The URL can be used to link to this page

90-1609 WHITE - C�TV CIERK PINK - FINANCE G I TY OF SA I NT PA U L Council O�/�p CANARY - DEPARTMENT File NO. � J b 7 BLUE - MAVOR C,ou il Resolution � Presented By Referr , o Committee: Date Out of Committee By Date BE IT RESOLVED, t at the proper City officials are hereby authorized and directed to execu e Cooperative Agreement Number FF205K905018 for the Fair Housing Assi"stanc Program with the United States Department of Housing and Urban Develop ent (HUD) whereby HUD will reimburse the City's Human , Rights Department the total amount of $52,500 ,00 , broken down as follows: $13,500.00 for investigating Title VIII cases; � 4,000.00 for attending HUD- sponsored training at National and Regional Training sites; ' 35,000.00 for incentive funding. � COUNCIL MEMBERS Requested by Uepartme of: Yeas o Dimond�s � Human Ri � In Favor � ��r�accabee � Against y o 6 own 'rector so n Rettnian JP'�it.tr�s Wilson SFp 1 i 1990 F v d by City ttor ey Adopted by CounciL Date ► Certified Pa. -e uncil r By gy, � Approved by Ma r: Date �C�p � 2 1990 App ved b ayor for Submiss;tipn to Council �� 1. Z� �"'�"'�9f gy BY BIiSHED S E P 2 21990. � . nyr�,` . �_i!J �� DEPARTMENTlOFFlCEJCOUNdL DATE INItIATED ��i� 4� �9 g 0 � O O� H U M A N R I G H T S D E P A R T M N T G R E E N S H E N O. iNmuroAr� CONTACT PER80N 3 PHONE Q DEPARTMENT DIRECTOR D - I CRis OUNCIL Dul Ce A. de Leon - 2 8-4288 �F� cmr nnoaN�r z� CRY CLERK MUST BE ON COUNCII AOENDA BY(DAT� ROUiMlO �BUDOET DIRECTOR �FIN� SERVICES DIR. MAYOR(OR ASSISTANTI � Y i� `° � TOTAL N OF SIGNATURE PAOES ° (CLIP ALL LOCATIONS FOR 81aNATUR� �RE«,E�: ' 199p ' C�� fi�(�►�n�� VtY RECOMMENDAT10N8:App►ow(N a►�1�(� COUNCIL COMMITTEElRESEARCN REPORT _PUWNINO COMMISSION _GVIL$E WMMI8810N �� P �. _dB COMMITTEE _ COMMENTS: _3TI�FF _ _oisr�ucroouar — OFFICE OF'THE DIRECTOR SUPPORTS WNICH OOUNqL OBJECTIVE7 pEPARTMENT OF FINANCE INITIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Whero,Wh»: S,�> The Human Rights Depa tment and the U.S. Department of' Housing and Urban Development (HUD) desire to enter into n agreement whereby HUD will reimburse the Human Rights Department for investigating Titl VIII cases, for attendance at HUD - sponsored training at National and Regional training ites, for amendino the St. Paul Human Riclhts Ordinance to make it substantially equivale t to Title VIII and for implementing a testing program which will enable the D��artment o icer,tify discriminatory practices in ti�e area of housing. ADVANTA(3ES IF APPAOVED: Human Rights Departmen will receive a total amount of $52,500.0'0 from HUD which will assist in supporting t e department's fair housing activities. DISADVANTAOEB IF APPROVED: Additional work for th department. ' AU� 2 � � I��C�IV�D ��.��70 ��`;C�: U; `C�9� C►��.�1`t?�? C1T`! CLER�C �'�f'��,'1�Nfi OF �l�JMA^! Rl;;t!1�? DI8ADVANTAOE8 IF NOT APPROVED: The Human Rights Depar ment will not receive financial assistanc� from HUD for its fair h�using activities. I A testi ng program, desi gned to i denti fy di scrimi natory practi c�'si�iN1d�u��pQ�1(�t@r be implemented. I f,�.�a � 4�i��U TOTAL AMOUNT OF TRANSACTION a 5 500.UO'_ CpgT/REVENUE��TED(CIRCL�ONE) YES NO � FUNDINGSOURCE U.S. De t. o Housin & Urban Dev.ACTIVITYNUMBER 30150 FlNANCIAI INFORMATION:(EXPWN) dw � � a �� U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASSISTANCE AWARD/AMENDMENT 1. ASSISTANCE INSTRUMENT . 2, TYPE OF ACTION �c7 Cooperative Agreement ❑ Grant � Award ❑ Amendment 3. INSTRUMENT NUMBER 4 AMENDMENT NUMBER 5. EFFECTIVE DATE OF THIS . CONTROL NUMB FF205K905018 ACTION 7. NAME AND ADOqESS OF REC PIENT 9�22�9� 8. HUD ADMINISTERING OFFICE St. Paul De CHICAGO REGIONAL OFFICE — FHEO partment o Human Rights 626 West Jackson Boulevard, Room 401 515 City Hall Chicago, Illinois 60606-5601 St. Paul, Minnesota 5 102 NAME OF AOMINISTRATOR TELEPMONE NUMBER Thomas Higginbothan � (312) 353-7776 10. RECIPIEfYT PROJECT MANAGE 9. HUD GOVERNMENT TECHN�CAI REPRESENTATIVE CHICAGO REGIONAL OFFICE — FHEO Jose hier Brown Direc or GTR - Barbara Knox (312) 353-3303 11• ASSISTANCE ARRANGEMENT 12. PAYMENT METHOO ,("'j'(y — CIdUC31d N1C�'lO1S �312� 353-9322 ❑ Cost Reimbursement � Treasury Check 13- HUD PAYMENT OFFICE ❑ Cost Sharing Reimbursement CHICAGO REGIONAL OFFICE - FHEO 0 Fixed Price ❑ Adva�ce Check 626 West Jackson Boulevard, Room 401 O Other ❑ Letter of Credit ChiCago, Illinois 60606-5601 14. ASSfSTANCE AMOUNT � � 15. HUD ACCOUNTING AND APPROPRIATlON DATA P�evious HUD Amount S —� APPROPRIATION NUMBEq RESERVATION NUMBER HUD Amount This Action $ 860/10144 F�IEo-5-90-ig Total HUD Amount S _ • Amounts Previously Obligated _p_ Recipient Amount 5 _p_ Obligation By This Action $ 52,`_�00.00 Total Instrument Amaunt � Total Obligation S 52�500.00 16. DESCRIPTION COOPERATIVE AGREEMFIVT FO FAIR HOUSING ASSISTANCE PROGf2AN1 COMPREHIIVSIVE FUNDING CONTRIBUTIONS, TRAINING D INCENTIVE FUNDS This agreement consists f the following, which is incorporated herein and made a part hereof: 1. Cover Page, HU�-1044 (12-78) 2. Schedule of Articles Attachment A - Statem nt of Work Attachment B - Criter'a for Proces�_ .� 3. Ac�ninistrative Requir ments for Grants and Cooperative Agreements. 4. Assurances 5. Certifications 6. 24 CFR Part 111, Fair Housing Assistance Program; Final Rule, May 9, 1989 Order of Precedence: Not ithstanding any provisions to the contrary, in the event of a conflict among any of t e documents pertaining to the duties and responsibilities - of the parties, the State ent of Work shall take precedence over the Schedule of Article . Th�. Ac�ministrative Requir ments from 24 CFR Part 85 take precedence over FHAP ». Reeipie�t is � is ent. rcquired to sign and turn three(31 copies of this 1g, ❑ Reeipie�t ic not requirsd to sipn M;s doeument document to HUO Admi�istering Oifice 19. RECIPIENT(Byl T0. HUD IBy1 . Jame cheibel , Mayor � NAME AND TITL� DATE NAME AND TITIE DATE JOSEPHIER BR Thomas Higginbothan DI ' �G Cooperative Agreement Office i rd eh'r�nan AS TO FORM: Huo-�oac��saet Director, Finance & m't. Servi s Assistant City Attorney ✓ � � �� . . ��9°'�G°9 � . CONTRIBUTIONS AGREEMENT SCHEOULE OF ARTICLES 1. SCOPE OF WORK (FIXED PRICE) 2. PERIOD 0 PERFORMANCE 3. INSPECTI N AND ACCEPTANCE 4. CONDUCT F MORK 5. INSTRUME T AMOUNT, PAYMENT AND SUBMISSION OF INYOICES - -� 6. USE OF 6R NT FUNDS � - 7. MAINTENANCE OF EFFORT -- 8. HUD 'S SUB TANTIAL INYOLVEMENT 9. USE OF CO SULTANTS ' 10. PUBLICATI NS AND NEWS RELEASES 11. REPRODUCT ON OF REPORTS 12. FLOW DOWN PROYISIONS 13. DISPUTES 14. LOBBYING ROHIBITION PROYISION APPENDICE ; - STATE ENT OF NORK (APPENDIX A) - CRITE IA FOR PROCESSING (APPENDIX B) - ADMIN STRATIYE REQUIREMENTS FOR 6RANTS AND . C00 ERATIVE AGREEMENTS (APPENOIX C) ; � . _ _ -� .: 3T:•PAUL DEPARTMENT F HUMAN RIGHTS � Cis- /D''Iw�/ 1. SCOPE 0 WORK (FIXED PRICE) The Rec pient shall furnish the necessary personnei . materials , service . equipment, facilities , (except as otherwise specified herein) and otherwise do all thinqs necessary for or incidental to the per ormance of the work set forth in the Statement of Work for . the fir fixed price set forth herein (APPENDIX A) , 2. PERIOD OF PERFORMANCE The Recipient shall provide all services hereunder for a period of twelve ( 2) months from the effective date af the instrument. 3. INSPECTI N AND ACCEPTANCE Inspecti n and acceptance of all but the final products may be accompli hed by the GTMs. if so delegated. Final acceptance is the resp nsibility of the GTR. 4. CONDUCT F WORK A. Duri g the effective period of this instrument. the Government Tech ical Representative and/or the Government Technical Moni or identified in Block 9 of the cover page shall be resp nsible for monitoring the technical effort of the Reci ient, unless the Recipient is notified in writing by the G/CAO of a replacement. 6 . Only the G/CAO has the authority to authorize deviations from this ' nstrument. including deviations from the Statement of Work . In the event the Recipient does deviate without written appro al of the G/CAO, such deviation shall be at the risk of, and a y costs related thereto, shall be borne by the Recip ent. 5• INSTRUMEN AMOUNT, PAYMENT AND SUBMISSION OF INVOICES A. The m ximum amount for `performance of the Statement of Work and a 1 other requirements of thi s i nstrument i.s S 52,500.00 to be distributed as follows: 1. T e Recipient shall be paid the firm fixed amount of S 3,500.00 to support the agency ' s fair housing effort in accordance with Appendix A. Statement of Work , Part A (General Requirements ) and Part B (Contributions) . Pa ments shall be made in accordance with paragraph B . below. 2. Th Recipient shall be paid the firm fixed amount of $4,000 for attendance at HUD-sponsored training at Na � onal and Regional training sites. These monies may al o be used to support additional in-house t�aining by ag ncies for agency-specific problems and for training of st ff unable to attend National or Regional training. ' STi'•PAUL DEPARTMENT F HUMpN RIGHTS ' C�l�l��! � subject to approval of the GTM. Failure to send the �specified number of participants to training (See Statement of Work ) , Nill result in a S1 ,000 deduction for � . each non-attendant below the minimum. Payments shall be made in accordance Nith paragraph 8 , below. 3. The Recipient shall be paid the firm fixed amount of � S 5 000.0o to support Incentive Funds activities in acco� ance Nith the Statement of ilork, Part D ( Incentive unds ) . Payments shall be made in accordance Nith aragraph B, beloN. B • DATE FOR RECIPIENT' S CONTRIBUTIONS SUBM SSION OF SF 270 AMOUNT TRAINING IINFUNDSVE 90 d ys after the s eff e tive da te of 4,050.0o SSee c selow S 10,500.00 inst ument 180 ays after the S 4,050.00 S effective date of S 10,500.00 instrument 270 d ys after the S 4,050.00 S effec ive date of S 10,500.00 instr ment Fi nal submi ssi on on or S 1,350.00 S e or t e comp et� on � 3,500.00 ate f instrument. C . The Re ipient shall submit Standard Form 270 'Request for Advance R imbursement" , to the Government Technical Monitor (GTM} at the address specified in Block�o��"e cover page o t is Agreement on the dates stipuiated above. Al1 requests for payment shall be s bmitted in an original and three (3) copies � as indicated elow. The final : voucher shall be approved by the GTR and Cooper tive Agreement Offfcer prior to final Payment. Interi Public Address ShoNn on Youc er Attention of Cover Sheet Origin 1 b one copy 6TM Block 9 One co y GTR Block 9 One co y CAO B1 oclr 8 All re uests for payment of the final voucher shall be � � submitted in an origina] and three (3) copies as indicated belovr. Final P blic Address Shown on Vouch r Attention of Cover Sheet Oriqina b one copy GTR Block 9 One cop 6TM Block 9 One cop CAO Block 8 � �- .� � . . ��'9a-�G°q ' Each voucher shall clearly set forth the instrument nu shown in Block 3 of the HUD 1044 and the a mber in Block 15 and shall show the address of the�depositaryUtoer . wh 'ch the check is to be mailed. Requests for reimbursement sh 11 be submitted on a Standard Form 270, showin pr sently and previously vouchered for. Copies of thisaformt ar available upon request through contacting the ad inistrator shown in Block 8 of the cover page. Pa ment of item A.2 shall be made at the next avail billing period after the trainin able Pay ent is subject to being rvithheldrifcita{s�Lheas occurr�, the GTM that the Recipient is not complying with all terms of the Cooperative Agreement. The Reci ient ��dqement of Coo erative Agreement Number in Block 4 ofSthe1SFd270�on all inv ices. The final invoice shall be submitted on or before the completion date of the instrument. �• Eac Standard Form 270 shall be accompanied by a Narrative Report. This report shall not be more than one t each activity pursuant to which YPed page for shal describe the activities undertaken �byrtheeReci�pient duri g the billing period, towa d case The reports for contributions processing should be accompanied by a listing of a11 rocessed complaints, including the name of comp]ainant, name of respondent, date closed or date conciliation failed subs quent to a finding of discrimination, and docket number. The ontributions Reports should also include a Gescription of activities undertaken in support of its case the S atement of Work Part A (General Requirements ) Sand part g (Cont ibutions ) . The Reports for Training should be accom anied by a listing of agency participants with names and dates attending, The Reports for Incentive Funds should inclu e a description of activities undertaken in support of its f nding application and the Statement of Work , Part D ( Ince tive Funds ) . E • The Criteria for Proce:ssing is hereby incorporated as an attach ent to the Schedule of Articles (APPENOIX B ATTACH ENT E) . F• The Go ernment shall remit all addres shown on the depositarypformnts to the foliowing 6• USE OF GRAN FUNDS � The agency is en itled to receive the fixed amount stated in the Cooperative Agreement for satisfactory completion of the work to b e _ � . . . Q�yo-��09 ' perfozmed egardless of coet incurre8. HoWever, the program regulation and this Schedule of Articles require that all activities for which HAP funds are used must address , or have relevnnce to, matters af ecting fair housinq which are cognizable under the Fair Housing Ac (42 II.S .C. 3600-20) . • 7. MAINT NANCE OP EPPORT The aqency ust not unilaterally reduce the level of financial resources currently committed to fair housing complaint procesing. Budqet and taff reductions occasioned by leqislative action outside the control of the aqency Will not, alone , zesult in a determination o ineliqibili y, However, HIID will take auch actions into consideration in assessin the onqoinq viability of an aqency ' s faiz housinq proqram. 8. HUD ' a DBSTANTIAL 2NVOLVEMENT A. HD intends to have substantial involvement in the zeview and ap roval of all aspects of the Work to be carried out as a re ult of an award under this aqzeement. B . An icipated substantial involvement may include, but not be li ited to the followinq: 1 . Review and guidance in proqress aad upon completion of case investigations; 2 . Development and preseatntion of National and Reqional fair houeing traininq; 3 . Participation in the development and presentation of in- house training; and 4 • • Participation in presentation of education and outreach programs . 9 . IISE OP ONSULTANTS , � As zequired by HIID ' s Appropriationa Act, salary paymente to consultants under this instrument shall aot exceed the equivalent of the maximum daily rate pnid to GS-IS Federal Bmployees. The current ate is S285 .00 per day. 10. PUBLICAT ONS AND NEWS RELEASES A . Defi ition. For the purpose of thie clause, 'publication" incl des: . 1 • ny document containing information for public onBUmption; or, 2 . he act of , or any act which may =eBUlt in, disclosing nfozmation to the public. � � . �;� �, . ��a-iG o9 • ( ) the percentaqe of the total cost of the w ich will be financed with Pederal mone prOgra� or projec a onnt of Federal funds for the y � and ( 2 ) the dolla _ _..____ • pro ject or proqram. B. T e results of this program are planned to be made available t the public through dedication, aseiqnment by the . G vernment, or such other means as the Secretary shall determine. C• Go ernment Ownership of Official Prodvcte of Work al interim and final -reports and information, data analyses , sp cial methodology, fiadings, and their related documents an Wo k products , includinq reports , aork sheets, eurvey in trumente, computer tapes, and any other physical materials an products produced directly under the Statement of Work. of th ' s fnstrument are considered Offici'al producta of Flork , o�r ed by the Government aad held for the benefit of the pu lic. D. Pub ication of Official products of Work Off cial products of Work , quotations therefrom, or isclosures of interim findin s ma not be paraphrasinq, wit out the a g Y published day after acceptar�ceoofttheGTR for a period of sixty (60) the Reci ient shall be free tor�ubliehywithoutRgUDTaereafter, P p pproval . E. Ack owledqement and Disclaimer All Official Products of Work , or any part thereof, and any Inde endent Producta and Special products arising out of this inst ument, When published by Recipient or other participants in t e work , shall contain the followinq acknowledqement and disc simer; 'The work that provided the basis for this publication was supp rted by funding under a Cooperative Agreemeat with the U. S. Department of Housing and IIrban Development. The subs ance and findings of the aork are dedicated to the publ c. The author a:nd publisher are solely responsible for the ccuracy of the statements and interpretations contained in this publication. Such interpretations do 'not aecessarily refle t the views of the Government. " F. Addit' onal Grantee Publicity Requirement Secti n 8136 of the Department of Defense A 1989 Pub. L . 100-463 a PPropriationa Act, 2270- 6 • PProved October 1 , 198•8 , 102 Stat. ) contains a new requirement applying tb •all grantees recei ing Federal funds . • Section 8136 provides: ' •when issuinq statements , press releases , reqneste for proposals , bid solicitatione, and other documents deacribinq projects or programs funded in whole or in part with Federal money , all qrantees receiving Pederal funds, includinq but not limite to State and Iocal qovernments , shall clearly state � : .�: � " . �'�0-��09 � APPENDIX A STATEMENT OF WORR A- GENERA REQDIREMENTS The Re ipient agrees to proceas thoae houaing discrimination �ompla nts arising within ita jurisdiction, except ae otherw 8e stated in this Statement of Work. The Recipient aqrees to cooperate with HIID ia the handlinq of housinq � �" discri ination complaints nnder the Fair Housinq �ct and the fa r housing law enforced by the juriadiction in accord nce with the Memorandum of IInderstandinq entered into betwee EIID and the Reci ieat revisio s thereto esecnted durinqdtheycoursemoftthis aqreeme t by the signatories . B• CONTRIB TIONS The Rec pient agreea to process housing discrimination complai ts in accordance with •A• above (Geaeral Require ents) , and in accordance with the Criteria for Processing which are incorporated herein as an attachment to the Schedule of Articles. The Reci ient aiso aqreea to augment ita fair housing enforcem nt efforta by engaqing in outre�ch, education, traininq and technical assistance pursuant to the Memorandum of Under tanding. C• TRAINZNG The Recip ent agrees to enroll a minimum of 4 HIID-sponaored traininq at National and Regional training in sites . F ilure to send the� specified number of to traini g will result in a P8rticipants attendant beiow S1 ,000 deduction foz each non- the minimum. D• INCENTZVE FUNDING The Recip ent aqree8 to utilize the fvnda activity in accordance With the criteria establishedointhis 24 CFR Section 111 .105(b) (3 ) aad the RPA. further aq ees to implement the Incentive Pund activities aet forth in i s application for funding. A liat of deliverabl s end timetables ia a Prodnct Work . Part of this Statement of �� ."�' ��'��o� . ST. PAIIL INCENTIVE FQND PRODQCTS PRODUCT D$LIV RABLSS DATS DUE 1 . Provide q arterly written status � 2�2 ��gp reports on the agency ' s efforts to 3�21�g� amend the City of St . Paul ' s Housing 6/2 ��g� Ordinance so that it is substantially 9�16�g� equivalen to the Fair Housing Act, as amende , effective 3/12/89. 2. Provide i troductory information on � 2�2 ��gp person( s) selected to set up testing and audit' ng program. 3 . Training genda for testers ; number of 3/21/90 testers i attendance at sessions; dates of attend nce. 4 . Written r port of each test. . FVery 30 days until agreement expires 5 . TiJritten F nal Report of project 9/16/90 impact an results . 7e- 1 '� � � ��°� �. . . . i r � • . � ' APPENDIX B . , - � CRITERIA FOR PROCESSING This docu nt is incorporated by reference into the Cooperative Aqreements betw en HUD and State or local agencies participating in the Fair Housing As istance Proaram (FHAP) . These criteria establish��" uniform standar s for acceptable processing of fair housing compla�nts cognizable unde the Federal Fair Housing Act for which a State or local agency may rece've credit for funding support under FHAP. The criteria establish the 'nimum actions which must be taken and identify the documentation which must be submitted to HUD. The criteria are designed to assure the uniform, timely and quality processing of fair housing cort�plaints. � I , INVESTIGATION A. Com 1 int Intake 1. Any persoi who believes that he or she has been� or will be, subject to a discriminatory housing practice covered by Title VIII � the Federal Fair Housing Act� and by a State or local law may file a cortplaint. 2. 7he complaint must be .in writing and signed by the person filing the complaint. The complaint shall be affirmed. attested to or notarized as prescriDed by relevant State or locaT law. 3. The complaint must be filed within the Federal and the State or local prescribed statutory period governing the filing of complainCs. 4. At a minimum, a complaint must include the following information: (a) The name and address of the aggreivated person. (b) The name and address of the respondent (c) A description and the address of the dwelling which is involved,if appropriate. (d) A concise statement of the facts. including pertinent dates. constituting the alleged discriminatory housing practice. ` -f�D�/�ol� � . � 2 � 5. The complaint may be filed with the assistance of an authorized representative of the person filing the cortplaint. 6. The State or local agency is encouraged to provide , information to HUO regarding allegations which the agency receives involving a practice which is not covered by the State or local law, but is covered. by the Federal Fair Housing Act B. Dual iled Co laints 1. Complaints filed first with a substantially equivalent or interim referal State or local agency, and those received by HUO and subsequently referred to a substantially equivalency agency, are considered dual-filed with the agency under its own law anG with HUD under the Federal Fair Housing Act. Z. In order to preserve the statutory period for filing complaints, a cortplainant may provide information to be contained in a complaint by telephone. provided the substantially equivalent agency, or HUO as appropriate� reduces the information to writing which is subsequently signed, affirmed, attested to or notarized by the complainant. as prescribed by the State or local law. 3. Where additional information is required for the purpose of filing a complaint. the agency will advise the complainant of any; additional information needed and provide appropriate assistance in order to perfect the complaint filed. C. Amen ment of Co laints Co lainants may reasonably and fairly amend the complaint at any time to cure technical defects or omissions, to clarify or amplify the allegations in a complaint. or to join additional or ubstitute respondents. Except for purposes of notifying additional respondents. amended complaints will be considered as aving been made as of the original filing date. � - ' ..' . � �yp�/G� 1 � 3 � D. Notifi ation to Res ondents - 1. he State or local agency will serve a notice on each espondent. A person who is not nameG as a respondent in complaint, but who is identified as a respondent in the -- ourse of the investigation. may be joined as an dditional or substitute respo�dent by service of a notice n the person under this section within ten days of the 'dentification. 2, he notice will identify the alleged discriminatory housing practice upon which the complaint is based, [and include a copy of the complaint. ] 3. If the person is not named in the complaint� but is being joined as an adGitional or substitute respondent. the notice will explain the basis for the agency's belief that the joined person is properly joined as a respondent. 4. Unless the State or local 1aw prescribes specific notification requirements, the notice will indicate that the respondent may file an answer not later than ten days after receipt of the notice. 7he respondent may assert any defense that might be available to a defendant in a court of law. The answer must be signed. affirmed� attested to or notarized in accordance with the prescriDed State or local law. 5. An answer may be reasonably and fairly amended at any time with the consent of the head or official designee� of the State or local agenty. E. Com 1 tion of the Investi ation 1. Upon the filing of a complaint the State or local agency shall initiate an investigation in order to oDtain infor mation concerning the events or transactions that relate to the alleged Giscriminatory housing practice, and to document policies anG practices of the respondent(s ) involved. 2. Beginning with the filing of a complaint, the agency shall , to the extent feasible or prescribed by State or local law. attempt to conciliate or settle the Complaint. ' I '• ' I��/��(V �I 4 . 3. At the end of each investigation the agency shall prepare a Final Investigative Report. 7he investigative report shall contain: (a) The names and dates of contacts with witnesses. � except that the report will not disclose the names of �� witnesses who request anonymity; {b) A summary and the dates of correspondence and other contacts with the aggrieved person and the respondent; (c) A summary description identifying other pertinent records; (d) A summary of statements by witnesses; (e) Interrogatories and answers provided; (f) A summary of the evidence and data obtained during the investigation to substantiate or refute the allegations made� and an analysis of the evidence which sets forth the agency 's basis for its cause or no cause determination; (g) Identification of the type of closure; or further action (h) Statement identifying the relief or settlement obtained� if any. 4. A finai investigative report may be amended at any time� if additional evidence is discovered. 5. The State or local agency will cooperate with HUD by permitting HUO to make reasonable inquiries as to the progress of any investigation to assure that the investigation is proceeding with reasonable promptness. . � �r�o'�(°9 � . 5 II. PROBABLE C USE OR NO PROBABLE CAUSE OE7ERMINATION A. Re uir ments for Acce tance The r tionale behind a Cause or No Cause finding is that the inves igation has shown sufficient evidence to substantiate or ._ refut the allegations raised. Such evidence generally estab ished by determining ( 1) whether data, information and the a alysis are sufficient to concluGe that the incident occur ed which serves as the basis of the allegations made by the c mplainant; ( 2) whether the unit sought was actually avail b1e and on the market at the time of the alleged occu nce and (3) whether race. color, religio�. sex, or nati nal origin was a factor in the decision to grant or deny the ale, rental or financing of housing sought by the complainant. B. The C laint and related documentation must show that: 1. 7here is jurisdiction under the State or local law and the Federal Fair Housing Act; 2. The basis and issues are clearly stated in the complainant ' s allegations or through subsequent perfecting of the complaint; - 3. The respondents. the property� and the events or transactions are properly identified; 4. The investigation included an examination of respondent's stated policies and actual practices insofar as such policies and practices are related to the complainant's allegations; " 5. The agency investigated all of the allegations in the cortplaint which are covered under the Federal Fair Housing Act and the appropriate State or 1oca1 law; 6. The disputed issues have Deen identified and resolved based on the facts obtained during the investigation; 7. Witnesses and data sources were identified and appropriately interviewed and examined to support or refute the complainant's and respondent's statements: 8. All relevant records were properly examined and identified or marked to support what they are or show their relevance to the investigation; . -- .� ��y�,�� 9 � 6 � 9, he complainant was given an opportunity to rebut espondent's defenses, and such rebuttal sufficiently efutes the respondent's action or provides further proof o support the respondent's actions. C. Makin the Determination Afte examination of the above criteria. a determination of probable cause or no probable cause must be supported by the totalit of the facts obtained during the investigation. D. Docu ntation Re uired The robable cause/no/probable/cause determination must be well docu nted within the context of the Final Investigative Report as s ecified in Section I E (3) as contained herein, and maileG to H 0 within seven (7) days after the investigation is comp eted. III . CONCILIA ION Duri g the period beginning with the filing of a complaint and endi g with the agency's cause determination or dismissal of tfie omplaint, the agency. to the extent feasible or prescribed by S ate or local law� will attempt to conciliate or settle the comp aint. Unless it is impracticable to do so, the inve tigation, and the conciliation or settlement activity must also be completed within 100 days of the receipt of complaint. If a agency is unable to co mplete the investigation and conc liation or settlement activity with these 100 Gays; the agen y will notify HUD in writing and provide reasons for the dela within 5 days after the 100 days. A. Succe sful Conciliation 1. e uirements for Acce tance. The conciliation agreement ust: (a) be a written agreement which clearly defines the terms of the agreement and which is signed by the complainant and respondent and an authorized State or local representative designated to enter into formal agreements; (b) include terms which re medy the unlawful Giscrimination identified in the complaint anC provides relief or compensation for the cortplainant; � � ' �^ � ��c�j�'/��9 , � (c) ontain provisions to adequately vindicate the public . � nterest, and prohibit recurring future discriminatory ousing practices by the respondent; (d) pecifically state that the agreement constitutes closure f the complaint filed with HUD and/or the State or local qency; (e) contain a provision which will allow the agency to conduct compliance reviews of all settlements and conciliation agreements or other orders issued to resolve the discriminatory housing practice. 2. Docu ntation Re uired. The agency must submit: (a) a copy of the conciliation agreement; (b) a description of benefits and computation of actual monetary compensation provided directly to the . complainant� if not stated in their written agreement. (c) verify that the terms of the settlement have been met (e.g. a copy of the check, a copy of the lease showing respondent rented unit to complainant, etc). If the benefit will occur after the signing of the agreement (e. g. complainant will be allowed to rent at a future date) , the agreement must provide that respondent will notify the equivalent agency within a specific period of - time after the respondent has co mplied with the terms of the agreement. B. Unsu cessful Conciliation : ( 1) Requirements for Acceptance. The State or local agency made a cause determ�nation and the attempted conciliation or settlement efforts which were unsuccessful . (2) Documentation Required. The agency mails documentation at time of report�ng the closure to HUD. notwithstanding the fact that further agency enforcement procedures may be pending at the time the complaint is reported at closed. Documentation must include: (a) A copy of the material required in Section I .E. (3) regarding Final Investigative Reports. (b) A copy of the probable cause determination notices to • the cortplainant and the respondent. _�. � � ', ��.�p-/�o9 . 8 c) A copy of the correspondence or other documentation � � . that reports on the failed conciliation. C. Cases Set for Public Hearin . Where the agency 's settlement or conci iation efforts are not successful , and the complaint� under State or local law is set for public hearing. HUO shall accep Lhe case for closure provided the above criteria are me t. IY. SETTIEMENT CLOSURES HUD recogn zes that in some jurisdictions State or local laws only per mit set lement of fair housing complaints� in lieu of conciliati n. This section sets forth the criteria for processing in those c rcumstances. Also note that the conciliation activity described n Section III does not preclude any State or local agency fro resolving a co mplaint through settlement action. A. Ne oti ted Settlements 1, e uirements for Acce tance. The primary area of mportance for the settlement of a case is the atisfaction of the complainant through the terms rovided in the settlement agreement. The settlement must e a written agreement which: a ) clearly defines the terms of the agreement and is � signed by both the co mplainant and the respondent as . 7 well by an agency representative authorized to enter lj �nto formal agreements; b) includes specific reference to; closure of the NUD case as well as the equivalent agency case; c) verifies that the terms of the settlement have been met (e.g. , a copy of the check, copy of the lease showing respondents leased unit, etc. ). If the benefit will occur after the signing of the agreement (e.q. . complainant to be allowed to rent at a future date) , the agree ment must provide that respondent will notify the agency within a specific period of time after the terms have been met to show respondent's compliance with the terms of the agreement. . M , • , .. , C� y0�/G49 ,� �� io i � Y. ADMINISTRA IVE CLOSURE/DISMISSALS A. Withd awals Without Settlement 1. Re ui ements for Acce tante. The withdrawal request must: .- (a) Be in writing; (b) Be signed and dated by the cortQlainant or an authori2eG representative; (c) Identify the respondent(s) ; (d) Contain the HUD case number and the State or local agency case number; (e) Indicate the reason(s) why complainant wishes to withdraw the charge; (f) Contain a specific reference to the withdrawal of the HUD complainant as well as the aqency's co mplaint. and (g) Contain a specific statement that there was not coercion or fear of retaliation. 2. Documentation Re uired (To be mailed to HUD at time of reporting the closure to HUD. ) (a) Chronology of agency actions prior to withdrawl request (b) Copy of withdrawal statement. . B. Unable to L cate Com lainant 1. R uirements for Acce tance The b sic requirement is to establish that the agency was unabl to locate the complaint. This would include written docu ntation of steps such as: (a) Returned correspondence indicating that charging party had moveC and left no forwarding address; (b) Contact with other sources in an effort to obtain a nbre current aCdress for complainant (e.g. HUD Office; telephone directory; "contact person. " etc. ) ; f � �y°-'�� `�` APPENOI X C �s .�. UNIFORM AD INISTR.ATIVE RE UIREMENTS FOR GRANTS AND COOPERATI AGREEMENTS TO STATE AND LOCAL GOVERNMENTS The fol owing provisions of 24 CFR Part 85, "Uniform Administra ive Requirements for Grants and Cooperative Agreements to State and Local Governments, " are incorporated by referen e. Upon request, the Grant Officer will make their full text available. Where clarifying or specific HUD instructio s are required, they will appear i�n full text. The term " rant" as used herein also refers to cooperative agreement nstruments. The term "Grant Officer" as used herein als refers to Cooperative Agreement Officers, when the inst ent is a cooperative agreement. 85 .34 Copyrights and patents. 85 .35 Subawards to debarred and suspended parties . * * # * * ' Befo e awarding any subcontracts or subgrants, the ' grantee mu t ensure that the subcontractor or subgrantee is not includ d on the General Services Administration's "Lists of Parties Excluded from Federal Procurement or Nonprocure ent Programs, " and, therefore, ineliqible for award. Co ies of this publication may be obtained from the Superinten ent of Documents, U.S. Government Printing Office, Wa hington, DC 20402. The telephone number is (202) 783-3238. 85 .36 Procurement. 85. 37 Subgrants. � 85.42 Retention and access requirements for records. 85.43 Enforcement. 85 .44 Termination for convenience. � � ��0-��9 . �� - �, �ART SS--ADMINISTRATiVE RE- . � � . QUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS • TO STATE, LO�AI AND FFDERALLY RECOGNIZED INOIAN TR�gA� GOVERNMENTS Subporf A—G�n��ol Sec. a5.1 Purpose and scope o! thls part. 85.2 Scope o! subpart. 85.3 Definitions. 85.4 Applicability. 85.5 Effect on other issuances. 85.6 Additions and cxceptions. • Subpo�t t—►re-Aword R�qui��n��n1t 85.10 Forms !or applyin¢ for erants. 85.11 State plans. 85.12 Special �Tant or subQrant conditfons for ��high-risk" erantees. SubpoM C—to�t•Awerd R�qvfr�n��nt• F'IHANCIAL ADMINIS?RATION 85.20 Standards tor iinancill management syster:�s. 85.21 Payment. 85.Z2 Allow•ab)e costs. � 85.23 Period ot svsilability of tunds. 85.2! MatchlnQ or cost sharinQ. 85.25 PzoQram income. 85.26 Non•FederiJ audlt. CHAHCLS, PROTEItTY, AND SII�AWA]�DS 85.30 Changes. 85.31 Real property. 85.32 Epuipment. 85.33 Supplies. d5.3! CopyriQhts. a5.35 Subaa�srds to debarred and suspend• ed parties. aS.36 Procurement. aS.3? 8uberants. � /� .G�.-�� .. �.�p-/�i�g , , � �T.TOI� a� R�.�� -`-�•ZDA�� • r •. � , •. `, . ' . �� , ��¢�t aaa ot.ber tan�ible prop- •.� , :� ,, ! iS.40 'doN '' � '..^.crrn t,v �urchisers. tad (Z) �ns and tti►Dortin� p� �ouats beoomins owed to the �rarit- � pertonn ce. � tor �vhfch no current servfces or ES.41 Fin clal re • aS.i2 Rete tlon s,�nd�' periormance !a required by the �ra,nt- lor recor . � ��D� K• aS.�3 Ehto ement. "Acquisftion cost" of an lLetn of ptu. 55.44 Term nstfon tor convenlence. chased equtpment IIieaTiS the net iA• � � � volce unit price of the property includ- tubperf D Ah�r•th�r�nt R�quir�w+�ntt ir� the cost of modtficattons. iLtBCh. as.5o Clos� ut. ments� sccessories� or iuxiliary sppa. es.sl I,acer Lza�Jowances snd sd�ustments. �t� necessary to make the property as.s2 Collec fon ot amounts due. usable tor• the purpose for which it was uquired. Other charaes such as Subpa�t f—Entttl�rn�nt� [R�:�n�dJ the cost oi installatton, tr4rz.sportation, taxes. duty or protective in•transit in• AVTHORi7Y Sec. 7cd�, Department oi surance. shall be included or excluded Housing and Urban Development Act, �2 from the unit aCquisition COSt In ac- U.S.C. 3535cd). cordance with the grantee�a regular ac- SovRCE: 53 FR 8068, 8087, Mar. l i, 1988, counting practices. unless othera ise noted. '�Administrative" require�nents mean EfPEC?IVE �rE NoTE: At 53 FR 8068, 8087, those matters cominon to grants in Mar. 12, 1988, Part 85 �•as added, eitcccive Beneral, such ss financial rrianage- . October 1, 19 s. ment� kinds and frequency of reDorts, and retention of records. These are Su part A—General distinguished irom '�programmatic" requirements, ahich concern matters � 85.1 Purpo e and :cope of this part. thaL can be treated only on a pro�razn- This part estabtishes uniform ad- bY•Arogram or �rant-by-grant basis, ministrative rules for Federal grants such as kinds of activities Lhat c�n be and coope ati�•e agreements and supported by erants under a particular subaa•ards t State� local and Indian pr�gT�• tribal gover ents. "Awarding agency" means (1) with respect to a erant. the Federal a�ency. � 85.2 Scope f aubpart. and (2) with respect to a subgrant, the This subp rt contains general rules Pgrty that awarded the subgrant. pertaining t this part and procedures "Cash contributions" means the ior control oi exceptions irom this er'antee's cash outlay. including the part. - outlay oi money contributed to the f 85.3 Definit ona. �'�ke or subgra�ntee by other public aQencies and institutions, and private As used in his part: oraanizations and individuals. When "Accrued xpenditures" mean the iuthorized by FederaJ le�i.slation. Fed- charges inc rred by the �rantee eral iunds received irom other Lssist- during a gi en period requiring the �� ser�emenLs may be considered as provision o! unds ior: (1) Goods and ��e er aub�rantee cash contribu- other Langib e property received; (2) tiens. services peri rmed by employees, con- "Contract" meana (excxpt as used fn Lractors. sub antees. subcontractors. the definitions ior "�rant" and "sub- s.nd other ayees; and (3) other �rant" in this section and exc�pt amounts bec ming owed under pro• ahere qualiited by •'Fbderal") a pro- erams for w•h ch no current aervices or curement contrsct under s ezant or periormance reQuired, such a.s aru�u• sub�rant, and mtans a procurement ities, insuran e claims, and other bene• subcontract under a contrut. fit payments. •'Cost aharint or matchin�" means "Accrued in ome" means the sum of: Lhe value of the third party in•Icind (1) Earnings durinQ a �iven period contributions and the portion of the trom services pertormed by the Qrant• costs of a federally assisted project or � ��'� �°'�609 pro¢ram not b rne by the Federal "Loca1 �ove�'ataent" m i ��y� ' � , • , C3overnment. �� muntcipalfty. � �Clty. t4qa. tO�v�thlD. ,, "Cost-type co tract meana a con• 1oca1 pubUc authorlty •tlncludini �► tnct or subcon rsct under t tru�t in publlc �nd Indian houdnt �i�Y ' �uhich the contr ctor or aubcontnctor under the United Btates Houain� Act � is paid �on the basis of the costs 1t of 1�37) school district. s�eclal dfstrict. incurs, a•ith or ithout s fee. intrsstate dktrlct� oouncil oi �overn- •'Equipment" eans tangible, nonex• ments (ahether or aot incorporated as pendable, perso al property havinB a a nonprofit eorpontion under statt � useful life of m re than one year and law), any other reQionsl or interstate an acquisition ost of i5,000 or more �overnment entfty, or any a�ency or per unit. A gr ntee may use its own instrumentality of s laxl �overnment. definition oi eq ipment provided that "Oblieations" means the amounta oi such definition would at least include orders plac�d, eontracts and auberanta � all equipment d fined above. awarded, Qoods snd setvices t�cxived. "Expenditure report means: (1) For and simUar transactfons durinQ s �iven nonconstructio grants, the SF-269 period that aill require payment by •'Financial Sta us Report" (or other the Qrantee during the same or a equivalent repo t): c2> for construction future period. grants, the S -271 "Outlay Report "OMB" means the United States and Request f r Reimbursement' cor Oifice of Management and Bud�et. other equivale t report). • "Outlays" (expenditures) mean "Federally r cognized Indian tribal charges made to the project or pro- government" eans the governing gram. They may be reported on a cash body or a go�•e nmental agency of any or accrual basis. For reports prepared Indian tribe, b nd, nation, or other or- on a cash basis. outlays are the sum oi ganized group or community (includ- actual cash disbursement for direct ing any Nativ village as defined in charges for goods and services, the section 3 of the Alaska Native Claims amount oi indirect expense incurred. Settlement Ac . 85 Stat 688) certified the value of in-kind contributions ap- by the Secreta y of the Interior as eli• plied, and the amount of cash ad- gible for the special programs and vances and Dayments made to contrac- services provi ed by him through the tors and subgrantees. For reports pre- Bureau oi Indi n Affairs. pared on an accrued expenditure basis, •'Governmen " means a State or outlays are the sum of actual cash dis- ]ocal go��ermm �t or a federally recog• bursernenLs, the smount of indirect nized Indian t ibal go�ernment. exper.se incurred, the value oi inkind "Grant" me ns an award oi finan- contributions applied, and the nea in- cial assistanc , including eooperatSve _ crease cor decrease) in the unounts agreements, ' the form oi money, or owed by the arantee tor �oods and property in li u oi money, by the Fed- other property received. foT aervices eral Govermm �t to an eligible �rant- periormed by employees, contractors, ee. The term oes not include techni• subgrantees, subcontraetors, and other cal assistance which provides services payees. snd other amounts btcoming instead of m ney, or other assistance owed under pro¢rams for ahich no in the iorm o revenue sharing, loans, current services or p�riormance are re- loan Buarant es, interest subsidies, in• quired, such as annuities, insurance surance, or di ect appropriations. Also, claims, and other benefit payments. the term doe not include issistance. "PerctntaQe oi completion method" such as a ! llowship or other lump refers to a aystem undtr ahich pay• sum av�'ard, hich the �rantee is not ments are ma.de for conatruction work reQuired to a count for. sccordin¢ to the perctnti�e of comple- � •�Grantee" eans the e an�h ch is g antee's cost,incurred er than to the a hich a gran is aa•arded accountable or the use of the lunds "Prior approval" means documenta- pro��ided. T e grantee isitharticular rint specificleost p�ent prior Lo incur• leQal ent�ty ven ii only p component o the entit�ndesi�nated in�andpimprove•m ntsnstrucauresciand in the Brant v��ard docu . . 3 �,�9��,y, � � • , -� apPurtetiar� thereto e�cc]udln� mov tste prevfously-aaarded �raat iunda .� a0le mschine y ar�d �ulpment. before that suthority �vould othenviae '•Bhare". hen referrina Lo the expire. It alao medns the voluntary re- awarding aa ncy's portion oi real linQuishment of Lhat authority by the propert.y. e ulpment or supplSes, tro.ntee or sub¢rantee. "Termination" means the ame percencage ss Lhe does not include: (1) Withdrs�wal of awarding ag ncy'a portion of the ac- funds awarded on the b�sis oi the quirir�Q part 's total costs under the �►rantee's underestinaat� of the unobli- � �rant to wh' h the acquisition costs eated bnlance !n a Drior period; (2) under the gr t to ahich the acquis!- Withdrawal oi the unobligated bal- Lion cost of t e property aas char�ed, ance as oi the expirstion oi a erant; OnIY costs a e to be counted—not the (3) Refusal to extend s erant or award value oi thir •party in•kind contribu- a.dditional funds. Lo make a competing tions. or noncompeting continuation, renew- "State" m ans any of the several al� extension, or supplemental aaard; States of th United States, the Dis• or (4) voidfng of s grant upon determf- trict oi Colu bfa, the Commonwealth nation that the aaard was obtained of Puerto Ri o, any territory or pos• iraudulently. or wss otherwise lllegal session of L e United States, or any or invalid from inception. agency or in trumentality of a State ��Terms oi a arant or subgrant" exclusive of local governments. The mean all requlrements of the erant or term does n include any public and subgrant, whether in statute, regula- Indian housi g agency under United tions. or the aa�ard document. States Housi g Act of 1937. ��Third party in-kind contributions" "Subgrant" means an aa•ard of fi- mean property or services which bene- � nancial assi tance in the iorrn of fit a federally assisted pro�ect or pro- money, or pr perty in lieu of money, �am and which are contributed by made under grant by a grantee to an non•Federal third parties without eligible subg ntee. The term includes charge to the grantee. or a eost•type iinancial ass' tance a hen provided by contractor under the �rant agreement. contractual 1 gal agreement, but does ��Unliquidated obligations" for re• not include procurement purchases, �� prepared on a cash basis mean nor does it i clude any form oi assist- the amount of obligations incurred by ance a�hich i excluded irom the defi• the grantee that has not been paid. nition of "gr nt" in this part. For reports prepared on an sccrued "Subgrante " means the govern• expenditure basis, they represent the ment or oth r legal entity to ahich a �ount oi obligations incurred by the subgrant is aarded and which is ac- ��ee for which in outlay has not countable to he grantee for the use of �en recorded. the funds pr vided. •�Unobli¢ated balance" means the "Supplies" rneans all tangible per- �rtion of the funds suthorized by the sonal prope ty other than equip- Federal agency that has not been obli- ment" as def' ed in this part. "Suspensio " means depending on tattd by the �tar�tee and is deter- the context either (1) temporary m�ed by deducting the cumulative ob- a•ithdrawal f the authority to oblf- uaations irom the cumulative funds �ate erant unds pending corrective authorlud. sction by th grantee or suberantee or �� Appliubility. a decLsion termin4te the �rant. or (Z) an sction taken by a suspendine of- ts) Gencral. Subpatta A—D oi this iicial in acco dance a�fth seency regu- part apply to all �rants and aubgrants lations imple enting E.O. 12549 Lo im- to aovernments, except ahere incon- mediately ex lude a person from par• sistent aith Federal statutes or with ticipating in ¢rant transactlons for a reevlations authorized in sccorda.nce period, pend n� completfon of an in- aith the exceptton provisfon of f 85.6. vestigation d such le�al or debar- or: ment procee gs a.s may ensue. (1) �3rinta and sub¢ranLs to State "Teraninati n" mearis permanent and local lnstitutions of hieher educa- �•ithdraa�al f the iuthotity to obli- tlon or State and local hospitaLs. 1 . t2) The block `nnts •uthorized by (b) mtltlement �rant� unde fol� � ' , � � , ti�e Omnibus udaet Reconcilfation jo�rla� pzo�rams oi Tht Ch�ld Nutti• .� Act oi 1981 tCo unity fiervices: Pre- tlon Aat oi 1�46: ventive Health nd Health Services: (t) Speclal Mtlk tsectfon 3 ot the � Alcohol, Drug Abuse. and Mental Act). and Health Services� Maternal and Child �j» �hool Breattast (se�ction � oi Health Services; Socfal Services; Low- the Act). Income Home Ener�y Assistance; �6) E7ntitlement �ranta ior BLatt Ad- States' Program of Community Devel- ministrative expenses under The Fbod � opment Block Grants for Small Cities; g�p Act oi 19?? (section 16 oi the uid Elementary and S�condary Educa• Act). tion other tha programs adminis• �7� A erant ior an experimental. tered by the cretary of Education pUot. or demonstratlon �rolect that is.- under Title V. ubtitle D. Chapter 2. �o supported by s Qru�t listed !n Section 583—t e Secretary's discre- pa��.aph (a)c3) oi this sectton; tionary grant p ogram) and Titles I- �8� ��nt funds iaarded tu�der sub- III of the Job 1'raining Partnership �ction �12(e) oi the Immigratlon and Act of 1982 a d under the Public Nationality Act (8 U.S.C. 1522(e)) and Health Services Act cSection 1921). Al• subsectton 501(a) of the Refugee Edu- cohol and Drug Abuse 'IYeatment and �tion Assistance Act of 1980 (Pub. L. Rehabilitation lock Grant and Part 96-422. 94 SLat. 1809), for cash assist- C of Title V, ental Health Service for the Homele s Block Grant). ance, medical assistance, and supple- (3) Entitleme t grants to carry out mental security income benefits to ref- the follov��ing rograms of the Social ugees and entrants and the adminis- Security Act: trative costs of providing the sssist- (i) Aid to Ne dy Families aith De• �ce and benefits; pendent Child en (Title IV-A of the �8� Grants to local education agen- Act, not includ'ng the Work Incentive �« under 20 U.S.C. 236 Lhrough 241- Program cWIh' authorized by section 1(a), and 242 through 2�4 (portions of 402ca)19cG); H S grants for WIN are the Impact Aid program), except for subject to this art); 20 U.S.C. 238(d)(2)(c) and 240tf) (Enti- cii) Child Su port Eniorcement and tlement Increase ior Handicapped Establishment i Paternity tTitle IV- Children); and D of the Act): t10) Payments under the Veterans t iii) Foster are and Adoption As- A�inistration's State Home Per sistance cTitle V-E of the Act); Diem Program (38 U.S.C. 641(a)). (iv) Aid to t e Aged, Blind, and Dis- �b) EntiUemtnt proprams. Entitle- sbled cTitles . R, XIV, and XVI- ment programs enumerated above in AABD of the ct); and f 85.4ia) (3) LhrouQh (8) are subject to (v) Medical Assistance cMedicaid) Subpart E. (Title XIX oi the Act) not includin¢ g �.S Encct on other fauancec. the State Medicaid F'raud Control pro- Qram auth rized by sectlon All other �rants sdministration pro- 1903ca)c6)cB). visions oi codified pro�ram regula• (�) Entitlem nt grants under the fol- tions, pro�ram manuals, h4ndbooks lowing progr ms of The National and other nonreeulatory materials School Lunch ct: ahich are inconsLstent with this part (i) School unch csection 4 oi the are tuperseded. except to the extent Act), they are reQuired by statute, or au- cii) Commod ty Assistance csection s tion provision in�gs s.alth the excep- of the Act), (iii) Special eal Assistance tsection f g5.6 Addition� and exception� 11 oi the Act), tiv) Summe Food Service for Chi]- (a) For classes of �r'snt.s a.nd �'ant- dren tsection 3 ot the Act), and ees subject to this part. Federal a�en- (v) Ch11d C re Food Prog�ram csec- cies may not lmpose sdditional sdmin- tion 1? of the ct). isttative reQuirements except in codi- . � ,s �'��/�v�� ' ' ' '�� ifed re�ulatio publlahed tn t,be �- t4) When a �ru�tee appUea for addi- � �. Rr,cisme tional fundine (such as a contlnustion • (b) EScceptt ns for classea of `nnts or supplemental award) or amends a or �rantees m y be authoriud only by prevlously submitted �pp�icgcion, only OMB. the affected pages need be submitted. (c) Excepti ns on s case•by-case Previously submiLted paQes with infor- basis and tor subgrantees may be au- matton that is atill cunent need not be � thorized by t e affected Federal agen- r�ubmltted. cies. f 85.11 State plan�. Subport 8—P e-Aword Rsquir�ment: (a) Scopc. The statutes for aome pro- i 85.10 Forms or applyin6 tor rtants. �� requlre States Lo submit plans before receiving grants. Under regula- ta) Scope. ( ) This section prescribes tlons implementing Executive Order forms and i tructions to be used by 12372. "InCer�overnmental Review oi governmental organizatians (except Federal Programs." States are allowed hospitals an institutions of higher Lo simplify, consolidate and substitute education op rated by a government) p�ans. This section contains additional in applying f r grants. This section is provisions for plans that are subject to not applicabl , hov�•ever, to formula regulations implementing Lhe Execu- grant progra s �•hich do not require Live order. applicants to apply ior funds on a �b) Repuirements. A State need meet project basis. only Federal administrative or pro- (2) This sec ion applies only to appli• grammatic requirements ior a plan � cations to Fe eral agencies for grants, that are in statutes or codified regula• and is not re uired to be applied by tions. grantees in dealing a•ith applicants for �c) Assurances. In each plan the subg�rants. H v��ever, grantees are en- couraged to void more detailed or State will include an assurance that burdensome pplication requirements the State shall comply aith all appli• for subgrants. cable Federal statutes and rtQulations cb) Autho ' ed Jorms and insiruc• in eifect with respect to the periods tions �or �ov rnmental o�Qanitations. for which it receives erant funding. c 1) In apply' g for grants, applicants For this assurance and other issur- shall only u e standard application ances required in the plan. the SLate - iorms or those prescribed by Lhe may: : eranting age cy a�th the approval oi� (1) Cite by number the atatutary or - OMB under t e Paperaork Reduction regulatory provisions requiring the a�s- Act o! 1980. surances and affirm that 1t �ives the (2) Applica ts are not reQuired to is,surances required by those provi- submit more han the original and two sions. copies of pr applications or applica- �2� Repeat the assurance lanQvage in tions. the statutes or tegulations, or (3) Applica ts must folloa al1 appli- �3) Develop its own lan�vage to the cable instru tions that bear OMB extent permitted by law. clearance nu bers. Federal agencies �d) Amendmcnls. A State �vill �rriend may specliy and describe the pro- a plan whenever necessary to reflect: �rarns, functi ns, or activities that will �1) Nea or revised Fedenl ttatutes be used to pl n, budget, and evaluate or reavlations or; the a•ork und r a grant. Other supple- ' mentary ins ructions may be issued �Z� A material chui�e in any State only a•ith th approval of OMB to the lsa�. oreanizatton, policy, or State extent requly d under the Paperwork agency operation. The State will Reduction A t of 1980. For any atand- obtain approval for the amendment ard form, exc pt the SF-424 lacesheet, ind its eifectivt date but need submit Federal agen ies may ahsde out or in- tor approval only the amended por- struct the a plicant to disregard any tions ot the plan. line Item tha is not n�eded. � �--�v-/6�y . • es.�z s��t t �.nt or •ub�rant condl. tue�,� �.ro:1-Aword R�quti�a�nts ' • , . � . ,. tlon• for " ish ri�k" srantees. . ca) A �ran ee or subQnntee may be P'��c�.An�cixist�►tior considered " igh risk" 1i an awarding � �.=o S�ndard• for t[n�nclal n►anate• agency dete mines that a �r4ntee or �„�„� �y�tem.. subgrantee: (1) Has a history of unsatisfactory �� A State must expand and ac. performance or count for �rant funds !n sccordu�ce � � (2) Is not f nancially stable. or with State laas and procxdures tor ex- (3) Has a anagement system ahich �nding and accountine ior its oRm does not me t the management stand- funds. F'iscal control and accounting ards set fort in this part, or Procedures o! the State, as well ss its subgra.ntees dnd cost-type contractors, (!) Has no conformed to terms and must be sufiicient Lo— conditions o prevIous awards. or �1) Permit preparation oi reports re- c5) Is othe •ise not responsible; and quired by this part and the atatutes if the av�•a ding agency determines authorizing the erar�L, and that an aa• rd a•ill be made, special �2� permit the tracinQ oi lunds to a conditions nd/or restrictions shall �evel of expenditures adequate to es- correspond t the high risk condition tablish that such funds have not been and shall be ncluded in the av��ard. used in violation of the restrictions (b) Special conditions or restrictions and prohibitions of applicable stat- ma5� include: utes. (1) Paym nt on a reimbursement (b) The financial management sys• basis; tems of other grantees and subgran- c2) Withh lding authority to pro- tees must meet the iollowing stand- ceed to the ext phase until receipt of ards: evidence of acceptable performance tl) Financial rtpoftinp. Accurate. aithin a giv n funding period: current, and complete disclosure oi c3) Requi ing additional, more de- the financial results of financially as- tailed financ al reports; sisted activities must be made in ac• c9) Addicio al project monitoring; cordance with the financial reporting (5) Requir ng the grante or subgran- requirements oi the grant or subgrant. tee to obtai technical or management �2� Accountin9 records. Grantees assistance; o and subgrantees must maintain c6) Establi hing additional prior ap- records which adequately identify the provals. source and application oi funds pro- vided for financially-assisted sctivitles. (c) If an a •arding agency decides to These records must contain inforrna- impose such conditions, the awarding tion pertaininQ to �rant or subgrant oificial a•ill otify the grantee or sub- �wards and authorizations, obliea• Qrantee as e rly as possible, in writing, tions, unobli�ated balances, s.ssets, li• oi: abilities, outlays or expenditures, and (1) The n ture o! the special condi- income. tions/restric ions; (3) Inlernal controi. Eltective con- (2) The re oncs) for imposing them; trol and accountabUity must be main- (3) The orrective actions which tained tor all Qrant and suberant cish, must be Lak n betore they a•ill be re- real and personal property. �.nd other mo�ed and he time allowed ior com- ss,sets. Grdntees and suberantees must pleting the orrective actions and adeQuately safeevard all tuch proper- (�) The m thod oi requesting recon• ty and must assure that it is used sideration ! the conditions/restric- solely for authorized purposes. tions impos d. (4) Bud�et conlroL Actual expendi- tures or outlays must be compared aith bud�eted amounts for each erant or subQrant. Financial iniormation must be related to performance or pro- ductivity data, includin¢ the develop- - � G'�1��°9 . „ ment of unJ cost infot�mitton w►hen• Lransfer oi funds and dLbursement by ' � ' � ever approp iate ot t�e.►ciifavy r�. the �rantee or sub�rantee. !n accord- " qulred in Lbe erant or subQr�arit asree- ance �vfth Treisury re¢vlattona st 31 • ment. It uni cost data are required. CFR Part ZOS. esttrnates bas d on available documen- tc) Advanccs. C3rant,ees snd sub�ran• tation will be ucepted whenever possi- k� =hall be paid in advance� provided ble. they malntain or demonstrate the wlll• (5) Allomab e cost. Applicable OMB �gness and ability to mtintain proce- � � cost principl , a�ency pro¢ram regu• dures to minimiu the time elapsing l�tions, and he terms oi �rant and �Lween the transter oi Lhe funds and subgrant agr ements wlll be folloaed their disbursement by the azantee or 1n determinin the reasonableness, al• aubQrantee. loa�abllity, an allocability oi cosLs. �d) ReimbunrmenL Reimbursement (6) Sou�ce ocumcntation. Account- ahall be the preferred method ahen ing records m t be supported by such the requlrements in paragraph (c) oi source docu entation as cancelled this sectton are not met. Grantees and checks, paid ills, payrolls, time and subgrantees may also be paid by reim- attendance re ords, contract and sub- bursement !or$ny constructlon grant. grant av.•ard d cuments, etc. Except as otheravise specified in regu- (?) Cash ana9emenl. Procedures �ation. Federal agencies shall not use ior minimizin the time elapsing be- the percentage of completion method ta�een the tra sfer of funds irom the � pay construction �rants. The grant- U.S. 'IYeasur and disbursement by ee or subgrantee may use that method grantees and ubgrantees must be fol- � pay its construction contractor, and lowed a•heneti• r ad��ance payment pro- � it does� Lhe aRarding agency's pay- cedures are us d. Grantees must estab• ments to the �rantee or suberantee lish reasonabl procedures to ensure a.ill be based on the grantee's or sub- the receipt of reports on subgrantees' cash balances and cash disbursements gT'��ee's actual rat,e of disbursement. in sufiicient ime to enable them to �e) Workin� capital advanccs. If a prepare comp ete and accurate cash BTantee cannoL meet the criteria for transactions r ports to the aa�arding gdvance payments described in para- agency. When advances are made by �aph (c) of this section, and the Fed- letter-of-credit or electronic transier eral agency has determined that reim• of funds met ods, the grantee must bursement is not feasible because the make draa•do as close as possible Yrantee lacks suificient working cap- to the time of making disbursements. ital, the aa�ardtng agency may provide Grantees must monitor cash draa�- �h or : a working capital sdvance doa�ns by thei suberantees to assure basis. Under this procedure the award- that they conf rm substantially Lo the �Q agency shall advance cash to the same standar oi timin¢ and amount �rantee Lo cover its estimated dis- as apply Lo adv nces to the �rantees. bursement needs for an initial period (c) An aaar ing agency may review Qenerally eeared to the erantee'a dis- the adequacy i the financial manage- bursine cycle. Thereafter. the award- ment system f any applicant for fi- inQ aQency shall reimburse the �rantee nancial assis nce as part ot a !or its actual cash disbursements. The preaward revie � or at any Ltme subse- aorkina capital advance mtthod oi quent to aarard �ayment shall not be used by �rantees or sub�rantees ii the resson for using i 85.21 Paymen such method !a the unwillinQness or (a) Scope. Th s section prescribes the inability oi the �rantte to provide basfc standard d the methods under timely advances to the subarantee to which a Federa agency aill make pay- meet the sub¢rantet's sctuat cash dis- ments to gran ees, and erantees aill bursements. . make paymen to sub¢rantees and (f) E�Ject oJ pro�ram inconu, st- contractors. Junds, and audit neeov�ries on pay- (b) Basic st ndard Methods and mtnt (1) C3rantees and suberant�es procedures for payment shall a1in1-' thall disburse repsytnents Lo and in• mize the ttme elapsin� beta�een the terest earned on i revolving fund � �i� �-��9 ' . ntton Act (S1 II�C. ' . • b�fore requestin additional cash pay ernmeflta] Coope ments for the u e utivity. d501 et sea.) und the In� Beli•De- i2) Except as rovid�d in paraeraph Lerrnin�tion Act (Z3 II.B.C. 1S0), tran� (!)c 1) oi thls sect on, erantees and sub- ees and sub�ranttea shill proflnDtly. grantees � shall disburse proQram but at least Qusrterly. remlt lnterest fncome, rebates, efunds, contract tet• earned on advu�ces to the Fedenl tlements, audit r coveries and interest s�ency. The �rantee or subarantee . .earned on such unds before request• may keep interest amounta up to i104 in� addltional c h payments. per Year for adrninistrstive eapensea. �Q) Wi thhold'np paYm�n�. �1� f g5.22 AlloMab{e eosts. Unless otherwis required by Federal .- statute, av��ardi � a$encies shall not (a) LimiLation on we oI �unda. aithhold payme ts for proper charges C3rant funds may be used on1Y for. incurred by gr ntees or sub¢rantees ��: sub¢r n�tees band Sst-type contract- unless— � (i) The grant e or sub�rantee has tors. includinQ allowable costs in the iailed to comply with grant sward con• �T�o�' �a ents to fixed-�rice con- ditions or (ii) The grant e or subgraritee is in- (2) Reasonable fees or proiit to cost� debted to the U ited States. type contractors but not any fee or (2) Cash a�it a`1 awaTd'fcondition lowable costs)eto itheeQranteeor s b- comp�Y a�ith B but a•ithout su pension oi Lhe grant, gran t ee. shall be release to the Brantee upon (b) Appiicable cost principles. For subsequent com liance. When a grant each kind oi o�Qanization. there is a is suspended, ayment adjustments set oi Federal principles for determin- a•ill be made in accordance with in¢ allowable costs. Allawable costs ; 85.43c c). aill be deten�nined in sccordance with (3) A Federal gency shall not make Lhe cost principles applicable to the payment to gra tees for amounts that organization incurring the costs. The are aithheld b grantecontractorsato nizations and the Pplicable�ost prin- Lees from pay ent to assure satisia tory completion of ciples. work. Paymen shall be made by the Federal agency a hen the �r�ntees or subgrantees a tually disburse the � � �� withheld funds to the contractors or For � ��a �— to escrow ac ounts establLshed to assure satisia Lory completion oi s�+��a �'^ *�'' °�''1e ara��-��. w�rk. P+ws,e nono►oM oroana.�tio^ oM8 oraw A-tz2. (h) Cash dtP si tories. (1) Consistent ,�., a,a� v+t>> �a++�^ ��ith the nati al Qoal of expandin8 d ^q''� '�'°'0"� a� the opportuni ies for minority busi- AOi�'"'• a ��4`"�'fb0n n�mr0 in OM8 C+�'a�i�r �- ness enterpris s, erantees and sub- ,n ,� � ,�e,.c� +o .�a� Qrantees are e couraged to use minori• ora,�.�. �B��_21 ty banks (a b nk a�hich is owned at E��"�"'�J1°^` �---_..._ For�qroM �qa�+�+�^ �'� 4a CFR ►aA �1. Contracl least 50 perc nt by minority �rouP �� , �,, s�a .�+ a• coa v+,�+ao� �►+e �1°0'� members). A ist of minority oamed �.�,t,a, �.�+.o � os� a�+s• a ��N� banks can be obtained irom the Mi- aa,�+� �-�� "i0R "'° � �, �,�, nority Busine Development AQency. ��1�� pp�ptaD� b � F� Department o Commerce. WBShin�• ao«�• ton, DC 20230. �2� A grant e or subgrantee shall maintain a sep rate bank account only � gs 23 P�rio� o!svaitabtlitp oi fund�. . . when reQuired by Federal-State a¢ree- �� MT� �ere a fundina P�� ment. ti) Intertst earncd d on •dvances heaaird �onlyrcosts resultin�r trom Except for int rest earn of funds exe pt under the InterQov- obli�dtions oi the fundin¢ P�� - y �'�e�/Gd 9 � • • � •� unless carr over of unobliQated bal• qufrement of another Federa.l sr�nt ances Ls pe fLGed, in �vhfch �se the a�reement. a Feder� procureruent � carryover b ances may be charaed for eontrut� or any other award of F'eder- � costs resulti g irom obligatfons of the al funds. subsequent unding pertod. (�) Costs �inanced by pro�ram cb) Lipui ation oI obtipations. A income. Costs financed by prog�ram �rantee mu t liquidate al] obligat,ions income. is defined in � 85.25, shall not incurred u der the award not later count toaards satisfyine a cost sharirig � than 90 da s after the end of the or matching requirement unless they funding pe iod (or as apecified in a • ste expressly permitted in the terrns Dro¢ram re ulation) Lo coincide with of the assistance a�reement. (This use Lhe submi ion of the annua] Finan- of general program income is de- cial Status eport (SF-269). The Fed- scribed in ; 85.25(g).) �� eral agency may extend this deadline (5) Serviees or property Jinan.ccd by at the reque t of Lhe grantee. income earned 6y contractors. Con- tractors under a grant may earn f 85.2� Atatc ing or cost sharing. income irom the activities carrled out (a) Basic rule: Costs ared contribu• under the contract in addItion to the tions accep able. With the qualiiica- amounts earned irom the party award- tions and xceptions listed in para• ing the contract. No costs oi services graph tb) o this section, a matching or property supported by this income or cost sh ring requirement may be may count Loward satisfying a cost satisiied by either or both of the fol- sharing or matching requirement lov��ing: unless other prov:sions of the grant t 1) AlIov�• ble costs incurred by Lhe agreement expressly permit this kind grantee, su grantee or a cost•type con• of income to be used to meet the re• tractor un er the assistance agree• quirement. ment. This includes alloRable costs (6) Records. Costs and third party borne by on-Federal grants or by in-kind contributions counting toa�ards others cash donations trom non-Feder- satisfying a cost sharing or matching al third par ies. requirement must be verifiable irom (2) The v lue oi third party in•kind the records of grantees and subgtantee contributio applicable to the period or cost-type contractors. These records to a hich t e cost sharing or matching must shoR how the value placed on requiremen applies. third party in-kind contributions was � cb� Quali ications and csceptions— derived. To the extent feasible, volun- (1) Costs b rne by other F'ederal prant teer services a�ill be supported by the a�reements. Except as provided by sa.me methods that the organization Federal s tute, a cost aharing or uses to support the allocability of re¢- matching r quirement may not be met ular personnel costs. by costs orne by another Federal (?) Special standards �or third �arfy �rant. This prohibition does not apply in•kind contributions. (i) Third party to income arned by a grantee or sub- in-kind contrfbutions count toa'ards erantee ! om a contract aaarded satisfyinB a cost sharing or matching under anot er Federal erant. requirement only where, if the party (2) Gene 1 revenur sharinp. For the recetving Lhe contributions were to �urpose of this section, Yeneral reve• pay for them. the payraenLs would be nue sharing funds distributed under allowable costs. 31 U.S.C. 6 02 are not considered Fed- (i!) Some third party in•kind contrt• enl �rant unds. butions are Qoods and services that. if (3) Cosf r contribulions counted to• the �rantee. subenntte. or contractor s�ards oth r Federal costs•sharinfl re• recefving the contributJon had Lo pay Quir�menls Neither costs nor the for them, the payments would have values oi t ird party in-kind contribu• been an indirect costs. Costs aharing tlons ma3� ount tov��ards satisfyfng a or maLchin¢ credit for such contribu- cost sharing or matching requirement tiona ahall be etven only if the �rant- of a �ran aereement if they have ee, subarantee, or contractor h� es- been or a i 1 be counted Lowards satis- tablished. alont with 1ts reeular indi- fying a co t sharing or maLching re- rect cost rate, s special rate for allo- C � qo � l � o� �� l� � . . . . �� =��/�°9 (i) Valuatio o! pran�ee or tti�pr+an- lncorne tnay be deducted imm �'oas Ltt donattd r ai P*�Petiy Jo� eonslnce• lncome to determine ptoenm tncome. � tion/acpui.,ifl on. Ii a arantee or sub• (d) Govtrnmental rtivrnuv. Taxes. grantee dona es real property for a specfal assessments. levies, iines, and construction or iacilities scQufsitlon other such revenues rafsed by a Qrant- pro�ect. the urrent market value of ee or subgrantee are not �roSram that property may be count,ed as cost income unless Lhe revenues are speciii- � � sharing or atching. If any part of cally identtifed in the �rant agreement the donated property was acquired or Federal 4gency re�ulations as pro• a•ith Federal funds, only the non-fed- �t'sm fncome. eral share o the property may be (e) Royalties. Income trom royalties � counted as co t sharing or,matching. and 1leense iees ior copyrighted mate- (g) Apprai al oJ �cal property. In rial, patents. and inventions developed some cases u der paragraphs td)� (e) by a �ranCee or subgrantee is program and ti) of thi section, it will be neces- income only ii the revenues are specii- sary to estab ish the market value oi ically identiifed in the grant agree• land or a bu lding or the fair rental ment or Federal agency regulations as rate of land r oi space in a building. Program income. (See � 85.34.) In these c es, the Federal agency �i) Property. Proceeds irom the sa]e may require he market value or fair of real property or equipment will be rental �alue e set by an independent handled in accordance with the re- appraiser, an that the value or rate 4uirements of f� 85.31 and 85.32. be certified y the grantee. This re- �B) Use oJ pro�ra�n �ncome. Program quirement a•i 1 aIso be imposed by the income shall be deducted irom outlays � grantee on su grantees. v��hich may be both Federal and non- Federal as described beloa. uriless the � 8�.25 Progr m income. Federal agency segvlations or the ta� Genera . Grantees are encour- grant agreement specify another alter- aged to ear income Lo defray pro- native (or a combination oi the alter- gram costs. ogram income includes natives). In specifying alternatives, Lhe income fro fees for services per• Federal agency may distinguish be• formed, from the use or rental of real tween income earned by the grantee or personal property acquired ai�h and income earned by subgrantees and between the sources, kinds, or grant funds, rom the sale of commod- amounts of income. When Federal ities or items fabricated under a grant agencies� authorize the alternatives in agreement, nd irom payments of paragraphs (g) t2) and t3) of this sec- � principal an inLerest on loans made tion, prograrn income in excess oi any aith grant i nds. Except as othera•ise limits stipulated ahall also be deducted provided in r gulations of the Federal irom outlays. agency, pro am income does not in- �1) Deduction. Ordinarlly program clude interes on grant funds, rebates. incom� shall be deducted irom total credits, disco ts, refunds, etc. and in• allowable costs to determine the net terest earned on any of them. allowable costs. Program income shall (b) DeJinit'on oJ p�opram income. be used tor current costs unless Lhe Program inc me means gross income Federal agency authorizes othera��ise. received by L e grantee or aubgrantee Program income a►hlch the Qrantee directly gene a�ed by a grant support• did not anticipate at the time of the ed actSvity, r earned only as a result sward ahall be used to reduce the Fed- of the gran a¢reement during the eral aQency and Qtantee contributions erant perio . "Durtng the grant rather than Lo increase the tunds com- period" is th Lime betaeen the eifec- mitted to the prolect. tive date oi he aa•ard and the ending (2) Addition. When authorized, pro- date of the a �ard reflected in the llnal aram income may be added to the iinancfal rep rt. iunds commltted to the grant agree- cc) Cosl oJ peneratin� propram ment by the Federal a¢ency and the tncome. Ii s thorized by Federal re¢v- �ra►ntee. The program income shall be lations or t e grant agreernent, costs used ior the purposes and under the incident to t e generation of pro¢ram conditions of the grant agreement. � � �r�.�ya-i�a� : , � ' ' ' '� t3) Cost sAari v ot malcliinp. Wher► t,t�t subetantee aiade ia ao�o�rdaace ' authoriud, pr Qram income tasy be �vfth the Act. Cinulu A-110. or . used Lo meet the cost sharina or throuth other means (e.t.. �ro��m matching requ rement oi the �rant revlews) li Lhe subQrantee haa not bad agreement. The amount of the F`ederal such an tudit; grant av►•ard re ains the same. c3) Ensure that tppropriatt correc- (h) Income ter the atoard period. tive action is taken �vfthin =ix nionths � There are no Federal requirements after receipt of the sudit report in in• ¢overning the isposition of proeram atance of noncompllance with F'ederal income earned after the tnd oi the laWS and re�ulations; award period i.e., until the ending (4) Consider whether subgrantee date of the fi al financial report. see sudits necessitate ad�ustment oi the paragraph (a) i this sectlon). unless Qrantee's oafi records; and the terms oi he agreement or the (5) ReQuire each subgrantee Lo Federal agenc re¢ulations provide permit ir►dependent tuditors to have othera•ise. access to the records and financial statements. � 85.26 :�on•Fed ral audit� (c) Auditor selection. In arranging (a) Basic ie. Grantees and sub- for audit services, f 85.36 shall be iol- grantees are r sponsible for obtaining lowed. audies in acco dance v�•ith the Single CHANGES� PROPERTY� AND SIIBAWARDS Audit Act of 984 (31 U.S.C. 7501-?) and Federal a ency implementing reg- § g5.30 Chang�s. ulations. The udits shall be made by an independen auditor in accordance (s) General. Grantees and subgran- a•ith generall accepted government tees are permitted Lo rebudget within auditing stan ards covering iinancial the approved direct cost budget to and complianc audits. meet unanticlpated requirements and cb) Sub9ran ees. State or local gov- may make limited program changes Lo ernments, as hose terms are defined Lhe approved project. However, uriless for purposes f the Single Audit Act, a�aived by the aaarding agency, cer- that receive ederal financial assist- tain types of post•award changes in ance and prov de 525,000 or more oi it budgeLs and ptojects shall require the in a fiscal year to a subgrantee shall: prior written approval oi the awarding c 1) Determ' e a hether State or local agency. subgrantees a�•e met the audit re- (b) Relatiore to cosl principles. The quirements o the Act and whether applicable cost principles (see ; 85.22) subgrantees c vered by OMB Circular contain reQuirements for prior approv- A-110. "Unii rm ReQuirements for al of certain types of costs. Except Grants and ther Agreements with where waived, those requiremenLs Institutions o Higher Education, Hos- apply to all Qrants and subQrants even pitals and Ot er Nonprofit OrQaniza- if paragtaphs (c) through (i) of this tions" have et the audit repuire- section do not. ment. Comme cial contractors (private (c) B.udQet ehanpes—(1) Noncon- iorprofit and private and tovernmen- atruction pro�ects. Except as stated in tal organizati ns) providing Qoods and other reeulattons or an iward docu- services to tate and local �overn• ment. arantees or sub¢rantees shall ments are n t required to have a obtain the prior approval of the single audit p riormed. State and local awardinQ a�encY whenever any of t.he �ovenmenLs s ould use their oa�n pro• tollowine changes is anticipated under cedures to e ure that the contrictor a nonconstruction sward: has complied with laws and reeula- (f) AnY revision which aould result tions aifectin the expenditure of Fed- in the need for additional fu.r�ding. eral funds: (11) Un]ess a•aived by the awarding c2) Determi e v��hether the sub¢ran- agency. cumulative transfers among Lee spent Fed raI assistance tunds pro- direCt cost caLegories, or. ii applicable. vided in acc rdance aith appljcable �mon¢ aeparately bud�eted �ro�rams. laa•s and re lations. This may be �c• proj�cts, functions, or activities which complished y re��iea•in¢ an audit ot exce�d or are expected to exceed ten i3 . �/--.-��-/6�9 � � . . ' , :percent of the urrent total a�proved budQ�t tormal the �zantee used in tta , budQet. whenev r the aw►ardin� aQen- bpp��narrattve �ust flca.tfon ior�the cy'a share excee :100.000. Y • (111) Transfer oi funds allotted tor proposed revision. tralnlnB alloQa ces (t.e.. irom direct (2) A request for s prlor approval payments to tr inees to other expense under the spplicable Federal cost prin- categories). ciples (see f 85.22) may be made by t2) Construct'on projecls. Grantees letter. and aubgrante s ahall obLain prior �3) A request by s subgrantee for written appro� 1 for anY budget revi- pr�or approval will be addressed in sion which wo ld result in the need wrfting to the grantte. The grantee ior additional f nds. will promptly reviea such request and (3) Combined construction and non- shall approve or disapprove the re- construction p jecis. When a grant or quest in writing. A grantee will not ap- subgrant provi es fundtng for both prove any budget or pro�ect Tevision constructfon d nonconsLruction ac- which is inconsistent with the purpose tivities, the rantee or subgrantee or terms and conditions oi Lhe Federal must obtain rior written approval gTant to the grantee. Ii the revision, irom the av�� rding agency beiore Tequested by the subgrantee would making any i nd or budget transier result in a change to the grantee's ap- irom nonconst uction to construction proved project which requires Federal or vice versa. prior approval, the grantee will obta.in cd) Pro9ram atic �hanges. Grantees the Federal agency's approval before or subgrantees must obtain the prior approving Lhe subgrantee's request. appro��al oi he aa•arding agency � v�•henever any f the folloa�ing actions � g5.31 Real property. is anticipated: (a) Title. Subject to the obligations� (1) Any re�•is'on of the scope or ob- and conditions set forth in this sec- jectives of th project tregardless of tion, title to real property acquired v�•hether there is an associated budget under a gtant or subgrant will vest re��ision requiri g prior appro��al). �pon acquisition in the grantee or sub- (2) Need to extend the period oi grantee respectively. availability of unds. �b) Use. Except as otherwise provid- c3) Changes 'n key persons in cases a•here specifie in an application or a ed by Federal statutes, real property grant au•ard. n research projects, a Rjll be used for the original2y author- change in the roject director or prin• ized purposes as long as needed for cipal investiga or shall alaays require_ that purposes, and the grantee or sub- approval unle waived by the award- ber its Lftleaor other inter sts.r encum- ing agency. (�) Under n nconstruction pro�ects, tc) Dispositiorr.. When real property contracting o t. subgranting tif au• is no longer needed tor the originally thorized by la �) or otherwise obtain• authorized purpose. the grantee or ing the service oi a third party to per- subgrantee aill request disposition in- iorm activitie which are central to structions from the sa�arding agency. the purposes i the award. This ap- The instructions will provide for one pro�•al requir ment is in addition Lo of the followin8 alternatives: the approval equirements of � 85.36 (1) Retrn�ion oI tiUe. ReLain title but does not a ply to the procurement aiter compensatiz�� the awarding of equSpment supplies, and general agency. The amount �atd to the support servic s. awarding aBency will be computed by (e) Additio aI prior approval re- applyin8 the aaarding agency's per- puiremrnts. T e aa�arding agency may centage oi participatlon in the cost oi not require rior approval for any the original purchase Lo the fair budget re�isio a•hich is not described market value of the property. Hoa�ev- in paragraph cc) of this sectSon. er. in those situations where a grantee (f) Rcpuesti � prior approval. (1) A or subgrantee is disposing of real prop• � request for rior approval of any erty acquired with Yrant iunds ar�d ac� budget revisi n atll be in Lhe same quiring replacement real property . ,� � ��6�-1� . • u�nder the same roQraru� the net pro- ��) Tl�e �rantee or subtrantet thall ' 'ceeds irom the dispoaition may be alao make e�uipment arailable ior use ' used as an offse to the cost ot the re- on other prolecta or proerams current- �, placement prope ty. ly or previously supported by the F'ed- (2) Sale oJ pro crly. Sell the proper• ersl C3overnment. provldinQ such use ty and compe ate the awarding aill not interiere w�th the aork on the agency. The am unt due to the award• Dro�ects or pro¢ram ior �vhich it aas � ing agency will b calculated by apply- originally acquired. Firat �reterence ing the av�ardin agency's percentage for other use shall be eiven to other of participation in the cost oi the AroQrarm.s or projects supported by the original purchas to Lhe proceeds of aaarding agency. Uaer lees should be . the sale aiter de uction of any actual considered ii apptopriate. and reasonable elling and fixing-up (3) Notwithstanding the encourage- expenses. If the grant is still active, ment in f 85.25ca) to earn program the net procee irorn sale may be income, the grantee or subgrantee oiiset against th original cost of the mvst not use eQuipment acquired aith property. When grantee or subgran• �'�t funds to provide services for a tee is directed t sell property, sales fee to compete unfairly aith private procedures shall be lollov�•ed that pro- companies that provide equivalent vide for compe ition to the extent services, unless specifically permitted practicable and esult in the highest or contemplated by Federal atatute. possible return. (4) When acqulring replacement (3) TrarzsjeT of itle. TYansfer title to equipment, the grantee or subgrantee the av�•arding a ency or to a third- may use the equipment to be replaced party designate /approved by the � a trade-in or sell the property tnd av�•arding agency. The grantee or sub- use the proceeds to offset the cost of grantee shall be aid an amount calcu- the replacement property, subject to lated by applyin the grantee or sub- the approval of the awarding agency. grantee's percen age oi participation �d) Mana�emenl requirements. Pro- in the purchase o the real property to cedures for managing equipment (in- the current fair market value of the cluding replacement equipment), properts•. whether acquired in a�hole or in part with grant funds. until disposition § 85.32 Equipment takes place will, as a minimum, meet ca) Tit1e. Subje t to the obligations the following requirements: (1) Property records must be main- and conditions s t forth in this sec- ��ned that include a description of tion, title to equi ment acquired under the property, a serial number or other _ a grant or subgr nt aill vest upon ac• identification number, the source of quisition in the g antee or subgrantee property, who holds title, the acquisi- respectively. tion date. and cost of the property, (b) States. A St te will use, manage, percentage oi Federal participation in and dispose of equipment acqufred the cost of the property, the location, under a grant by the State in accord- use and condition of the property. and ance a•ith State aa�s and procedures. any ultimate dispositlon data includ- Other grantees nd subgrantees aill ing the date of disposal and sale price folloa� paragraph (c) through ce) oi of the property. this section. (Z) A physJcal inventory of the prop- (c) Use. (1) EQu pment shall be used trty must be taken and the resuJts rec- by the grantee o sub¢rantee in the onciled aith the property records at program or proj t for which ft aas least once every two years. acquired as long needed, a•hether or (3) A control system must be devel- not the project o program continues oped to ensure adequate safeguards to to be supported by Federal lunds. prevent loss, damage, or theft oi the When no Jonger eeded for the origi- property. MY loss, damage, or theit nal program or pr ject, the equipment shall be investigated. may be used in ther utivities cur- �!) Adequate maintenance �roce- rently or previou ly supported by a dures must be developed to keep the Federal agency. property tn good condition. /� �J . tee or sub t.ee ta aithln 120 calend�r daya atter e �nd�/ . (S) I! the � � � - ��authoriud or qutred to sell the ot Lhe Fedenl support of the pro�ect • property, prop r sales procedures tor ahfch it was acqulred. Ii the Fed- must be estsbli hed to ensure the eral awardinQ agency falls to issue dis- hiBhest possible eturn. position instructions aithin the 120 (e) Disposilio When original or re- calendar•day Deriod the arantee shall placement equip ent acquired under iollow; 85.32(e). a grant or au grant is no Ionger �3� When title Lo equipment is trans- needed for the o iginal proJect or pro• ferred� the Qrantee shall be paid an Qram or for oth r actfvities currently �ount calculated by applying the or previously su ported by a Federal percentage oi participation in the pur- agency� dispositi n oi the equipment chase to the current fair market value will be made as i lloa�s: of the property. - � (1) Items oi e uipment with a cur- rent per•un{t fai market value of less g g5.33 Supplies. than i5.000 ma be retatned, sold or o�hera ise dispos d of with no further (a) TiUe. Title to supplies acqutred obligation to the awarding agency. under a grant or subgrant aill vest� (2) Items of e uipment with a cur• upon acquisition, in the Qrantee or rent per unit i ir market value in subgrantee respectively. excess of �5,040 may be retained or (b) Disposition. If there is a residual sold and the a •arding agency shall in��entory of unused supplies exceed- ha��e a right to n amount calculated ing �5�000 in total aggregate iair by multiplying the current market market value upon termination or value or procee s irom sale by the completion of the award. and ii the � aa�arding agency s share oi the equip• supplies are not needed for any other ment. iederally sponsored programs or (3) In cases a• ere a grantee or sub• projects, the �rantee or subgrantee grantee fails to ke appropriate dispo- shall compensate the aa�arding agency sition actions, he av�•arding agency for its share. may direct the rantee or subgrantee to take excess a d disposition actions. § gs.3; �Pyrights. (t) Federal epu pment. In Lhe event a grantee or subgr ntee is provided fed- The Federal awarding agency re- erally-oa-ned equ pment: serves a royalty-free� nonexclusive, c 1) Title a•ill emain vested in the and irrevocable license t,o reproduce, Federal Gover ent. publish or otherwise use, and to au- t2) Grantees or subgrantees aill thorize others to use, for Federal Gov- manage the equ pment in accordance ernment purposes: a�ith Federal ag ncy rules and proce- (a) The copyright in any work devel- dures, and submi an annual inventory oped under a grant, subgrant. or con- listing. tract under a grant or subgrant; and (3) When the e uipment is no longer �b� �y rights oi copyright to ahich needed, the gran ee or subgrantee wilt a gTantee, subgrante� or a contractor request dispositi n instructions irom purchases ov��nership with grant sup- the Federal agen y. port. t�) Ri�hl to lra er title. The Feder- al awarding age cy may reserve the g g5.35 Subaward� to debsrrcd �nd :us- right to transle title to the Federal pended ps�tie:. Government or third part named by Gr�tees and subgrantees must not the aa•arding a ency when such a third party is ot era•ise eligible under ��e �Y award or permit any award existing atatutes Such translers shall (subgrant or contract) at any tier to be subJect to th folloQing atandards: any party which is debarred or sus- (1) The prope ty shall be identilied pended or is other�vise excluded frocn in the �rant or o herwise made known or ineligible ior participation in Feder- to the �rantee in writing. al assistance pro¢rams under Execu- (2) The Fede al aa•arding a¢ency tive Order 225�9. "Debarment and shall issue di pos9tion instruction Suspension." , , ,b . �yv-��9 � , . ,Eas.a6 Pro��ree� ne. duct �viU pmvlde lor .penalttes, ssac- . (a) Slates. Wh n procurtn� property uons, ot Othez disclPlinarY a�ctfons tor . snd servtces und r a gr�ant. a State wU1 �olatforu oi such standai'da bp the iollow the sam pollcles and proce- t�tee'a a�r�d sub�tee's oificers� dures it uses !or rocurements from 1ts employees. or a�enta, or by contnc- non-Federal fu ds. The State will �� or their a�ents. The awardin� ensure that eve y purchase order or �ency may in re�ulation provide addi- other contract i cludes any clauses re- tlonal prohibttions relative to real. ap- quired by Feder l statutes and execu• parent. or potential eonfiicts oi inter- tive orders an their implementing at• regulations. Ot er Qrante�s and sub• t�) Cirantee and sub�ra,ntet proce- grantees a�ill i llow para�raphs (b) dures will provide for d review oi pro-_ ._ through (i) in th section. posed procurementa to avoid purchase tb) Procur nt slandards. (1) oi unnecessary or duplicative items. Grantees and ubgrantees will use ��ideration should be Biven to con- their oa•n pr urement procedures solidating or breaking out procure- a�hich reflect pplicable State and ments to obtain a more eeonoralcal local laa s and regulations, provided purchase. Where appropriate. an anal- that the procur ments coniorm to ap- Ys� will be made oi lease versus pur- plicable Federal aw and the standards chase alternatives� and any other ap- identified in this section. proprtate analysis to determine the c2) Grantees nd subgrantees a�ill most economical approach. maintain a co tract administration (5) To ioster greater economy and system a�hich e ures that contractors efficiency. Qrantees and subgrantees perform in acco dance a ith the terms, are encouraged to enter into State and conditions, and pecifications of their local intergovernmental agreements contracts or pur hase orders. for procurement or use of common (3) Grantees nd subgrantees will 800ds and services. maintain a arit n code oi standards (fi) Grantees and subgrantees are en• of conduct gove ning the performanee eouraged to use Federal excess and oi their emplo ees engaged in the surplus property in lieu of purchasing aa�ard and adm istration of contracts. new equipment and property when- No employee, o ficer or agent of the ever such use is feasible and reduces grantee or subgr ntee shall participate project costs. in selection, or the award or admin• — (?) Grantees and sub�rantees are en- istration of a c ntract supported by couraged to use value engineering Federal tunds ii a conflict oi interest. clauses in contracLs for construction real or apparen , would be involved. -projects of sufficfent size to offer rea- Such a conflict ould arise when: sonable opportunities for cost reduc- (i) The employ e, ofiicer or agent, tions. Value en¢ineerine is a systema� (ii) Ar�y mem er oi his immediate fc and creaLlve anaylsis oi each con- family. tract item or task to ensure that its es- (iii) His or her partner. or sential function is provlded st the (iv) M orga tion which employs. overall loaer cost. or is about to employ� any of the (8) (�rantees and aubgrantees will above. has a fin cial or other interest make swards only to responsible con- in the firm sel cted for award. The tractors possessing the abillty to per- erantee's or sub antee's oificers, em• iorm successiully under the terms and ployees or agents aill neither solicit conditions oi a proposed prxurement. nor ucept grat ities. favors or any• Consideration will bt tiven to such thing of moneta y value from contrac- matters as contractor integrity, com- tors, potential ontractors, or parties pliance with pubUc policy. record oi to subagreemen . Grantee and sub- past performance. and ifnancial and granLees may set minimum rules technfcal resources. where the finan ial interest is not sub- (9) Grantees and subgranteas will stantial or the gfit is an unsoliclted maintatn records suiflcient to detall item of nominal intrinsic value. To the the sl¢niiicant history oi a Drocur�- extent permitte by State or local law mtnt. These records will fnclude, but or regulations, a ch standards or eon- are not necessarily limited Lo the fol- i ✓ �!'�7� �� •volded ti at I possfble. When 1t ts lectlon ot the �uooeaaful bf � � � . impr�ctical or neconomlcal Lo make a made prtndpaU.� oa tbe basls oi D�• ` � ' �' clear and acc rate description ol the (U) Ii sea]ed bfds are used. the lo]- � technical te uirements. a "brand lo�►in` re�uirea�ents apply: . name or epu 1" descriptlon rnay be tA) The invftation ior bids will be used as a mea Lo define the perform- publlcly advertlse�d ar�d btds shall be ance or other lient reQuirements oi a solicited imm ar� adequite number of procurement. he specific ieatures of tnown suppliers, providinQ them :uifi- the named br nd which must be met cient time pNor to the date set ior � � by oiferors sh 11 be clearly atated; and openin� the bids; (ii) Identify all requirements ahich (8) The invitation for bida. which the offerors ust fulfill and all other will include any sp�citicatfons and per• iactors to be ed in evaluatina bfds or tinent attuhments, shall define the proposals. ftems or services in order ior the � `(�) Grantee and subgrantees will bidder Lo properly respond; ensure that 11 prequalified lists of (C) All bids will be publicly opened persons. firms or products a�hich are at the time snd place prescribed in the used in acqui ing goods and servlces invitation for bids; are current d include enough quali- tD) A itrm ifxed-priee contract fied sources t ensure maximum open award will be made in writing to the and iree competition. Also, grantees lowest responsive and responsible and subgrant es a�ill not preclude po• bidder. Where specified in bidding doc- tential bidder irom qualifying during uments. factors such as discounts. the solicitatio period. transportation cost, and life cycle � " cd) Melhods J procurement to be Jol- costs ahall be considered in determin- lomed—c 1) Pr curement by small pur- ing ahich bid is lowest. Payment dis- chase procedu es. Small purchase pro- counts will only be used to determine cedures are th se relatively simple and the low bid ahen prior experience in- informal proc rement methods for se• dicates that such discounts are usually curing servic s, supplies, or other Laken advantage oi; and property that do not cost more than tE) Any or all bids may be relecLed if 525,000 in the aggregate. If small pur- there is a sound documented reason. chase procure ents are used, price or (3) Procurement by competitive pro- rate quotatio s a�ill be obtained irom posals. The technique oI competitive an adequate number of qualified proposals is normally conducted with sources. more than one source submitting an c2) Procur ment by sealed bids ofier. and either a fixed-price or cost- ciormal ad�er ising). Bids are publicly reimbursement type contract is award- solicited and a firm-fixed-price con- ed. IL is� generally used when eondi- tract clump sum or unit price) is tions are not sppropriate for the use aa�arded to the responsible bidder oi sealed bids. If this method is used, whose bid, c niorming with all the the following requirerr�enta apply: material te and conditions of the ti) Requests for proposals will be invitation fo bids, is the lowest in publicized and identify all evaluation price. The s led bid method is the factors and their relative importanee. preferred me hod for procuring con- Any response t,o publlcized requests struction, i the conditions in for proposals ahall be honored Lo the ; 85.36cd)c2)ci apply. maximum extent pra,etfeal; (I) In order ior sealed bfddine to be (ii) ProposaLs will be solicited from teaslble. th following conditions an ideQuate number oi qualified should be pre ent: sources; (A) A comp ete. adequate, and realis• titf) Gran�ees and subgrantees will tic specificati n or purchase descrip- have s method !or eonductine techni- tion is availa le: cal evaluations o! the proposals re- (B) T�•o or ore responsible bfdders ceived and !or selecting swardees: are a�illing a d able to cornpete effec• t1v) Awards will be made to the re- tively for the usiness; tnd sponslbl� firm whose proposal is most cC) The pr curement lends itself to advantageous to the proenm, wfth a iirm fixed rice contrsct and the ae• price and other factors consldered; tnd ,y �G9�-��09 ' � • � • (v) C3r�nteea and sub�rantees may (i) Pluint Qualiifed smsD ar�d� m!- . , tyse competftiv proposal procedures norfty bustnesses and .vomen's bua!- for qualilicati ns-based procurement ness enterprlses on solicttatton 11sts; of architectu al/eneineerinQ tA/E) lii) Assurine thst small and minority � professional se ices whereby competi- businesses. and aomen's business en- ��• qualiitcat ons are evaluated and terprlses are solicit,ed whenever they the most quali ied competitor is select• are potential sources; . ed, subject to egotiation of fair and (ifi) Dividing Lotal tequirem i A. r e a s o nable compensatlon. The when economically teasible. method, wher �rice is not used as a sma l 1er t a s k s or quan t i t ies L o p e r m i t selectJon facto . can only be used in maximum partictpation by small and procurement o A/E professional serv- minority business, and women's busi- ices. It canno be used to purchase � ness enterprises; other types o services though A/E (iv) Establfshing delivery scbedules, firms are a pot ntial source to perform where the requirement permits. whlch the proposed e fort. encourage participatton by small and (4) Procure ent by noncorrcpetit�ve �inor9ty business. and aomen's busi- proposals is p ocurement through so- ness enterprises: licitation of a proposal from only one (v) Using the services and assistance source, or a ter solicitation of a oi the Small Business Administration, number of so rces, competition is de- and Lhe Minority Business Develop• termined inad quate. ment Agency of the Department of ti) Procure ent by noncompetitive Commerce; and proposals may be used only v�hen the (vi) ReQuiring the prime contractor. aR•ard of a co tract is infeasible under if subcontracts are to be let. to take � small purchas procedures, sealed bids the aifirmative steps listed in para- or competitiv proposals and one oi Braphs (e)(2) (i) through (v) oi this the follov��ing ircumstances applies: section. cA) The ite is acailable only from a �f� Contracl cosi and price. (1) sinBle source; Grantees and subgrantees must per- (B) The pub ic exigency or emergen- form a cost or price analysis in connec- tion with every procurement action in- cy for the req irement Qill not permit cluding contract modifications. The a delay result ng irom competitive so• method and degree of analysis is de- licitation. pendent on the facts surrounding the cC) The aa• rding agency authorizes particular procurement situation, but noncompetiti e proposals; or as a starting point. erantees must cD) After so icitation of a number oi.. make independent estimates before re- sources, com tition is determined in- ceiving blds or proposals. A cost analy- adequate. sis must be performed ahen the of- (ii) Cost an lysis, i.e.. verifying the ieror is required to submit the ele- proposed cost data, the projections of inents oi his estimated cost. e.g.. under the data, an the evaluation oi the professfonal. consulting, u�d architec- specific eleme ts oi costs and profit. Is tural engineering services contracts. A required. cost analysis R�ill be necessary when (iii) Grante s and subgrantees may adequate price competition is lacking. be required submit the proposed �d for sole source procurements, in- procurement to the aa�arding agency cluding contract modiifcations or for pre-awar reviea in accordance chan¢e orders, unless prlce resonable- with paragra h (e) of thfs section. ness can be established on the basis of (e) Contrac inD �oilJ� smatl and mi- a catalog or market price of s commer- nority Jirn�s, �oomen's business enter• cial product sold in substantial puantl- prise and lab r surplus area Jirms. t 1) ties Lo the general public or based on � The grantee nd subgrantee aill take pjices set by laa• or re¢ulation. A price all necessar aifirmative steps to analysis will be used in �11 other in- assure that inority firms, women's stances to determine the reasonable- business ente prises, and labor surplus ness of the proposed contrs,ct Prlce. area ffrms ar used when possible. (2) C3rantees and sub�rantees will (2) Affirma ive ateps shall include: negotiate profit as a separate tlernent �� ,---�a-�� oi the price fo each contrut ln �►hlch otfer is raxived !n respotsse a �olic!- . , , there Ls no prl e competltion and in aU Latfoa; ot ' ' cases where c st analyaia is peciermed. (!!f) The procurement. vhlch ia ex- • To establish a tair and reason.able pected to exceed =25,000� speciiSea a • profit, consid ration aill be �iven to "brand name" product; or � the complexit oi the a�ork to be per- (fv) Tt�e proposed award over =25.000 lormed, the r' k borne by the contrac• ia to be awsrded to other than the ap- tor, the cont actor's investment. the parent loa bidder under i sealed bid amount of su contrscting, Lhe Quality procurement; or � � oi its record f past performance. and (v) A proposed contract modification industry profi rates in the surround- chanQes the scope oi a contract or in- ing geographi 1 area for similar aork. creases the contrut unount by more . (3) Costs or prices based on estimat• than t25�000. ed costs for co tracts under Qrants will �3) A Qrantee or aub¢rant,�e wi11 be be alloa�able nly to the extent that exempt irom the Dre-award review in costs incurred or cost estimates includ- Paragraph (g)(2) of this section ii the ed in negotia ed prices are consistent gwarding agency determines that ita a�ith Federal cost principles (see Arocurement ayst.ems comply with the � 85.22). Gran ees may reference their standards of this section. oa•n cost prin iples that comply with �i) A grantee or subgrantee may re- the applicable Federal cost principles. Quest that its procurement system be c4) The cos plus a percentage of reviev�ed by the awarding agency to cost and per entage of construction det,ermine ahether its system meets cost methods f contracting shall not these standards in order for its system be used. to be certified. Generally, these re- (g) Atcardi 9 a9ency revieio. �1� vieas shall occur where there is a con- Grantees and subgrantees must make tinuous high•dollar iunding, and third- available, upo request of the aa•ard- party contracts are awarded on a regu- ing agency, te hnical specifications on �ar basis; (ii) A grantee or subgrantee may proposed pr curements a here the self-certify its procurement system. av�•arding age cy believes such revie�• Such self-certification shall not limit is needed to e ure that the item and/ :he awarding agency's right to survey or ser��ice sp cified Is the one being the system. Under a seli-certification proposed for purchase. This reviea• pTOCedure. aaarding agencies may generally v►•ill take place prior to the aish to rely on a�ritten assurances time the spec fication is incarporated from the grantee or subgrantee that it into a solicita ion document. However, is complying with these standards. A . if the grantee or subgrantee desires to ��Lee or subgrantee azll cite specific have the revi a accon�plished aiter a procedures. regulations, standards. solication h been developed, the etc.. as being in compliance with these aa•arding age cy may still review the requirements and have its system specifications, aith such review usual- available for review. ly llmited to he technical aspects of �h) Bondin� reQuirrm.�nts. For con• the proposed urchase. s�ruction or lacility improvement con- (2) Grantee and subgrantees must tracts or subconstracts exceeding on request rn ke available for aa•ard• =100.000. the awarding agency may ing agency pr •aa•ard reviea• t delete accept the bondin� policy and repuire- ".") procurem nt documents, such as ments of the ftrantee or aubgrantee reQuests !or roposals or invitations provided the aaarding agency has for bids, inde endent cost estimates, made a determination that the sward- etc., a•hen: ing agency's Lnterest is adequately pro- c i) A grante 's or subgrantee's pro- Lected. Ii auch a determination has curement proc dures or operation fails not been made, the minimum require- to comply •ith the procurement ments shall be ss folloa�s: standards in t is seciton; or (1) A bid puaranlce Jrom tach bidd�r (ii) The pro urement is expected to tpuivaltnt �o J'tve perctnt oJ the bid exceed E25,00 and is Lo be awarded price. The "bid Quarantee" shall con- u�ithout comp tition or only one bid or sist o! a firm commitment such as a . . ; G;�yo-��' . , . , .�� + � �� bid bond. ct iited check, or other nc- �6) Compllance �v1th the Davia- ' �otfable inst ur»ent acocmpanyin� • Bacon Act (40 U.S.C. Z764 ta a-7) as � b1d as assura ce that the bldder af�l. supplemented by Department o! I.dbor upon� accep ce of his bld. execute reaulations (Z9 CFR Part 5). (Con- such contract al documents �s may be struction contr4ets fn excess oi i2.000 required with n the time speclfied. zwarded by Qrantees and subgrantees (2) A perfo ance bond on th� part when required by Federal trant pro- . - oJ the conira torlor 100 perc�n� of tAe aram le¢islation) conlract pric . A "performance bond" (6) Complianee aith �-fiections 103 �s one execut d in connection with a and 10? of the Contract Work Hours contract to ecure fu]fillment of all and Safety Standards Act t40 U.S.C. the contrac or's obligations under 32?-330) as supplemented by Depart- such contract rnent of Labor regulations (29 CFR �3) ,! paym nt bond on Lhe parl oJ Part 5). tConsttuction contracts the contraclor Jor 100 percent oJ the awarded by �rrnttes and subgrantees contract pric . A "payment tiond" is in excess of t2,000, and in excess of one executed n connection v��ith a eon- t2,500 for other eontracts which in- tract to assur payment as tequired by volve the employment oi mechanics or �aw of all per ons supplying labor and laborers) material in t e execution oi the work (?) Notice of aaarding agency re- provided for i the contract. puirements and regulations Dertaining (i) Contrac provisions. A grantee's to reporting. and subgrant e's contracts must con- (8) Notice of aaarding agency re- tain-provision in paragraph (i) o! this Quiretnents and regulations pertaining section. Fede al agencies are permit- to patent rights with respect to any ted to req ire changes, remedies, discovery or invention ahfch arises or changed cond tions, access and records is developed in the course oi or under retention, su pension of a�ork, and such contract. other clauses approved by the Oifice t9) Awarding agency requirements of Procureme t Policy. and regulations pertaining to copy- c 1) Admini trative, contractual, or rights and rights in data. legal remedie in instances a�here con- (10) Access by the grantee, the sub• ' tractors viol te or breach contract grantee. the Federal grantor agency, terms, and p o�•ide for such sanctions the Comptroller General oi the and penalties as may be appropriate. United States, or any of their duly au- (Contracts ther than small pur- thorized representatives to any books. chases) documents, papers, and records of the t2) Termin tion for cause and for contractor ahich are directly perti- convenience y the grantee or sub• nent to that specific contract for the grantee incl ding the manner by purpose of making audit, examination. a�hich it a�ill e eifected and the basis excerpts. and transcriptions. for settlemen . (All contracts in excess (11) Ret�ntion of sl] required of a 10,000) records for three years after grantees (3) Comp iance a•ith Executive or subgrantees make final payments Order 11246 f September 24. 1965 en• and all other pending matters are titled "Equal Employment Opportuni- closed. ty." as amen ed by Executive Order (12) Compliance with all appllcable 11375 0! Oc ber 13, 196? and as sup- atandards. orders. or requirements p�emented i Department of Labor issued under section 306 of tbe Clear re¢ulations ( � CFR Chapter 60). (All Air Act (42 U.SS.C. 185?(h)). sectton 508 constructfon contracts aa•arded in oi the Clean Water Act (33 U.S.C. excess of a10, 00 by grantees and their 1368), Executive Order 11738, and En- contractors o subgrantees) vironmental Protection Agency regula- (�) Compli nce with the Copeland tions (!0 CFR Part 15). (Contracts. "Anti•Kickba k" Act c18 U.S.C. 87�) as subcontracts, and subgrants of supplemente in Department oi Labor amounts in excess ot 5100,000) regulations ( 9 CFR Part 3). cAll con- (13) Mandatory standards and poli- tracts and s bgrants for eorutruction cies relating to energy eiilclency or repafr) , which ire contained in the atate �3 . �y��o� �� :f � • - � � •• (If) The reaso tor slfPpa�e if estab• �i tb.1� !'In.nelal r�oorun�:�� '�:.. , �'� lfshed ob�ecttvcs �vere not met. �� pt�usaL li) Except i.s �Dt'ovfded � � . (!f!) Addltfon 1 Dertinent Worms• � p��ersphs (a) <Z) and ta)'of this tfon including. hen approprlate. anal• sectfon. [rantees aill use only the , ysis and explan tlon of cost overruns fornns aDecfifed fn pangrePhs �s� ,or high unit cos . throu¢h (e) of this sectton, and such � (3) Grantees ill not be requfred to supplementary or other forms as may � aubmit more th the orlginal and two irom time Lo time be authorized by � � coptes of perto ance reports. OMB. for: � ' (4) Grantees will adhere to the (i) Submitting financial reports to standards in thi section in �rescribing Federal agencies, or � performance r porting requirements (ii) Requesting advances or reim- _ tor subgrantees. bursements when letters oi credit are � �c) Corestruc ion perJormance re• not used. por:s. For the ost part. on-site tech• (2) Grantees need not apply the , .',nfca] insPection and certified percent• forms prescribed in this section in age-of•completi n data are relied on dealing with their subgrantees. How• � hea�•iIy by Fede al agencies to monftor ever. grantees shall not impose more .s progress ,unde ,cQnstruction grants burdensome requirements on subgran- and subgrants.'"The� Federal agency 'tees. a•ill require add tional iormal periorm- (3) Grantees shall follow all applica- ance reports nly a�hen considered ble standard and supplemental Feder- : _•'; necessary, and ever more frequently a) agency instructions approved by � �than puarterly. OMB Lo the extend required under the � cd) Si9nilican developmenls. Events paperwork Reduction Act of 1980 for . may occur beta• en the scheduled per• use in connection aith forms specified - � � formance repor ing dates a�hich have in paragraphs (b) through (e) oi this ., _. . significant imp ct upon the grant or section. Federal agencies may i,ssue � subgrant supp rted activity. In such substantive supplementary instruc- cases, the gra tee must iniorm the tions only aith the approval of OMB. Federal agency as soon as the follow•• Federal agencies may shade out or in- inB types of co ditions become knov�n: struct the grantee to disregard anY (1) Problems, delays. or adverse con- line item that the Federal agency ditions ahich •ill materially impair finds unnecessary for its dectsionmak- the ability to m et the objective oi the ing purposes. aa•ard. This dis losure must include a (4) Grantees a�ill not be required to statement oi t e action Laken, or con• submit more than the original and two templated, and any assistance needed � copies oi forms required under Lhis to resolve the si uation. part. (2) Favorabl developments ahlch (5) Federal agencies rnay provide enable meeting time schedules and ob- computer outputs to grantees Lo expe- Jectives sooner r at less cost than an• dite or contribute to the sccuracy oi Licipated or pr ducing more beneficial reporting. Federal agencies may 'results than ori inally planned. accept the required information irom ' '� (e) Federal a encles may make site grantees in rnachlne usable format or . �. visits as warra ted by program needs. computer printouts instead oi pre- ' (i) �aivcrs� tcnsions. (1) Federal scribed iorms. � ' igencies maY aive any periormance (6) FederaJ agencies may waive any teport require by this part ii not teport repuired by this section ii not needed. needed. (2) The gran ee may walve any per- t?) Federal agencies may extend the formance rep rt irom a subgrantee due date oi any iinanclsl report upon ahen not nee ed. The Yrantee may receiving a )ustiiied repuest from a extend the du date ior any pertorm- Qrantee. ance report ir m a suberantee ii the (b) ffnanciai Slatus Rcpofl—(i) . Qrantee aIll st ll be able to meet its Form. � Grantees will use Standard , periormance r porting obli¢ations to R p�;6� r��rL ihe s��aofs unas , the Federal ag ncy. ior all nonco tsuctton �rar�ta ar�d for �quii'ementa may b� r�auir�d��1n � ., �'a-/(o� �� " � � cons�rucLion ants �+hen required ir� "Rema�lu �t1��t��mn • , sccordance �v th � a5.41(e)(ZX11f) oi �en�dered neceasatY arld fes�• this sectlon. ' (2) Accounl np basis. Each arantee b]e by the Federsl agency. �ran ea w ill report pr gram outlays and pro• maY be requtred to tePort the amo�t gram income n a cash or accrual basis days�needsvin the handa�oi�their sub- as prescribed y the awarding sgency. Ii the Federa agency reQuires accr aC� aho�i�t,�narrativt e planat ons of act ona lniormation d the arantee s counting rec rds are not no�a�e e cess balances�� reduce the kept on the ccural basis� the Qr� shall not be t quired to convert i� o�' ees mu t us bmlt the rep�no later counting sy em but ahall devel p such accrual niormation through and end oi eachTquarter.yHowleverinahere analysis oi the documentation �n an advance either by letter of credit or hand. (3) Freque cy. The Federal agenc e izedLat an annualized rat of one mil- may prescri e the irequency of th the Federal report for e ch P�°t e�ill notr be a e- agencY�may requi e�the report to be Hov�•e��er, th rep quired more frequently than quart o� low ng the nd of each ont days o - ly. Ii the ederal agency does n specify the frequency of the report, it bus e,meniue(1) Advance paymenis. Re- v�•ill be sub itted annually. A final report a�ill e required upon exp�ra• 4ae�en�ai�b submit ed on Stand- tion or term nation of grant suppor P c4) Due d te. When reports are ual Re mbursement�.e This fiormda•�1 not quired on quarteriy or semiann basis, they �ill be due 30 days after of credit�elect onic fundstransfer or the reporti g period. When required on an annu I basis, they a�ill be a�e Te ments are made to the grantee auto- days after the grant year. Fin ports R•ill b due 90 days after the ex• m�2�R�ein°buaspe nents Requests for�re• piration or terminatfon of grant sup- imbursement under nonconstruction port. �c) Fed ral Cash Transactions �d Fo m1270�(Forureinmbursement re- Report—(1) Form. (i) For grants pa�d a by letter o credit, 'IYeasury check ad- QaTa�gph�e)(1) of thisis ctio�� aee vances or lectronic transfer of funds. P the Brante aill submit the Standard a3menL e Tequests y is�r treatedttin� Form 272. Federal Cash 'I7ansactions P Y Report. a d a�hen necessary, its con- # 65.41(b)(3). tinuation heet, Standard Form 272a, (e) OutIay rtpos! and requ�.si �or re- unless the terms oi the aa�ard exi mpt �ab�s��nGranls tliatt auPPo t con: the grante irom thfs requiremen <ii) Thes reports aill be used by the �c��t��o v�ijReques ers for reim• Federal a ency to monitor cash ad- vanced to �rantees and to obtain dis- wil�be�submit�ted on St.andard Form bursemen or outlay information !or each gran irom grantees. The format Z7eimbursem n��r C�tR�onLPro- of t he re or t m a y b e a d a p t e d a s a p- R propriate a hen reportinB is LO � a�' gresc ib��he Request�for aAdvance or complish d a•ith the assistance oi p apeciiied in automati data processing equiprr�ent Reimburse�tead of this form. provfded that the iniormation to be f 85.41cd). submitt,e fs not changed in tubstance. ��bursement� r Quest�sr is bt eated Tin (2) For casts oJ Fedcral cash require• im mtnLs. F recast.s of Federal cash re- � 85.41(b)(3). . ,�-� . .,��--,�1�'/,�09 . � .� _ . ,rl:�,e.,....,,�..• '" ` �' � ' ! �2) C31'aAl,t t tti �Dort oon�truclton Lhe tecorda must be retained until , ` aclivitiu paid by Zct�r q��►r+�dt� s�tr completlen oi the ution and resolu- tronic Jundt tm�� or Tna�urv tton oi a11 issua �vhich arise irom it. � ch�ck advanc (f) When �► censtruc- or untll the end oi the reQular 3-Y�' tion ¢�rant ts atd by letter oi cr�dit� period. ahichever is later. electronic fun transfer or Treasury (3) To avoid du�lfeate reeordkeep- check advanc s, the arantee will ine. swardir�� aBencic,.s may make ape- report 1ts ou lays to the Federal ctal arrangements with arantees and sgency using Standard Form 271. subgrantees to tetain anY records Outlay Report and Request !or Reim• ahich are continuously needed for bursement for onstruction Programs. �oint use. The awardin� agency will re- The Federal ency aill pro�ide any quest transfer oi records to its custody necessary spe ial instructton. Howew ahen it determines that the reeords er. frequency nd due date shall be possess long•term retention value. Qoverned by � 5.�1(b) (3) and (!). When the records ire transiened to (ii) When a construction grant is or mainta.ined by the Federal a�gency. paid by Tre ury check advances the 3•year retentlon requirement is based on peri dic requests irom the not applicable to the �rantee or sub- grantee, the a vances will be request- grantee. ed on the for speciiied in � 85.�1(d). (c) Slartinp date oJ retention (iii) The Fed ral agency may substi- period—(l) Gencra�. When grant sup- tute the Finan ial Status Report spec• port is continued or renewed at annual ified in q 85. lcb) for the Outlay or other intervals. the retention period Report and equest for Reimburse- for the records of each funding period ment for Cons ruction Programs. starts on the day the grantee or sub- (3) Accounti 9 basis. The accounting grantee submits to the awarding basis for the utlay Report and Re- agency its single or last expenditure quest for Re mbursement for Con- report for that perfod. However. ii struction Prog ams shall be governed grant support is continued or renewed by g 85.41cb)c2 . quarterly. the retention period for each year's records sta.rts on the day ¢ 83.�32 Retenti n and access requirements the qrantee submits its expenditure tor records. report for the last quarter oi the Fed- (a) Applicabi ity. (1) This section ap• eral fiscal year. In all other cases, the plies to all fin ncial and programmatic reten�ion period statts on the day the records, su�po ting documents, statis- grantee submits its iinal expenditure Lical records, and other records� of report. If an expenditure report has grantees or su grantees ahich are:` - been waived, the retention period ci) Required o be maintained by the starts on the day Lhe report would terms of this part. program regula- have been due. tions or the gr nt agreement. or (2) Reai prcperly and eQuipm�t (ii) Othera•' reasonably considered records. The retention perIod for rea] as pertlnent program regula.tions or iT m the da�te of he disposit�on otr re Lhe grant agre ment. (2) This sec ion does not apply to placement or transfer at the direction records main ined by contracLors or oi the aa�ardinQ a�ency. subcontractor . For a requirement to (3) R�cords !or incorru iran.sactions place a provist n concerning records in oJter Drant o� subprant suppor� In certain kin of contracts, see some cases Qrantees must report � 85.36c t)(10). income Qft,er the period of arant sup• (b) Lenpth J ret�ntion period. (1) port. Where there is such a require- Exc�pt as oth rwise provided, records ment. the retentlon period for the must be reta' ed for three years lrom records pertafning to Lhe earning of � the startfng ate specified In para- the income starts irom the end of the graph ce) of t Is section. grantee's tiscal year in a�hich the (2) If any Ii igation, claim, ne¢otia• incocne is earned. tion. audit or other action tnvolving (4) Ind{recl cost ratt proposals, cost � the records as been atarted before allocatioris plans, etc. This paraeraPh the expiratio oi the 3-year period, applles to the folloain¢ tyPes oi docu- � � �� . .-ya--�Go9 �� .- ,•ments. and th ir su�portinQ records: w►hethes stated !n � F�� atute or , + Indirect cost ri e computatfons or pro-. te�ulatfon. an aasutsnce• in s st�`u posals, cost all etlon plans, and any plan or �pplfcatfon. a notice oi award, ' � similar accou ting computations of or elaewhere. the aaarding sBency ` • the raEe at vrhi h a particular �roup of may take one or more oi the followinB costs is charge ble (such as computer actions. ss appropriate in the circum• usage chargeb ck rates or composite b�l) Temporarily withhold cash paY- fringe benefit tes). (i) IJ submitted Jor nepotiation. If inents pending correctton oi the defi- the proposal, lan, or other computa• ciency by the gtantee or subgrantee or tion is require to be submltted to the more severe enforcement ution by the Federal Gover ment (or to the Brant• aaarding agency. � ee) to form th basis for negotiation of t2) Disallow (that is. deny both use- the rate, the the 3-year retention of iun oi he cost oi the aactt ity or perfod for its s pporting records starts or part irom the date f such submiss9on. action not in compliance, cii) IJ nol su mitted Jor ne�otiation. (3) Wholly or partly suspend or ter• Ii the proposa , plan, or other compu- minate the current award ior the tation is not r quired to be submitted grantee's or subgrantee's program, to the Federal Government (or to the (4) Withhold further awards for the grantee) ior negotiation purposes, program. or then the 3-ye r retention period for (5) Take other remedies that may be the proposal p an, or computation and legally available. its supporting records starts from end (b) Nearin9s� appeats. In taking an of the fiscal y ar (or other accounting enforcement action. the awarding period) covere by the proposal, plan, agency a�ill provide Lhe grantee or sub- or other comp tation. grantee an opportunity for such hear- (d) Substitut'on oI micro�ilm. Copies fng, appeal� or other administrative made by mic filming, photocopying, proceeding to whieh the gtantee or or similar met ods may be substituted subgrantee is entitled under any stat- for the origin 1 records. ute or regulation applica.ble to the (e) Access i records—cl) Records oJ action {nvolved. flranlees and ub9rantees. The av�•ard- (c) E�Iects oJ suspension and termi- ing agency an the Comptroller Gen• nation. Costs of grantee or subgrantee eral oi the nited States, or any of resulting from obligations incurred by their authoriz d representatives, shall the grantee or subgrantee during a have the righ of access to any perti- suspension or after terminatton of an � nent books, doc�ments, papers; or aa�ard are not allowable unless the other records f grantees and subgran- awarding aBency expressly authorizes tees a�hich ar pertinent to the grant. them in the notice oi suspension or in order to m ke audits, examinations, Lermination or subseQuently. Other excerpts, and ranscripts. grantee or subgrantee costs during (2) Espirati n oJ ri�ht oI access. The suspension or aiter termination ahich rights oi acc ss in this section must are necessary and not Teasonably not be limite to the required reten• avoidable are allowable ii: tion period b t shall last as long as the {1) The costs result irom obligations records are re ained. which were properly incurred by the ci) Reslric ioned m ofuIniormat on f�ectiveedate of su pensionf or termina- The Federal e Act (5 U.S.C. 552) does not apply to tion, are not in anticipation oi it. and, records Unle reQuired by Federal, in the case of a termination. are non- State, or loc l lav��, grantees and sub- cancellable. snd. grantees are not required to permit (2) The costs a'ould be alloQable ii public access o their records. the award a�ere not suspended or ex- pired normally at the end of the fund- 5 85.s3 Entor ment. ing, period in ahich the termination (a) Remedi s Jor noncompliance. Ii a takes eifect. grantee or subgrantee matertally lails (d) Relationship to dcbarmcnl and to comply Qi h any term of an av��ard, � susprnsion. The enforcement remedies ,. ., � ��q°-!G°9' identlited !n t sectfon, includlna �s� !'''�n� nQ'�t Ior pa t csF- �: '$ ,`�� ; �s�,spensfon and Lertnlr►atfon. do not I70) (�/aPpticable). .► preclude Qrante or sub�rsntee irom (4) Invcntion discto�ure (t/ appIica• beinB subject to "Debarment and Sus• bk). � pensfon" unde E.O. 125�9 (see (5) fedetalIyo�oned pr�optfiy r+eporL• ; 85.35): In sccordance with ; 85.32(i). a trant� ee must :ubmit an inventory of sll fed- j g5.1! Terminati n tor con�enfence. trglly Owned propert,y (s.s distinct Except as pro ided in f 85.�3 swards irom property acquired wtth erant �ay be termina ed�in whole or in part iunds) for which it ta accountable and onlY as folloas: reQuest disposftion instructions irom �a) By the aw rding agency with the the Federal agency oi property no consent of the antee or sub¢rantee 2onger needed. � ahich case he two parties shall te) Cost adfustmen� The Federal igree upon th termination condi• agency will� aithin 90 days after re• tions, including �he eifective date and ceipt oi reports in paragraph (b) of in the case of p rtial termination. the waird6 ad�ust ents to the alloaable portion to be te inated, or tb) By the rantee or subgrantee costs• upon atitten notification to the (d) Cash adius�m.ent-s• (1) The Feder- aa•arding agen y. setting forth the a] agency aill make prompt paym.ent reasons for suc termination. the ef• to the grantee ior allowable reimburs- fecti�e date. an in the case of partial able costs. termination, th portion to be termi- (2) The grantee must immediately nated. Hov��ever ii, in the case of a refund to the Federal agency any bal• , partial termin tion, Lhe awarding ance oi unobligated (unencumbered) aBency determi es that the remaining cash advanced that is not authorized portion of the Rard will not accom- to be retained for use on other ¢rants. plish the pur oses for which the � g� 51 Later disallo•vanccs and sdjust- aa ard a•as mad , the aa arding agency may terminate he aw•ard in its entire• rr�ents. ty under eithe g 85.43 or parag�raph The closeout oi a erant does not (a) of this secti n. affect: ca) The Federal agency's right to dis- Subpa�t D ANer•The•Grant alloa costs and recover funds on the Re virement: basis oi a later audit or other review; (b) The arantee's obligation Lo � 8�.50 Closeout ' return any funds due as s result oi (a) Gen�ral. he Federal agency will later refunds. corrections. or other close out the aaard when it deter• transactions; mines that all applicable admtnistra• �c) Records retention as reQuired in tive actions an all required work of i 85.l2: the grant has b en completed. td} Property managernent require- (b) R�po�Ls. ithin 90 days after the ments in f# 85.31 and 85.32; and expiration or t rmination o! the erant. (e) Audit requirements in � 85.26. the grantee m st submit all financial, � 85,52 Co��ection ot smounts due. periormance. nd other reports re- quired as a c ndition of the Qrant. (a) AnY funds paid Lo s �rantee in Upon request y the grant�e. Federal excess oi the amount to ahich the agencies may xtend this timeirame. gtantee Ls finally determined to be en- These rr�ay incl de but are not limited titled under the terms of the sward to: constitute s debt to the Federal Gov- c 1) Final pe Jormance or propress ernment. If not pafd aithin a reasona- r�po�� ble perlod sfter demand, the Federal c2) Financial Status Repost (SF 269) ag i��Qe�ce��b�bve ofiset or Oullay Rcp rt and Repuest Jor Re- imbursrment o� Cons�ruclion Pro• aBainst other reQuests for reimburse- prams tSF-271) (as applicablc). ments. � ,. ' • WAt��p+w�l �e Olt�•00�0 _. . , __. . ____---_ _ ,, � _ C��--��-�G�q , . - � . � .. ,, � ATTACHMENT C ' . OMB STANDARD ASSURANCES - SF 4246 Druq Free Certification : , . , . purchase require ent: oi �ection 1021a1 or tht romplianee with Section lOEof th��on�' • Flood Disaster Pr teetion Aet ot 1913(P.�,.�3•234) Hittorie Preurvation Act ot 1966,a:amended (I6 . . � ' which feQuires r ipitnt:in a special flood Aaurd l'.S C. �70)� EO �1 S93 (identi[ic�tion �nd r .. area to particiyst in the pro�rarr�sndto purchase proteetion ot hittoric propertie:), •nd the � 11ood in:ursnce i the total eost of in:urable /lrehaeoloQicsl and Hi:toric Pretervation Act ot tonst�uction and a Quisition is:10.000 or a�ore. �9��t 16 L'.S.C.164�•1 tt seq.1. I I. Wi11 eotnply with nvirpnme�tal ttandards which 1�. V�ill eomDly wlth P.L. !3•348 ree�rdint thc truy be p�exribe pttr:uant to the [ollowine (a) proteetion of human subjec4 tnvolved in research, institution ot e vi�onmental qu�lity eontrol de.elopment, and related setiritiei :upported by tr�easuret under he I�'�tional Environrriental thi:aw�rd ofas:i:4nce. ' Poliey Act of 196 (P;L. �l-I�0) and E:eeutive �S. V�i11 tomply with the Laboratory Animit K'elfare Order tE0) llSl ; (b) notifieation of �►iolatin� Act of 1966 (P.L. a9•54�, as amended, ? L'.S.C. .tacilities pursy�n b EO l I738; (c) protection ot Z�s� et se 1 Mttland: pursuan eo EO 11990; (dl tvalu�tion o! 4• P�jv�+�ne to!he eare.handline, and Aood ha:ards in fI ptains in sccordanee with Ep trtatmtnt of w�arm blooded animais hild tor 11988. �e)a�suran c of project eon:istency with �irch.ttachine,ot other aetivities:upportcd by the ap�ro�ed 5 ate mana�ement pro�ratn �sawardofassistance. d�.eloped under• e Coastal Zone �fanaeement t6. V�ill tompl�with thc Le�d•Based Paint PoisoninQ Act of �9i2 (16 L'.S.C. f� 14S1 et seQ ); (n prevention Act (42 L'.S.C. f� �SOI tt uq I Mhich eorJormity af Fed ral actions to State tCiear Air) ptohibitt the ute of lesd ba:ed piint in implementation Pl ns under Section 176(e)of the tonttrnetion or tehabiiitation of �etidence Cicar Air Act of 955. ts amended (42 L'.S.C. f strocture=. ' 7�OI et seq 1;(g)pt tection of undcreround�onrces 17. K i�� uuse to be performcd the required financial otdrinking v►ater nder the Sate Drinkin� Water and eomplianee audit: In aeeordance �ith the Aet of �974, as a ended, tP.L. 93•523); and (h) Droteetion of en sngered speeie: under tAe SineleAuditActofl�84. EndanQered Specie Act of�973.�s amended,(P.L. l8. V�ill eomply with a11 applicable requiremenu of all 93•205). othet Federal law:, ezecutive orders, re�ulitions � I2. Will corr�ply .vi1h t e 1iti'ild and Scenic Rivers Act and polieie:Qovernine this proaram. of I968 (I 6 L:.S. . �j 1 Z7l et :tq.) relsted to Drotecting eompon nts or potential eomponents ot t!►e aatioaal Nild a d scenic tivert system. :�G T�Rf O�AUTN ED CERTKr►N OF��Cu►L ; TI� : • DIRECTOR �►�L NT OR NIZI�t N pI�TE fU�MItT[p SAINT PAUL EPARTMENT OF HUMAN RIGHTS �AUGUST 16, 1990 ss .:.e �.�u a.�• � �, � �! . � �r--yo��(oe9 , ' ' ATTACHMENT C r ' . CER IFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS 1. Instructions�for Certification . a. By ubmitting this application, the applicant is providing the cert fication set out below. � b. The ertification set out below is a naterial representation of fact upon vfiich reliance +vill be placed if HUD determines to aNard a � gran to the applicant. If it is later determined that the appl cant knowingly rendered a false certification, or other�vise viol tes the requirements of the Drug-Free workplace Act, HUD, in addi ion to any other remedies available to the Federal 6overnment, may ke action authorized under the Orug-Free Morkplace Act. 2. Certifica ion Re ardin Dru -Free Nork lace Re uirements � a. The pplicant certifies that it will provide a druq-free workplace by: 1. Publishing a statement notifying empioyees that the unlawful manufacture, distribution, dispensation, possession or use of a , controlled substance is prohibited in the grantee's vrorkplace and specifying the actions that Kill be taken against employees for violation of such prohibition; 2. stablishing a drug-free awareness program to inform employees bout: i. the dangers of druq abuse in the Norkplace; ii. the applicant's policy of maintaining a drug-free workpl ace; ii. any available drug counseling, rehabilitation, and employee assistance- programs; and � iv. the penalties that may be imposed upon employees for drug abuse violations occurring in the rrorkplace; . 3. , aking it a requirement that each employee to be engaged in the erformance of the grant be given a copy of the statement � equired by paragraph 1; - . ,. ,. : �. G�yo�Ga9 r Y � _2_ � 4. No ifying the employee in the statement required by para ra h 1 th t, as a condition of employment under the grant, the g P e loyee wi11; � i. abide by the terms of the statement; and fi. notify the employer of any criminal drug statute convic- tion for a violation occurring in the workplace no later � than five days after such conviction; 5. Not fying HUD within ten days after receiving notice under sub aragraph 4 (ti) from any employee or otherwise receiving act al notice of such conviction; 6. Taking one of the following actions, within 30 days of rec iving notice under subparagraph 4 (ii), with respect to any empl yee who is so convicted: i. taking appropriate personnel action against such an employee, up to and including termination; or ii. requiring such employee to participate satisfactorily in a , drug abuse assistance or rehabilitation program approved for such purposes by a Federal , State or iocal health, law enfo�cement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workp ace through implementation of paragraphs 1, 2, 3, 4, 5 and 6 b. The applic nt shall insert in the space provided below the site(s) for the pe formance of rvork done in connection with the specific grant: Place of P rformance (Street address� city, county� state, zip code) � Depar ment of Human Rights � � 515 C'ty Hall � � 15 We t Kellogg Boulevard � � City f Saint Paul , Ramsey County � Minne ota 55102 � > , . �'�to-/�9 � - ------ � � _ -= = Tuesday � — — � � May 9, 1989 � � � "'_ • �� w �� _ �� =� � �� .s ° �� 1 � a � �� ! � a � w � � � � �� i =_ - e �s �� v ._ ' � � � � � � �� _ _ � �i � i �� _= Part Vlt � _ � �e��i'#ivi��i# �� H��g ��d 1��: � �� = D��►e�op�a�� ..._. � e ��o � � � _ Office of Assistant Secretary for Fair —r--= Housing and Equal Opportunity � � 24 CFR Part 111 � � — Fair Housing Assistance Program; Final � � w '—'� Rule :��—� = = w � ■ �w.r�� r �. �..._ � . � � - - .:. ° == = � � �..� e� �..� �o�� 5 e 20094 Federal Register / Vol. 54. Nu. 88 / Tuesday, May 9, 1989 / Rules and Regulations , OEPARTIb1ENT OF HOUSING AND of Housing and Urban Development, the existing FHAP and that described; URBAN DEVELOPMENT Rules Docket Clerk.451 Seventh Street among other things,the new funding SW..Room 10278.Washington, DC approach to be adopted.The rule invited ' Office of the Aasistant Secretary tor 20410, and to the Office of Information public comment on the proposed Fai�Housing and Equal Opporlunity and Regulatory Affairs, Office of revisions.Ten comments were 24 CFR Part 111 Menagement and Hudge�Washington. . received—seven from State agencies, DC 20503. two hom local agencies,and one from [Docket No.R-89-1404;FR-2403] Statutory basis �n sesociation representing human • rights agencies.These comments and RIN No.2529-AA3� Establishment of the Fair Housing the DepartmenYs responses are Assistance Program(FHAPj is aummarized below. Faf�Houaing Assistance Program authorized under section 817 of the Faic � Housing Act(Title VIII of the Civil �blic Comments �QEHCV:Office of the Assistant Righta Act of 1988,42 U.S.C.3617, Ser.retary for Fair Housing and Equal General Opportunity,HW. formerly section 816;redesignated as . Ac�t�on:Final rule. section 817 by section 8 of the Fair One commenter made the general Housing Amendments Act of 1988.Pub. observation that the current system of suMbu►Rw This final rule revises the I-300-430,102 StaG 1619.1825 . competitive and non-competitive existing system of administrative fapproved September 13.1988)).Section funding has worked well,rewardin; funding for State and local agencies' 817 provides,among other things,that with Type II funding those agencies that participation in the Fair Housing �e Secretary may utilize the services�of have operated an"excellent pro�ram." Assistance Program(FHAP).The rule responsible State and loca!agencies in The commenfer argued that the replaces the current system of �e enforcement of the Fair Housing rationale advanced for revisin;the competitive and non-campetitive laws,and"may reimburse such agencies �qp is flawed in many ways. funding with a single non-competitive and their employees for services �� Especially troubling to the commenter is funding approach.This new �ndered to assist him in carrying oui the possibility that the ability of the Fair Housing Act comprehensive approach gives auccessful programs to continue recipients an increased ability to plan a 'The Federal-State-local approach to carrying out effective antidiscrimination long-term program that is more suitable eliminating housing discrimination is programs would be seriously affected. to their fair houaing enforcement needs further enhanced by section 810(�(3)(A). '1'he commenter's fear is that funding and gi�es HLTD the ability to improve Section 810(�(3j(A)provides that'"The �ay be reduced for programs as a result administration of the FHAP. Secretary may certify an agency[for the of the nile's creating the requirement to EFFECTIYE DATE:June 19,1989. referral of complaints of discriminatory divide up the"pool of money"among FOR FURTHER INFORMATION CO!lTACT: housing practicesJ ' ' 'if the Secretary more agencies,regardless of ineriL Maxine B.Cunnin hara, irector. determines thaG Federal,State,and Local Programs (')The substantive ri hts rotected b The Department has carefully 1 � P Y considered this commenter's arguments. Division,Office of Fair Housing such agency in the jurisdiction with but remains persuaded that the success Enforcement and Section 3 Compliance. respect to which certification is to be of fair housing enforcement efforts De artment of Housin and Urban made; P g (II)The pmcedures followed by such� �"'ould be better served by the Development,451 Seventh Street SW.. comprehensive funding approach Washington,DC 20410.Telephone agency; adopted in this rule,and discussed at number(202)755-0455(V and TDD). (iu)'The remedies available to such (This is not a toll-number.) agency;and - length in the preamble to the proposed (iv)The availability of judicial review �e.See 53 FR 34668.Further,the SUPPIEMENTARY iNFOpMAT10N: of such agency's action; Department believes that the additional Information collectioa requirements are substantially equivalent!o those eligibility criteria in§111.113 estabished created b and under Title VL'I for all othemise eligible agencies in the The information collection y � �' incentive component decrease the requirements contained in this rule have Since promulgation of the proposed �kelihood of fosterin an been submitted to the Office of ru!e on September 7,1988,the Fair g y Management and Budget(Oi�)for Housing Amendments Act of 1988 was �SProportionate weight which might be review under the Paperwork Reducrion . adopted addir.g hvo new protected due to"grantsmanship". Act of 1980 and have been assigned classes to the prohibitions on Three other comments generally OMB control number 2529-0005.Public discrimination contained in Title VIII. snPpurted the need for revising the reporting burden for each of these The new legislation makes it unlaw-ful to • �P to make it a non-competitive collections of information is estimated �scriminate in the sale,rental or program.One commenter questioned tainclude the time for reviewing the financing of housing because of whether the"FHAP will be impmved instructions,searching existing data handicap or familial status.Title VIII administratively except at the so�.uces,gathering and maintaining the previously outlawed discriminatioa headquarters level,"fearing"lengthy data needed,and completing and because of race,color,religion,sex,or applications for funds and time- reviewing the colieciion of information. natianal origin.This rule now reflects consuming reporting regarding ocerall Information on the estimated public the inclusion of"handicap"and fund usage."The Department does not reporting burden is pmvided under the "familial status"as additional protected view the rule's re uirements as im osin preamble heading, c:asses.See�111.115(a)(e). unnecessarily burd�nsome requirements Other Matters. Send corr.ments The ro s on agencies.However,responsible regarding this burden estimate or any P po ed rule management of Fedcral funds requires other aspect of this collection of The Department published a proposed that HUD is fully apprised of the informat'son, including suggestions for rule(53 FR 34688,September T.1988) intended and actual use of funds reducing this burden, to the Departmeat that discussed the need for revision of disbursed to local and State agencies. � � � � � � �--10-/Go9 Federal Regis er / Voi. 54, 1Vo. 88 / Tuesday, 1�iay 9, 19t39 / Rules and Regulations 2pp85 T�a�B�� expenditures are better accounted for, "the most recent available U.S.census Several of the�ommenters t ok issue and will decrease the potential for data"is not limited to the decennial with the provision(�111.105(b 2)) misuse of funds.HUD's approval of census,but contemplates the latest relating to training funds.Prop sed other training will be based on the updated population figures, thereby �111.105(b)(1)provided that" 1 DepartmenYs concurrence with the allowing HUD to calculate the incentive contributions agencies will rec ive the aSency's need for training.As in the component more accurately. same amount of financial supp rt for Past,all approved training must relate to Because of the several in�rmities HUD-sponsored or HZJD-appro ed fair �e administration of an agency's fair �ised by commenters with respect to housing training.subject to a housing program. the matching formula,the rule has been demonstration of need."Comm nters Incentive funds . tevised to remove the provision relating contended that it wouid be ine uitable Several comments were received on to"HUD's matching of the cash to give all agencies,regardless f size, §111.105(bj(3)relating to"Incentive contributions generated fram non- the same amount of�aining ds.In funds."One commenter was concerned Federal sources:'Also removed is the their view,training funds shoul be �at the cenaus data that HUD would language that indicated HUD would ewarded based on,among othe things, use may be outdated,and thus provide a formula to be used to. the number of personnel assign d to �accurate.Another commenter argued distribute matching incentive funds. process housing discrimination that local and State government funding �etead of a fotmula,the rule now complaints and the complexity f the should be the only non-federal funding provides that an applicant for incentive complaints investigated by an gency.A for enforcement of fair housing laws. funds must certify,.on the basis o[the further comment in this regard as that The commenter pointed out that funding gupporting dacumentation submitted. HUD should adopt a broader a proach is seldom earmarked specifically for fair that the agency qualifies for incentive to the use of training funds to i clude housing law enforcement,but rather for funds because a minimum percentage of any activity that would further he salaries,rent,etc..thus making it funds expended by the agency for fair administration of justice."An ther dif�cult to determine the portion that is housing activities di�ring the agency's commenter urged HUD to allo training Speci�cally budgeted for fair housing most recently conc(uded fiscal year was. funds to be used not only for activities.These factors,along with the from non-Federal sources.The minimum sponsored training,but for any ublic or fact that often a State or local percentage will be set forth in the private training that increases n government contribution is in•kind,and annual Notice of Funding Availability agency's ability to enforce its f ir not in cash,make it difficult to develop (NOFA).This pmvision was removed housing laws.In a final note,a and implement a fair matching funds from�111.105{b)(3)of the proposed rule commenter proposed a formula or formula.This commenter also urged and now more appropriately appears,as awarding training funds based n the HUD to consider,besides population, revised,in a new paragraph(e)(3J of amou.lt of incentive funds recei ed by the size and reIative amount of fair $111.111 of this final rule. an agency. housing enforcement activity of different HUD is unsure of the point of the The Department recognizes t at these j�sdictions in determini fundin comments offer attractive polic � levels. � S comment that allowing contributions choices,but after due consider ion from non-Federal sources wouid Another commenter found the promote competition and divisiveness HUD has decided to retain the roposed matching concept in $ 111.105(b)(3)to be among agencies.If the commenter language of§111.305(a)(1).ln 's a"mystery",because each agency was means that this provision would view,any formula that is devel ped to proposed to be paid a fixed amount, encourage competition among fair apportion training funds among the notwithstanding the rule's reference to housing agencies for non-Federal various ageneies will result in 1 rger population size and number of cases dollars,HUD disagrees.If the agencies receiving an increased share processed.This commenter also commenter means thet fair housing while at the same time decreasi g the expressed skepticism about whether the agencies wiIl be competing with other share that goes to smaller agen ies. new funding approach actually would State and local agencies for non-Federal Mare particularly,the Departm nt views be non-competitive,pointing to the (f,e..Siate and local)funds.HUD woutd its provision of training funds a rule's allowing"cash contributions from respond that such"competition" is a intended to support agencies'tr ining non-Federal sources"as promoting necessary function of the budget process efforts,not subsidize their total aining competition and divisiveness among �virtually every State and locatity.The costs.This provisioa is consiste t with agencies for State and local funds.The �le's reference to"non-Federal"funds HUD's current policy of support ng, commenter's final criticism of the contemplated funds appropriated f:om a without subsidizing in full,loca agency matching formula was that it implicitly public source,as opposed to funding efforts to improve the ef�cienc of their countenanced the raising of private from private(i.e., non-governmental) fair housing enfurcement perso nel. funds by agencies which,in the sources.(Except that,for purposes of The requirement to train a ce tain commenter's view,is not"an - this rule,Communit Develo meat number of persons now found i appropriate action(forj a public y p $ 111.105(b)(1)wili ensure that nly agency." Block Grant(CDBG) Eunds used to agencies that achieve a require level oE In response to these comments,the support fair housing activities will be participation in HUD-sponsore training Department would undecscore that treated as non-Federal funds.) will receive the training funds. o proposed § 111.105(b)(3)added In the Department's view,using promote clarity in the rute,the hrace parenthetically that"HUD will use the private funds to assist in the "subject to a demonstration of eed"in most recent census data to determine a enforcement of fair housing laws is not proposed § 111.105(bJ(IJ nas be n jurisdiction's population."(Emphasis an inappropriate action for a public replaced by this new requrreme t. supplied.)To allay the commenter's agency,if such action is permissible Finally, the necessity for HU misgivings,the cited sentence has been under the relevant laws of the agency's approval oF the expenditure of iAP revised to read,in relevant part.";he jurisdiction.lVothing in this rule Eunds for any training other tha HUD- most recent available U.S.census data." discoucages private citizens from sponsored training will ensure t at It should be emphasized ihat the phrase donating,and States and localities from 20096 FederaI REgister / Vol. 54, No. 88 / Tuesday. May 9. 1989 / Rules and Regulations � accepting,fund9 to aupport fair housing that HLTD is fully apprised of the necessary for an agency to qualify for activitiea. � intended use of funds given to these funding under§111.113(a)(1).Proposed ' A commenter speculated that"State agencies,as it is with the other ageacies $111.113(a](1)provided tha� and local agencies in those siates with the Department funds. (a)In addition to the criteria set forth both kinds of agencies(i.e., State and qF�licaaons in 4111.107,applicants for incentive . local fair housing agencies]will receive funds must demonstrate that they have, groportioaately more money than those CommEnters contended that the during a 12 consecutive month period states having only a state level application process in �211.121(a)would desigiated by HLTD in the NOFA— enforcement agency."The commenter be unwieldly and expensive,consuming (1)Procassed a stated minimum sought assurance that HUD will ensure more resources than the grant itself. number of dual•filed complaints.The that incentive"funds are not provided to Complaint waa voiced in particular with number of complaints(which will be two or three agencies at differeni levels reference to the requirement of based on separate minimuma for States for the same popuiation." preapplication citizen comments aad and for localities)wilt be set forth in the To the exteat there are two or more altemaHve project proposals.It is the NOEA.To be considered a processed fair housing agencies within a larger ageacies that are charged with compIain�a compisint must have been political jurisdiction which itself has monitoring fair housing matters, the $led in accordance with 24 CFR 105.15- smaller political jurisdictions each with com�enters argued,not citizens.Thus, 105.17 and accepted for closure by the its owa fair housing ageacy.HUD will if the proposed provision remains,it Regional Ofnce; award incentive funds based on the could resnit in citizens'and HUD does not believe that the population of each local jurisdiction orgaaizations'dictating to agencies g(�sence of a stated minimum in the served by the respective fair housing about the stracture and development of proposed rule reqaires publication of agencies. their fair housing pro ams. �other proposed rule announcing the In the DepartmenYs�'ew,citizen Complaint processing funds participation in the development of a minimum.The proposed rule clearly On the issue of"Complaint processing fair housing program would be gave r.otice that agencies would have to funds"(§111.1�5(b)(2)),a commenter beneficial to a1L However,the process a minimum,though unstated. painted out that the rule does not Depar�ent is mindful also that number of complaints.Since agencies provide for an additionaI contribution if agencies with expert knowledge and Were so informed they were tl:us free ta an agency processed more dual-filed relevant experience should be comment aa,or suggest(as one cases in a contract year than in the instrumental in designing the programs commenter did)�a figure that they previous year oa which the funding was that they have ultimate responsibility believed should be an acceptable based. for enforcing.To achieve these two ��Y one commenter chose to HUD acknowledges that,because of complementary goals,the rule has been do so,and its suggestion was luaited to budgetary constraints,additional revised by removing the last sentence in a minimam for tocal agencies only,not contributions may not be forthcoming proposed§ili.ili(a),and substituting for State agencies.More importantly, within a contract yesr although,as the the following language:"Fligible while the Department would have commenter observed more dual-filed ageacies must.upon request by a considered any sug�ested minimums; cases may have been processed in that responsible party.make available a �►e Department would not have bound year.The following fiscal year.an copy of the application submission." itself to accept any,because the taslc of agency's can�ibutions portion could A new paragraph(e)(3)is added in setting a minimum in this regard is one increase proportionately,reflecting the §111.122 to atate that an applicant for �at is fully committed to 4'�is previous year's caseload.The incentive funda must certify,on the Department's d'.scretion in its positien Department would add that the intent of basis of the supporting documentation as administrator of the Ff-WP. this section is to advise p�rticipating submitted,that�'�e agency qualifies for There is a further reason not to agencies of the period to be used in incentive funds because a minimum include a stated minimum in this rule. calculatiag case pmcessing levels.Also. percentage of funds spent by the ageacy H�'S�perience is that there is wide HUD has determined that,for for fair housing aciivities in the agency's fluctuation from year to year in the administrative convenience.it wo�d be most recently concluded fiscal year was number of dual-Filed complsints better to use HLJD's fiscal year as the from non-Federal sources.Alsa ia processed.Consequently,HCTD believes period of refereace for determuung the §111.111.paragraph(fl(2)has been that the mir.imum number of dual-filed amount of compiaint processing funds. revised to include language that more complaints should not be E'viced ia a Section 111.105(b)(2)now retlects that clearly spells out current practice with regulatioa,thus eliminating the costly change. respect to the awarding of funds. requirement of annuaily revising tha � Fundiag of capacity building agencies Acditional eligibitity criteria regulation to accommodate the changing minimums.The annual minimt:m will be Sectioa 112.105(a)."Funding of A comment suggested that since the discussed with aIl fair housing ageacies ca�pacity building ageacies,"has been rule did not speciFy,in proposed at the annual FHAP policy conference. revised.and aow provides that an $111.113(a)(1),"a stated aumber of dual- and HUD's determination will be 6ased application for fuads from a capacity filed complaints."and since,in the on the amount of funds appropriated. building agency must state the commenter's view,it wouId be The a�ouncsment oE the minii,ium wiil objectives and ac:ivities to be carried inappropriate to do so in a NOFA,HL'D be made in the NOFA. out by;he applicant.These activities should publish a proposed ruie setting Both received and initiated must include participation in HW- forth the minimum number of complaints cor.�plaints may count towards the spensored training,complaint that would be acceptable.Another minimum if they other�vise meet the monitoring and reporting systems commeater recommended that both processing requi:emer.ts of the rule.The (CviRS),and case processing.The received and initiated camplaints be �inal rule will continue to count only application also raust show any other accepted and counted towards a "processed complainis"because suppori activities proposed to be undertaken by mi.zimum number of ten cases tha�in of the complaint processing aciivitizs of the applicant.This revision will ensure the commenter's view,would be State and local agencies is the primary - ' � � � ��0-/(�� Fedetal �e�' ter / Vol. 54, tio. 88 / Tuesday, Niay 9, 1989 / Rules and Regulations 200J7 purpose of the FEiAP.Receip of a Miscellaneous interim referrals or other utilization of complaint does not mean tha services:' 1Ve�v language in �111.107(a)now processing wilt occur.In fact,some Paragraph(bJ of proposed §111.115 received complaints are waiv d to HUD states that agencies entering into has been removed in this final rule for HUD processing. agreements with HUD as interim because.in the Department's view, it HUD is suspending applica ion of agencies vjter the enactment of the Fair Was too prescriptive. paragraphs(a)(2J and(a)(3)i §111.113 Housing Amendments Act of 1988 are during the first year of effecti eness of eligible for capacity building funds only. Other matters this rule—that is,otherwise e igible As revised, $111.107(a)now confocros to The collection of information applicants for incentive fund will not $115.11,as amended by the final rule requirements contained in this rule ha�-e have to comply with these pr visions implementing the Fair Housing been submitted to ONiB for review during the first year of this e's Amendments Act of 1988 published on under section 3504(h)of the Paperwork implementation.This action i •being January 23,1989(54 FR 3232.3318). Reduction Act of 1980 and have been taken as a transitional move o allow Section 115.11 provides.among other assigned OMB Control Number 252� both the Regional Offices an fair things.that"In no event shall this period 00p5.Sections 111.105,111.107,111.111. housing agencies time to adj t to these [i.e., the period designating an agency as 111.117,and 121.123 of this rule have new requirements,and to en re that all an"interim agency"for the referral of been detecmined by the Department to Regional Offices apply the sa e criteria housing discrimination complaintsj contain collection of information in evaluating agencies'perfo ance extend more than two years beyond the requirements.Information on these with respect to these provisi s. date af entry into the agreement for requirements is pcovided as follows: TABULATION OF ANNUAL REPORTING BURDEN Final Rule—Fair Housing Assistance Program 24 CFR Part 111 ' Number of ��a�� d� Secdon of 24 CFR PaR 111 Number of responses ' Total annual Hours per , Tocal attected respondents r�n� responses response i hours AppGeaUon wbmission(2529-0005)» ......».......................»..... 111.105(a1. (bl(�l. (b)f2), and 70 1 I 70 38 I 2.060 (b)(3).��.�07;��.��. � Cooperative agreemenc vouct+er su issron and nanative t�t.t17(b)(t). ttt.tt7(b)(2). t2o a seo a � s.ezo (2529-0005). f 1 t.t 17(b)(31. and � 111.117(D)(4)• � - Recordkeeping tor reports(2 )__._.__._..__�„„_.„. 111.117(c)and 111.123_......_..„.._. 70 NA 1 8 560 i _. ........_..................._......__..._......_.»........_......._...__........._................................._..I 5. Totd arnival burden....... ..._._........... ...__.__....._.._. tia0 A Finding of No Significan Impact based enterprises in domestic or export Official`under section 8(a)of Executice with respect to the enviromm �t has markets. Order 12612,Federalism,has been made in accordance wi FiLTD In accordance with 5 U.S.C.BOS(b) determined that this rule will not ha�e regulations at 24 CFR Part 50 which (the Regulatory Fle�cibility Act),the substantial,direct effects on States,on implement section 102(2)(C) f the undersigned hereby certifies that this their political subdivisions,or on their National Environmenta!Poli Act of rule does not have a significant relationship with the Federal 1969.The Finding of No Signi cant economic impact on a substantial government,or on the distribution of Impact is available for publi inspection number of smatl entities.The cule power and responsibili:ies between during regular business ho in the provides for the award of Federal funds them and other levels of government. Office of the Rules Docket Cl rk.Office to State and local government fair Thus rule is intended to promote a of the General Counsel,Dep tment of housii�g agencies:it does not impose any cooperative effort between the Feder:�l Hausing and Urban Develop ent,Room economic burdens on smalt entities. government and State and local 10278,451 Seventh Stree:.S . E.Yecutive Order 1�606,the Family. governments with respect to eliminatin� Washington.DC 20410. The General Counsel,as the Designated discrimination in housing.The Federal This rule does not constitu e a"major Of�cial under Execntive Order 12606, government will provide financial rule"as that term is de�ned' section the Farnily, has detecmined that this tule assistance,and cooperation is voluntacy 1(b)of the Executive Order o Federal will not have potential significant on the part of State and local Regulations issued by the Pr sident on impact on family formatioa, governments.but such cooperation�ciii February 17,1981.Analysis the rule maintenance,and general well-being, not result in diminution of tha sorerei;n indicates that it does not:(1) ave an and,therefore,is not subject to review pa,,,�ers of cooperating States and their annual eEfect on the econam of$100 undPr the Order.The tule implements a , palitical subdivisions. million or more:(2)cause a ajor statutory provision that is intended to increase in costs or prices fo pramote cooperation between the This rule is listed as Item tio.100"in consumers,individual indust ies, Federal government and State and local the Department's Semiannual:�genda uf Federal.State,or local gove ment fair housing enforcement agencies in Regulations published on Apri1.2�.1989 agencies,or geographic regio s;or(3) their attempt to eliminate unlawful (54 FR 16708,16738)under Executi�e have a significant adverse eE ect on discriminatory housing practices:any Order 12291 and the Regulator}� competition,employment,in estment, effect on families thus would be a F�exibility Ac� prnductivity,innovation,or n the satutary one. The Catalog of Federal Domestic ab+lity of United States-base E.recutive Order 12612.FederQlisR1. �ssistance program number is 1-�.tOt. er.'arprises to compete with ureign- The General Gounsel,as the Designated 20098 Federal Register J Vol. 54, No. 88 / Tuesday, May 9, 1989 / Rules and Regulations List of Subjecta in 24 CFR Part SII "FHAP"means the Fair Housing requirement by describing this Assistance Program. capability. Fair housing;Cooperative agreements: �•��means the U.S.Department of (b)Funding o�contributiorts agencies. Grant programs:housing and community Housing and Urban DevelopmenG Contributions agencies are eligible to develapment. "Inceative funds"are funds awarded receive training funds,complaint Accordingly,the Department revises an agencq by HUD based on the processing funds,and incentive funds. 24 CFR Part ili to read as followa: population of the jurisdiction served by (1) Tminir�g funds.All contriburions the agency. ageacies will receive the same amount PART 111—FAfR HOUSINCa "NOFA"meana Notice of Funding of financia!support for HUD-sponsored ASSISTANCE PROGRAM tivailability. � or HUD-approved fair hoasing training. S� subject to pazricipation by a required �li.ioi Definitiona. � ��'�� °se' number of persons in such h�aining. 111.103 Purpose. 'The pmpose of.the Fair Housing (Z)Complainl processin�funds. �11.105 Fanding. Assistance Program(FHAP)is to Contributions agencies will raceive 11i.1o7 Agency threshold eligibility criteria. provide assistance to State and local yupport for complaint processing based i11.109 Program adminiatration. fair 6o�sing enforcement agencies.This solely on the number of dual-filed �i�.in ApplicaGan fot perticipatioa in the assistance is designed to provide housing discrimination complaints �►p• support for complaint pmcessing, actually processed by an agency.The 1ii.i13 Additional agency eligibility criteria fraining,technical assistance.data and agency's prior year complaint for the inceadve componea� infocmation systems,and other fair processing performance will be used in 111.115 E�igible activities under the capacity housin ro ects.The intent of the o building and incentive components. g P � determining ihe total amount of fundin, 111.117 Standards for annual progam P�S�is to build a coordinated for the agency,in accordance with �eview. intergovemmental enforcement effort to specific unit reimbuirsement levels to be iii.ii9 Uncommitted funds. further fair housing,and to encourage determined adzninisiratively by HUD. 111.12i Reporting and recordkeeping States and localities to assume a greater For purposes of FHAP Fiscal Year 1989 requiremeata. share af the responsibility for funding,the level of an agency's ii�.123 Con�ective and remedial action. administering their fair housing laws. complaint processing will be determined Authority:Fair Housing Aci(42 U.S.G by reference to the number of dual-Filed 3600�-ZO):Sec.7(d),Department of Housing ��,�05 Funding complaiats processed by the agency in and Urban Development wct(az U.S.C. For purposes of funding under this the best 12 consecutive months during 3535(d)). Part,HUD separates all eligible agencies an 18-month period designated by HUD. into two categories—"capacity building Thereafter,the level of complaints will $1tt.�01 OeMitions, agencies"and"contributions agencies" be determined by the number of dual- As used in this Part,the following (see �111.101).Funding levels may be fited complaints processed by the terms have the meaning indicated: subject to ma3ification in succeeding agency during HiJD's pnvious fiscal "Ageacy"means a State or local fair �gcal yeats to reflect variations in year. housing enforcement agency which is annual appropriations for the FHAP. (3)Incentive funds.A contributions certified(or considered to be certified) Funding levels will be announced by agency that meets the additional criteria as a substantially equivalent agency NOFAs published in the Federal for incentive funds set forth in § 111.113 under 24 CF'R Part 115(including any Register. may apply annually for incentive funds. egency which is a party to an agreement (a)Funding of capacity building describing those projects that would for interim referrals ander�115.11). Qgeacies.Capacity building agencies are benefit their jurisdiction.The amount oE "Assistant Secretary"means tke eligible to receive cagacity building funds awarded to an agency will be Assistant Secretary for Fair Housing {�nds only.HCID will give a fixed based on the population of t�e and Equal Opportunity. � a�a�t of these funds,during the first jurisdiction sen�ed by the agency,and "Capacity building agency' means an �o years of an agency's participation in on the projects proposed and the cost of agency that is in its first or second year �e FHAP,to all capacity building implementing those projects.(HUD will of participation in the FHAP. agencies that submit an acceptable use the most recent available U.S. "Capacity building funds"are funds applicatioa The applicatioa must census data to determine a jurisdiction's that HL'D will provide to an agency demonstrate.in HUD's determinarion, population.) during the agency's first two years of that the agency has(or will receive)a (Approved by OI�tB under Control\o. participation in the FHAP to suppart s�{�cient votume of complaint activity 252s-poos) development or enhancement of the to justify HUD's provision of funds for agency's fair housing enforcement complaint processing activities.The $»>•�07 Agency threshold eligibility program,including the agency's apQlication must state the objectives �^�' complaint processing.training,technical and activities to be carried out by the To be eligcble to participate in the assistance,compiaint monitoring and applicant which must include FHAP.an agency first must meet the reporting systems,and educational and participation ia HUD-sponsored folloKring criteria: outreach activities. training,complaint monitoring and (a)The State or Iocal fair housing la�v "Complaint processing funds"means reporting systems(CMRS),case administered by the agei�cy must have funds provided to an agency to suppoct processing,and any other fair housing been recogr.ized(and such recognition the processing of housing discrimination activities propased by the applicant.All must continue to be outstanding) as complaints. activities must address or have ultimate providing rights and remedies that are "Contributions agency"means an relevance to matters affecting fair substan!ially equivalent to those agency that has previously received housing which are cognizable under the provided by Title VIII of the Cicil Rights capacity building awards for two years. Fair Housing Act(42 U.S.C.360a-20). Act of 1968,as implemented by 2�CFR "Dual-filed complaint"means a Agencies having current requisite C:�SRS 115.6(or, as implemented by 24 CFR comQlaint that has been filed with both capability,as set forth in the request for 115.4,as in effect before October 8. HLTD and an agency. application,may meet the CMRS 1984),or the Department must have � � � � �"��/��9 Federal Regis er / Vol. 54. IVo. 88 / Tuesday, Niay 9, 1989 / Rules and Regulations 200gJ eatered iato an agreement rega ding where agencies fail to report,to (1)A description of the applicant inierim rEferrals oE complaints o an maintain appropriate records,or to agency's proposed activities and agency or other utilization of e abide by other terms and conditions objectives; services of such agenry as des 'bed in inaludsd in the agreement or contract. (2)A schedule for completion and 24 CFR 115.11,before Septemb r 13. (d)All State and local agencies that estimatad cost oi each proposed 19E38, the date of eaachnent of e Fair receive fiaancial assistance under the activity: Housing Amendments Act of 1 88. Fair Housing Assistance Program must - (3)Any additioaal infcrmation that (Agencie�that enter into agree snts conduct audits in accordance with 24 may be requested in ti'�e IVOFA for the with the Departrnent as inte ' agencies CFR Part 44.The$nancial management �pp published in the Federal Register. for the referral of complaints o other systems used by recipients must provide (4)For all capacity building utilization of services subsequ nt to the for audits in accordance with OMB applicants,infoiznation to justify the enactment of the Fair Housing Circular A-128—Audits of State and amount of funds requested includir.g the rlmendmenta Act of 2988(Pub.L 1Ca local governments(Copies of OMB need for activities proposed and the 430,approved September 13.1 88)are Circular A–lie are available from EOP. number of fair housing camplaints e!igible for capacity building nds Publications.NEOB,Room??A0,728 processed during the previous fiscal only.) Jacicson Place.N'rY.Washington.DC ear,and (b)The agency must have e cuted a 20503. y (5)for all appticants for incentive written\rtemorandum of Unde standing (e)Agencies receiving support . funds,data from the most recently with the Department which,at a (financial assistance in the form of concluded fiscal year showing the minimum,describes the wor ' grants or coope:ative agreementsj under amount of funds spent on the applicsnt's relationship to be in force be een the this p:ogram shall comply with fair housing program and the amount agency and the Depariment. . requirements and standards contained spent from non•Federal sources. agreement in accordance with 4 CFR in 24 CFR Part 85. � (d)Deadline for submissien o� 115.11 may constitute such a a !ltatrans.After recei t of the Memorandum of Understandi g. > $11�•1�� a►PQlicatlon for�anieipation in Pp P (c)The agency must deman trate to the FHAP. . Department's appropriation for�ke HL1D procedures acceptable F r (aJ General.Complete information on �'�P��''D will publish a NOFA in the cooperating with other FHAP- ded all apglication requirements will be Federal Register,establishing a deadline agencies having concurrent j 'sdicrion; included in the NOFAs published in the for submission of applications.This (dj The egency must not uni aterally Federat Register.Application kits will deadline ordi.narily will be 45 days after reduce the level of financial re ources be available from the designated HUD Publication oE the;V'OFA currently coaunitted to fair ho siag Office upon request at the time of (e)Certifications.The applicant must complaint processing.Budget nd siaff publication of the NOFA.Citizens and certify that: . reductions occasioned by legi lative organizations wishing to pazficipate in (1}The submission of the application action outside the control of t e agency the development of proposals for is authorized under State or local law will not,alone,result in a dete ination incentive funds should contact the (as applicablej,and the applicant of ineligibility.However, will take substantially equivalent fair housing possesses the legal authority to ca:ry such ac�ons into consideratio in enforcement agency in their jurisdiction.• out the activities proposed in the assessing the ongoing viabili of an The fair housing enforcement agency application. agency's fair housing prograa must provide.upon request,informe tion (2j The ageacy�vill adhere to a (e)The agency must partici ate in ^egarding its intentioa to apply for written agreement(A%emorandum of training sponsored by HUD a d funds,progosed use of ihese funds,and Understanding or Interim Agreemeni) designed in consultation with staff any�eadline far submission of governir.g all iair housi.zg referral and agency representatives to provide comments.Eligible agencies must,upon activity and complaint processing uniform skills and technical owledge. request by a responsible party,make between the agency and the appropriate (Appmved by 0[�under Con 1 No. available a copy of the submitted FiLTD Regional Office. 252g_ppps� funding apptication. � (3)An applicant for incentive fvr.cis (b)Statement ojintent to epply for . also must certify.or.the basis o�the 3 ttt.t09 Program adminiatraU n. inceative/`unds.In order that the supporting documentatian submitted, (a)The FHAP will be a ' isiered by Bepartment may be able to determine that the agency qualiues for incentive the Office of the Assistant Se retary for an approptiate formula for incentive funds because a minimum percentage of Fair Housing and Equal Oppo tunit;r. funds before issuance of a NOFA.HUD funds spent by the agency for fair (b)Noticea of Funding Avai ability msy request admi.-us!ratively that housing activities in the agency's most (NOFAs)under this program 'il be contriEutions agencies submi:,by a date recendy concluded fiscal year was frorn pubiished in the Federai R ' ter.Such certain,a statement of intent to apply non-Federal sources,(Agencies that notices will announce,among other f�r incentive funds,alon�with a copy of spend less ti4an ihis r_unim•,un things,me!hods to detetmina he level of 4�e ager.cy's fair housing budget frors percentage of noa-Fede:al money for funds availabie for capacity ilding, the pre•rious fiscal year.(Agencies that fair housirg activities will not qualify iar coaiplaint processing,trainin ,and fail to make a timely submission may be incentive funds.Tne minimum incentive purposes. denied incentive funds.A statement of percentage of expenditures that must be (c)All agencies that receiv suppoct intent will not be required from agencies from aon-I'ederal source�will be set under this pmgram must conf rm to that are not etisible fcr.or 44at elect not for:h in the NOFA.) reporting and record mainten nce to receive,incentive funds.) (!�Reviecv ojapcl;catian. (1J An requirements determined app priate by (c) Cvatents of application.Each appIication for fundin;wiil be the Assistant Secretary.Proc dures for agency must submit an application in considered appro�ed as of tl�.e date of monitoring funding instrume ts will be narratiFe form signed Sy the head of its HUD's written offer to the applicznt to established by the Assistant ecretary. fair housing agency(or his or her enter into a Cooperative Agreemen� Fanding instruments will inc! de terms designee).The applicatioa must HUD and the State or local goverr.r.ient ander which HUD may recap re funds include— agency will execute a Cunperative 20100 Federal Register / Vol. 54, tio. F38 / Tuesday, May 9, 1989 / Rules and Regulations ' Agreement with respect to the funding. diat this provision will not be (4)Activities to develop and conduct The award will be obligated when the implemented in FY 1989); � testing and auditing program for Cooperative Agreement Officer in HUD (3)Completed administrative specific protected classes or special has signed the Cooperative Agreement. processing of complaints in a timely market areas for fair housing (2)With respect to applications for manner(except that this provision will enforcement or litigation. funding that the responsible HUD not be imp:emented in FY 1989); (5)Activities designed to identify new Regional Office has found to contain (4)engaged in comprehensive and or subtle practices of housing deficiencies.the Regional Office will thorough investigative activities relative discrimination and to implement notify the applicant in writing of the to complaints dual-filed with HIJD:and programs to eIiminate such practices. deficiencies found.The applicant must: (5)Speni(as certified by the head of (e)Activities designed to address within ZO days from receipt of the agency)during the agency's most violence and intimidation related to notification from the Regional Ofhce, recentty concluded fiscal year a certain equal housing opportunity.These correci the deficiency or supply the percentage of funds other than Federal activities may include education. additionat information that the Regional �ds in aupport of fair housing technical assistance,or the development Office requests.HUD may consider an activities.Thia percentage must be no of programs for prevention and applicant's failure to respond less than the minimum percentage,as response. appropriately within the Zaday period determined by HUU and set forth in the -(7)Activities designed to coordinate as an abandonment of the application. NOFA,of all funds expended by the fair housing enforcement effurts of (3)If the applicant is noti�ed by the appiicant for fair housing activities. government enforcement agencies wi:h Regional Office that,notwithstanding its For purposes of paragraph(a)(2),a vazious community resources which attempt to correct the deficiency or voucher is not submitted"timely"if it is have an impact on the prevention or supply the requested information,the recei�ed in the Regional Office,as elimination of discriminatory housing applicant has failed to do so in the evidenced by the date stamped thereon. P determination of the Regional Office,the ractices. applicant may appeal this determination after close of business of the fifteenth (81 Technical assistance activities to to the Assistant Secretary for Fair � day after the date stipula:ed in the enable agencies to work with private Housing and Equal Oppartunity. �ding instrument for a recipient's fair housing groups.educational (4)The Assistant Secretary may submission of the voucher. institutions,the real estate industry,and reverse the determination of the (b)Satisfaction oE the criteria other private and goverr.mentai entities Regional Office and approve the specified in paragraph(a)of this section to eliminate or prevent housing application unIess the Assistant will be determined by HUD based on its discrimination. Secretary makes one or more of the annual evaluation under Part 115 of this (9)Aciivities to provide services to following determinations• title and through monitoring under aggrieved individuals,consistent with (i)The application proposes ineligible ��'cooperative agreements in effect rights and remedies under applicable activities.or is otherwise deficient(see during the 12-month period designated Federal,State,and local laws and $111.115): - bY�D• ordiaances prohibiting discrimination in housing. (ii)The application was not received �»>,»5 Eligible aetivities under the (10)Affirmative marketing activities within the time period estabtished by �pe�Hy building and inceMive to inform persons of housing the NOFA; eomponents. (iii)The application does not include (a)The rima a ose of ea acit opportunities with respect to � all the inforsnatioa required by the p �'P � p y government-assisted housing and the building and incentive funds is to rivate housin market. NOFA or applicatioa kit;or P 8 su ort activities that roduce (iv)The application does not contain pP p (11)Activities designed to improve evidence or information sufficient to �ncreased awareness of fair housing investigations of systemic support the proposed activities. rights and remedies.All activities discrimination for further processing by (Appmved by OI�under Concrol lvo. Proposed for funding must address,or ,State and local agencies,HL'D.or the Z52s-0005� have ultimate relevance to,matters Department of Justice. affecting fair housing which are (12)Fair housing training for �tt1.1t3 Additlonal agency e{Igibility cognizable under the Fair Housing Acf enforcement agency staff. criteris tor the incentive compo�ent (Title VIII of the Civil Rights Act of 1968, as amended b the Fait Housin (13)Activities designed to create. (a)In addition to the criteria set forth Y S modify,or improve an agency's in §111.107,an applicant for incentive �endments Act of 1988,42 U.S.C. complaint information and monitoring funds must have,d�uing a 12- 3600-20).These activities include,but capacity,to make its system compatible cansecutive•month period designated by are not limited to,the following: with HUD's for internal monitoriag of HUD in the NOFA— (1)Activities designed to develop and fair housing compiaint activity. (1)Processed a stated minimum implement oucreach efforts to heighten number of dual-filed complaints.The pub!ic awareness of all forms of housing $ttt.tt7 Standards for annual program number oE complaints(which will be discrimination prohibited under the Fair review. based on separate minimums for States Housing Act and of fair housing rights (a)HUD will conduct an annual and for localities)will be set forth in the and responsibilities. review of a recipient's performance in NOFA.To be considered a pracessed (2)Actirities designed to create, carrying out the funded activities complaint,a complaint must be modify,or improve local,regional.or proposed in its incentive or capacity cognizable under the Fair Housing Act national infotmation systems concerned building apptication.HUD will reiy (42 U.S.C.360�20)and accepted by the with fair housing matters. primarily on information obtained from Regiunal Office as meeting the (3)Activities designed to improve an the recipient's records and reports. processing requirements vnder the agency's capability to ensure fair find•,ngs ftom an-site monitoring,a�ciit Cooperative Agreement. housing through new or redirected rep�rts,and information generated Fr,^,m (2)Performed satisFactorily in the approaches to the agency's internal the requiren:encs for the disbursement c� timely submission of vouchers(except structure or compliance techniques. fun�ls for the FHAP.HUD also may . � ' . ��9o-i�o q Federal Regi ter / Vol. 54. No. 88 / Tuesday, May 9, 1989 / Rules and Regulations 20101 conaider relevant informatio pertaining times as the Assistant Secretary may so,within the time prescribed by HUD ' to a recipient's'performance ined from prescribe.In addition to periodic reports and on the basis of demonstrable facts other sources.including final ourt regarding complaint�processing and and data. decisions,inrerested organiz tions'and training activities,agencies receiving (b)If a recipient fails to demonstrate - citizens'comments,and eval ation or capacity building funds or incentive to HUD's satisfaction that it has met research studies.(HUD will ve a funds must report on the progress and program review standards..HUD will recipient the opportunity to r spond results of activities funded in whole or request the recipient to submit and before considering negative mments in part under these FHAP components. comply with proposals for action to from citizens and organizatio s.) Such reporting requirements will be correct,mitigate.or prevent (b)The annual review will examine incotporated in each Cooperative performance deficiencies,including: �vhether the recipient— Agreement or contract (i)Preparing and following a schedule (lj Has carried out ita acti ities in a (b)Records to be maintained.Each of actions for carrying out the affected timely manner,including the recipient shall maintain records fair housing activities: expenditure of funds allocat d for specified by the Assistant Secretary that (2)Establishing and following a activities,as proposed in the clearly document its performance under management plan that assigns application; the award.The Assistant Secreta will (2)Has a r,ontinuing capa 'ty to carry issue adminiatrative instructions� responsibilities for.carrying out the remedial actions: out its activities in a timely anner, prescribing the form of these records (3)Canceling or revising activities (3)Has met the objectives that the and the specific elements necessary to �ely to be affected by a perfotmance proposed activities were de igned to document performance. deficiency before expending amounts for address,as set forth in the a plication; (c)Public disclosure ojrecords and the activities: � and documents.Reci ients must mvide for + (4)Has complied with all full and timel dpsclosure of records and �4J Redistributin�FHAP award�.hat certi�cations and assurance required y have not yet been expended to ot.er bY HUD documents relating to their FHAP eligible activities:and activities,cansistent with applicable (c)A pre;;ram performan review is Federal,State,and local laws regarding �5)Suspending disbursement of required in addition to the a sessment program amounts for affected activities provided for under Part 115 f this title Pecsonal privacy and obligations of for a periad of nct more than BO days. confidentiality.Documents relevant to a for continuel substantial e ivalency. recipient's program must be made (c)HUD may condition the use of (Approved b��OMB under Co rol No. available at the recipient's office during F�p award amounts with respect ta aa 252s-000sl normal working hours for public reivew agency's succeeding fiscal year's upon request,except that documents allocation on the satisfactory §1 t 1.119 �::committed tun - with respect to on-going fair housing aompletion by a recipient of appropriate FHAP fun�s may become available complaint investigations will be exempt corrective acrion.When the use of fu.�ds following the initial round f funding from public review.The Secretary,the is so conditioned,HUD will specify the sfter publication of a NOF ,as a result Inspector General of HUD,and the deficiency,the required corrective of agency failures to submi timely Comptroller General of the United actiaas,and the ti-ne allowed for takin; applications.HUD may aw rd these States,or any of their duly authorized �ese actions.Failure of a recipient to funds to an agency which r ceived representati�es,shall have access to all complete the actions as specified wili certification after a HUD-p escribed books,accounts,reports,files,and other result in a reduction or withdrawal uf deadline,or to an agency at was papers of recipients with respect to the recipienYs allocation in an amou�? determined to be ineligible for incentive FHAP payments for surveys,audits, not to exceed the amount cond;tionaily funds at the :ime of applic tion but tl:at examinations,excerpts,and transcr.pts. �'anted. subsequently demonstrate its fAtproved by OMB under Conuat Ko. 'eligibility. ¢111.123 Corrective and remedisl acUon. 25Z9-00o5� (a)ff HUD makes a preliminary Dated:May 1.1389. $111.121 Rcporting a�d re ordkeeping determination that a recipient has not '1'homaa D.Casey, requirementa. met the program review standards set AcringGeneralDeputyAssistontSecrwrcr� (a)Repo�ts to HUD.Rec pients shall forth in�111.117,the recipient will be �orForrHousingar.d EqualOpportunity. report on their activities a d given notice of this determination and [FR Doc.8s-1o98i Filed 5-8-89:8:45 am� expenditures in such form t and at such aa opportunity to show that it has done e+uir+a cooE�:,axa-+�