
end of the applicable qualification
period for future CDBG entitlement
funding. However, the existing
cooperation agreement covers the NSP
funding until expended and the county
will still be responsible for any NSP
projects funded in that community, and
for any NSP funding the local
government receives from the county,
until those funds are expended and the
funded activities are completed.
A third method of cooperating is also
available, and may be required by HUD
in some jurisdictions that HUD
determines have high need for NSP
funds and low capacity to implement
some or all planned NSP activities in
the required timeframes. HUD may
condition some NSP reallocations on
such cooperation being demonstrated to
HUD’s satisfaction before execution of a
grant agreement. A jurisdiction may
apply for its entire grant and
immediately enter into a subrecipient
agreement with another jurisdiction, an
NSP2 grantee, or a nonprofit entity with
capacity to administer the grant.
Finally, some communities with a
great need for neighborhood
stabilization support do not have the
capacity to design and deliver a
successful NSP program. HUD can
identify these communities before
execution of a grant agreement based on
NSP, CDBG, or HOME program
performance or information from
technical assistance providers. In these
cases, HUD may reallocate funds to such
communities but will take actions
designed to ensure appropriate and
timely use of grant funds. HUD will
condition their grants on the grantee’s
acceptance of technical assistance, as
evidenced by an executed technical
assistance work plan or by a
memorandum of agreement with HUD.
In either such document, the
responsibilities and roles of the grantee,
HUD, and HUD’s technical assistance
providers will be described—including
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a specific scope of work and schedule—
and duly executed before HUD signs the
grant agreement for the reallocation
award.
At the time HUD publishes the
reallocation amounts, it will also
publish a specific date for a recipient to
complete and submit a substantial
amendment to its annual action plan or
an abbreviated plan. A grantee that
wishes to initially submit its action plan
amendment to HUD electronically in the
DRGR system rather than via paper may
do so by contacting its local field office
for the DRGR submission directions.
Paper submissions to HUD also will be
allowed, although each grantee must set
up its action plan in DRGR before the
deadline for the first required
performance report after receiving a
grant.
HUD will review each grantee
submission for completeness and
consistency with the requirements of
this notice and will disapprove
incomplete and inconsistent action plan
amendments and abbreviated plans.
HUD will allow revision and
resubmission of a disapproved
amendment or abbreviated action plan
in accordance with 24 CFR 91.500 so
long as any such resubmission is
received by HUD 45 days or less
following the date of first disapproval.
In combination, these requirements
provide the following expedited steps
for NSP grants:
• Proposed action plan amendment or
abbreviated plan published via the
usual methods and on the Internet for
no less than 15 calendar days of public
comment;
• Final action plan amendment or
abbreviated plan posted on the Internet
and submitted to HUD by the deadline
indicated in the allocation
announcement (grant application
includes Standard Form 424 (SF–424)
and certifications);
• HUD expedites review;
• HUD accepts the plan and prepares
a cover letter, grant agreement, and
grant conditions;
• Grantee meets any conditions
required before HUD’s execution of the
grant agreement.
• Grant agreement signed by HUD
and immediately transmitted to the
grantee;
• Grantee signs and returns the grant
agreements;
• HUD establishes the line of credit
and the grantee requests and receives
DRGR access;
• After completing the environmental
review(s) pursuant to 24 CFR part 58
and, as applicable, receiving from HUD
or the state an approved Request for
Release of Funds and certification, the
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grantee may draw-down funds from the
line of credit.
As with the initial allocation process,
the action plan substantial amendment,
abbreviated plan and citizen
participation alternative requirements
will permit an expedited grant-making
process, but one that still provides for
public notice, appraisal, examination,
and comment on the activities proposed
for the use of NSP grant funds.
Revised Requirements
Section II.B.4.a of the NSP1 Notice on
page 58334 is amended to add the
following at the end: To receive an NSP
reallocation, a grantee must submit to
HUD for approval an NSP application
by the deadline indicated in the
allocation announcement. This
submission will include a signed
standard Federal form SF–424, signed
certifications, and a substantial action
plan amendment or abbreviated plan
meeting the requirements of paragraph b
below. (24 CFR 91.505 is waived to the
extent necessary to require submission
of the substantial amendment to HUD
for approval in accordance with this
Notice.)
Section II.B.5–6 of the NSP1 Notice
on beginning on page 58334 is amended
to add: 5.
c. Local jurisdictions receiving
reallocation funds may enter into joint
agreements in accordance with 5.a. or
b., regardless of whether the local
jurisdiction had a joint agreement for
the original NSP allocation.
6. b. Any cooperation agreement
between a unit of general local
government and a county, concerning
either a joint program or participation in
an urban county under 24 CFR 570.307
or 570.308, and governing CDBG funds
appropriated for federal FY 2010, will
be considered to incorporate and apply
to NSP reallocated funding. Any such
cooperation agreements will continue to
apply to the use of NSP funds until the
NSP funds are expended and the NSP
grant is closed out. Grantees should note
that certain provisions in existing
cooperation agreements that govern
FY2010 CDBG funding may be
inconsistent with parts of HERA and
this notice. For instance, set minimum
and/or maximum allocation amounts
may conflict with priority distributions
to areas of greatest need identified in the
grantee’s action plan substantial
amendment. Conforming amendments
should be made to existing cooperation
agreements, as necessary, to comply
with HERA and this notice.
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C. Change to Timeliness of Use
Requirement
The requirements of paragraph M.
Timeliness of use and expenditure of
NSP funds of the NSP1 Notice will
apply to reallocation grants. Grantees
are reminded that section of HERA
2301(c)(1) provides that any grantee
receiving a grant:
‘‘* * *shall, not later than 18 months after
the receipt of such amounts, use such
amounts to purchase and redevelop
abandoned and foreclosed homes and
residential properties.’’
HUD has defined the term ‘‘use’’ to
include obligation of funds.
Revised Requirement
Section II.M. of the NSP1 Notice on
page 58340 is amended to add
paragraph 3 after paragraph 2:
3. Grantees receiving a reallocation of
funds must comply with the 18-month
use requirement.
D. Certifications
Background
HUD is substituting alternative
certifications. The alternative
certifications are tailored to NSP1 grants
and remove certifications and references
that are appropriate only to the annual
CDBG formula program.
Requirements
Section II.T. of the NSP1 Notice
starting on page 58342 is amended to
read as follows: Certifications for states
and for entitlement communities,
alternative requirement. Although the
NSP is being implemented as a
substantial amendment to the current
annual action plan, HUD is requiring
submission of this alternative set of
certifications as a conforming change,
reflecting alternative requirements and
waivers under this notice. Each
jurisdiction will submit the following
certifications:
1. Affirmatively furthering fair
housing. The jurisdiction certifies that it
will affirmatively further fair housing,
which means that it will conduct an
analysis to identify impediments to fair
housing choice within the jurisdiction,
take appropriate actions to overcome the
effects of any impediments identified
through that analysis, and maintain
records reflecting the analysis and
actions in this regard.
2. Anti-displacement and relocation
plan. The applicant certifies that it has
in effect and is following a residential
anti-displacement and relocation
assistance plan.
3. Anti-lobbying. The jurisdiction
must submit a certification with regard
to compliance with restrictions on
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lobbying required by 24 CFR part 87,
together with disclosure forms, if
required by that part.
4. Authority of jurisdiction. The
jurisdiction certifies that the
consolidated plan is authorized under
state and local law (as applicable) and
that the jurisdiction possesses the legal
authority to carry out the programs for
which it is seeking funding, in
accordance with applicable HUD
regulations and other program
requirements.
5. Consistency with plan. The
jurisdiction certifies that the housing
activities to be undertaken with NSP
funds are consistent with its
consolidated plan.
6. Acquisition and relocation. The
jurisdiction certifies that it will comply
with the acquisition and relocation
requirements of the Uniform Relocation
Assistance and Real Property
Acquisition Policies Act of 1970, as
amended (42 U.S.C. 4601), and
implementing regulations at 49 CFR part
24, except as those provisions are
modified by the notice for the NSP
program published by HUD.
7. Section 3. The jurisdiction certifies
that it will comply with section 3 of the
Housing and Urban Development Act of
1968 (12 U.S.C. 1701u), and
implementing regulations at 24 CFR part
135.
8. Citizen participation. The
jurisdiction certifies that it is in full
compliance and following a detailed
citizen participation plan that satisfies
the requirements of Sections 24 CFR
91.105 or 91.115, as modified by NSP
requirements.
9. Following a plan. The jurisdiction
certifies it is following a current
consolidated plan (or Comprehensive
Housing Affordability Strategy) that has
been approved by HUD.
10. Use of funds. The jurisdiction
certifies that it will comply with Title III
of Division B of the Housing and
Economic Recovery Act of 2008, as
amended, by using all of its grant funds
within 18 months of receipt of the grant.
11. The jurisdiction certifies:
a. That all of the NSP funds made
available to it will be used with respect
to individuals and families whose
incomes do not exceed 120 percent of
area median income; and
b. The jurisdiction will not attempt to
recover any capital costs of public
improvements assisted with CDBG
funds, including Section 108 loan
guaranteed funds, by assessing any
amount against properties owned and
occupied by persons of low- and
moderate-income, including any fee
charged or assessment made as a
condition of obtaining access to such
VerDate Mar<15>2010
15:33 Aug 26, 2010
Jkt 220001
public improvements. However, if NSP
funds are used to pay the proportion of
a fee or assessment attributable to the
capital costs of public improvements
(assisted in part with NSP funds)
financed from other revenue sources, an
assessment or charge may be made
against the property with respect to the
public improvements financed by a
source other than CDBG funds. In
addition, with respect to properties
owned and occupied by moderateincome (but not low-income) families,
an assessment or charge may be made
against the property with respect to the
public improvements financed by a
source other than NSP funds if the
jurisdiction certifies that it lacks NSP or
CDBG funds to cover the assessment.
12. Excessive force. The jurisdiction
certifies that it has adopted and is
enforcing:
a. A policy prohibiting the use of
excessive force by law enforcement
agencies within its jurisdiction against
any individuals engaged in nonviolent
civil rights demonstrations; and
b. A policy of enforcing applicable
state and local laws against physically
barring entrance to, or exit from, a
facility or location that is the subject of
such nonviolent civil rights
demonstrations within its jurisdiction.
13. Compliance with antidiscrimination laws. The jurisdiction
certifies that the NSP grant will be
conducted and administered in
conformity with Title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d),
the Fair Housing Act (42 U.S.C. 3601–
3619), and implementing regulations.
14. Compliance with lead-based paint
procedures. The jurisdiction certifies
that its activities concerning lead-based
paint will comply with the requirements
of part 35, subparts A, B, J, K, and R of
this title.
15. Compliance with laws. The
jurisdiction certifies that it will comply
with applicable laws.
Note on Statutory Limitation on
Distribution of Funds
Section 2304 of HERA states that none
of the funds made available under this
Title or title IV shall be distributed to an
organization that has been indicted for
a violation under Federal law relating to
an election for Federal office; or an
organization that employs applicable
individuals. Section 2304 defines
applicable individuals.
Information Collection Approval
HUD has approval from the Office of
Management and Budget (OMB) for
information collection requirements in
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
3520). OMB approval is under OMB
control number 2506–0165. In
accordance with the Paperwork
Reduction Act, HUD may not conduct or
sponsor and a person is not required to
respond to, a collection of information,
unless the collection displays a valid
control number.
Duration of Funding
The appropriation accounting
provisions in 31 U.S.C. 1551–1557,
added by section 1405 of the National
Defense Authorization Act for Fiscal
Year 1991 (Pub. L. 101–510), limit the
availability of certain appropriations for
expenditure. Such a limitation may not
be waived. The appropriations acts for
NSP grants direct that these funds be
available until expended. However, the
Department is imposing a shorter
deadline on the expenditure of NSP
funds in this notice.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance numbers for grants made
under NSP1 are as follows: 14.218;
14.225; and 14.228.
Finding of No Significant Impact
A Finding of No Significant Impact
with respect to the environment has
been made in accordance with HUD
regulations at 24 CFR part 50, which
implement section 102(2)(C) of the
National Environmental Policy Act of
1969 (42 U.S.C. 4332(C)(2)). The
Finding of No Significant Impact is
available for public inspection between
8 a.m. and 5 p.m. weekdays in the
Office of the Rules Docket Clerk, Office
of General Counsel, Department of
Housing and Urban Development, 451
Seventh Street, SW., Room 10276,
Washington, DC 20410–0500.
Dated: August 23, 2010.
´
Mercedes M. Marquez,
Assistant Secretary for Community Planning
and Development.
[FR Doc. 2010–21402 Filed 8–26–10; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[CACA 048649, LLCAD06000, L51010000.
FX0000, LVRWB09B2490]
Notice of Availability of the Draft
Environmental Impact Statement for
the Desert Sunlight Holdings, LLC
Desert Sunlight Solar Farm Project and
Possible California Desert
Conservation Area Plan Amendment
AGENCY:
Bureau of Land Management,
Interior.
E:\FR\FM\27AUN1.SGM
27AUN1
Agencies
[Federal Register Volume 75, Number 166 (Friday, August 27, 2010)]
[Notices]
[Pages 52772-52776]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21402]
[[Page 52772]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5435-N-01]
Notice of Neighborhood Stabilization Program Reallocation Process
Changes
AGENCY: Office of the Secretary, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This Notice describes the applicable corrective actions,
recapture process, the reallocation formula, and the waivers of
regulations granted to grantees under Title III of Division B of the
Housing and Economic Recovery Act of 2008, for the purpose of assisting
in the redevelopment of abandoned and foreclosed homes under the
Emergency Assistance for Redevelopment of Abandoned and Foreclosed
Homes heading. This notice affects grantees receiving grants under the
first round of funding under the Neighborhood Stabilization Program,
which is referred to throughout this notice as NSP1. As described in
the Supplementary Information section of this notice, HUD is authorized
by statute to specify alternative requirements and make regulatory
waivers for this purpose. This notice advises the public that HUD is
revising the recapture policy of the October 6, 2008, NSP1 Notice, as
amended, in a manner that affects the consequences of failing to meet
the 18-month deadline for using NSP1 funds.
DATES: Effective Date: August 23, 2010.
FOR FURTHER INFORMATION CONTACT: Stanley Gimont, Director, Office of
Block Grant Assistance, Department of Housing and Urban Development,
451 Seventh Street, SW., Room 7286, Washington, DC 20410, telephone
number 202-708-3587. Persons with hearing or speech impairments may
access this number via TTY by calling the Federal Information Relay
Service at 800-877-8339. FAX inquiries may be sent to Mr. Gimont at
202-401-2044. (Except for the ``800'' number, these telephone numbers
are not toll-free.)
SUPPLEMENTARY INFORMATION:
Authority To Provide Alternative Requirements and Grant Regulatory
Waivers
Title III of Division B of the Housing and Economic Recovery Act,
2008 (Pub. L. 110-289, approved July 30, 2008), as amended, (HERA)
appropriated $3.92 billion for emergency assistance for redevelopment
of abandoned and foreclosed homes and residential properties, and
provides under a rule of construction that, unless HERA states
otherwise, the grants are to be considered Community Development Block
Grant (CDBG) funds. The grant program under Title III is commonly
referred to as NSP, and the first round of NSP funding is referred to
as NSP1. When referring to a provision of the appropriations statute
itself, this notice will refer to HERA; when referring to the grants,
grantees, assisted activities, and implementation rules affected by
this notice, this notice will use the term NSP1.
HERA authorizes the Secretary to specify alternative requirements
to any provision under Title I of the Housing and Community Development
Act of 1974, as amended, (the HCD Act) except for requirements related
to fair housing, nondiscrimination, labor standards, and the
environment (including lead-based paint), in accordance with the terms
of section 2301 of HERA and for the sole purpose of expediting the use
of grant funds. The CDBG requirements will apply to NSP except where
this notice supersedes or amends such requirements. This Notice does
not specify any new alternative requirements to statutory requirements.
Except as described in this notice and previous notices governing
the NSP, statutory and regulatory provisions governing the CDBG
program, including those at 24 CFR part 570 subpart I for states or,
for CDBG entitlement communities, including those at 24 CFR part 570
subparts A, C, D, J, K, and O, as appropriate, apply to the use of
these funds. (The State of Hawaii was allocated funds and will be
subject to part 570, subpart I, as modified by this notice.)
Substantive Revisions
NSP1 grantees are statutorily required to use NSP1 funds within 18
months from the date HUD signed their grant agreement. HUD has defined
``use'' to mean obligation of funds for approved activities. The
primary purpose of this notice is to amend the reallocation provision
of the October 6, 2008, Notice, 73 FR 58330 (NSP1 Notice), which noted
that the ordinary CDBG reallocation statutory requirement would apply
in the event of any recapture of NSP1 funds for noncompliance with
program requirements. This Notice provides instead for a range of
corrective actions, in accordance with 24 CFR 570.900(b)(5) and (6),
for failure to meet the 18-month use requirements; and for any
recaptured funds to remain in the NSP1 program and to be reallocated in
accordance with the formula in Attachment A. The formula will
reallocate funds to communities with the most current need for support
in addressing neighborhoods destabilized by foreclosed and abandoned
homes and may take into account prior allocations of NSP1 and NSP2
already serving those communities. This Notice further addresses how
grantees who have funds recaptured will meet the requirement that 25
percent of NSP1 funds support units affordable to households whose
incomes are 50 percent of area median income or less.
The substantive revisions made by this notice follow. The Federal
Register page number identifies where the language to be revised can be
found in the October 6, 2008, notice.
A. Reallocation Process
Background
In the NSP1 Notice, HUD noted in paragraph I.B. Formula
Reallocation, that if a jurisdiction failed to meet the requirement to
use its NSP1 funds in 18 months, HUD would recapture the funds and
reallocate them in accordance with the CDBG reallocation provisions of
the HCD Act at 42 U.S.C. 5306(c)(4). This provision of the HCD Act
specifically applies to funds recaptured under the authority of 42
U.S.C. 5304(e) and 5311 of the HCD Act. However, upon further
reflection, HUD has determined that 42 U.S.C. 5306(c)(4) does not apply
to recaptures under NSP1 and therefore NSP funds are not required to be
reallocated to major disaster areas. As the 18-month deadline
approaches, HUD is updating this provision to limit the negative
effects on communities that, although they may not have had the
capacity to meet the deadline, still have great need for neighborhood
stabilization funding.
Therefore, HUD is revising the NSP1 Notice's provisions to provide
a process for addressing a grantee's failure to meet the 18-month use
requirement and to state that any recaptured funds will be reallocated
to provide additional NSP grants on a formula basis. This Notice
explains how HUD will proceed to restrict further obligation of NSP
funds the day after the 18-month use deadline and provide grantees the
opportunity to submit additional information regarding the NSP funds
subject to a finding and potential corrective action or sanction.
Following the review and before selecting a corrective or remedial
action, HUD will, in accordance with 24 CFR 570.905 and 570.493,
consider the grantee's continuing capacity to carry out the grant.
HUD has a range of possible corrective actions available in the
regulations at 24 CFR 570.910 and 570.495. Additional guidance is
provided in the Community Planning
[[Page 52773]]
and Development Monitoring Handbook 6509.2, Rev-6. HUD may also provide
targeted technical assistance when it determines that the grantee is in
need of such assistance to complete its program successfully.
In many instances, HUD anticipates that NSP grantees failing to
meet the use deadline will face a choice of (a) entering into a
memorandum of agreement with the Department or (b) recapturing of
unobligated amounts. Based largely on the grantee's NSP1 performance
and the amount of unobligated funds, HUD may enter into a memorandum of
agreement designed to improve the grantee's performance and enable use
of the funds for the purposes intended in the NSP1 Notice. A few very
low capacity grantees may be required to demonstrate that they have
acquired stronger program partners, such as proven nonprofit or for-
profit developers, before HUD will allow further use of NSP1 funds. To
ensure uniform national application of corrective actions, HUD will
issue guidance to field offices regarding corrective actions for NSP1
grantees that fail to meet the deadline for use of funds, and
corrective actions may be reviewed by headquarters staff. Failure on
the grantee's part to achieve use of funds or to meet the terms of the
memorandum of agreement may lead to recapture of funds.
States with unused funds will be subject to a recapture of unused
amounts up to $19.6 million. This is because the NSP1 allocation
formula provided $19.6 million to each state regardless of the state's
relative need for funds. Local governments received funds strictly
based on their formula need. States received the $19.6 million base
payment plus any need-based formula increment. Therefore, if a state
has unused NSP1 funds up to $19.6 million, HUD will recapture and
reallocate those funds to a higher need location based on a strictly
need-driven formula. After HUD determines the recapture amount, any
remaining unused state grant funds in excess of $19.6 million will be
addressed under the additional corrective actions, as described above.
To address concerns that some grantees may inflate obligation
amounts for projects before the deadline, then withdraw from or reduce
these obligations after the deadline as a strategy for meeting the fund
use requirement by the deadline, HUD staff will be reviewing a sample
of obligation documents. (Note that HUD recognizes that grantees will
not be able to budget perfectly and has provided guidance allowing a
reasonable contingency for each project.) HUD field staff may request
removal of the obligation blocks in the reporting system after
assessment of a grantee's performance, if the field staff determines
the grantee is not high risk consistent with this notice.
Finally, the Notice addresses enforcement of the grantee's
statutory obligation to spend at least 25 percent of NSP1 funds on
housing for persons at or below 50 percent area median income.
Revised Requirement
Section I.B.2. of the NSP1 Notice at page 58331 is amended to read
as follows:
2. a. HUD will block each grantee's ability to obligate NSP1 grant
funds in the Disaster Recovery Grant Reporting System (DRGR) on the
first business day after the statutory 18-month deadline for use of
funds. HUD will notify the grantee of this action by electronic mail.
Grantees will not be able to obligate grant funds after the deadline
without requesting and receiving permission from HUD, until HUD
determines that the grantee is not high risk consistent with this
notice. The grantee will still be able to expend grant funds obligated
before the deadline. Receipt and use of any program income will also be
unaffected.
b. Any grantee that fails to obligate an amount equal to or greater
than its initial grant amount may submit information to HUD, for up to
30 days following its 18-month deadline, documenting any additional
obligation of funds not already recorded in the DRGR system and
demonstrating to HUD that the obligation occurred on or before the 18-
month deadline. Before the 18-month deadline, each grantee should also
review its recorded obligations and notify HUD within 30 days following
the deadline of any necessary adjustments to the amount and the reason
for such an adjustment. For example, the grantee has become aware that
an obligation amount that was previously recorded for an acquisition
will not proceed, therefore a downward adjustment is necessary.
c. After the deadline, if any grantee needs to decrease or increase
the amount of grant funds obligated to an activity, it must first ask
HUD to remove the DRGR block on changing the amount obligated. If the
amount of decrease is more than 15 percent of the obligation for any
activity, the grantee must submit to HUD a written request that clearly
demonstrates with compelling information that factors beyond the
grantee's reasonable control caused the need to withdraw or decrease
after the deadline. If HUD agrees to grant the request, it will restore
the grantee's ability to obligate grant funds in DRGR. If HUD does not
grant the request, the grantee must either complete the activity as
originally obligated or the amount previously obligated for that
activity will be recaptured. HUD may also remove the obligations block
following risk assessment of the grantee or a review of some or all of
a grantee's obligation documentation.
d. Before HUD determines the appropriate corrective action or
recaptures grant funds, HUD will review the submitted information,
consider the grantee's capacity as described in 24 CFR 570.905 and 24
CFR 570.493, and the grantee's continuing need for the funds.
e. Following the review, HUD will proceed to notify the grantee of
the selected corrective action it is required to undertake.
f. HUD will recapture and reallocate up to $19.6 million from any
state grantee with unused NSP grant funds. Additional corrective
actions may be taken related to any amount of unused funds greater than
$19.6 million.
g. HUD will reallocate recaptured funds in accordance with the
reallocation formula described in Attachment A. A grantee receiving a
reallocation must apply for the grant in accordance with the NSP1
Notice. A nonentitlement grant recipient that is not required to submit
a consolidated plan to HUD under the CDBG program will prepare an
abbreviated plan. The substance of an abbreviated plan must include all
the required elements that entitlement communities provide as part of
an NSP Action Plan substantial amendment as described under Section
II.B.2.
h. Each grantee must meet the statutory requirement to expend 25
percent of its grant amount for activities that will provide housing
for households whose income is at or under 50 percent of area median
income. This cannot occur unless the funds are first obligated to
activities for this purpose, or program income is received and used for
eligible activities. Therefore, if a grantee fails to obligate or
record program income use of at least 25 percent of its original grant
amount for activities that will provide housing for households whose
income is at or under 50 percent of area median income, HUD may issue a
concern or a finding of noncompliance. HUD will require as a corrective
action that the grantee either adjust its remaining NSP1 planned
activities to ensure that 25% of the original NSP1 formula grant amount
and program income supports activities providing housing to households
with
[[Page 52774]]
incomes at or under 50 percent of area median income, or make a firm
commitment to provide such housing with nonfederal funds in an amount
sufficient to offset any deficiency to comply with the requirement
before the expenditure deadline for the NSP1 grant.
i. The NSP1 Notice allows each grantee to use up to ten percent of
its NSP1 grant for general administration and planning activities. If
HUD recaptures funds from a grant, this percentage limitation will
still apply to the remaining grant funds, reducing the amount available
for administration activities.
B. Changes to Pre-Grant Process
Background
With this notice, HUD is establishing the pre-grant process for the
NSP reallocation grants. The formula is published in Attachment A. HUD
will announce the reallocation amounts after completing the recapture
process for all states that have failed to meet the 18-month use
requirement. Additional reallocation announcements will be made only if
HUD recaptures funds from grantees who fail to comply with any
memorandum of agreement or grant conditions. At the time of each
announcement, CDBG grantees receiving NSP1 reallocations may
immediately begin to prepare and submit action plan substantial
amendments or abbreviated plans for NSP1 funds, in accordance with this
notice and the original NSP1 Notice. (Insular areas should follow the
requirements for entitlement communities.)
To receive NSP1 reallocation funding, grantees must submit an
action plan substantial amendment to HUD in accordance with this notice
by no later than the deadline in the allocation announcement. Any unit
of general local government in a nonentitlement area receiving an
allocation must submit an abbreviated plan under 24 CFR 91.235 to HUD
by the same deadline. An abbreviated plan will have essentially the
same content as a NSP1 substantial amendment, although the
certifications will be different.
In the October 6, 2008 NSP1 Notice, HUD encouraged each local
jurisdiction receiving an allocation to carefully consider its
administrative capacity to use the funds within the statutory deadline.
HUD is encouraging each local jurisdiction receiving reallocated fund
to consider its administrative capacity. To support this consideration,
HUD is providing a self-assessment tool that grantees may find useful
in better understanding their capacity to undertake and manage NSP1
activities. This is the same self-assessment tool that is used for NSP
Technical Assistance (NSP-TA) purposes and it will allow HUD to more
rapidly identify capacity gaps and technical assistance needs and to
provide appropriate technical assistance. Although HUD suggests that
every grantee complete and submit the self-assessment with its
substantial amendment, HUD will require some grantees to complete and
submit such a self-assessment as a special condition of receiving
funding.
HUD also provided regulatory waivers and alternative requirements
to allow joint requests among contiguous entitlement communities and to
allow joint requests between an entitlement community and a state. Any
two or more contiguous units of general local government may make a
joint request to HUD to implement a joint NSP1 program with reallocated
funds. A jurisdiction need not have a joint agreement with an urban
county under the regular CDBG entitlement program or have joint request
with a local government or state for the original NSP1 allocation to
request a joint program for NSP1 reallocation funding. Potential
requestors should contact HUD as soon as possible (as far as possible
in advance of publishing a proposed substantial amendment or
abbreviated plan) for technical guidance. The requestors will specify
which jurisdiction will receive the funds and administer the combined
grant on behalf of the requestors; in the case of a joint request
between a local government jurisdiction and a state, the state will
administer the combined grant. (Grantees choosing this option should
consider the Consolidated Plan and citizen participation implications
of this approach. The lead entity's substantial amendment will cover
all participating members. The citizen participation process must
include citizens of all jurisdictions participating in the joint
program.)
Given the rule of construction in HERA that NSP funds generally are
construed as CDBG program funds, subject to CDBG program requirements,
HUD generally will treat reallocated NSP funds as a special allocation
of Fiscal Year (FY) 2010 CDBG funding for grantees receiving an
allocation for the first time. This has important consequences for
local governments presently participating in an existing urban county
program, and for metropolitan cities that have joint agreements with
urban counties. HUD will consider any existing cooperation agreements
between a local government and an urban county governing FY2010 CDBG
funding (for purposes of either an urban county or a joint program) to
automatically cover NSP funding as well. These cooperation agreements
will continue to apply to the use of NSP funds for the duration of the
NSP grant, just as cooperation agreements covering regular CDBG
Entitlement program funds continue to apply to any use of the funds
appropriated during the 3-year period covered by the agreements. For
example, a local government presently has a cooperation agreement
covering a joint program or participation in an urban county for
Federal FYs 2009, 2010 and 2011. The local government may choose to
discontinue its participation with the county at the end of the
applicable qualification period for future CDBG entitlement funding.
However, the existing cooperation agreement covers the NSP funding
until expended and the county will still be responsible for any NSP
projects funded in that community, and for any NSP funding the local
government receives from the county, until those funds are expended and
the funded activities are completed.
A third method of cooperating is also available, and may be
required by HUD in some jurisdictions that HUD determines have high
need for NSP funds and low capacity to implement some or all planned
NSP activities in the required timeframes. HUD may condition some NSP
reallocations on such cooperation being demonstrated to HUD's
satisfaction before execution of a grant agreement. A jurisdiction may
apply for its entire grant and immediately enter into a subrecipient
agreement with another jurisdiction, an NSP2 grantee, or a nonprofit
entity with capacity to administer the grant.
Finally, some communities with a great need for neighborhood
stabilization support do not have the capacity to design and deliver a
successful NSP program. HUD can identify these communities before
execution of a grant agreement based on NSP, CDBG, or HOME program
performance or information from technical assistance providers. In
these cases, HUD may reallocate funds to such communities but will take
actions designed to ensure appropriate and timely use of grant funds.
HUD will condition their grants on the grantee's acceptance of
technical assistance, as evidenced by an executed technical assistance
work plan or by a memorandum of agreement with HUD. In either such
document, the responsibilities and roles of the grantee, HUD, and HUD's
technical assistance providers will be described--including
[[Page 52775]]
a specific scope of work and schedule--and duly executed before HUD
signs the grant agreement for the reallocation award.
At the time HUD publishes the reallocation amounts, it will also
publish a specific date for a recipient to complete and submit a
substantial amendment to its annual action plan or an abbreviated plan.
A grantee that wishes to initially submit its action plan amendment to
HUD electronically in the DRGR system rather than via paper may do so
by contacting its local field office for the DRGR submission
directions. Paper submissions to HUD also will be allowed, although
each grantee must set up its action plan in DRGR before the deadline
for the first required performance report after receiving a grant.
HUD will review each grantee submission for completeness and
consistency with the requirements of this notice and will disapprove
incomplete and inconsistent action plan amendments and abbreviated
plans. HUD will allow revision and resubmission of a disapproved
amendment or abbreviated action plan in accordance with 24 CFR 91.500
so long as any such resubmission is received by HUD 45 days or less
following the date of first disapproval.
In combination, these requirements provide the following expedited
steps for NSP grants:
Proposed action plan amendment or abbreviated plan
published via the usual methods and on the Internet for no less than 15
calendar days of public comment;
Final action plan amendment or abbreviated plan posted on
the Internet and submitted to HUD by the deadline indicated in the
allocation announcement (grant application includes Standard Form 424
(SF-424) and certifications);
HUD expedites review;
HUD accepts the plan and prepares a cover letter, grant
agreement, and grant conditions;
Grantee meets any conditions required before HUD's
execution of the grant agreement.
Grant agreement signed by HUD and immediately transmitted
to the grantee;
Grantee signs and returns the grant agreements;
HUD establishes the line of credit and the grantee
requests and receives DRGR access;
After completing the environmental review(s) pursuant to
24 CFR part 58 and, as applicable, receiving from HUD or the state an
approved Request for Release of Funds and certification, the grantee
may draw-down funds from the line of credit.
As with the initial allocation process, the action plan substantial
amendment, abbreviated plan and citizen participation alternative
requirements will permit an expedited grant-making process, but one
that still provides for public notice, appraisal, examination, and
comment on the activities proposed for the use of NSP grant funds.
Revised Requirements
Section II.B.4.a of the NSP1 Notice on page 58334 is amended to add
the following at the end: To receive an NSP reallocation, a grantee
must submit to HUD for approval an NSP application by the deadline
indicated in the allocation announcement. This submission will include
a signed standard Federal form SF-424, signed certifications, and a
substantial action plan amendment or abbreviated plan meeting the
requirements of paragraph b below. (24 CFR 91.505 is waived to the
extent necessary to require submission of the substantial amendment to
HUD for approval in accordance with this Notice.)
Section II.B.5-6 of the NSP1 Notice on beginning on page 58334 is
amended to add: 5.
c. Local jurisdictions receiving reallocation funds may enter into
joint agreements in accordance with 5.a. or b., regardless of whether
the local jurisdiction had a joint agreement for the original NSP
allocation.
6. b. Any cooperation agreement between a unit of general local
government and a county, concerning either a joint program or
participation in an urban county under 24 CFR 570.307 or 570.308, and
governing CDBG funds appropriated for federal FY 2010, will be
considered to incorporate and apply to NSP reallocated funding. Any
such cooperation agreements will continue to apply to the use of NSP
funds until the NSP funds are expended and the NSP grant is closed out.
Grantees should note that certain provisions in existing cooperation
agreements that govern FY2010 CDBG funding may be inconsistent with
parts of HERA and this notice. For instance, set minimum and/or maximum
allocation amounts may conflict with priority distributions to areas of
greatest need identified in the grantee's action plan substantial
amendment. Conforming amendments should be made to existing cooperation
agreements, as necessary, to comply with HERA and this notice.
C. Change to Timeliness of Use Requirement
The requirements of paragraph M. Timeliness of use and expenditure
of NSP funds of the NSP1 Notice will apply to reallocation grants.
Grantees are reminded that section of HERA 2301(c)(1) provides that any
grantee receiving a grant:
``* * *shall, not later than 18 months after the receipt of such
amounts, use such amounts to purchase and redevelop abandoned and
foreclosed homes and residential properties.''
HUD has defined the term ``use'' to include obligation of funds.
Revised Requirement
Section II.M. of the NSP1 Notice on page 58340 is amended to add
paragraph 3 after paragraph 2:
3. Grantees receiving a reallocation of funds must comply with the
18-month use requirement.
D. Certifications
Background
HUD is substituting alternative certifications. The alternative
certifications are tailored to NSP1 grants and remove certifications
and references that are appropriate only to the annual CDBG formula
program.
Requirements
Section II.T. of the NSP1 Notice starting on page 58342 is amended
to read as follows: Certifications for states and for entitlement
communities, alternative requirement. Although the NSP is being
implemented as a substantial amendment to the current annual action
plan, HUD is requiring submission of this alternative set of
certifications as a conforming change, reflecting alternative
requirements and waivers under this notice. Each jurisdiction will
submit the following certifications:
1. Affirmatively furthering fair housing. The jurisdiction
certifies that it will affirmatively further fair housing, which means
that it will conduct an analysis to identify impediments to fair
housing choice within the jurisdiction, take appropriate actions to
overcome the effects of any impediments identified through that
analysis, and maintain records reflecting the analysis and actions in
this regard.
2. Anti-displacement and relocation plan. The applicant certifies
that it has in effect and is following a residential anti-displacement
and relocation assistance plan.
3. Anti-lobbying. The jurisdiction must submit a certification with
regard to compliance with restrictions on
[[Page 52776]]
lobbying required by 24 CFR part 87, together with disclosure forms, if
required by that part.
4. Authority of jurisdiction. The jurisdiction certifies that the
consolidated plan is authorized under state and local law (as
applicable) and that the jurisdiction possesses the legal authority to
carry out the programs for which it is seeking funding, in accordance
with applicable HUD regulations and other program requirements.
5. Consistency with plan. The jurisdiction certifies that the
housing activities to be undertaken with NSP funds are consistent with
its consolidated plan.
6. Acquisition and relocation. The jurisdiction certifies that it
will comply with the acquisition and relocation requirements of the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations
at 49 CFR part 24, except as those provisions are modified by the
notice for the NSP program published by HUD.
7. Section 3. The jurisdiction certifies that it will comply with
section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701u), and implementing regulations at 24 CFR part 135.
8. Citizen participation. The jurisdiction certifies that it is in
full compliance and following a detailed citizen participation plan
that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as
modified by NSP requirements.
9. Following a plan. The jurisdiction certifies it is following a
current consolidated plan (or Comprehensive Housing Affordability
Strategy) that has been approved by HUD.
10. Use of funds. The jurisdiction certifies that it will comply
with Title III of Division B of the Housing and Economic Recovery Act
of 2008, as amended, by using all of its grant funds within 18 months
of receipt of the grant.
11. The jurisdiction certifies:
a. That all of the NSP funds made available to it will be used with
respect to individuals and families whose incomes do not exceed 120
percent of area median income; and
b. The jurisdiction will not attempt to recover any capital costs
of public improvements assisted with CDBG funds, including Section 108
loan guaranteed funds, by assessing any amount against properties owned
and occupied by persons of low- and moderate-income, including any fee
charged or assessment made as a condition of obtaining access to such
public improvements. However, if NSP funds are used to pay the
proportion of a fee or assessment attributable to the capital costs of
public improvements (assisted in part with NSP funds) financed from
other revenue sources, an assessment or charge may be made against the
property with respect to the public improvements financed by a source
other than CDBG funds. In addition, with respect to properties owned
and occupied by moderate-income (but not low-income) families, an
assessment or charge may be made against the property with respect to
the public improvements financed by a source other than NSP funds if
the jurisdiction certifies that it lacks NSP or CDBG funds to cover the
assessment.
12. Excessive force. The jurisdiction certifies that it has adopted
and is enforcing:
a. A policy prohibiting the use of excessive force by law
enforcement agencies within its jurisdiction against any individuals
engaged in nonviolent civil rights demonstrations; and
b. A policy of enforcing applicable state and local laws against
physically barring entrance to, or exit from, a facility or location
that is the subject of such nonviolent civil rights demonstrations
within its jurisdiction.
13. Compliance with anti-discrimination laws. The jurisdiction
certifies that the NSP grant will be conducted and administered in
conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing
regulations.
14. Compliance with lead-based paint procedures. The jurisdiction
certifies that its activities concerning lead-based paint will comply
with the requirements of part 35, subparts A, B, J, K, and R of this
title.
15. Compliance with laws. The jurisdiction certifies that it will
comply with applicable laws.
Note on Statutory Limitation on Distribution of Funds
Section 2304 of HERA states that none of the funds made available
under this Title or title IV shall be distributed to an organization
that has been indicted for a violation under Federal law relating to an
election for Federal office; or an organization that employs applicable
individuals. Section 2304 defines applicable individuals.
Information Collection Approval
HUD has approval from the Office of Management and Budget (OMB) for
information collection requirements in accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3520). OMB approval is under OMB
control number 2506-0165. In accordance with the Paperwork Reduction
Act, HUD may not conduct or sponsor and a person is not required to
respond to, a collection of information, unless the collection displays
a valid control number.
Duration of Funding
The appropriation accounting provisions in 31 U.S.C. 1551-1557,
added by section 1405 of the National Defense Authorization Act for
Fiscal Year 1991 (Pub. L. 101-510), limit the availability of certain
appropriations for expenditure. Such a limitation may not be waived.
The appropriations acts for NSP grants direct that these funds be
available until expended. However, the Department is imposing a shorter
deadline on the expenditure of NSP funds in this notice.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance numbers for grants made
under NSP1 are as follows: 14.218; 14.225; and 14.228.
Finding of No Significant Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(C)(2)). The Finding of No Significant
Impact is available for public inspection between 8 a.m. and 5 p.m.
weekdays in the Office of the Rules Docket Clerk, Office of General
Counsel, Department of Housing and Urban Development, 451 Seventh
Street, SW., Room 10276, Washington, DC 20410-0500.
Dated: August 23, 2010.
Mercedes M. M[aacute]rquez,
Assistant Secretary for Community Planning and Development.
[FR Doc. 2010-21402 Filed 8-26-10; 8:45 am]
BILLING CODE 4210-67-P