Backup Documents 07/23/2013 Absentia BCC
ABSENTIA
BACK-UP
DOCUMENTS
July 23 , 2013
2013 EXECUTIVE SUMMARY
APPROVED IN BOARD'S ABSENCE
ITEM #16F1, TO BE RATIFIED ON SEPTEMBER 10, 2013:
APPROVAL OF THE FOLLOWING DOCUMENTS BY THE
COUNTY MANAGER IS SUBJECT TO FORMAL RATIFICATION
BY THE BOARD OF COUNTY COMMISSIONERS. IF THE
DECISION BY THE COUNTY MANAGER IS NOT RATIFIED BY
THAT BOARD, THE DOCUMENT(S) SHALL BE ENFORCEABLE
AGAINST COLLIER COUNTY ONLY TO THE EXTENT
AUTHORIZED BY LAW IN THE ABSENCE OF SUCH
RATIFICATION BY THAT BOARD.
A. RECOMMENDATION TO APPROVE FOUR (4) MORTGAGE
SATISFACTIONS FOR THE STATE HOUSING INITIATIVE
PARTNERSHIP PROGRAM (SHIP) LOANS IN THE
COMBINED AMOUNT OF $18,000.
B. RECOMMENDATION TO FOUR (4) MORTGAGE
SATISFACTIONS FOR THE STATE HOUSING INITIATIVE
PARTNERSHIP PROGRAM (SHIP) IN ACCORDANCE WITH
THE BOARD'S SHORT SALE POLICY, ACCEPTING
$2,969.70 TO SATISFY THE TOTAL VALUE OF THE
INITIAL SHIP MORTGAGES ($36,542).
C. RECOMMENDATION TO APPROVE A GRANT
AGREEMENT BETWEEN COLLIER COUNTY AND THE
U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (HUD) FOR THE 2012 CONTINUUM OF
CARE (COC) HOMELESS ASSISTANCE GRANT PROGRAM,
FOR THE HOMELESS INFORMATION MANAGEMENT
SYSTEM (HMIS) PROJECT IN THE AMOUNT OF $99,662, IN
ORDER FOR HUD TO BEGIN THE TRANSFER OF THE
GRANT TO CATHOLIC CHARITIES.
D. RECOMMENDATION TO REJECT THE SINGLE PROPOSAL
RECEIVED FOR REQUEST FOR PROPOSAL (RFP) #13-6063
"CONSTRUCTION ENGINEER AND LANDSCAPE
Page 1
July 23, 2013
(BCC Ratification on September 10,2013)
INSPECTION SERVICES AND SITE RESTORATION
SERVICES FOR VANDERBILT BEACH MSTU: FPL
UNDERGROUND CONVERSION PHASE 2 AND 3".
Page 2
July 23, 2013
(BCC Ratification on September 10, 2013)
ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO
THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE
Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office
at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later
than Monday preceding the Board meeting.
**NEW** ROUTING.SLIP
Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the
exception of the Chairman's signature,draw a line through routinglines#1 through#2,complete the checklist,and forward to the County Attorney Office.
Route to Addressee(s) (List in routing order) Office Initials Date
1.
2.
3. County Attorney Office County Attorney Office
vvi
4.—'BCC a Board uf Cr.nty
CsD \ACOrek-C\ —‘r— kiNC4 ADLAPD
5. Minutes an Records Clerk of Court's Office
PRIMARY CONTACT INFORMATION
Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the
addressees above,may need to contact staff for additional or missing information.
Name of Primary Staff Wendy Klopf,HHVS Phone Number 252-2901
Contact/ Department
Agenda Date Item was 07/23/13 Agenda Item Number J4mit=9".
Approved by the BCC (o=1D—
Type of Document Satisfactions of Mortgage Number of Original Four(4)
Attached Documents Attached
PO number or account 791-138791-884100-33198.1 Mosher file 3 checks
number if document is All others have a separate$10.00 check -+c.bcJ'Q`r'="`r `
to be recorded 1 �t
4.31&-CO) Z�b�
INSTRUCTIONS & CHECKLIST S■c\v-as:N, 4r.�CC.r4c.r r
Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not
appropriate. (Initial) Applicable)
1. Does the document require the chairman's original signature? WK
2. Does the document need to be sent to another agency for additional signatures? If yes, WK
provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet.
3. Original document has been signed/initialed for legal sufficiency. (All documents to be WK
signed by the Chairman,with the exception of most letters,must be reviewed and signed
by the Office of the County Attorney.
4. All handwritten strike-through and revisions have been initialed by the County Attorney's WK
Office and all other parties except the BCC Chairman and the Clerk to the Board
5. The Chairman's signature line date has been entered as the date of BCC approval of the WK
document or the final negotiated contract date whichever is applicable.
6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's WK
signature and initials are required.
7. In most cases(some contracts are an exception),the original document and this routing slip WK
should be provided to the County Attorney Office at the time the item is input into SIRE.
Some documents are time sensitive and require forwarding to Tallahassee within a certain
time frame or the BCC's actions are nullified. Be aware of your deadlines!
8. The document was approved by the BCC on 07/23/13 and all changes made during WK
the meeting have been incorporated in the attached document. The County
Attorney's Office has reviewed the changes,if applicable.
9. Initials of attorney verifying that the attached document is the version approved by the .
BCC,all changes directed by the BCC have been made,and the document is ready f the \L"r
_ Chairman's signature. r"
I:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12
Prepared by:Wendy Klopf
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Kimberly Ann Murray to COLLIER COUNTY, recorded on July 8, 2002 in
Official Records Book 3067, Page 1587, of the Public Records of Collier County, Florida, securing a
principal sum of $5,000.00 and certain promises and obligations set forth in said Mortgage, upon the
property situated in said State and County described as follows,to wit:
Legal Description: Lot 6,Block B,Habitat Village.According to the Plat thereof as recorded in Plat
Book 37, pages 48 through 51, inclusive,of the Public Records of Collier County,Florida.
(12055 Sitterley Street,Naples,FL 34113)
COLLIER COUNTY hereby acknowledges full payment and satisfaction of said Mortgage, and
surrenders the same as cancelled, and hereby directs the Clerk of said Circuit Court to cancel the same of
record.
BOARD OF COUNTY COMMISSIONERS,
Witness(' `, COLLIER COUNTY, FLORIDA.
(prin n. e) Approved in absentia per Resolution 2000-149
on July 23,2013
' 2/AC)1
it ss(signature ( By:
v & \\ €-t-\.,A Leo •. Ochs,Jr.,County manager
(print nanNe)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this ,„�Lday of Jt
' ,
2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County, who is personally knawn to
me.
IM ONA A.1@T 24(
[NOTARI NA+ry iti$$e-Stitt a Fleas (� / �
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.0-'1-11.;7; Commission•Fc 1108$ Signatu of Notary Public—State of Florida
,,•.«.„• Bonded Through Mons'Notary Assn.
VW-IA Vk-\C\ PS\ \A
Print Commissioned Name of Notary Public
Appro -• 104.■,,.. " and legality:
i
Jeffrey 1 4 atzkow
County •1 01 ey
Prepared by:Wendy Klopf
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Javier Rodriguez to COLLIER COUNTY, recorded on September 16, 2009 in
Official Records Book 4492, Page 0505, of the Public Records of Collier County, Florida, securing a
principal sum of $3,000.00 and certain promises and obligations set forth in said Mortgage, upon the
property situated in said State and County described as follows,to wit:
Legal Description: Golden Gate Estates,Unit 63 W 75 ft of E 150ft of tract 103,Collier County
Florida. (2930 47th Ave NE Naples FL 34120)
COLLIER COUNTY hereby acknowledges full payment and satisfaction of said Mortgage, and
surrenders the same as cancelled, and hereby directs the Clerk of said Circuit Court to cancel the same of
record.
BOARD OF COUNTY COMMISSIONERS,
Witne' (s{;.tur- COLLIER COUNTY, FLORIDA.
(pri :me) / Approved in absentia per Resolution 2000-149
on July 23,2013
i ess(signature By: vc
\.V' 1\)LLCt Leo E. Ochs,Jr.,Coun nager
(print natite)
STATE OF FLORIDA) •
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me thisZL- day of au� ,
2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Co her County, who is personally krIstwn to
me.
Notary AMIN.Stole d NNW , , 4
[NOTA .i-10.1 My Comm.Expiry J4a n.1N1 '
Commission r ttp� Signs of Notary Public—State of Florida
♦ �'�r 9ondsd Through NstionM MN. `
V \ V U..vai \\v\e-
ill s Print Comrhissioned Name of Notary Public
Appr• o form and legality:
Arl
Jeffrey A ow
County • i■ ey
Prepared by:Wendy Klopf
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Lawrence Mosher to COLLIER COUNTY, recorded on September 10, 1999 in
Official Records Book 2591, Page 0841, of the Public Records of Collier County, Florida, securing a
principal sum of $2,500.00 and certain promises and obligations set forth in said Mortgage, upon the
property situated in said State and County described as follows,to wit:
Legal Description: The West 75ft of the East 180ft of Tract 15, Golden Gate Estates, Unit no. 63,
according to the Plat thereof, as recorded in plat Book 7, page 63 of the Public Records of Collier
County Florida. (2385 41st Ave NE.,Naples,FL 34120)
COLLIER COUNTY hereby acknowledges full payment and satisfaction of said Mortgage, and
surrenders the same as cancelled, and hereby directs the Clerk of said Circuit Court to cancel the same of
record.
BOARD OF COUNTY COMMISSIONERS,
Witness ignIllit COLLIER COUNTY, FLORIDA.
(prirtt,n.me) Approved in absentia per Resolution 2000-149
on July 23,2013
a -
-c-e, '---.- I, '"it s(signature By:
— . Leo E. Ochs,Jr.,Coun+, f an ger
(print nam
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this day of .20\`-\ ,
2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County, who is personally known to
me.
• A.teof
42t)(LC2--[NOTARI -: Notary F'vbMc•sw•of Flora• /
•�' • My Comm.Expires Jun 23.2017 --r
ire Commission+F FF 1193$ sn Signal a of Notary Public—State of Florida
,'F �d
''�,,;,`,;�• Bonded Through National Notary \ 'Q-
Print Print Commi§sioned Name of Notary Public
Appr•,, 4 ),:';form and legality:
U
i
Jeffrey A.! 1 z ow
County A r • ey
Prepared by:Wendy Klopf
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by John J. Rowland to COLLIER COUNTY, recorded on December 12, 2005 in
Official Records Book 3945, Page 3384, of the Public Records of Collier County, Florida, securing a
principal sum of$10,000.00 and certain promises and obligations set forth in said Mortgage, upon the
property situated in said State and County described as follows,to wit:
Legal Description: Building C,Apartment 103,County Club Gardens,Unit one,a Condominium,
Collier County,Florida. (1020 Palm View Drive#103,Naples,FL 34110)
COLLIER COUNTY hereby acknowledges full payment and satisfaction of said Mortgage, and
surrenders the same as cancelled, and hereby directs the Clerk of said Circuit Court to cancel the same of
p record.
t
1 BOARD OF COUNTY COMMISSIONERS,
nes • e �� COLLIER COUNTY, FLORIDA.
((2L
(prin`tn• e) Approved in absentia per Resolution 2000-149
_ _ _—../ ' a , 4 on July 23,2013
, itn= s(signature , , By: `_- 0_. .4111/11p�— ` , \'e,2 Leo E. chs,Jr., nty .Wager
(print nam )
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this Z .day of-TO\J\ ,
2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County, who is personally known to
me.
*∎-`•1 •Bp11
[NOTA•, r �;ti ]Notary Public-aaa a Rodle ' ?1,
My Comm.Expires Jim 23.2017 Sign re of Notary Public State of Florida 70
s `#df Commission 0 FF 11938 `
Bonaea Through National Notary Assn.
h.. Print Com' issioned Name of Notary Public
Approved. `" and legality:
•,0 .
.._
Jeffrey A. , a""kow
County Att
ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO
THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE
Print on pink paper. Attach to original document The completed rooting slip and original documents are to be forwarded to the County Attorney Office
at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later
than Monday preceding the Board meeting.
Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the
exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the dlecklist,and forward to the Attorney Office.
Route to Addressee(s)(List in routing order) Office Initials Date
1. Wendy Klopf HHVS Irk Count/I
08/09/13
2. Jennifer A.Belpedio County Attorney Office .7R1
\\7 3;,
3. BCC Offioo Board of County
4. Minutes and Records Clerk of Court's Office
PRIMARY CONTACT INFORMATION
Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the
addressees above,may need to contact staff for additional or missing information.
Name of Primary Staff Wendy Klopf/HHVS Phone Number. 252-2901
Contact/ Department
Agenda Date Item was 07/23/13 V Agenda Item Number 16.D.2
Approved by the BCC frN abe
src�∎a
Type of Document Short Sale Satisfactions of Mortgage-4 Number of Original 4
Attached _ Documents Attached
PO number or account 4 checks for$10.00 made out to the Clerk
number if document is of Courts
to be recorded
" ee,Se..csor'skatcic \,fie-ray kCb c ® ZRO\ ■+..\xr, C C.sJ cs. Oar kcktm.A,
INSTRUCTIONS&CHECKLIST by-4nc-Ccx-vc4c%-\\-\.0 rots:Itr'
Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not
appropriate. (Initial) Applicable) Qe� •
1. Does the document require the chairman's original signature? - -- N, C tM
2. Does the document need to be sent to another agency for additional signatures? If yes, NA 5;werty
provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet.
3. Original document has been signed/initialed for legal sufficiency. (All documents to be WK V.
signed by the Chairman,with the exception of most letters,must be reviewed and signed
by the Office of the County Attorney.
4. All handwritten strike-through and revisions have been initialed by the County Attorney's NA
Office and all other parties except the BCC Chairman and the Clerk to the Board /
5. The Chairman's signature line date has been entered as the date of BCC approval of the WK ✓
document or the fmal negotiated contract date whichever is applicable.
6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's WK
signature and initials are required. �,
7. In most cases(some contracts are an exception),the original document and this routing slip NA V
should be provided to the County Attorney Office at the time the item is input into SIRE.
Some documents are time sensitive and require forwarding to Tallahassee within a certain
time frame or the BCC's actions are nullified. Be aware of your deadlines! _
8. The document was approved by the BCC on 07/23/13 and all changes made during WK /
the meeting have been incorporated in the attached document. The County
Attorney's Office has reviewed the changes,if applicable.
9. Initials of attorney verifying that the attached document is the version approved by the WK�
BCC,all changes directed by the BCC have been made,and the document is ready for the p
Chairman's signature. d
I:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12
Patricia L. Morgan
From: Neet,Virginia
Sent: Monday,August 12, 2013 2:12 PM
To: Klopf, Wendy
Cc: Brock, Mary Jo; Patricia L. Morgan; BelpedioJennifer
Attachments: Item 16-D-2 (in absentia)fully signed.pdf
Wendy:
See attached, fully-executed, Item 16-D-2 approved in absentia on 7/23//The original documents are ready for pick
up at our front desk. Please call with any questions. '3
Dinny
Virginia A. Neet, FRP
Office of the Collier County Attorney
Telephone (239) 252-8066 - Fax (239) 252-6600
Linder Florida Law,email addresses are public records.If you do not want your e-mail address released in response to a public records request.do not send
electronic mail to this entity.Instead,contact this office by telephone or in writing.
1
Prepared by:
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Corie J Williams&Isiah Billie Williams to COLLIER COUNTY, bearing the
date of December 3,2008,recorded December 11,2008,in Official Records Book 4412,Page 4054,of
the Public Records of Collier County,Florida,securing a principal sum of$4,547.00 and certain promises
and obligations set forth in said Mortgage,upon the property situated in said State and County described
as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance
with Collier County Short Sale Policy,approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY,FLORIDA.
Approved in absentia per Resolution 2000-149
on July 2i) 013
(--e - BY' it — •-•• 1 .OP •
�Witn s(signature) Leo Leo E. Ochs,Jr., Coun �y� ager
l \V".\0. ■ M tr-:3\ ��
�.nnott name)
1L� +!
Witness(ill It
(print f\railije- (1- \)CIll(--
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \Z_ \-. day of
Q,, "sk , 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,
who is ,ersonally known to me.
[N• • y 4 SEA I1.NEE I i LL"---(1. L. .cr. - �
•` NOi✓Yy. .01 FIO;d �
." — Si a of Notary Public— tate of lorida
�t My Coma imam Jun 23 1.
f
Qom iniOn I FF 11938 . `�\C,
''qf'''•. ton TVs*National Now.Assn ■
V \�q\V\\O. '\V .
-- — —— — Print Commissioned Name of Notary Public
Approved as to form and legality: c ov..i. ...,5■.,,� .,y�.orc. .\Z--A.���
Jennifer A.Belpedio D
Assistant County Attorney
Prepared by:
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Jessica Camacho to COLLIER COUNTY, bearing the date of August 12,
1999, recorded August 18, 1999 , in Official Records Book 2583,Page 0535,of the Public Records of
Collier County, Florida, securing a principal sum of$2,500.00 and certain promises and obligations set !
forth in said Mortgage,upon the property situated in said State and County described as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance ',
with Collier County Short Sale Policy,approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA.
Approved in absentia per Resolution 2000-149
on July 23 2013
c...e...., 4.....e...,.1...(22A, By: -.11111•10....-
Wi s(signature) Leo E.Ochs,Jr.,Co ager
(print name) ���
Witness tqp. ,a
Ortaal•
(print•uame)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \Z-\\-, day of
�.,a`.,hc , 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,
who is personally known to me.
VI 0000 A.NEET
[N ':"%:::>,, aBhi xiiic.Stau of Rodda _ _Al..
MM __My ..)mm.Expires Jon 23,201T ,
M rnmmReion•Fr 11930 Signa,, e of Notary Public—State of lorida
4 ;;,.,e 0 ,, cough Notional Noilrr MM. `r ` C
Print Commissioned Name of Notary Public
Approved as to form and legality:
%C.)■. ).---Cs.:3-c,------
Jennifer A.Belpedio
Assistant County Attorney
Py:
Collier repared Cobunty
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY,whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Aisling A. Swift to COLLIER COUNTY, bearing the date of July 28, 2006,
recorded August 4,2006 , in Official Records Book 4083,Page 2507, of the Public Records of Collier
County,Florida, securing a principal sum of$24,495.00 and certain promises and obligations set forth in
said Mortgage,upon the property situated in said State and County described as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance
with Collier County Short Sale Policy,approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA.
Approved in absentia per Resolution 2000-149
on July 23 013
By: z -110 • ��
Witne (signature) Lel E. Ochs,Jr.,County •*ager
`k- A \�
`Nrevv.ta
(print name)
Witn � e)
‘ N ^ '�
i `mil d
(print.One)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \Z- day of
..��qquSk , 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,
who ikpersonally_known to me._ _
ENIF
-SIM of Rano C(/ 74(1
, ;04 Elmira.two 23.2017 , Sig ture of Notary Public—State of Florida
sow niroipU Now'sari Ant ► v\r�w��o�
Print Commissioned Name of Notary Public
Approved as to form and legality:
e a,--a
Jenrl`rFer A.Belped o
Assistant County Attorney
Prepared by:
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY,whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Jose Nieves Ramirez&Maria J.Mendoza-Ramirez to COLLIER COUNTY,
bearing the date of August 28, 2003, recorded September 09, 2003 , in Official Records Book 3386,
Page 0385, of the Public Records of Collier County, Florida, securing a principal sum of$5,000.00 and
certain promises and obligations set forth in said Mortgage, upon the property situated in said State and
County described as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance
with Collier County Short Sale Policy,approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY,FLORIDA.
Approved in absentia per Resolution 2000-149
on July 23,2013
�Z/� Q By: _ • ■ .�
Wi ss(signature) Le: E. Ochs,Jr.,Coun ._er
c�t >0.A Vc
Witne _ e)
�` � _�$ �L
(pri nt r�tme)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \2- day of
p.._,ays-k , 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,
who is Personally_known to me_ _ v
x, A A.NEST „/ ..a.
• ''� My Jun 2320 7 � Sign. of f Notary�Public State o'1 lorida
Commission•FF 11938
';..4' Sondld TIroiph NOW NM1ry Apa. 0 Vl \\\\G. \
AMOMPINIIIPIIIMIIIMIPIIPWIIIIMPRIIIMI Print Cissioned Name of Notary Public
Approved as to form and legality:
‘,„....., k,..._...............
Jennifer A.Belped
Assistant County ey
ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO
THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE
Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office
at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later
than.londay preceding the Board meeting.
**NEW** ROUTING SLIP
Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the
exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office.
Route to Addressee(s) (List in routing order) Office Initials Date
1. Wendy Klopf HHVS 08/09/13
2. Jennifer A. Belpedio County Attorney Office
3. BCC Office Board of County
Commissioners
4. Minutes and Records Clerk of Court's Office
ttoack. CO
PRIMARY CONTACT INF RMATION
Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the
addressees above,may need to contact staff for additional or missing information.
Name of Primary Staff Wendy Klopf/HHVS Phone Number 252-2901
Contact/ Department
Agenda Date Item was 07/23/13 �e Agenda Item Number 16.D.2
Approved by the BCC C
Type of Document Short Sale Satisfactions of Mortgage-4 Number of Original 4
Attached Documents Attached
PO number or account 4 checks for$10.00 made out to the Clerk
number if document is of Courts
to be recorded
INSTRUCTIONS & CHECKLIST
Initial the Yes column or mark"N/A" in the Not Applicable column,whichever is Yes N/A(Not
appropriate. (Initial) Applicable)
1. Does the document require the chairman's original signature? WK
2. Does the document need to be sent to another agency for additional signatures? If yes, NA
provide the Contact Information(Name;Agency; Address; Phone)on an attached sheet.
3. Original document has been signed/initialed for legal sufficiency. (All documents to be WK
signed by the Chairman,with the exception of most letters,must be reviewed and signed
by the Office of the County Attorney.
4. All handwritten strike-through and revisions have been initialed by the County Attorney's NA
Office and all other parties except the BCC Chairman and the Clerk to the Board
5. The Chairman's signature line date has been entered as the date of BCC approval of the WK
document or the final negotiated contract date whichever is applicable.
6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's WK
signature and initials are required.
7. In most cases(some contracts are an exception),the original document and this routing slip NA
should be provided to the County Attorney Office at the time the item is input into SIRE.
Some documents are time sensitive and require forwarding to Tallahassee within a certain
time frame or the BCC's actions are nullified. Be aware of your deadlines!
8. The document was approved by the BCC on 07/23/13 and all changes made during WK
the meeting have been incorporated in the attached document. The County
Attorney's Office has reviewed the changes,if applicable.
9. Initials of attorney verifying that the attached document is the version approved by the WK
BCC,all changes directed by the BCC have been made, and the document is ready for the
Chairman's signature.
I:Forms!County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12
Prepared by:
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Code J Williams & Isiah Billie Williams to COLLIER COUNTY, bearing the
date of December 3,2008,recorded December 11,2008, in Official Records Book 4412,Page 4054,of
the Public Records of Collier County, Florida, securing a principal sum of$4,547.00 and certain promises
and obligations set forth in said Mortgage, upon the property situated in said State and County described
as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance
with Collier County Short Sale Policy, approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA.
Approved in absentia per Resolution 2000-149
on July 2., 013 -
oB C C)--"-U
Witn s (signature) Leo E. Ochs,Jr., Coun �y� ager
V l�\.vti■0.r `N CZ- ��
S tint name)
0
WLIIIIIIMIlk \
Witness( 'gn. Ilk
(print te)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \ZAP-. day of
Qom, osk , 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,mot.who is)ersonally known to me.
/
t 1 • ,2l ; A i`-"��' A.NEE i G' .c_,Q i ,
•Mw°�F"„n' Sin ute of Notary Public— tate of lorida
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—--— — Print Commissioned Name of Notary Public
Approved as to form and legality: c ow.r•.∎SS\..cr,,, �'X, orC C `t ? z.4 \
%O..._Pa... It. C•"•■•V
Jennifer A. Belpedio
Assistant County Attorney
Prepared by:
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Jessica Camacho to COLLIER COUNTY, bearing the date of August 12,
1999, recorded August 18, 1999 , in Official Records Book 2583, Page 0535, of the Public Records of
Collier County, Florida, securing a principal sum of$2,500.00 and certain promises and obligations set
forth in said Mortgage, upon the property situated in said State and County described as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance
with Collier County Short Sale Policy, approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA.
Approved in absentia per Resolution 2000-149
on July 23 013
I
BY:
Wit ss(signature) Leo E. Ochs, Jr., Cou ager
`
(print n,me a
(print
1y.
Witnessli at
Or
i 6116(--
(print e)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \2..)c\-, day of
, 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,
who is •ersonally known to •e.
!-; vi G(N*A•A•NEST
[N 11 ` >• SJA,�. ,tNic •stab of Noma
1M► t =My _ ,mm Expun AN123.201 Signa re of Notary Public— State of lorida
t r,,mmIssion R FF itq�
' „ ° An Nation!
V \Y4-11 \Y1A.0. \
Print Cbmmissioned Name of Notary Public
Approved as to form and legality:
Jenni er A. Belpedio
Assistant County Attorney
Prepared by:
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Aisling A. Swift to COLLIER COUNTY, bearing the date of July 28, 2006,
recorded August 4, 2006 , in Official Records Book 4083, Page 2507, of the Public Records of Collier
County, Florida, securing a principal sum of$24,495.00 and certain promises and obligations set forth in
said Mortgage, upon the property situated in said State and County described as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance
with Collier County Short Sale Policy, approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA.
Approved in absentia per Resolution 2000-149
on July 23 013
By. 1111)
Witne (signature) Let E. Ochs, Jr., County lager
(print name)
Witn � e)
r __- i Q
(print.n me)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \Z day of
Q .uSk , 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,
who i s- ssn.11 ,o tom-.
A.NWT
• flisi=sess se mews Y./
wi cor#w ti- �w isiem Sig ture of Notary Public— State of Florida
./ Co i fF/1q�
Ap11 \r■
Print Commissioned Name of Notary Public
Approved as to form and legality:
Jen er A. Belpedio
Assistant County Attorney
Prepared by:
Collier County
Housing,Human&Veteran Services
3339 E.Tamiami Trail
Naples,FL 34112
THIS SPACE FOR RECORDING
SATISFACTION OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is
3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain
Mortgage executed by Jose Nieves Ramirez& Maria J. Mendoza-Ramirez to COLLIER COUNTY,
bearing the date of August 28, 2003, recorded September 09, 2003 , in Official Records Book 3386,
Page 0385, of the Public Records of Collier County, Florida, securing a principal sum of$5,000.00 and
certain promises and obligations set forth in said Mortgage, upon the property situated in said State and
County described as follows,to wit:
COLLIER COUNTY hereby acknowledges payment and satisfaction of said Mortgage, in accordance
with Collier County Short Sale Policy, approved by the Board of County Commissioners on February 28,
2012, Agenda Item 16.D.7, and surrenders the same as cancelled, and hereby directs the Clerk of said
Circuit Court to cancel the same record.
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA.
Approved in absentia per Resolution 2000-149
on July 23, 2013
By: • AILI11
Wit ss (signature) Le∎ E. Ochs, Jr., Coun . _er
(print nme)
Witne. re)
Y)(-Naryi— 61)61L--
(prin&jj me)
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing instrument was acknowledged before me this \2_ day of
�.�5'� , 2013, by Leo E. Ochs, Jr., as County Manager, on behalf of Collier County,
who • e o a o
ro � Raft __ ,•. W Como.E*N 23.2011 Signa . e of Notary Public State o'� lorida
_r/I NM1w1111
Print Cothmissioned Name of Notary Public
Approved as to form and legality:
Jennifer A. Belpedioi
Assistant County Attorney
ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO
C&U N TY mG R e ' • • .. e • - : * FOR SIGNATURE
Print on pink paper.Attach to original document.Original documents should be hand delivered to the Board Office.The completed routing slip and original
documents ire to be tiinvarded to the Board Office only after the Board has taken action on the item,j
ROUTING SLIP
Complete routing lines#1 through#4 as appropriate for additional signatures,dates,and/or information needed.If the document is already complete with the
exception of the Chairman's signature,draw a line through routing lines#1 through#4,complete the checklist,and forward to Ian Mitchell(line#5).
Route to Addressee(s) Office Initials Date
(List in routing order)
1. Jennifer Belpedio, Asst County County Attorney's Office '0)27 n
Attorney
2. ..Ea.ercutiue Manager ' :- : : : - - - --•- : --- -
C3v":1C A\o-r• ` Cac��� QX'S 3 \cam.
3. Minutes and Records Clerk of Court's Office
PRIMARY CONTACT INFORMATION
(1 he primary contact is the holder of the original document pending BCC approval.Normally the primary contact is the person who created/prepared the executive
summary.Primary contact information is needed in the event one of the addressees above,including Ian Mitchell,need to contact staff for additional or missing
information.All original documents needing the BCC Chairman's signature are to be delivered to the BCC office only after the BCC has acted to approve the
item.)
Name of Primary Staff Elly Soto McKuen Phone Number 252-2664
Contact Operations Analyst
Agenda Date Item was July 23,2013 Agenda Item Number 16D3 ✓
Approved by the BCC
Type of Document HUD CoC HMIS Contract Agreement Number of Original 3
Attached Documents Attached
INSTRUCTIONS & CHECKLIST
Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not
appropriate. (Initial) Applicable)
1. Original document has been signed/initialed for legal sufficiency.(All documents to be esm
signed by the Chairman,with the exception of most letters,must be reviewed and signed
by the Office of the County Attorney. This includes signature pages from ordinances,
resolutions,etc. signed by the County Attorney's Office and signature pages from
contracts,agreements,etc.that have been fully executed by all parties except the BCC
Chairman and Clerk to the Board and possibly State Officials.)
2. All handwritten strike-through and revisions have been initialed by the County Attorney's N/A V.
Office and all other parties except the BCC Chairman and the Clerk to the Board
3. The Chairman's signature line date has been entered as the date of BCC approval of the esm
document or the final negotiated contract date whichever is applicable.
4. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's esm
signature and initials are required.
5. In most cases(some contracts are an exception),the original document and this routing slip esm
should be provided to Ian Mitchell in the BCC office within 24 hours of BCC approval.
Some documents are time sensitive and require forwarding to Tallahassee within a certain
time frame or the BCC's actions are nullified. Be aware of your deadlines!
6. The document was approved by the BCC on 7/23/13 and all changes made during the es• (� ' Y
meeting have been incorporated in the attached document.The County Attorney's a�J a , I
Office has reviewed the changes,if applicable. Ca'
C-Ess ASAP - HUD 4\M i i l 1 ,
Po co TSAAISFER ArrRikc--r
I:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05
- ENTpF
�2P II 'I tioG U.S.Department of Housing and Urban Development
Office of Community Planning and Development
* I * 909 SE First Avenue
11111111 �� Miami,FL 33131
eqN 0E,���
Tax ID No.: 59-6000558
Project Location: Naples Florida
Grant Number: FL0294L4D061204
Effective Date: 07/03/13
DUNS No.: 076997790
2012 CONTINUUM OF CARE PROGRAM GRANT AGREEMENT
This Grant Agreement("this Agreement") is made by and between the United States
Department of Housing and Urban Development("HUD") and Collier County Board of County
Commissioners (the "Recipient").
This Agreement is governed by title IV of the McKinney-Vento Homeless Assistance Act
42 U.S.C. 11301 et seq. (the "Act") and the Continuum of Care Program regulation(the
"Regulation").
The terms "Grant " or"Grant Funds" mean the funds that are provided under this
Agreement. The term "Application" means the application submissions on the basis of which the
Grant was approved by HUD, including the certifications, assurances, and any information or
documentation required to meet any grant award condition. All other terms shall have the
meanings given in the Regulation.
The Application is incorporated herein as part of this Agreement, except that only the
project listed, and only in the amount listed on the Scope of Work, is funded by this Agreement.
In the event of any conflict between any application provision and any provision contained in this
Agreement, this Agreement shall control.
Exhibit 1, the FY2012 Scope of Work, is attached hereto and made a part hereof. If
appropriations are available for Continuum of Care grants; and if Recipient applies under a Notice
of Funds Availability published by HUD; and, if pursuant to the selection criteria in the Notice of
Funds Availability, HUD selects Recipient and the project for renewal, then additional exhibits
may be attached to this Agreement. Those additional exhibits, when attached, will also become a
part hereof.
The effective date of the Agreement shall be the date of execution by HUD and it is the
date use of funds under this Agreement may begin. If the project funded by this Agreement is a
new project, Recipient and HUD will set an operating start date in LOCCS for the project, which
will be used to track expenditures and to determine when the project is eligible for renewal. If this
Agreement renews funding for a project, the term of this Agreement shall begin at the end of the
Recipient's final operating year for the grant being renewed, and eligible costs incurred for the
project between the end of Recipient's final operating year under the grant being renewed and the
execution of this Agreement may be paid with funds from the first operating year of this
Agreement.
This Agreement shall remain in effect until termination either 1) by agreement of the
parties; 2) by HUD alone, acting under the authority of 24 CFR 578.107; or 3) upon expiration of
the final operating year of the project funded under this Agreement.
www.hud.gov espanol.hud.gov Page 101
Recipient agrees:
1. To ensure the operation of the project listed on the Scope of Work in accordance with the
provisions of the Act and all requirements of the Regulation;
2. To monitor and report the progress of the project to the Continuum of Care and HUD;
3. To ensure, to the maximum extent practicable, that individuals and families experiencing
homelessness are involved, through employment, provision of volunteer services, or
otherwise, in constructing, rehabilitating, maintaining, and operating facilities for the
project and in providing supportive services for the project;
4. To require certification from any subrecipient that:
a. Subrecipient will maintain the confidentiality of records pertaining to any individual or
family that was provided family violence prevention or treatment services through the
project;
b. The address or location of any family violence project assisted with grant funds will
not be made public, except with written authorization of the person responsible for the
operation of such project;
c. Subrecipient will establish policies and practices that are consistent with, and do not
restrict, the exercise of rights provided by subtitle B of title VII of the Act and other
laws relating to the provision of educational and related services to individuals and
families experiencing homelessness;
d. In the case of a project that provides housing or services to families, that subrecipient
will designate a staff person to be responsible for ensuring that children being served in
the program are enrolled in school and connected to appropriate services in the
community, including early childhood programs such as Head Start, part C of the
Individuals with Disabilities Education Act, and programs authorized under subtitle B
of title VII of the Act;
e. The subrecipient, it officers, and employees are not debarred or suspended from doing
business with the Federal Government; and
f. Subrecipient will provide information, such as data and reports, as required by HUD;
and
5. To establish such fiscal control and accounting procedures as may be necessary to assure
the proper disbursal of, and accounting for grant funds in order to ensure that all financial
transactions are conducted, and records maintained in accordance with generally accepted
accounting principles, if the Recipient is a Unified Funding Agency;
6. To monitor subrecipient match and report on match to HUD;
7. To take the educational needs of children into account when families are placed in housing
and will, to the maximum extent practicable, place families with children as close as
possible to their school of origin so as not to disrupt such children's education;
8. To monitor subrecipient at least annually;
9. To use the centralized or coordinated assessment system established by the Continuum of
Care as required by §578.7(a)(8). A victim service provider may choose not to use the
Continuum of Care's centralized or coordinated assessment system, provided that victim
service providers in the area use a centralized or coordinated assessment system that meets
HUD's minimum requirements and the victim service provider uses that system instead;
10. To follow the written standards for providing Continuum of Care assistance developed by
the Continuum of Care, including the minimum requirements set forth in §578.7(a)(9);
www.hud.gov espanol.hud.gov Page 102
c
11. Enter into a subrecipient agreement requiring subrecipient to operate the project in
accordance with the provisions of this Act and all requirements under 24 CFR 578; and
12. To comply with such other terms and conditions as HUD may have established in the
applicable Notice of Funds Availability.
HUD notifications to the Recipient shall be to the address of the Recipient as stated in the
Application, unless HUD is otherwise advised in writing. Recipient notifications to HUD shall be
to the HUD Field Office executing the Agreement. No right, benefit, or advantage of the
Recipient hereunder may be assigned without prior written approval of HUD.
The Agreement constitutes the entire agreement between the parties hereto, and may be
amended only in writing executed by HUD and the Recipient.
By signing below, Recipients that are states and units of local government certify that they
are following a current HUD approved CHAS (Consolidated Plan).
This agreement is hereby executed on behalf of the parties as follows:
UNITED STATES OF AMERICA,
Secretary of Housing and Urban Development
By:
(Signature)
Ann D. Chavis, Director
(Typed Name and Title)
71/A(Date)
Approved as to form and legality
RECIPIENT 1 eot
Collier County Board of County Commissioners i
ss stant County Attorney
(Name of Organization) ,�
By: ��,�1�
Approved in absentia per Resolution 2000-149
on July 23, 3(/�
ATTEST:Z7
ure of Authorized Of c 1 DWIGHT E. BROCK, LLL .
(Sign ) Leo E. Ochs, Jr.
County Manager
Georgia A Hiller, Chairwoman, County Board of Commissioners
(Typed Name and Title of Authorized Official)
47 1 )-3/ 13
(Date)
www.hud.gov espanol.hud.gov Page 103
(I)
Tax ID Number: 59-6000558
Project Location: Naples Florida
Grant Number: FL0294L4D061204
Effective Date: 07/03/13
DUNS Number: 076997790
EXHIBIT 1
SCOPE OF WORK for FY2012 COMPETITION
1. This Agreement is governed by the Continuum of Care program Interim Rule attached
hereto and made a part hereof as Exhibit la. Upon publication for effect of a Final Rule
for the Continuum of Care program, the Final Rule will govern this Agreement instead of
the Interim Rule. The project listed on this Exhibit at 3., below, is also subject to the terms
of the FY2012 Notice of Funds Availability.
2. The Continuum that designated Recipient to apply for grant funds is not a high-performing
community.
3. Recipient is not a Unified Funding Agency and was not the only Applicant the Continuum
of Care designated to apply for and receive grant funds and is not the only Recipient for
the Continuum of Care that designated it. HUD's total funding obligation for this grant
is $99,662 for project number FL0294L4D061204. In accordance with 24 CFR
578.105(b), Recipient is prohibited from moving more than 10% from one budget line item
in a project's approved budget to another without a written amendment to this Agreement.
The obligation for this project shall be allocated as follows:
a. CoC Planning cost $ 0
b. Acquisition $ 0
c. New construction $ 0
d. Rehabilitation $ 0
e. Leasing $ 0
f. Rental assistance $ 0
g. Supportive services $ 0
h. Operating costs $ 0
i. HMIS $ 99,662
j. Administration $ 0
4. No funds for new projects may be drawn down by Recipient until HUD has approved site
control pursuant to §578.21 and §578.25 and no funds for renewal projects may be drawn
down by Recipient before the end date of the project's final operating year under the grant
that has been renewed.
www.hud.gov espanol.hud.gov Page 104
9
MWrC1O� \
! D RECOios
SCRIPTA
LITLfRA
MANfT /J
V Cpc i P"
1985
FEDERAL REGISTER
Vol. 77 Tuesday,
No. 147 July 31 , 2012
Part II
Department of Housing and Urban
Development
24 CFR Part 578
Homeless Emergency Assistance and Rapid Transition to Housing:
Continuum of Care Program; Interim Final Rule
45422 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
DEPARTMENT OF HOUSING AND docket number and title.There are two Federal Relay Service at 800-877-8339
URBAN DEVELOPMENT methods for submitting public (this is a toll-free number).
comments. All submissions must refer SUPPLEMENTARY INFORMATION:
24 CFR Part 578 to the above docket number and title.
[Docket No.FR-5476—I-01] 1. Submission of Comments by Mail. Executive Summary
Comments may be submitted by mail to Purpose of and Legal Authority for This
RIN 2506—AC29 the Regulations Division,Office of Interim Rule
Homeless Emergency Assistance and General Counsel,Department of This interim rule implements the
Rapid Transition to Housing: Housing and Urban Development,451
7th Street SW.,Room 10276, program Continuum of Care am authorized
Continuum of Care Program Washington,DC 20410-0500. by the Homeless Emergency Assistance
2.Electronic Submission of
and Rapid Transition to Housing Act of
AGENCY:Office of the Assistant 2009(HEARTH Act). Section 1504 of
Secretary for Community Planning and Comments.Interested persons may the HEARTH Act directs HUD to
Development,HUD. submit comments electronically through establish regulations for this program.
ACTION:Interim rule. the Federal eRulemaking Portal at g P
www.regulations.gov.HUD strongly (See 42 U.S.C. 11301.)The purpose of
SUMMARY:The Homeless Emergency encourages commenters to submit the Continuum of Care program is to
Assistance and Rapid Transition to comments electronically.Electronic promote communitywide commitment
Housing Act of 2009(HEARTH Act), submission of comments allows the to the goal of ending homelessness;
enacted into law on May 20,2009, commenter maximum time to prepare provide funding for efforts by nonprofit
consolidates three of the separate and submit a comment,ensures timely providers,and State and local
homeless assistance programs receipt by HUD,and enables HUD to governments to quickly rehouse
administered by HUD under the make them immediately available to the homeless individuals and families while
McKinney-Vento Homeless Assistance public.Comments submitted minimizing the trauma and dislocation
Act into a single grant program,and electronically through the caused to homeless individuals,
revises the Emergency Shelter Grants www.regulations.gov Web site can be families,and communities by
program and renames it the Emergency viewed by other commenters and homelessness;promote access to and
Solutions Grants program.The HEARTH interested members of the public. effective utilization of mainstream
Act also codifies in law the Continuum Commenters should follow the programs by homeless individuals and
of Care planning process,a longstanding instructions provided on that site to families;and optimize self-sufficiency
part of HUD's application process to submit comments electronically. among individuals and families
persons by providing experiencing homelessness.
assist homeless
P y P g Note:To receive consideration as public The HEARTH Act streamlines HUD's
greater coordination in responding to comments,comments must be submitted homeless grant programs by
their needs.The HEARTH Act also through one of the two methods specified
directs HUD to promulgate regulations above.Again,all submissions must refer to consolidating the Supportive Housing,
the docket number and title of the rule. Shelter Plus Care,and Single Room
for these new programs and processes.
This interim rule focuses on No Facsimile Comments.Facsimile Occupancy grant programs into one
regulatory implementation of the (FAX) comments are not acceptable. grant program:The Continuum of Care
Continuum of Care program,including Public Inspection of Public program.Local continuums of care,
the Continuum of Care planning Comments.All properly submitted which are community based homeless
process.The existing homeless comments and communications assistance program planning networks,
assistance programs that comprise the submitted to HUD will be available for will apply for Continuum of Care grants.
Continuum of Care program are the public inspection and copying between By consolidating homeless assistance
following:the Supportive Housing 8 a.m. and 5 p.m.weekdays at the above grant programs and creating the
program,the Shelter Plus Care program, address.Due to security measures at the Continuum of Care planning process,
and the Moderate Rehabilitation/Single HUD Headquarters building,an advance the HEARTH Act intended to increase
Room Occupancy(SRO)program.This appointment to review the public the efficiency and effectiveness of
rule establishes the regulations for the comments must be scheduled by calling coordinated,community based systems
Continuum of Care program,and, the Regulations Division at 202-708— that provide housing and services to the
through the establishment of such 3055 (this is not a toll-free number). homeless.Through this interim final
regulations, the funding made available Individuals with speech or hearing rule,HUD will implement the
for the Continuum of Care program in impairments may access this number Continuum of Care program by
the statute appropriating Fiscal Year through TTY by calling the Federal establishing the framework for
(FY) 2012 funding for HUD can more Relay Service at 800-877-8339.Copies establishing a local continuum of care
quickly be disbursed,consistent with of all comments submitted are available and the process for applying for
the HEARTH Act requirements,and for inspection and downloading at Continuum of Care grants.
avoid any disruption in current www.regulations.gov. Summary of Major Provisions
Continuum of Care activities. FOR FURTHER INFORMATION CONTACT:Ann The major provisions of this
DATES:Effective Date:August 30,2012. Marie Oliva,Director,Office of Special rulemaking relate to how to establish
Comment Due Date. October 1,2012. Needs Assistance Programs,Office of and operate a Continuum of Care,how
ADDRESSES:Interested persons are Community Planning and Development, to apply for funds under the program,
invited to submit comments regarding Department of Housing and Urban and how to use the funds for projects
this rule to the Regulations Division, Development,451 7th Street SW., approved by HUD. These provisions are
Office of General Counsel,451 7th Washington,DC 20410-7000;telephone summarized below.
Street SW.,Room 10276,Department of number 202-708-4300(this is not a toll- 1. General Provisions(Subpart A):
Housing and Urban Development, free number).Hearing-and speech- The Continuum of Care program
Washington,DC 20410-0500. impaired persons may access this includes transitional housing,
Communications must refer to the above number through TTY by calling the permanent supportive housing for
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45423
disabled persons,permanent housing, by statute,HUD has developed a and suitable dwelling size,assessing
supportive services,and Homeless formula for determining award amounts supportive services on an ongoing basis,
Management Information Systems that includes the following factors:A initiating and completing approved
(HMIS).To implement the program, Continuum's Preliminary Pro Rata Need activities and projects within certain
HUD had to define several key terms. In (PPRN) amount;renewal demand;any timelines,and providing a formal
particular,HUD distinguishes between additional increases in amounts for process for termination of assistance to
"Continuum of Care,""applicant,"and leasing,rental assistance,and operating participants who violate program
"collaborative applicant."A costs based on Fair Market Rents, requirements or conditions of
"Continuum of Care"is a geographically planning and Unified Funding Agency occupancy.
based group of representatives that cost funds,and amounts available for 7. Grant Administration(Subpart G):
carries out the planning responsibilities bonus dollars.HUD has established To effectively administer the grants,
of the Continuum of Care program,as selection criteria for determining which HUD will provide technical assistance
set out in this regulation. These applications will receive funding under to those who apply for Continuum of
representatives come from organizations the Continuum of Care program. Care funds,as well as those who are
that provide services to the homeless, or Recipients awarded Continuum of Care selected for Continuum of Care funds.
represent the interests of the homeless funds must satisfy several conditions After having been selected for funding,
or formerly homeless.A Continuum of prior to executing their grant grant recipients must satisfy certain
Care then designates certain agreements. All grants submitted for recordkeeping requirements so that
"applicants"as the entities responsible renewal must also submit an annual HUD can assess compliance with the
for carrying out the projects that the performance report.For those program requirements.For any
Continuum has identified through its applicants not awarded funding,the amendments to grants after the funds
planning responsibilities.A process also provides an appeals have been awarded,HUD has
"Continuum of Care"also designates process. established a separate amendment
one particular applicant to be a 4.Program Components and Eligible procedure.As appropriate,HUD has
"collaborative applicant."The Costs(Subpart D):Continuum of Care also established sanctions to strengthen
collaborative applicant is the only entity funds may be used for projects under its enforcement procedures.
that can apply for a grant from HUD on five program components:Permanent Benefits and Costs
behalf of the Continuum that the housing,transitional housing,
collaborative applicant represents. supportive services only,HMIS,and,in This interim rule is intended to help
2.Establishing and Operating a some limited cases,homelessness respond to and work toward the goal of
Continuum of Care(Subpart B):In order prevention.The rule further clarifies eliminating homelessness.This interim
to be eligible for funds under the how the following activities are rule provides greater clarity and
Continuum of Care program, considered eligible costs under the guidance about planning and
representatives from relevant Continuum of Care program:Continuum performance review to the more than
organizations within a geographic area of Care planning activities,Unified 430 existing Continuums of Care that
must establish a Continuum of Care. Funding Agency costs,acquisition, span all 50 states and 6 United States
The three major duties of a Continuum rehabilitation,new construction, territories.As reported in HUD's Annual
of Care are to: (1) Operate the leasing,rental assistance,supportive Homelessness Assessment Report to
Continuum of Care, (2)designate an services,operating costs,HMIS,project Congress,there were approximately 1.59
HMIS for the Continuum of Care,and administrative costs,relocation costs, million homeless persons who entered
(3)plan for the Continuum of Care.HUD and indirect costs. emergency shelters or transitional
has delineated certain operational 5.High-Performing Communities housing in FY 2010.HUD serves
requirements of each Continuum to help (Subpart E):HUD will annually,subject roughly half that many persons,nearly
measure a Continuum's overall to the availability of appropriate data, 800,000 annually,through its three
performance at reducing homelessness, select those Continuums of Care that programs that will be consolidated into
in addition to tracking of performance best meet application requirements to be the Continuum of Care program under
on a project-by-project basis.In designated a high-performing the McKinney-Vento Act as amended by
addition,each Continuum is responsible community(HPC).An HPC may use the HEARTH Act(i.e.,Shelter Plus Care,
for establishing and operating a grant funds to provide housing Supportive Housing Program, Single
centralized or coordinated assessment relocation and stabilization services, Room Occupancy). The changes
system that will provide a and short-and/or medium-term rental initiated by this interim rule will
comprehensive assessment of the needs assistance to individuals and families at encourage Continuums of Care to
of individuals and families for housing risk of homelessness.This is the only establish formal policies and review
and services.HUD has also defined the time that Continuum of Care funds may procedures,including evaluation of the
minimum planning requirements for a be used to serve individuals and effectiveness of their projects,by
Continuum so that it coordinates and families at risk of homelessness. emphasizing performance measurement
implements a system that meets the 6.Program Requirements(Subpart F): and developing performance targets for
needs of the homeless population All recipients of Continuum of Care homeless populations.HUD is confident
within its geographic area. Continuums funding must comply with the program that this systematic review by
are also responsible for preparing and regulations and the requirements of the Continuums of Care will lead to better
overseeing an application for funds. Notice of Funding Availability that HUD use of limited resources and more
Continuums will have to establish the will issue each year.Notably,the efficient service models,with the end
funding priorities for its geographic area HEARTH Act requires that all eligible result of preventing and ending
when submitting an application. funding costs,except leasing,must be homelessness.
3.Application and Grant Award matched with no less than 25 percent The Consolidated and Further
Process(Subpart C):The Continuum of cash or in-kind match by the Continuing Appropriations Act,2012
Care grant award process begins with a Continuum.Other program (Pub.L. 112-55)appropriated
determination of a Continuum's requirements of recipients include: $1,593,000,000 for the Continuum of
maximum award amount.As directed Abiding by housing quality standards Care and Rural Housing Stability
45424 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
Assistance programs. Upon publication established the program requirements II.Overview of Interim Rule
of this rule,those FY 2012 funds will be for the Emergency Solutions Grants As amended by the HEARTH Act,
available for distribution,as governed program and contained corresponding Subpart C of the McKinney-Vento
by these Continuum of Care regulations. amendments to the Consolidated Plan Homeless Assistance Act establishes the
I.Background—HEARTH Act regulations.On December 9, 2011,HUD Continuum of Care program.The
On May 20, 2009,the President continued the process to implement the purpose of the program is to promote
y HEARTH Act,with the publication of communitywide commitment to the
signed into law"An Act to Prevent the proposed rule titled"Homeless goal of ending homelessness;provide
Mortgage Foreclosures and Enhance Management Information Systems funding for efforts by nonprofit
Mortgage Credit Availability,"which Requirements"(76 FR 76917),which providers,and State and local
became Public Law 111-22.This law provides for uniform technical governments to quickly rehouse
implements a variety of measures requirements for Homeless Management homeless individuals and families while
directed toward keeping individuals
and families from losing their homes. Information Systems (HMIS),for proper minimizing the trauma and dislocation
Division B of this law is the HEARTH data collection and maintenance of the caused to homeless individuals,
Act,which consolidates and amends database,and ensures the families,and communities by
three separate homeless assistance confidentiality of the information in the homelessness;promote access to and
programs carried out under title IV of database.Today's publication of the effective utilization of mainstream
the McKinney-Vento Homeless interim rule for the Continuum of Care programs by homeless individuals and
Assistance Act(42 U.S.C. 11371 et seq.) program continues HUD's families;and optimize self-sufficiency
(McKinney-Vento Act)into a single implementation of the HEARTH Act. among individuals and families
grant program that is designed to This rule establishes the regulatory experiencing homelessness.
improve administrative efficiency and framework for the Continuum of Care This interim rule establishes the
enhance response coordination and ro am and the Continuum of Care Continuum of Care as the planning body
effectiveness in addressing the needs of p responsible for meeting the goals of the
g e planning process,including Continuum of Care program.
requirements persons.The HEARTH Act uirements a licable to the
codifies in law and enhances the q pp Additionally,in order to meet the
establishment of a Continuum of Care. purpose of the HEARTH Act,
Continuum of Care planning process,
the coordinated response to addressing Prior to the amendment of the established in section 1002(b),and the
the needs of the homeless,which was McKinney-Vento Act by the HEARTH goals of"Opening Doors:Federal
established administratively by HUD in Act,HUD's competitively awarded Strategic Plan to Prevent and End
1995.The single Continuum of Care homeless assistance grant funds were Homelessness,"the Continuum of Care
program established by the HEARTH awarded to organizations that must be involved in the coordination of
Act consolidates the following participate in local homeless assistance other funding streams and resources—
programs:The Supportive Housing program planning networks referred to federal,local,or private—of targeted
program,the Shelter Plus Care program, as a Continuum of Care,a system homeless programs and other
and the Moderate Rehabilitation/Single administratively established by HUD in mainstream resources.In many
Room Occupancy program.The 1995.A Continuum of Care is designed communities,the Continuum of Care is
Emergency Shelter Grants program is to address the critical problem of the coordinating body,while in other
renamed the Emergency Solutions homelessness through a coordinated communities it is a local Interagency
Grants program and is revised to community-based process of identifying Council on Homelessness (both would
broaden existing emergency shelter and needs and building a system of housing be acceptable forms of coordination
homelessness prevention activities and and services to address those needs.The under this interim rule).As noted
to add short-and medium-term rental approach is predicated on the earlier,HUD published on December 9,
assistance and services to rapidly understanding that homelessness is not 2011,a proposed rule to establish HMIS
rehouse homeless people.The HEARTH caused merely by a lack of shelter,but regulations in accordance with the
Act also creates the Rural Housing involves a variety of underlying,unmet HEARTH Act.However,while the
Stability program to replace the Rural needs—physical,economic,and social. HEARTH Act directed that regulations
Homelessness Grant program. The HEARTH Act not only codified in be established for HMIS,HMIS is not
HUD commenced the process to new to many HUD grantees. Until
law the planning system known as
implement the HEARTH Act with Continuum of Care,but consolidated the regulations for HMIS are promulgated in
rulemaking that focused on the final,grantees should continue to follow
definition of"homeless."HUD three existing competitive homeless HUD's existing HMIS instructions and
published a proposed rule,entitled assistance grant programs(Supportive guidance.
"Defining Homeless"on April 20, 2010 Housing,Shelter Plus Care,and Single The following provides an overview
(75 FR 20541),which was followed by Room Occupancy)into the single grant of the proposed rule.
a final rule that was published on program known as the Continuum of
December 5,2011 (76 FR 75994).The Care program. The consolidation of the General Provisions(Subpart A)
Defining Homeless rule clarified and three existing homeless assistance Purpose and scope.The Continuum of
elaborated upon the new McKinney- programs into the Continuum of Care Care program is designed to promote
Vento Act definitions for"homeless" grant program and the codification in community-wide goals to end
and"homeless individual with a law of the Continuum of Care planning homelessness;provide funding to
disability."In addition,the Defining process are intended to increase the quickly rehouse homeless individuals
Homeless rule included recordkeeping efficiency and effectiveness of the (including unaccompanied youth)and
requirements related to the"homeless" coordination of the provision of housing families while minimizing trauma and
definition. On December 5, 2011,HUD and services to address the needs of the dislocation to those persons;promote
also published an interim rule for the homeless.The regulations established access to,and effective utilization of,
Emergency Solutions Grants program by this rule are directed to carrying out mainstream programs;and optimize
(76 FR 75954).This interim rule this congressional intent. self-sufficiency among individuals and
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45425
families experiencing homelessness. Continuum. HUD highlights that the Act organized to carry out the
The program is composed of transitional does not contain different definitions for responsibilities required under this part
housing,permanent supportive housing "applicant"and"collaborative and that is composed of representatives
for disabled persons,permanent applicant."HUD distinguishes between of organizations including nonprofit
housing,supportive services, and HMIS. the applicant(s) designated to apply for homeless providers,victim service
Definitions. The interim rule adopts and carry out projects(the"applicant") providers,faith-based organizations,
the definitions of"developmental and the collaborative applicant governments,businesses,advocates,
disability,""homeless,""homeless designated to apply for a grant on behalf public housing agencies,school
individual,"and"homeless person" of the Continuum of Care(the districts,social service providers,
established by the December 5,2011 "collaborative applicant").Please see mental health agencies,hospitals,
Defining Homeless final rule. Public below for more information on the universities,affordable housing
comments have already been solicited definition of a collaborative applicant, developers,law enforcement,
and additional public comment is not which is the only entity that may apply organizations that serve homeless and
solicited through this rule.The for and receive Continuum of Care formerly homeless veterans,and
December 5,2011,final rule was planning funds. homeless and formerly homeless
preceded by an April 20, 2010, Centralized or coordinated persons.These organizations consist of
proposed rule,which sought public assessment system is defined to mean a the relevant parties in the geographic
comment on these definitions.The final centralized or coordinated process area.Continuums are expected to
definitions of these terms took into designed to coordinate program include representation to the extent that
consideration the public comments participant intake,assessment,and the type of organization exists within
received on the proposed definitions as provision of referrals.A centralized or the geographic area that the Continuum
set out in the April 20,2010,proposed coordinated assessment system covers represents and is available to participate
rule.This interim rule adopts the the geographic area,is easily accessed in the Continuum.For example,if a
definition of"at risk of homelessness" by individuals and families seeking Continuum of Care did not have a
established by the December 5,2011, housing or services,is well advertised, university within its geographic
the Emergency Solutions Grants and includes a comprehensive and boundaries,then HUD would not expect
program interim rule.The interim rule standardized assessment tool.This the Continuum to have representation
sought public comment on this definition establishes basic minimum from a university within the
definition,and additional public requirements for the Continuum's Continuum.
comment is not being sought through centralized or coordinated assessment These organizations carry out the
this rule. system. responsibilities and duties established
HUD received valuable public Collaborative applicant is defined to under Subpart B of this interim rule.
comment on the definition of mean an eligible applicant that has been The Continuum of Care,as noted above,
"chronically homeless,"through the designated by the Continuum of Care to carries out the statutory duties and
public comment process on the apply for a grant for Continuum of Care responsibilities of a collaborative
Emergency Solutions Grants program planning funds on behalf of the applicant.HUD established the
interim rule.Based on public comment, Continuum.As discussed above,the Continuum of Care in 1995.Local
this rule for the Continuum of Care "applicant"is the entity(ies) designated grantees and stakeholders are familiar
program is not adopting the full to apply for and carry out projects on the Continuum of Care as the
with definition of"chronically homeless" behalf of the Continuum.In contrast to coordinating Continuum for homeless services
that was included in the conforming the definition of"applicant"above,the g y
amendments to the Consolidated Plan collaborative applicant applies for a and homelessness prevention activities
that were published as a part of the grant to carry out the planning activities across the geographic area.
Emergency Solutions Grants program on behalf of the Continuum of Care.The Consequently,HUD is maintaining the
rule.Commenters raised concerns with interim rule simplifies the statutory Continuum of Care terminology,and the
the meaning of the phrase"where each language in order to make the rule provides for the duties and
homeless occasion was at least 15 Continuum of Care planning process responsibilities of a collaborative
days."The concerns raised about this clear. applicant to be carried out under the
phrase,used for the first time in a HUD highlights that its definition of name Continuum of Care.
definition of"chronically homeless," collaborative applicant does not track High-performing community is
has caused HUD to reconsider the statutory definition,which is found defined to mean the geographic area
proceeding to apply a definition that in section 401 of the McKinney-Vento under the jurisdiction of a Continuum of
includes this phrase,without further Act.As will be discussed in further Care that has been designated as a high-
consideration and opportunity for detail later in this preamble,the concept performing community by HUD. Section
comment. In this rule,HUD therefore of collaborative applicant,its duties and 424 of the McKinney-Vento Act
amends the definition of"chronically functions,as provided in the statute,is provides that HUD shall designate,on
homeless"in the Consolidated Plan provided for in this rule.However,HUD an annual basis,which collaborative
regulations to strike this phrase.The uses the term Continuum of Care to refer applicants represent high-performing
removal of this phrase returns the to the organizations that carry out the communities. Consistent with HUD's
definition to one with which service duties and responsibilities assigned to substitution of the term"Continuum of
providers are familiar.The following the collaborative applicant,with the Care"for"collaborative applicant,"the
highlights key definitions used in the exception of applying to HUD for grant definition of"high-performing
Continuum of Care program regulations, funds.The clarification is necessary in community"in this interim rule
and HUD solicits comment on these this rule because Continuums of Care provides for designation of Continuums
definitions. are not required to be legal entities,but of Care that represent geographic areas
Applicant is defined to mean an HUD can enter into contractual designated as high-performing
entity that has been designated by the agreements with legal entities only. communities.The standards for
Continuum of Care as eligible to apply Continuum of Care and Continuum becoming a high-performing community
for assistance on behalf of that are defined to mean the group that is can be found in§578.65 of this interim
45426 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
rule and will be discussed later in this Specific request for comment.HUD fewer persons,and provide low-demand
preamble. specifically requests comment on services and referrals for the residents.
Private nonprofit organization is requiring a lease for a term of at least Subrecipient is defined to mean a
based on the statutory definition for one year to be considered permanent private nonprofit organization, State or
"private nonprofit organization."The housing. local government,or instrumentality of
term"private nonprofit organization"is Project is consistent with the statutory a State or local government that receives
defined in section 424 of the McKinney- definition of"project"in section 401 of a subgrant from the recipient to operate
Vento Act as follows: "The term'private. the McKinney-Vento Act,but does not a project.The definition of
nonprofit organization'means an track the statutory language.Section 401 "subrecipient"is consistent with the
organization: `(A)No part of the net defines"project"as,with respect to definition of"project sponsor"found in
earnings of which inures to the benefit activities carried out under subtitle C, section 401 of the McKinney-Vento Act,
of any member,founder,contributor,or eligible activities described in section but does not track the statutory
individual; (B)that has a voluntary 423(a),undertaken pursuant to a language.To be consistent with the
board;(C)that has an accounting specific endeavor,such as serving a Emergency Solutions Grants program
system,or has designated a fiscal agent particular population or providing a regulation,and also to ensure that the
in accordance with requirements particular resource.In HUD's definition relationship between the recipient and
established by the Secretary;and(D) of"project"in this interim rule,the subrecipient is clear,HUD is using the
that practices nondiscrimination in the eligible activities described in section term subrecipient,instead of project
provision of assistance."'In HUD's 423(a)of the McKinney-Vento Act have sponsor,throughout this regulation.
regulatory definition of"private been identified.In the regulatory text, Transitional housing is based on the
nonprofit organization,"HUD clarifies HUD has clarified that it is a group of definition of"transitional housing"in
that the organization's accounting one or more of these eligible costs that section 401 of the McKinney-Vento Act,
system must be functioning and are identified as a project in an as follows: "The term'transitional
operated in accordance with generally application to HUD for Continuum of housing'means housing,the purpose of
accepted accounting principles.HUD Care funds. which is to facilitate the movement of
has included this language to make Recipient is defined to mean an individuals and families experiencing
certain that accounting systems are applicant that signs a grant agreement homelessness to permanent housing
workable and abide by definite,accurate with HUD.HUD's definition of within 24 months or such longer period
standards. As reflected in the statutory "recipient"is consistent with the as the Secretary determines necessary."
definition of"private nonprofit statutory definition of"recipient,"but The definition has been expanded to
organization,"HUD may establish does not track the statutory language. distinguish this type of housing from
requirements for the d of a Section 424 of the McKinney-Vento Act emergency shelter.This distinction is
fiscal
requirements
HUD has designation
gnatio determined that defines"recipient"as"an eligible entity necessitated by the McKinney-Vento
the fiscal agent,such as a Unified who—(A)submits an application for a Act's explicit distinction between what
Funding Agency, a such
that is also grant under section 422 that is approved activities can or cannot be funded under
Fun in Agency, term
of the McKinney- by the Secretary;(B)receives the grant the Continuum of Care program.The
defined
Vento Act,must maintain a functioning directly from the Secretary to support regulatory definition clarifies that,to be
accounting system for the organization functioning approved projects described in the transitional housing,program
accounting accordance with for the oy accepted application;and(C)(i)serves as a project participants must have signed a lease or
accounting principles. sponsor for the projects; or(ii) awards occupancy agreement that is for a term
the funds to project sponsors to carry of at least one month and that ends in
Permanent housing is consistent with out the projects."All of the activities 24 months and cannot be extended.
the statutory definition of"permanent specified by the statutory definition are Unified Funding Agency(UFA)means
housing"in section 401 of the in the rule: (A)and(B)are contained in an eligible applicant selected by the
McKinney-Vento Act,but does not track the definition and(C)is covered in the Continuum of Care to apply for a grant
the statutory language. HUD's regulatory sections of the rule dealing with what a for the entire Continuum,which has the
definition of"permanent housing" recipient can do with grant funds. capacity to carry out the duties
states: "The term 'permanent housing' Safe haven is based on the definition delegated to a UFA in this rule,which
means community-based housing of safe haven in the McKinney-Vento is approved by HUD and to which HUD
without a designated length of stay,and Act prior to amendment by the awards a grant. HUD's regulatory
includes both permanent supportive HEARTH Act.Although no longer used definition of UFA departs slightly from
housing and rapid re-housing." in statute,HUD's position is that the the statutory definition.The statutory
Additionally,in the regulatory term remains relevant for definition refers to the collaborative
definition of"permanent housing," implementation of the Continuum of applicant.The differences between the
HUD clarifies that to be permanent Care program and,therefore,HUD statutory definition and HUD's
housing,"the program participant must proposes to include the term in the regulatory definition reflect HUD's
be the tenant on a lease for a term of at Continuum of Care program regulations. substitution of Continuum of Care for
least one year that is renewable and is The term"safe haven"is used for collaborative applicant.
terminable only for cause.The lease purposes of determining whether a
must be renewable for terms that are a person is chronically homeless.The Establishing and Operating the
minimum of one month long.HUD has housing must serve hard-to-reach Continuum of Care(Subpart B)
determined that requiring a lease for a homeless persons with severe mental In general.The statutory authority for
term of at least one year that is illness who came from the streets and the Continuum of Care program is
renewable and terminable only for have been unwilling or unable to section 422 of the McKinney-Vento Act.
cause,assists program participants in participate in supportive services.In As stated under section 1002 of the
obtaining stability in housing,even addition,the housing must provide HEARTH Act,one of the main purposes
when the rental assistance is temporary. 24-hour residence for eligible persons of the HEARTH Act is to codify the
These requirements are consistent with for an unspecified period,have an Continuum of Care planning process.
Section 8 requirements. overnight capacity limited to 25 or Consequently,under this interim rule,
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45427
HUD focuses on the rules and Continuum.HUD requires two inclusive and fair. HUD has established
responsibilities of those involved in the characteristics for all board eight duties required of the Continuum
Continuum of Care planning process compositions.These characteristics are necessary to effectively operate the
and describes how applications and that the Board must be representative of Continuum of Care.HUD has
grant funds will be processed. the subpopulations of homeless persons established the specific minimum
As discussed earlier in the preamble, that exist within the geographic area, standards for operating and managing a
HUD's interim rule provides for the and include a homeless or formerly Continuum of Care for two main
duties and functions of the collaborative homeless person. Continuums will have reasons. First,the selection criteria
applicant found in section 401 of the 2 years from the effective date of the established under section 427 of the
McKinney-Vento Act to be designated to interim rule to establish a board that McKinney-Vento Act require HUD to
the Continuum of Care,with the meets the criteria established in this measure the Continuum of Care's
exception of applying to HUD for grant section.No board member may performance in reducing homelessness
funds.HUD chose this approach participate or influence discussions or by looking at the overall performance of
because the Continuum might not be a decisions concerning the award of a the Continuum,as opposed to
legal entity,and therefore cannot enter grant or other financial benefits for an measuring performance project-by-
into enforceable contractual agreements, organization that the member project as was done prior to the
but is the appropriate body for represents. enactment of the HEARTH Act. This
establishing and implementing HUD is considering four additional Continuum of Care performance
decisions that affect the entire characteristics for all board approach results in cooperation and
geographic area covered by the compositions for incorporation in the coordination among providers. Second,
Continuum,including decisions related final rule.HUD did not implement them because Continuums of Care will have
to funding.This approach allows the at this stage in order to seek public grants of up to 3 percent of Final Pro
Continuum to retain its duties related to comment prior to implementing them as Rata Need(FPRN)to be used for eligible
planning and prioritizing need requirements.HUD proposes that all Continuum of Care planning costs,HUD
(otherwise designated by statute to the boards must have a chair or co-chairs; is requiring more formal decision-
collaborative applicant),while the be composed of an uneven number, making and operating standards for the
authority to sign a grant agreement with serving staggered terms;include Continuum of Care.This requirement
HUD is designated to an eligible members from the public and private ensures that the Continuums have
applicant that can enter into a sectors;and include a member from at appropriate funding to support planning
contractual agreement.All of the duties least one Emergency Solutions Grants costs.
assigned to the Continuum are based on program(ESG)recipient's agency One of the duties established in this
the comparable duties of section 402(f) located within the Continuum's interim rule is the requirement that the
of the McKinney-Vento Act. geographic area.HUD is requesting Continuum establish and operate a
Subpart B of the interim rule comment on all of these proposed centralized or coordinated assessment
identifies how Continuums of Care are requirements;however,HUD system that provides an initial,
established, as well as the required specifically requests comments from comprehensive assessment of the needs
duties and functions of the Continuum Continuums of Care and ESG recipients of individuals and families for housing
of Care. on the requirement that the Board and services.As detailed in the
Establishing the Continuum of Care. include an ESG recipient as part of its Emergency Solutions Grants program
In order to be eligible for funds under membership.HUD invites ESG interim rule published on December 5,
the Continuum of Care program, recipients and Continuums to share 2011,through the administration of the
representatives from relevant challenges that will be encountered Rapid Re-Housing for Families
organizations within a geographic area when implementing this requirement. Demonstration program and the
must establish a Continuum of Care.As Ensuring that ESG recipients are Homelessness Prevention and Rapid Re-
discussed earlier in this preamble,this represented on the Board is important to Housing program,as well as best
body is responsible for carrying out the HUD;therefore,in communities where practices identified in communities,
duties identified in this interim ESG recipients and/or Continuums do HUD has learned that centralized or
regulation.Representatives from not feel this requirement is feasible, coordinated assessment systems are
relevant organizations include nonprofit HUD asks commenters to provide important in ensuring the success of
homeless assistance providers,victim suggestions for how ESG recipients can homeless assistance and homeless
service providers,faith-based be involved in the Continuum at one of prevention programs in communities.In
organizations,governments,businesses, the core decision-making levels. particular,such assessment systems
advocates,public housing agencies, Responsibilities of the Continuum of help communities systematically assess
school districts,social service providers, Care.The interim rule establishes three the needs of program participants and
mental health agencies,hospitals, major duties for which the Continuum effectively match each individual or
universities,affordable housing of Care is responsible:To operate the family with the most appropriate
developers,law enforcement,and Continuum of Care,to designate an resources available to address that
organizations that serve veterans and HMIS for the Continuum of Care,and to individual or family's particular needs.
homeless and formerly homeless plan for the Continuum of Care. Therefore,HUD has required,through
individuals. Where these organizations This section of the interim rule this interim rule,each Continuum of
are located within the geographic area establishes requirements within these Care to develop and implement a
served by the Continuum of Care,HUD three major duties. centralized or coordinated assessment
expects a representative of the Operating the Continuum of Care.The system for its geographic area. Such a
organization to be a part of the interim rule provides that the system must be designed locally in
Continuum of Care. Continuum of Care must abide by response to local needs and conditions.
Specific request for comment.HUD certain operational requirements. These For example,rural areas will have
specifically requests comments on requirements will ensure the effective significantly different systems than
requiring Continuums of Care to have a management of the Continuum of Care urban ones.While the common thread
board that makes the decisions for the process and ensure that the process is between typical models is the use of a
45428 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
common assessment tool,the form, violence victims; or the location of when administering assistance under
detail,and use of that tool will vary victim service providers with this part. These requirements,
from one community to the next. Some centralized assessment teams. established in consultation with
examples of centralized or coordinated HUD invites suggestions for ensuring recipients of Emergency Solutions
assessment systems include:A central that the requirements it imposes Grants program funds within the
location or locations within a regarding centralized or coordinated geographic area,are intended to
geographic area where individuals and assessment systems will best help coordinate service delivery across the
families must be present to receive communities use their resources geographic area and assist Continuums
homeless services;a 211 or other hotline effectively and best meet the needs of all of Care and their recipients in
system that screens and directly families and individuals who need evaluating the eligibility of individuals
connects callers to appropriate homeless assistance. Questions that HUD asks and families consistently and
housing/service providers in the area;a commenters to specifically address are: administering assistance fairly and
"no wrong door"approach in which a What barriers to accessing housing/ methodically.The written standards can
homeless family or individual can show services might a centralized or be found in§578.7(a)(9)of this interim.
up at any homeless service provider in coordinated intake system pose to rule.
the geographic area but is assessed using victims of domestic violence?How can Designating and operating an HMIS.
the same tool and methodology so that those barriers be eliminated?What The Continuum of Care is responsible
referrals are consistently completed specific measures should be for designating an HMIS and an eligible
across the Continuum of Care;a implemented to ensure safety and applicant to manage the HMIS,
specialized team of case workers that confidentiality for individuals and consistent with the requirements,which
provides assessment services to families who are fleeing or attempting to will be codified in 24 CFR part 580.
providers within the Continuum of flee domestic violence situations?How This duty is listed under section
Care; or in larger geographic areas, a should those additional standards be 402(f)(2) of the McKinney-Vento Act.In
regional approach in which"hubs"are implemented to ensure that victims of addition,the Continuum is responsible
created within smaller geographic areas. domestic violence have immediate for reviewing,revising,and approving a
HUD intends to develop technical access to housing and services without privacy plan,security plan,and data
assistance materials on a range of increasing the burden on those victims? quality plan for the HMIS and ensuring
centralized and coordinated assessment For communities that already have consistent participation of recipients
types,including those most appropriate centralized or coordinated assessment and subrecipients in the HMIS.
for rural areas. systems in place,are victims of Continuum of Care planning.The
HUD recognizes that imposing a domestic violence and/or domestic Continuum is responsible for
requirement for a centralized or violence service providers integrated coordinating and implementing a
coordinated assessment system may into that system?Under either scenario system for its geographic area to meet
have certain costs and risks.Among the (they are integrated into an assessment the needs of the homeless population
risks that HUD wishes specifically to process or they are not integrated into and subpopulations within the
address are the risks facing individuals it),how does your community ensure geographic area.The interim rule
and families fleeing domestic violence, the safety and confidentiality of this defines the minimum requirements for
dating violence,sexual assault,and population,as well as access to this systematic approach under
stalking.In developing the baseline homeless housing and services?What §578.7(c)(1),such as emergency
requirements for a centralized or HUD-sponsored training would be shelters,rapid rehousing,transitional
coordinated intake system,HUD is helpful to assist communities in housing,permanent supportive housing,
considering whether victim service completing the initial assessment of and prevention strategies.Because there
providers should be exempt from victims of domestic violence in a safe are not sufficient resources available
participating in a local centralized or and confidential manner? through the Continuum of Care program
coordinated assessment process,or In addition to comments addressing to prevent and end homelessness,
whether victim service providers should the needs of victims of domestic coordination and integration of other
have the option to participate or not. violence,dating violence,sexual funding streams,including the
Specific request for comment.HUD assault, and stalking,HUD invites Emergency Solutions Grants program
specifically seeks comment from general comments on the use of a and mainstream resources,is integral to
Continuum of Care-funded victim centralized or coordinated assessment carrying out the Continuum of Care
service providers on this question.As system,particularly from those in System.
set forth in this interim rule,each communities that have already HUD has determined that since the
Continuum of Care is to develop a implemented one of these systems who Continuum of Care will be the larger
specific policy on how its particular can share both what has worked well planning organization,the Continuum
system will address the needs of and how these systems could be of Care must develop and follow a
individuals and families who are improved.HUD specifically seeks Continuum of Care plan that adheres,
fleeing, or attempting to flee,domestic comment on any additional risks that a not only to the requirements being
violence, dating violence,sexual centralized or coordinated assessment established by this interim rule,but to
assault,or stalking,but who are seeking system may create for victims of the requirements and directions of the
shelter or services from non-victim domestic violence,dating violence, most recently issued notice of funding
service providers.These policies could sexual assault,or stalking who are availability(NOFA).
include reserving private areas at an seeking emergency shelter services due While these planning duties are not
assessment location for evaluations of to immediate danger,regardless of explicitly provided in section 402(f)of
individuals or families who are fleeing, whether they are seeking services the Act,HUD has included them to
or attempting to flee,domestic violence, through a victim service provider or facilitate and clarify the Continuum of
dating violence,sexual assault, or nonvictim service provider. Care planning process.Consistent with
stalking;a separate"track"within the Another duty set forth in this part,is the goals of the HEARTH Act,HUD
assessment framework that is the requirement to establish and strives,through this interim rule,to
specifically designed for domestic consistently follow written standards provide a comprehensive,well-
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45429
coordinated and clear planning process, designated for funding.The applicant. For-profit entities are not
which involves the creation of the collaborative applicant will always be eligible to apply for grants or to be
Continuum of Care and the duties the the only applicant that can apply for subrecipients of grant funds.
Continuum of Care will have to fulfill. Continuum of Care planning costs. In Section 401(10)of the McKinney-
Other planning duties for Continuums the case that there is one application for Vento Act identifies that collaborative
established in this section of the interim projects,the recipient of the funds is applicants may be legal entities,and a
rule are planning for and conducting at required to have signed agreements with legal entity may include a consortium of
least a biennial-point-in-time count of its subrecipients as set forth in instrumentalities of a State or local
homeless persons within the geographic §578.23(c),and is required to monitor government that has constituted itself as
area,conducting an annual gaps and sanction subrecipients in an entity.HUD has not included a
analysis of the homeless needs and compliance with§578.107. consortium in the list of eligible
services available within the geographic Whether the Continuum of Care applicants.As noted earlier in this
area,providing information necessary to submits the application or designates an preamble,a Continuum of Care is
complete the Consolidated Plan(s) eligible applicant to submit the defined to mean a group that is
within the geographic area,and application for funding,the Continuum composed of representatives of
consulting with State and local of Care retains all of its duties. organizations across the entire
government Emergency Solutions Unified Funding Agencies.To be geographic area claimed by the
Grants program recipients within the designated as the Unified Funding Continuum of Care.A Continuum is
Continuum of Care on the plan for Agency(UFA)for the Continuum of able to combine more than one
allocating Emergency Solutions Grants Care,the Continuum must select the metropolitan city or county into the
program funds and reporting on and collaborative applicant to apply to HUD geographic area that the Continuum
evaluating the performance of to be designated as the UFA for the represents.In essence,the Continuum of
Emergency Solutions Grants program Continuum.The interim rule establishes Care acts as a consortium,and it is
recipients and subrecipients. the criteria HUD will use when therefore HUD's position that the
Preparing an application for funds.A determining whether to designate the inclusion of consortiums in the interim
major function of the Continuum of Care collaborative applicant as a UFA.These rule would be redundant.
is preparing and overseeing an standards were developed to ensure that Determining the Continuum's
application for funds under this part. collaborative applicants have the maximum award amount.The total
This section of the interim rule capacity to manage the grant and carry amount for which a Continuum of Care
establishes the duties of the Continuum out the duties in 578.11(b),and are is eligible to apply and be awarded is
of Care related to the preparation of the described below. determined through a four-step process,
application.This section of the interim The duties of the UFA established in including the following factors:A
rule establishes that the Continuum is §578.11 are consistent with the duties Continuum's PPRN amount;renewal
responsible for designing, operating, set forth in section 402(g)of the Act. demand;any additional increases in
and following a collaborative process for Even if the Continuum designates a amounts for leasing,rental assistance,
the development of applications,as well UFA to submit the application for and operating costs based on Fair
as approving the submission of funding,the Continuum of Care retains Market Rents(FMRs);planning and
applications,in response to a NOFA all of its duties. UFA cost funds;and the amounts
published by HUD. Remedial actions.Section 402(c) of available for bonus dollars.
The Continuum must also establish the McKinney-Vento Act gives HUD the Using the formula that will be
priorities for funding projects within the authority to ensure the fair distribution discussed below,HUD will first
geographic area and determine the of grant amounts for this program,such determine a Continuum of Care's PPRN
number of applications being submitted as designating another body as a amount,as authorized under section
for funding.As previously noted in this collaborative applicant,replacing the 427(b)(2)(B)of the McKinney-Vento Act.
preamble,since the Continuum of Care Continuum of Care for the geographic This amount is the sum of the PPRN
might not be a legal entity,and therefore area,or permitting other eligible entities amounts for each metropolitan city,
may not be able to enter into a to apply directly for grants. Section urban county,non-urban county,and
contractual agreement with HUD,the 578.13 of this interim rule addresses the insular area claimed by the Continuum
Continuum must select one or more remedial actions that may be taken. of Care as part of its geographic area,
eligible applicants to submit an excluding any counties applying for,or
Overview of the Application and Grant receiving
under the Rural
application for funding to HUD on its g
Award Process(Subpart C) Housing Stability Assistance program,
behalf.If the Continuum of Care is an g y p
eligible applicant,the Continuum of Eligible applicants.Under this interim the regulations for which will be
Care may submit an application. If the rule, eligible applicants consist of established in 24 CFR part 579.The
Continuum selects more than one nonprofit organizations,State and local PPRN for each of these areas is based
application,the Continuum must select governments,and instrumentalities of upon the"need formula"under
one eligible applicant to be the local governments.An eligible applicant §579.17(a)(2)and(3).Under the
collaborative applicant.That applicant must have been designated by the McKinney-Vento Act,HUD is required
will collect and combine the required Continuum of Care to submit an to publish,by regulation,the formula
application information from all of the application for grant funds under this used to establish grant amounts.The
other eligible applicants and for all part.The Continuum's designation must need formula under§579.17(a)(2)and
projects within the geographic area that state whether the Continuum is (3)satisfies this requirement,and HUD
the Continuum has designated.If only designating more than one applicant to specifically seeks comment on this
one application is submitted by the apply for funds,and if it is,which formula.HUD will announce the PPRN
collaborative applicant,the applicant is being designated the amounts prior to the publication of the
collaborative applicant will collect and collaborative applicant.A Continuum of NOFA on its Web site.
combine the required application Care that is designating only one To establish the amount on which the
information from all projects within the applicant for funds must designate that need formula is run,HUD will deduct
geographic area that the Continuum has applicant to be the collaborative an amount,which will be published in
45430 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
the NOFA,to be set aside to provide a items based on changes to the FMRs in the NOFA and award funds to recipients
bonus, and the amount necessary to the,geographic area. through a national competition based on
fund Continuum of Care planning Third,HUD will determine the selection criteria as defined in section
activities and UFA costs from the total Continuum of Care's Final Pro Rata 427 of the McKinney-Vento Act.HUD
funds made available for the program Need(FPRN),which is the higher of: will announce the awards and notify
each fiscal year. On this amount,HUD (1)PPRN,or(2)renewal demand for the selected applicants of any conditions
will use the following process to Continuum of Care.The FPRN imposed on the awards.
establish an area's PPRN.First,2 establishes the base for the maximum Grant agreements.A recipient of a
percent of the total funds available shall award amount for the Continuum of conditionally awarded grant must
be allocated among the four insular Care. satisfy all requirements for obligation of
areas(American Samoa,Guam,the Fourth,HUD will determine the funds;otherwise,HUD will withdraw
Commonwealth of the Northern maximum award amount.The its offer of the award. These conditions
Marianas,and the Virgin Islands)based maximum award amount for the include establishing site control,
upon the percentage each area received Continuum of Care is the FPRN amount providing proof of match,complying
in the previous fiscal year under section plus any additional eligible amounts for with environmental review under
106 of the Housing and Community Continuum planning; establishing fiscal §578.31,and documenting financial
Development Act of 1974.Second,75 controls for the Continuum;updates to feasibility within the deadlines under
percent of the remaining funds made leasing,operating,and rental assistance §578.21(a)(3).HUD has included in the
available shall be allocated to line items based on changes to FMR; interim rule the deadlines for conditions
metropolitan cities and urban counties and the availability of any bonus that may be extended and the reasons
that have been funded under the funding during the competition. for which HUD will consider an
Emergency Solutions Grants program Application process.Each fiscal year, extension.
(formerly known as the Emergency HUD will issue a NOFA.All The interim rule requires that site
Shelter Grants program)every year since applications,including applications for control be established by each recipient
2004.Third,the remaining funds made grant funds,and requests for receiving funds for acquisition,
available shall be allocated to designation as a UFA or HPC,must be rehabilitation funding,new
Community Development Block Grant submitted to HUD in accordance with construction,or operating costs,or for
(CDBG)metropolitan cities and urban the requirements of the NOFA and providing supportive services.HUD has
counties that have not been funded contain such information as the NOFA determined that the time to establish
under the Emergency Solutions Grants specifies.Applications may request up site control is 12 months for projects not
program every year since 2004 and all to the maximum award amount for receiving new construction,acquisition,
other counties in the United States and Continuums of Care. or rehabilitation funding, as stated
Puerto Rico. An applicant that is a State or a unit under section 426(a)of the McKinney-
Recognizing that in some federal of general local government must have Vento Act,not 9 months as stated under
fiscal years,the amount available for the a HUD-approved,consolidated plan in section 422(d) of the McKinney-Vento
formula may be less than the amount accordance with HUD's Consolidated Act,for projects receiving operating and
required to renew all existing projects Plan regulations in 24 CFR part 91.The supportive service funds. HUD's
eligible for renewal in that year for at applicant must submit a certification determination on the time needed to
least one year,HUD has included a that the application for funding is establish site control is based on
method for distributing the reduction of consistent with the HUD-approved previous program policy,and the longer
funds proportionally across all consolidated plan(s)in the project's time frame takes into consideration the
Continuums of Care in§578.17(a)(4) of jurisdiction's).Applicants that are not reality of the housing market.Projects
this interim rule. HUD will publish the States or units of general local receiving acquisition,rehabilitation,or
total dollar amount that each government must submit a certification new construction funding must provide
Continuum will be required to deduct that the application for funding is evidence of site control no later than 24
from renewal projects Continuum-wide, consistent with the jurisdiction's HUD- months after the announcement of grant
and Continuums will have the authority approved consolidated plan.The awards,as provided under section
to determine how to administer the cuts certification must be made by the unit 422(d)of the McKinney-Vento Act.
to projects across the Continuum. of general local government or the State, The interim rule requires that HUD
Specific request for comment.HUD in accordance with HUD's regulations in perform an environmental review for
specifically requests comment on the 24 CFR part 91,subpart F.The required each property as required under HUD's
method established in§578.17(a)(4)to certification must be submitted by the environmental regulations in 24 CFR
reduce the total amount required to funding application submission part 50.All recipients of Continuum of
renew all projects eligible for renewal in deadline announced in the NOFA. Care program funding under this part
that one year,for at least one year,for An applicant may provide assistance must supply all available,relevant
each Continuum of Care when funding under this program only in accordance information necessary to HUD,and
is not sufficient to renew all projects with HUD subsidy layering carry out mitigating measures required
nationwide for at least one year. requirements in section 102 of the by HUD.The recipient,its project
The second step in determining a Housing and Urban Development partners, and its project partner's
Continuum's maximum award amount Reform Act of 1989(42 U.S.C. 3545).In contractors may not perform any eligible
is establishing a Continuum of Care's this interim rule,HUD clarifies that the activity for a project under this part,or
"renewal demand."The Continuum's applicant must submit information in its commit or expend HUD or local funds
renewal demand is the sum of the application on other sources of funding for such activities until HUD has
annual renewal amounts of all projects the applicant has received,or performed an environmental review and
eligible within the Continuum of Care's reasonably expects to receive,for a the recipient has received HUD
geographic area to apply for renewal in proposed project or activities. approval of the property agreements.
that federal fiscal year's competition Awarding funds.HUD will review Executing grant agreements.If a
before any adjustments to rental applications in accordance with the Continuum designates more than one
assistance,leasing,and operating line guidelines and procedures specified in applicant for the geographic area,HUD
•
Federal Register/Vol. 77, No. 447;1 Tuesday, July 31, 2012/Rules and Regulations 45431
will enter into a grant agreement with would not be eligible under the Continuum of Care in the interim rule
each designated recipient for which an Continuum of Care program.For where the statute uses collaborative
award is announced.If a Continuum projects that would no longer be eligible applicant,as explained earlier in the
designates only one recipient for the under the Continuum of Care program preamble,the interim rule stipulates
geographic area,HUD may enter into (e.g.,safe havens),but which are serving that if more than one Continuum of Care
one grant agreement with that recipient homeless persons;HUD wants to ensure claims the same geographic area,then
for new awards, if any;and one grant that housing is maintained and that HUD will award funds to the
agreement for renewals and Continuum persons do not become homeless Continuum applicant(s)whose
of Care planning costs and UFA costs, because funding is withdrawn. application(s)has the highest total score
if any. These two grant agreements will HUD may renew projects that were and that no projects from the lower
cover the entire geographic area, and a submitted on time and in such manner scoring Continuum of Care will be
default by the recipient under one of as required by HUD,but did not have funded(and that any projects submitted
these agreements will also constitute a a total score that would allow the with both applications will not be
default under the other.If the project to be competitively funded.HUD funded).To appeal HUD's decision to
Continuum is a UFA,HUD will enter may choose to exercise this option to fund the competing Continuum of Care,
into one grant agreement with the UFA ensure that homeless or formerly the applicant(s)from the lower-scoring
for new awards,if any;and one for homeless persons do not lose their Continuum of Care must file the written
renewal and Continuum of Care housing.The interim rule provides, appeal in such form and manner as
planning costs and UFA costs,if any. based on the language in section 421(e) HUD may require within 45 days of the
Similarly,these two grant agreements of the McKinney-Vento Act,that HUD date of HUD's announcement of award.
will cover the entire geographic area may renew the project,upon a finding If an applicant has had a certification
and a default by the recipient under one that the project meets the purposes of of consistency with a consolidated plan
of those agreements will also constitute the Continuum of Care program,for up withheld,that applicant may appeal
a default under the other. to one year and under such conditions such a decision to HUD.HUD has
HUD requires the recipient to enter as HUD deems appropriate. established a procedure to process the
into the agreement described in Annual Performance Report.The appeals and no later than 45 days after
§578.23(c).Under this agreement,the interim rule also provides that HUD the date of receipt of an appeal,HUD
grant recipient must agree to ensure that may terminate the renewal of any grant will make a decision.
the operation of the project will be in and require the recipient to repay the Section 422(h)of the McKinney-Vento
accordance with the McKinney-Veto Act renewal grant if the recipient fails to Act provides the authority for a solo
and the requirements under this part.In submit a HUD Annual Performance applicant to submit an application to
addition,the recipient must monitor Report(APR)within 90 days of the end HUD and be awarded a grant by HUD
and report the progress of the projects of the program year or if the recipient if it meets the criteria under section 427
to the Continuum of Care and to HUD. submits an APR that HUD deems of the McKinney-Vento Act.The interim
The recipient must ensure that unacceptable or shows noncompliance rule clarifies that a solo applicant must
individuals and families experiencing with the requirements of the grant and submit its application to HUD by the
homelessness are involved in the this part. Section 578.103(e)of the deadline established in the NOFA to be
operation of the project,maintain Continuum of Care program regulations considered for funding.The statute also
confidentiality of program participants, further clarifies that recipients receiving requires that HUD establish an appeal
and monitor and report matching funds grant funds for acquisition, process for organizations that attempted
to HUD,among other requirements.The rehabilitation,or new construction are to participate in the Continuum of
recipient must also agree to use the expected to submit APRs for 15 years Care's process and believe they were
centralized or coordinated assessment from the date of initial occupancy or the denied the right to reasonable
system established by the Continuum of date of initial service provision,unless participation,as reviewed in the context
Care,unless the recipient or HUD provides an exception. The of the local Continuum's process.An
subrecipient is a victim service recipient's submission of the APR helps organization may submit a solo
provider.Victim service providers may HUD review whether the recipient is application to HUD and appeal the
choose not to use the centralized or carrying out the project in the manner Continuum's decision not to include it
coordinated assessment system proposed in the application.Recipients in the Continuum's application.If HUD
provided that all victim service agree to submit an APR as a condition finds that the solo applicant was not
providers in the area use a centralized of their grant agreement.This permitted to participate in the
or coordinated assessment system that requirement allows HUD to ensure that Continuum of Care process in a
meets HUD's minimum requirements. recipients submit APRs on grant reasonable manner,then HUD may
HUD has provided this optional agreements that have expired as a award the grant to that solo applicant
exception because it understands the condition of receiving approval for a and may direct the Continuum to take
unique role that victim service new grant agreement for the renewal remedial steps to ensure reasonable
providers have within the Continuum of project. participation in the future.HUD may
Care. Appeals.The interim rule provides also reduce the award to the
Renewals.The interim rule provides certain appeal options for applicants Continuum's applicant(s).
that HUD may fund,through the that were not awarded funding. Section 422(h)(1) of the McKinney-
Continuum of Care program,all projects Under section 422(g) of the Vento Act requires that"HUD establish
that were previously eligible under the McKinney-Vento Act,if more than one a timely appeal procedure for grant
McKinney-Vento Act prior to the collaborative applicant submits an amounts awarded or denied under this
enactment of the HEARTH Act.These application covering the same subtitle to a collaborative application."
projects may be renewed to continue geographic area,HUD must award funds The interim rule sets an appeal process
ongoing leasing,operations,supportive to the application that scores the highest for denied or decreased funding under
services,rental assistance,HMIS,and score based on the selection criteria set §578.35(c).Applicants that are denied
administration beyond the initial forth in section 427 of the Act. funds by HUD,or that requested more
funding period even if those projects Consistent with HUD's use of the term funds than HUD awarded,may appeal
45432 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
by filing a written appeal within 45 days determined that programs should homelessness prevention component by
of the date of HUD's announcement of require at least case management for recipients in Continuums of Care that
the award.HUD will notify applicant of some initial period after exiting have been designated HPCs by HUD.
its decision on the appeal within 60 homelessness. HUD has imposed the Eligible activities are housing relocation
days of the date of HUD's receipt of the requirement that rapid rehousing and stabilization services,and short-
written appeal. include,at a minimum,monthly case and/or medium-term rental assistance,
Program Components and Eligible Costs management meetings with program as set forth in 24 CFR 576.103,
(Subpart DJ participants (except where prohibited necessary to prevent an individual or
by the Violence Against Women Act family from becoming homeless.
Program components.The interim (VAWA)and the Family Violence Planning activities.Under this interim
rule provides that Continuum of Care Prevention and Services Act(FVPSA)) rule,HUD lists eligible planning costs
funds may be used for projects under and allows for a full range of supportive for the Continuum of Care under
five program components:Permanent services to be provided for up to 6 §578.39(b)and(c).HUD will allow no
housing,transitional housing, months after the rental assistance stops. more than 3 percent of the FPRN,or a
supportive services only,HMIS,and,in Many other HUD programs,such as maximum amount to be established by
some cases,homelessness prevention. Section 8 and HOME,provide housing the NOFA,to be used for certain costs.
Administrative costs are eligible under without supportive services to low- These costs must be related to designing
all components.Where possible,the income individuals and families. a collaborative process for an
components set forth in the Continuum With respect to rapid rehousing,the application to HUD,evaluating the
of Care program are consistent with the interim rule provides that funds under outcomes of funded projects under the
components set forth under the this part may be used to provide Continuum of Care and Emergency
Emergency Solutions Grants program. supportive services and short-term Solutions Grants programs,and
This will ease the administrative burden and/or medium-term rental assistance. participating in the consolidated plan(s)
on recipients of both programs and will While the time frames under which a for the geographic area(s). Under section
ensure that reporting requirements and program participant may receive short- 423 of the McKinney-Vento Act,a
data quality benchmarks are term or medium-term rental assistance collaborative applicant may use no more
consistently established and applied to set forth in this part match the time than 3 percent of total funds made
like projects. One significant distinction frames set forth in the Emergency available to pay for administrative costs
between the Emergency Solutions Solutions Grants program,the related to Continuum of Care planning.
Grants program and this part can be supportive services available to program HUD is defining"of the total funds
found in the eligible activities and participants receiving rapid rehousing made available"to mean FPRN,the
administration requirements for assistance under the Continuum of Care higher of PPRN or renewal demand,in
assistance provided under the rapid program are not limited to housing the interim rule.HUD has determined
rehousing component in this interim relocation and stabilization services as that FPRN strikes the correct balance,as
rule.The significant differences they are in the Emergency Solutions it is the higher of PPRN or renewal
between this component in the Grants program.Program participants demand.This will help Continuums of
Emergency Solutions Grants program receiving rapid rehousing under this Care(CoC)balance: (1)Having sufficient
and this part are discussed below. part may receive any of the supportive planning dollars to be successful in its
The interim rule sets forth the costs services set forth in§578.53 during duties and compete for new money
eligible for each program component in their participation in the program.The (which would be the PPRN),and(2)
§578.37(a).The eligible costs for Continuum of Care,however,does have being able to monitor and evaluate
contributing data to the HMIS the discretion to develop written actual projects in operation(and plan
designated by the Continuum of Care policies and procedures that limit the for renewal demand).The
are also eligible under all components. services available to program administrative funds related to CoC
Consistent with the definition of participants that better align the services planning made available will be added
permanent housing in section 401 of the available to program participants with to a CoC's FPRN to establish the CoCs
McKinney-Vento Act and§578.3 of this those set forth in the Emergency maximum award amount.
interim rule,the permanent housing Solutions Grants program. Unified Funding Agency Costs.Under
component is community-based housing Specific request for comment.While this interim rule,HUD lists eligible UFA
without a designated length of stay that HUD's experience with the Supportive costs in§578.41(b)and(c). Similar to
permits formerly homeless individuals Housing and Shelter Plus Care programs the cap on planning costs for CoC,HUD
and families to live as independently as is the basis for HUD's determination to will allow no more than 3 percent of the
possible.The interim rule clarifies that require case management for some FPRN,or a maximum amount to be
Continuum of Care funds maybe spent initial period after exiting homelessness, established by the NOFA,whichever is
on two types of permanent housing: HUD specifically welcomes comment on less,to be used for UFA costs.This
Permanent supportive housing for other experiences with monthly case amount is in addition to the amount
persons with disabilities(PSH) and management. made available for CoC planning costs.
rapid rehousing that provides temporary The interim rule provides that the UFA costs include costs associated with
assistance(i.e.,rental assistance and/or HMIS component is for funds that are ensuring that all financial transactions
supportive services)to program used by HMIS Leads only.Eligible costs carried out under the Continuum of
participants in a unit that the program include leasing a structure in which the Care program are conducted and records
participant retains after the assistance HMIS is operated,operating funds to maintained in accordance with
ends. operate a structure in which the HMIS generally accepted accounting
Although the McKinney-Vento Act is operated,and HMIS costs related to principles,including arranging for an
authorizes permanent housing without establishing,operating,and customizing annual survey,audit,or evaluation of
supportive services,the interim rule a Continuum of Care's HMIS. the financial records of each project
does not.Based on its experience with As set forth in Section 424(c)of the carried out by a subrecipient funded by
the Supportive Housing and Shelter McKinney-Veto Act,Continuum of Care a grant received through the Continuum
Plus Care programs,HUD has funds may be used only for the of Care program.The funds made
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45433
available to UFAs related to establishing section provides that rental assistance family member of the perpetrator of the
fiscal controls will be added to a CoC's may include tenant-based,project- violence.HUD requires that the program
FPRN to establish the CoC maximum based,or sponsor-based rental participant provide appropriate
award amount. assistance.This section also provides documentation of the original incident
Leasing. Under this interim rule,grant that project-based rental assistance may of domestic violence,dating violence,
funds may be used to pay the costs of include rental assistance to preserve sexual assault,or stalking,and any
leasing a structure or structures,or existing permanent supportive housing evidence of the current imminent threat
portions of structures,to provide for homeless individuals and families. of harm.Examples of appropriate
housing or supportive services. The Given that the availability of affordable documentation of the original incident
interim rule further clarifies that leasing rental housing has been shown to be a of domestic violence,dating violence,
means that the lease is between the key factor in reducing homelessness,the sexual assault,or stalking include
recipient of funds and the landlord. availability of funding for short-term, written observation by the housing or
HUD recognizes that some grantees medium-term,and long-term rental service provider;a letter or other
receiving funds through the Supportive assistance under both the Emergency documentation from a victim service
Housing Program may have been using Solutions Grants program and the provider,social worker,legal assistance
their leasing funds in a manner Continuum of Care program is not provider,pastoral counselor, mental
consistent with the rental assistance inefficient use of program funds,but health provider,or other professional
requirements established in§578.51; rather effective use of funding for an from whom the victim has sought
therefore,since the Continuum of Care activity that lowers the number of assistance;or medical or dental,court,
program authorizes both leasing and homeless persons. or law enforcement records.
rental assistance,the rule provides for As noted in the above discussion of Documentation of reasonable belief of
an allowance for projects originally rental housing available for funding further domestic violence,dating
approved to carry out leasing to renew under the Continuum of Care program, violence,sexual assault,or stalking
and request funds for rental assistance, one eligible form of rental assistance is includes written observation by the
so long as the rental assistance meets tenant-based,which allows the program housing or service provider;a letter or
the requirements in§578.51.The rule participant to retain rental assistance for other written documentation from a
provides that a recipient of a grant another unit.The interim rule limits victim service provider,social worker,
awarded under the McKinney-Vento this retention to within the Continuum legal assistance provider,pastoral
Act,prior to enactment of the HEARTH of Care boundaries.HUD has counselor,mental health provider,or
Act,must apply for leasing if the lease determined that Continuum of Care other professional from whom the
is between the recipient and the program funds must be used within the victim has requested assistance;a
landlord,notwithstanding that the grant Continuum's geographic boundaries.If current restraining order,recent court
was awarded prior to the HEARTH Act program participants move outside of order, or other court records;or law
amendments to the McKinney-Vento the Continuum,the Continuum may pay enforcement reports or records.The
Act. moving costs,security deposits,and the housing or service provider may also
The interim rule provides that leasing first month of rent for another unit; consider other documentation such as
funds may not be used to lease units or however,the Continuum would have to emails,voicemails,text messages,social
structures owned by the recipient, organize assistance with the relevant media posts,and other communication.
subrecipient,their parent Continuum of Care for the program Because of the particular safety
organization(s),any other related participant if rental assistance is to concerns surrounding victims of
organization(s), or organizations that are continue.The program participant may domestic violence,the interim rule
members of a partnership where the be transferred to a rental assistance provides that acceptable evidence for
partnership owns the structure,unless program in a different Continuum both the original violence and the
HUD authorizes an exception for good without having to become homeless reasonable belief include an oral
cause.The interim rule establishes again.The recipient may also limit the statement.This oral statement does not
minimum requirements that a request movement of the assistance to a smaller need to be verified,but it must be
for an exception must include.These area if this is necessary to coordinate documented by a written certification
exceptions are based on HUD's service delivery. by the individual or head of household.
experience in administering the Under this interim rule,the only
Homelessness Prevention and Rapid Re- exception to the limitation for retention This provision is specific to victims of
Housing Program(HPRP). of tenant-based rental assistance is for domestic violence,dating violence,
The interim rule establishes that program participants who are victims of sexual assault,and stalking who are
projects for leasing may require that domestic violence,dating violence, receiving tenant-based rental assistance
program participants pay an occupancy sexual assault,or stalking.Under the in permanent housing.This interim rule
charge(or in the case of a sublease,rent) definition of"tenant-based"in the contains other policies for moving
of no more than 30 percent of their McKinney-Vento Act(section 401(28) of program participants receiving any type
income.Income must be calculated in the McKinney-Vento Act),these of assistance under this interim rule,
accordance with HUD's regulations in participants must have complied with including tenant-based rental assistance,
24 CFR 5.609 and 24 CFR 5.611(a). all other obligations of the program and within the Continuum of Care
However,the interim rule clarifies that reasonably believe that he or she is geographic area,or smaller geographic
projects may not charge program fees. imminently threatened by harm from area required by the provider to
Rental assistance.Under this interim further violence if he or she remains in coordinate service delivery.Moving
rule,rental assistance is an eligible cost the assisted dwelling unit. program participants outside of the
for permanent and transitional housing, In the interim rule,HUD has clarified geographic area where providers can
and this rule clarifies that the rental that the imminent threat of harm must coordinate service-delivery is
assistance may be short-term,up to 3 be from further domestic violence, administratively difficult for providers
months of rent;medium-term,for 3 to dating violence,sexual assault,or and makes it difficult to monitor that
24 months of rent;and long-term,for stalking,which would include threats program participants have access to,and
longer than 24 months of rent.This from a third party,such as a friend or are receiving,appropriate supportive
45434 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
services;therefore,moves outside of the services specifically to victims of presented in a narrative form or other
geographic area where the provider can domestic violence,dating violence, format prescribed by HUD.
effectively deliver and monitor service sexual assault,and stalking.The eligible Continuums must use the HMIS to
coordination are allowed only under costs for providing victim services are demonstrate the following measures: (1)
exceptional circumstances.HUD has listed as eligible costs in the supportive That the mean length of homelessness
established these provisions to provide services funding category.Rather than must be less than 20 days for the
an exception and to address the create a new eligible line item in the Continuum's geographic area,or the
challenges that are associated with such project budget,HUD has determined Continuum's mean length of episodes
a move. that these costs can be included in the for individuals and families in similar
Based on HUD's experience in funding categories already established, circumstances was reduced by at least
administering the Shelter Plus Care Indirect costs.Indirect costs are 10 percent from the preceding year;(2)
program,the interim rule includes allowed as part of eligible program that less than 5 percent of individuals
provisions to clarify when rental costs.Programs using indirect cost and families that leave homelessness
payments may continue to be made to allocations must be consistent with become homeless again any time within
a landlord when the program Office of Management and Budget the next 2 years,or the percentage of
participant no longer resides in the unit. (OMB)Circulars A-87 and A-122,as individuals and families in similar
For vacated units,the interim rule applicable. OMB Circular A-87 and the circumstances who became homeless
provides that assistance may continue regulations at 2 CFR part 225 pertain to again within 2 years after leaving
for a maximum of 30 days from the end "Cost Principles for State,Local,and homelessness was decreased by at least
of the month in which the unit was Indian Tribal Governments."OMB 20 percent from the preceding year;and
vacated,unless the unit is occupied by Circular A-122 and the regulations (3)for Continuums of Care that served
another eligible person.A person codified at 24 CFR part 230 pertain to homeless families with youth defined as
staying in an institution for less than 90 "Cost Principles for Non-Profit homeless under other federal statutes,
days is not considered as having vacated Organizations." that 95 percent of those families did not
the unit. Finally,the recipient may use Other costs.In addition to the eligible become homeless again within a 2-year
grant funds,in an amount not to exceed costs described in this preamble,the period following termination of
one month's rent,to pay for any damage regulation addresses the following other assistance and that 85 percent of those
to housing due to the action of the eligible costs:acquisition,rehabilitation, families achieved independent living in
program participant,one-time,per new construction,operating costs, permanent housing for at least 2 years
program participant,per unit.This HMIS,project administrative costs,and, following the termination of assistance.
assistance can be provided only at the relocation costs. The McKinney-Vento Act requires
time the program participant exits the High-Performing Communities(Subpart that HUD set forth standards for
housing unit. E) preventing homelessness among the
Supportive services.Grant funds may subset of those at the highest risk of
be used to pay eligible costs of Section 424 of the McKinney-Vento becoming homeless among those
supportive services for the special needs Act establishes the authority for the homeless families and youth defined as
of program participants.All eligible establishment of and requirements for homeless under other federal statutes,
costs are eligible to the same extent for HPCs.Applications must be submitted the third measure above,one of which
program participants who are by the collaborative applicant at such includes achieving independent living
unaccompanied homeless youth; time and in such manner as HUD may in permanent housing among this
persons living with Human require and contain such information as population.HUD has set forth the
Immunodeficiency Virus(HIV)/ HUD determines necessary under standards of 95 percent and 85 percent.
Acquired Immune Deficiency Syndrome §578.17(b).Applications will be posted HUD recognizes that these standards are
(AIDS) (HIV/AIDS);and victims of on the HUD Web site(www.hud.gov)for high,but standards are comparable to
domestic violence,dating violence, public comments.In addition to HUD's the other standards in the Act,which
sexual assault,or stalking.Any cost that review of the applications,interested are high.It is HUD's position that HPCs
is not described as an eligible cost under members of the public will be able to should be addressing the needs of those
this interim rule is not an eligible cost provide comment to HUD regarding the homeless individuals within their
of providing supportive services. applications. communities prior to receiving
Eligible costs consist of assistance with Requirements.The Continuum of Care designation of a HPC and being allowed
moving costs,case management, child must use HMIS data(HUD will publish to spend funds in accordance with
care,education services, employment data standards and measurement §578.71.
assistance and job training,housing protocols)to determine that the The final standard that the
search and counseling services,legal standards for qualifying as a HPC are Continuum must use its HMIS data to
services, life skills training,mental met.An applicant must submit a report demonstrate is provided under section
health services,outpatient health showing how the Continuum of Care 424(d)(4)of the Act.The statute requires
services,outreach services,substance program funds were expended in the each homeless individual or family who
abuse treatment services,transportation, prior year,and provide information that sought homeless assistance to be
and utility deposits. the Continuum meets the standards for included in the data system used by that
The definition of"supportive HPCs. community.HUD has defined this as
services"in section 401(27) of the Standards.In order to qualify as an bed-coverage and service-volume
McKinney-Vento Act includes the HPC,a Continuum of Care must coverage rates of at least 80 percent.The
provision of mental health services, demonstrate through reliable data that it documentation that each homeless
trauma counseling,and victim services. meets all of the required standards.The individual or family who sought
HUD has determined that victim interim rule clarifies which standards homeless assistance be included in the
services are eligible as supportive will be measured with reliable data from HMIS is not measurable by HUD.This
services, and are included as eligible a Continuum's HMIS and which type of standard would be entirely
program costs in this interim rule. standards will be measured through reliant upon self-reporting.
Providers are allowed to provide reliable data from other sources and Additionally,individuals and families
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45435
have the right to decline having their grants awarded in the same competition in HPCs may use match on eligible
data entered into the HMIS.HUD uses in which the designation is applied for activities described under§578.71.
bed-coverage rates and service-volume and made.The designation will be for General operations. Recipients of
coverage rates as a proxy for measuring a period of one year. grant funds must provide housing or
the rate of inclusion of persons who are Eligible activities.Recipients and services that comply with all applicable
present for services or housing in the subrecipients in Continuums that have State and local housing codes, licensing
HMIS.This is a measurable standard, been designated an HPC may use grant requirements,and any other
and HUD defines the calculation in the funds to provide housing relocation and requirements in the project's
HMIS rule;therefore,the measurement stabilization services and short-and/or jurisdiction. In addition,this interim
will be consistent between Continuums. medium-term rental assistance to rule clarifies that recipients must abide
Continuums must use reliable data individuals and families at risk of by housing quality standards and
from other sources and presented in a homelessness as set for in the suitable dwelling size.Recipients must
narrative form or other format Emergency Solutions Grants program. also assess supportive services on an
prescribed by HUD to measure two All eligible activities discussed in this ongoing basis,have residential
standards: Community action and section must be effective at stabilizing supervision,and provide for
renewing HPC status. Section 424(d)(4) individuals and families in their current participation of homeless individuals as
of the McKinney-Vento Act establishes housing,or quickly moving such required under section 426(g)of the
another standard for HPCs,which is individuals and families to other McKinney-Vento Act.
"community action."This statutory permanent housing.This is the only Specific request for comment.With
section provides that communities that time that Continuum of Care funds may respect to housing quality standards,
compose the geographic area must have be used to serve nonhomeless HUD includes in this rule the
actively encouraged homeless individuals and families.Recipients and longstanding requirement from the
individuals and families to participate subrecipients using grant funds on these Shelter Plus Care program that
in housing and services available in the eligible activities must follow the recipients or subrecipients,prior to
geographic area and included each written standards established by the providing assistance on behalf of a
homeless individual or family who Continuum of Care in§578.7(a)(9)(v), program participant,must physically
sought homeless assistance services in and the recordkeeping requirements set inspect each unit to assure that the unit
the data system used by that community for the Emergency Solutions Grants meets housing quality standards.This
for determining compliance.HUD has requirement is designed to ensure that
defined"communities that compose the Program rule. program participants are placed in
geographic area"to mean the entire Program Requirements(Subpart F) housing that is suitable for living.
geographic area of the Continuum. This Additionally,these requirements are
All recipients of Continuum of Care
definition will of measuremenalso ince most of consistency cy funding must comply with the program inspection requirements n physical
its other
measurements are across the entire regulations and the requirements of the mainstream rental assistance programs.
NOFA issued annually by HUD. Notwithstanding that this is a
Continuum of Care geographic area. S
HUD has further defined"actively Matching.The HEARTH Act allows longstanding requirement,HUD
encourage"within this standard as a for a new,simplified match welcomes comment on alternatives to
comprehensive outreach plan,including requirement.All eligible funding costs inspection of each unit that may be less
specific steps for identifying homeless except leasing must be matched with no burdensome but ensure that the housing
persons and referring them to less than a 25 percent cash or in kind provided to a program participant is
appropriate housing and services in that match.The interim rule clarifies that the decent, safe,and sanitary.
geographic area.The measurement of match must be provided for the entire Under Section 578.75,General
the last part of this standard,"each grant,except that recipients that are Operations, subsection(h),entitled
homeless individual or family who UFAs or are the sole recipient for the "Supportive Service Agreements,"
sought homeless assistance services in Continuum may provide the match on a states that recipients and subrecipients
the data system used by that Continuum-wide basis. may require program participants to
community,"will be measured using For in-kind match,the take part in supportive services so long
reliable data from an HMIS and has governmentwide grant requirements of as they are not disability-related
been discussed earlier in this preamble. HUD's regulations in 24 CFR 84.23 (for services,provided through the project as
HUD has determined this will provide private nonprofit organizations)and a condition of continued participation
clarity and ensure consistent 85.24(for governments)apply.The in the program.Examples of disability-
measurement across Continuums. regulations in 24 CFR parts 84 and 85 related services include,but are not
The interim rule provides that a establish uniform administrative limited to,mental health services,
Continuum of Care that was an HPC in requirements for HUD grants.The outpatient health services,and
the prior year and used Continuum requirements of 24 CFR part 84 apply to provision of medication, which are
funds for activities described under subrecipients that are private nonprofit provided to a person with a disability to
§578.71 must demonstrate that these organizations.The requirements of 24 address a condition caused by the
activities were effective at reducing the CFR part 85 apply to the recipient and disability.
number of persons who became subrecipients that are units of general This provision further states that if
homeless in that community,to be purpose local government.The match the purpose of the project is to provide
renewed as a HPC. requirement in 24 CFR 84.23 and in 24 substance abuse treatment services,
Selection.HUD will select up to 10 CFR 85.24 applies to administration recipients and subrecipients may
Continuums of Care each year that best funds,as well as Continuum of Care require program participants to take part
meet the application requirements and planning costs and UFA's financial in such services as a condition of
the standards set forth in§578.65. management costs.All match must be continued participation in the program.
Consistent with section 424 of the spent on eligible activities as required For example,if a Continuum of Care
McKinney-Vento Act,the interim rule under subpart D of this interim rule, recipient operates a transitional housing
provides a HPC designation for the except that recipients and subrecipients program with substance abuse treatment
45436 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
services,the recipient may require HUD funds and participate in HUD services,should not be allowed to
program participants to participate in programs on an equal footing with other discriminate against current or
those services.By contrast,in a program organizations;that no group of prospective program beneficiaries on
that offers services but whose purpose is applicants competing for HUD funds the basis of religion,a religious belief,
not substance abuse treatment,a should be subject,as a matter of a refusal to hold a religious belief, or a
recipient may not require a person who discretion,to greater or fewer refusal to attend or participate in a
is an alcoholic, for example,to sign a requirements than other organizations religious practice.The Executive Order
supportive service agreement at initial solely because of their religious directs that organizations that engage in
occupancy stating that he or she will character or affiliation,or,alternatively, explicitly religious activities(including
participate in substance abuse treatment the absence of religious character or activities that involve overt religious
services as a condition of occupancy. affiliation.HUD's general principles content such as worship,religious
All program participants must,however, regarding the equal participation of such instruction,or proselytization)must
meet all terms and conditions of organizations in its programs are perform such activities and offer such
tenancy,including lease requirements. codified at 24 CFR 5.109.Program- services outside of programs that are
If,as a result of a person's behavior specific requirements governing faith- supported with direct federal financial
stemming from substance use,a person based activities are codified in the assistance(including through prime
violates the terms of the lease,a regulations for the individual HUD awards or subawards),separately in
recipient may consider requiring programs. (See,for example, 24 CFR time or location from any such programs
participation in services or any other 574.300(c),24 CFR 582.115(c),and 24 or services supported with direct federal
action necessary in order for such a CFR 583.150(b).) financial assistance,and participation in
person to successfully meet the HUD's equal participation regulations any such explicitly religious activities
requirements of tenancy. were prompted by Executive Order must be voluntary for the beneficiaries
Finally,the interim rule clarifies that 13279,Equal Protection of the Laws for of the social service program supported
in units where the qualifying member of Faith-Based and Community with such federal financial assistance.
the household has died,or has been Organizations,issued by President Bush For purposes of greater clarity and
incarcerated or institutionalized for on December 12,2002,and published in comprehensibility,the Executive Order
more than 90 days,assistance may the Federal Register on December 16, uses the term"explicitly religious"in
continue until the expiration of the 2002(67 FR 77141).Executive Order lieu of"inherently religious."The
lease in effect at the time of the 13279 set forth principles and Executive Order further directs that if a
qualifying member's death, policymaking criteria to guide federal beneficiary or prospective beneficiary of
incarceration,or institutionalization. agencies in ensuring the equal a social service program supported by
Displacement,relocation,and protection of the laws for faith-based federal financial assistance objects to
acquisition.All recipients must ensure and community organizations. the religious character of an
that they have taken all reasonable steps Executive Order 13279 was amended by organization that provides services
to minimize the displacement of Executive Order 13559 (Fundamental under the program,that organization
persons as a result of projects assisted Principles and Policymaking Criteria for shall,within a reasonable time after the
under this part.This section of the Partnerships With Faith-Based and date of the objection,refer the
interim rule is substantially revised Other Neighborhood Organizations), beneficiary to an alternative provider.
from the previous programs to increase issued by President Obama on Executive Order 13559 provides for
clarity and comprehension of the November 17, 2010,and published in the establishment of an Interagency
directions to recipients and the Federal Register on November 22, Working Group on Faith-Based and
subrecipients in the use of grant funds. 2010 (75 FR 71319). Other Neighborhood Partnerships
Timeliness standards.Recipients Executive Order 13559 expands on (Working Group)to review and evaluate
must initiate approved activities and the equal participation principles existing regulations,guidance
projects promptly.Recipients of funds provided in Executive Order 13279 to documents,and policies,and directs the
for rehabilitation and new construction strengthen the capacity of faith-based OMB to issue guidance to agencies on
must begin construction activities and other neighborhood organizations to uniform implementation following
within 9 months of the signing of the deliver services effectively and ensure receipt of the Working Group's report.
grant,and such activities must be the equal treatment of program On April 27,2012,the Working Group
completed within 24 months.HUD is beneficiaries.Executive Order 13559 issued its report,recommending a
providing these requirements to assist reiterates a key principle underlying model set of regulations and guidance
communities in meeting the obligation participation of faith-based for agencies to adopt.1
and expenditure deadline historically organizations in federally funded HUD intends to wait for OMB
imposed by the annual HUD activities and that is that faith-based guidance before initiating any
appropriations act. HUD may reduce a organizations be eligible to compete for rulemaking directed to broader changes
grant term to a term of one year if federal financial assistance used to to HUD's existing faith-based
implementation delays reduce the support social service programs and to regulations,to ensure consistency with
amount of funds that can be used during participate fully in social service faith-based regulations of other federal
the original grant term. programs supported with federal agencies.However,HUD has revised its
Limitation on use of funds.Recipients financial assistance without impairing regulatory provisions governing faith-
of funds provided under this part must their independence,autonomy, based activities to incorporate the
abide by any limitations that apply to expression outside the programs in principles of Executive Order 13559
the use of such funds,such as use of question,or religious character. pertaining to equal treatment of program
funds for explicitly religious activities. With respect to program beneficiaries, beneficiaries and to adopt terminology,
The limitation on use of funds also the Executive Order states that such as"explicitly religious"and"overt
addresses limitation on uses where organizations,in providing services
religious activities may be concerned.It supported in whole or in part with The report is available at:http://
is HUD's position that faith-based federal financial assistance,and in their www.whitehouse.gov/sites/default/files/uploads/
organizations are able to compete for outreach activities related to such finalfaithbasedworkinggroupreport.pdf.
- Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45437
religious content,"that offers greater over this requirement from the Shelter Section 578.93(b)(1)states that,in
clarity to the limitations placed on faith- Plus Care program. consideration of personal privacy,
based organizations when using federal Fair Housing and Equal Opportunity housing may only be limited to a single
funds for their supportive services. requirements.The Continuum of Care, sex when such housing consists of a
Additionally,HUD is putting in place as well as its members and single structure with shared bedrooms
through this rulemaking the provision of subrecipients,are required to comply or bathing facilities such that the
Executive Order 13559 that directs the with applicable civil rights laws. considerations of personal privacy and
referral to alternative providers. Section 578,93,addressing the physical limitations of the
Executive Order 13559 provides that if nondiscrimination and equal configuration of the housing make it
a beneficiary or prospective beneficiary opportunity requirements,is provided appropriate for the housing to be limited
of a social service program supported by to offer greater direction to recipients to one sex.
federal financial assistance objects to and subrecipients on the use of grant Further, §§578.93(b)(4)and(5)clearly
the religious character of an funds. Section 578.93(a) states that the outline instances when sex offenders or
organization that provides services nondiscrimination and equal violent offenders may be excluded from
under the program,that organization opportunity requirements set forth in 24 housing,and when projects providing
shall,within a reasonable time frame CFR 5.105(a)apply.This includes,but sober housing may exclude persons.
after the date of the objection,refer the is not limited to,the Fair Housing Act, HUD's Section 504 regulations permit
beneficiary to an alternative provider. Title VI of the Civil Rights Act of 1964, housing funded under a particular
While HUD will benefit from OMB Section 504 of the Rehabilitation Act of program to be reserved for persons with
guidance on other provisions of the 1973 (Section 504),and title II of the a specific disability when a federal
Executive Order,specifically those Americans with Disabilities Act. statute or executive order specifically
which the Working Group is charged to Section 578.93(b)explains when authorizes such a limitation. Section
provide recommendations,the recipients and subrecipients may 578.93(b)(6)states that if the housing is
"referral"provision of the Executive exclusively serve a particular assisted with funds under a federal
Order is one that HUD believes it can subpopulation in transitional or program that is limited by federal
immediately put in place. HUD may, permanent housing.As part of these statute or executive order to a specific
following receipt of public comment requirements,recipients must also subpopulation,the housing may be
and further consideration of this issue, administer programs ams and activities limited to that subpopulation.
revise how recipients and subrecipients P Section 578.93(b (7))provides
document P P receiving federal financial assistance in referral to clarification to recipients of funds under
when beneficiaries may assert providers the most integrated setting appropriate this part as to when a project can limit
objections to the original provider.For to the needs of qualified individuals admission to a specific subpopulation of
now,HUD is requiring that any with disabilities.This"integration homeless individuals and families based
objections and any referrals be mandate"requires that HUD funded on the service package offered in the
programs or activities enable project.To help recipients better
documented in accordance with the P ro J P P
recordkee m provisions of§578.013. individuals with disabilities to interact understand these requirements,the
This section of the interim rule also with nondisabled persons to the fullest following paragraphs provide a detailed
contains limitations on the types of extent possible.In reviewing requests explanation of the regulatory provision,
eligible assistance that may not be for funding through the Continuum of along with a few examples.
combined in a single structure or Care NOFA,HUD will be considering Section 578.93(b)(7)states that
housing unit.As the Continuum of Care each recipient's proposals to provide recipients may limit admission to or
substantially increases the types of integrated housing to individuals with provide a preference for the housing to
disabilities. subpopulations of homeless persons and
assistance that may be combined in a P
project from previous programs,HUD There are certain situations in which families who need the specialized
has established standards in this section a recipient or subrecipient may limit supportive services that are provided in
to provide recipients with clarity about housing to a specific subpopulation,so the housing.The regulation contains the
the types of activities that may not be long as admission does not discriminate following examples:Substance abuse
carried out in a single structure or against any protected class,as well as addiction treatment,domestic violence
housing unit. instances where recipients or services,or a high-intensity package
Termination of assistance.The subrecipients may limit admission or designed to meet the needs of hard-to-
interim rule provides that a recipient provide a preference to certain reach homeless persons. However,
may terminate assistance to a subpopulations of homeless persons and §578.93(b)(7)further states that while
participant who violates program families who need the specialized the housing may offer services for a
requirements or conditions of services provided in the housing.For particular type of disability,no
occupancy.The recipient must provide example,§578.93(b)(2)states that the otherwise eligible individual with a
a formal process that recognizes the due housing may be limited to homeless disability,or family that includes an
process of law.Recipients may resume veterans,so long as admission is not individual with a disability,who may
assistance to a participant whose denied based on any membership in a benefit from the services provided may
assistance has been terminated. protected class;e.g.,homeless veterans be excluded on the grounds that they do
Recipients that are providing with families must be admitted. not have a particular disability.Below
permanent supportive housing for hard- Similarly,housing may be limited to are general examples to offer guidance
to-house populations of homeless domestic violence victims and their on this subsection.Please note that
persons must exercise judgment and families or persons who are at risk of these examples are nonexhaustive,but
examine all circumstances in institutionalization,so long as emphasize that the proper focus is on
determining whether termination is admission is not denied based on any the services available as part of the
appropriate.Under this interim rule, membership in a protected class. Continuum of Care project as opposed
HUD has determined that a participant's Section 578.93(b)(3)states that to a person's category or subcategory of
assistance should be terminated only in housing may be limited to families with disability. While these general
the most severe cases.HUD is carrying children. principles are offered to help clarify this
45438 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
section,a change in the factual scenario into this interim rule.This provision of skills and knowledge to entities that
may change the analysis. clarifies,especially for projects where may need,but do not possess,such
One clarifying example is as follows. the current policy is to deny the skills and knowledge.The assistance
A private,nonprofit organization or a admittance of a boy under the age of 18, may include written information,such
local government applies for and that denying admittance to a project as papers,manuals,guides,and
receives a new grant under this part to based on age and gender is no longer brochures;person-to-person exchanges;
provide project-based rental assistance permissible.HUD encourages and training and related costs.
and services,including case Continuums of Care to use their Therefore,as needed,HUD may
management,intensive therapy centralized or coordinated assessment advertise and competitively select
provided by a psychiatrist,and systems to find appropriate shelter or providers to deliver technical
medication management.The recipient housing for families with male children assistance.HUD may enter into
or subrecipient may establish a under the age of 18. contracts,grants, or cooperative
preference for individuals who are Specific request for comment.HUD agreements to implement the technical
chronically homeless.When filling an specifically seeks comments from assistance.HUD may also enter into
opening in the housing,the recipient or Continuum of Care-funded recipients on agreements with other federal agencies
subrecipient may target chronically this requirement.HUD invites when awarding technical assistance
homeless individuals or families,but if comments about the difficulty that funds.
there are no such individuals or families recipients are going to experience,if Recordkeeping requirements.Grant
either on a waiting list or applying for any,in implementing this requirement. recipients under the Supportive
entrance to the program,the recipient or In addition to comments about the Housing Program and the Shelter Plus
subrecipient cannot deny occupancy to difficulties,HUD invites communities Care program have always been required
individuals or families who apply for that have already implemented this to show compliance with regulations
entrance into the program and who may requirement locally to describe their through appropriate records.However,
benefit from the services provided. methods for use in HUD's technical the existing regulations are not specific
When filling a vacancy in the housing, assistance materials and for posting on about the records to be maintained.The
the recipient or subrecipient,if the HUD Homeless Resource Exchange. interim rule for the Continuum of Care
presented with two otherwise eligible Other standards.In addition to the program elaborates upon the
persons,one who is chronically program requirements described in this recordkeeping requirements to provide
homeless and one who is not,may give preamble,the interim rule sets forth sufficient notice and clarify the
a preference to the chronically homeless other program requirements by which documentation that HUD requires for
individual. all recipients of grant funds must abide. assessing compliance with the program
By comparison,§578.93(b)(6) These include a limitation on the use of requirements.The recordkeeping
addresses situations where Continuum grant funds to serve persons defined as requirements for documenting homeless
of Care funds are combined with HUD homeless under other federal laws, status were published in the December
funding for housing that may be conflicts of interest standards,and 5,2011,Defining Homeless final rule.
restricted to a specific disability.For standards for identifying uses of Because these recordkeeping
example,if Continuum of Care funds for program income. requirements already went through a 60-
a specific project are combined with Additionally,recipients are required day comment period,HUD is not
construction or rehabilitation funding to follow other federal requirements seeking further comment on these
for housing from the Housing contained in this interim rule under requirements.Additionally,
Opportunities for People With AIDS §578.99.These include compliance recordkeeping requirements with
program,the program may limit with such federal requirements as the similar levels of specificity apply to
eligibility for the project to persons with Coastal Barriers Resources Act,OMB documentation of"at risk of
HIV/AIDS and their families.An Circulars,HUD's Lead-Based Paint homelessness"and these requirements
individual or a family that includes an regulations,and audit requirements. can be found in§576.500(c)of the
individual with a disability may be The wording of these requirements has Emergency Solutions Grants program
denied occupancy if the individual or at been substantially revised from previous interim rule published on December 5,
least one member of the family does not programs,with the objective being to 2011.Because the documentation
have HIV/AIDS. increase clarity and comprehension of requirements pertaining to"at risk of
In another example,a private, the directions to recipients and homelessness"were already subject to a
nonprofit organization applies for and subrecipients in the use of grant funds. 60-day public comment period,HUD is
receives Continuum of Care funds from Administration(Subpart G) not seeking additional comment on
a local governmental entity to p these requirements.Further
rehabilitate a five-unit building,and Technical assistance.The purpose of requirements are modeled after the
provides services including assistance technical assistance under the recordkeeping requirements for the
with daily living and mental health Continuum of Care program is to HOME Investment Partnerships Program
services.While the nonprofit increase the effectiveness with which (24 CFR 92.508)and other HUD
organization intends to target and Continuums of Care,eligible applicants, regulations.
advertise the project as offering services recipients,subrecipients,and UFAs Included along with these changes are
for persons with developmental implement and administer their new or expanded requirements
disabilities,an individual with a severe Continuum of Care planning process. regarding confidentiality,rights of
psychiatric disability who does not have Technical assistance will also improve access to records,record retention
a developmental disability but who can the capacity to prepare applications, periods,and reporting requirements.
benefit from these services cannot be and prevent the separation of families in Most significantly,to protect the safety
denied. projects funded under the Emergency and privacy of all program participants,
Section 578.93(e)incorporates the Solutions Grants,Continuum of Care, the Continuum of Care rule broadens
"preventing involuntary family and Rural Housing Stability Assistance the program's confidentiality
separation"requirement set forth in programs.Under this interim rule, requirements.The McKinney-Vento Act
Section 404 of the McKinney-Veto Act technical assistance means the transfer requires only procedures to ensure the
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45439
confidentiality of records pertaining to III.Regulations for HUD Homeless procedures may be omitted,however,if
any individual provided family violence Assistance Programs Existing Prior to HUD determines that,in a particular
prevention or treatment services under Enactment of HEARTH Act case or class of cases,notice and public
this program. The interim rule requires Because grants are still being comment procedure are"impracticable,
written procedures to ensure the administered under the Shelter Plus unnecessary,or contrary to the public
security and confidentiality of all interest."(See 24 CFR 10.1.)
Care program and the Supportive
records containing personally Housing program,the regulations for In this case,HUD has determined that
identifying information of any it would be contrary to the public
these programs in 24 CFR parts 582,and
individual or family who applies for interest to delay promulgation of the
583,respectively,will remain in the
and/or receives Continuum of Care Code of Federal Regulations for the time regulations for the Continuum of Care
assistance. program.3 Congress has provided
being.When no more,or very few,
Grant and project changes.The grults remain under these programs, funding for this new program in the
interim rule provides that recipients of Consolidated and Further Continuing
grants may not make any significant HUD will remove the regulations in Appropriations Act,2012(Pub.L. 112–
these parts by a separate rule(if no
changes to use of grant funds without 55,approved November 18,2011)(FY
prior HUD approval,evidenced by a grants exist) or will replace them with 2012 Appropriations Act).The FY 2012
grant amendment signed by HUD and a savings clause,which will continue to Appropriations Act,under the account
the recipient.The interim rule provides govern grant agreements executed prior for Homeless Assistance Grants,
separate standards for determining to the effective date of the HEARTH Act appropriates not less than$1.593 billion
when a grant amendment is required for regulations. for the Continuum of Care and Rural
Continuums having only one recipient, IV.Conforming Regulations Housing Stability programs.While
including UFAs,and Continuums addition to establishing the new many federal programs,including HUD
In
having more than one recipient. regulations for the Continuum of Care programs,received a reduction in
Additionally,the interim rule provides program,HUD is amending the funding in the FY 2012 Appropriations
contingencies that must be met before Act,Congress increased funding for
HUD will approve the grant following regulations,which reference HUD's homeless assistance grants,
amendment.These contingencies are the Shelter Plus Care Program and the including the Continuum of Care
necessary to ensure that recipients meet Supportive Housing Program,to include program.Additionally,the Conference
the capacity requirements established in reference to the Continuum of Care Report accompanying the FY 2012
the NOFA and to ensure that eligible program.These regulations are the Appropriations Act(House Report 112–
persons within the geographic area are regulations pertaining to: (1)Family 284)states in relevant part,as follows:
Income and Family Payment;
better served and,since the Continuum "The conferees express concern that
Occupancy Requirements for Section 8
of Care program is a competitive HUD continued to implement pre-
program,that the priorities established and Public Housing,Other HUD- HEARTH grant programs in FY 2011,
under the NOFA continue to be met. Assisted Housing Serving Persons with due to a lack of regulations.The
Any changes to an approved grant or Disabilities,and Section 8 Project Based conferees direct HUD to publish at least
project that do not require a grant Assistance,the regulations for which are interim guidelines for the Emergency
amendment, as set forth in this section, in 24 CFR part 5, subpart F,specifically, Solutions Grants and Continuum of Care
must be fully documented in the §5.601 (Purpose and Applicability), programs this fiscal year and to
recipient's or subrecipient's records. paragraphs(d)and(e) of this section; implement the new grant programs as
Sanctions.The interim rule §5.603 (Definitions),specifically the soon as possible so that the updated
establishes sanctions based on existing definition of"Responsible Entity;" policies and practices in HEARTH can
regulations and strengthens the §5.617 (Self-Sufficiency Incentives for begin to govern the delivery of homeless
enforcement procedures and array of Persons with Disabilities—Disallowance assistance funding."(See Conf.Rpt.at
remedial actions and sanctions for of Increase in Annual Income), page 319.Emphasis added.)Given this
recipients and subrecipients of paragraph(a) of this section; (2) congressional direction,HUD is issuing
Continuum of Care funds.These Environmental Review Responsibilities this rule providing for regulations for
revisions draw from the requirements at for Entities Assuming HUD the Continuum of Care program as an
24 CFR 85.43 and other HUD program Environmental Responsibilities,the interim rule.Having interim regulations
regulations. regulations for which are in 24 CFR part in place will allow HUD to move
Close-out.The interim rule provides 58,specifically§58.1 (Purpose and forward in making FY 2012 funds
that grants must be closed out at the end Applicability),paragraph(b)(3)of this available to grantees,and avoid a
of their grant term if recipients are not section;and(3)the Consolidated significant delay that would result from
seeking renewal. Section 578.109 of this Submissions for Community Planning issuance,first,of a proposed rule.As
interim rule specifies the actions that and Development Programs,the
must be taken after the closeout, regulations for which are in 24 CFR part management or personnel or to public property,
including grantee submission of 91,specifically, §91.2(Applicability), loans,grants,benefits,or contracts are exempt from
financial,final performance,or other paragraph(b) of this section. the advance notice and public comment
requirement of sections 553(b)and(c)of the APA.
reports required by HUD within 90 days V.Justification for Interim Rulemaking In its regulations in 24 CFR 10.1,HUD has waived
of the end of the grant term.Any unused the exemption for advance notice and public
funds must be deobligated and returned In accordance with its regulations on comment for matters that relate to public property,
to HUD. rulemaking at 24 CFR part 10,HUD loans,grants,benefits,or contracts,and has
The interim rule stipulates,for grants generally publishes its rules for advance committed to undertake notice and comment
rulemaking for these matters.
seeking renewal,that failure to submit public comment.2 Notice and public 3 Although HUD's regulation in 24 CFR 10.1
final performance reports,or other provide that HUD will involve public participation
reports required by HUD within 90 2 The Administrative Procedure Act(5 U.S.C. in its rulemaking,this regulation also provides that
days,may cause renewal funds to be Subchapter II)(APA),which governs federal notice and public procedure will be omitted if HUD
rulemaking,provides in section 553(a)that matters determines in a particular case or class of cases that
withdrawn and grant funds expended involving a military or foreign affairs function of the notice and public procedure are impracticable,
on the renewal grant to be repaid. United States or a matter relating to federal agency unnecessary,or contrary to the public interest.
45440 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
has been discussed in this preamble,the regulatory action,as provided under accordance with HUD regulations at 24
foundation for the Continuum of Care section 3(f)(1)of the Executive Order). CFR part 50,which implement section
regulations is the criteria and As has been discussed in this 102(2)(C)of the National Environmental
requirements provided in NOFAs for the preamble,this interim rule establishes Policy Act of 1969 (42 U.S.C.
Continuum of Care Homeless Assistance the regulations for the Continuum of 4332(2)(C)). The Finding of No
Grants Competition program,which Care program,which is the HEARTH Significant Impact is available for public
HUD has funded for more than 10 years. Act's codification of HUD's long- inspection between the hours of 8 a.m.
Through the Continuum of Care standing Continuum of Care planning and 5 p.m.weekdays in the Regulations
Homeless Assistance Grants process.The HEARTH Act not only Division,Office of General Counsel,
Competition program,HUD provided codified in law the planning system Department of Housing and Urban
funding for the Supportive Housing known as Continuum of Care,but Development,451 7th Street SW.,Room
program,the Shelter Plus Care program, consolidated the three existing 10276,Washington,DC 20410-0500.
and the Section 8 Moderate competitive homeless assistance grant Due to security measures at the HUD
Rehabilitation Single Room Occupancy programs(Supportive Housing,Shelter Headquarters building,please schedule
program.The HEARTH Act Plus Care,and Single Room Occupancy) an appointment to review the FONSI by
consolidated these three competitive into the single grant program known as calling the Regulations Division at 202–
programs into the statutorily established the Continuum of Care program.As 708-3055 (this is not a toll-free
Continuum of Care program,which was discussed in the preceding section of number).Individuals with speech or
established as a single grant program. the preamble,HUD funded these three hearing impairments may access this
Interim regulations will provide programs for more than 10 years number via TTY by calling the Federal
certainty with respect to funding through a NOFA,which was titled the Relay Service at 800-877-8339.
requirements and eligible expenditures Continuum of Care Homeless Assistance Unfunded Mandates Reform Act
for FY 2012,and the public comment Grants Competition Program.However,
solicited through this interim rule will the funding of the three competitive The Unfunded Mandates Reform Act
help inform the public procedures that grant programs,although done through of 1995 (2 U.S.C. 1531-1538)(UMRA)
HUD is contemplating in its regulations a single NOFA,delineated the different establishes requirements for federal
in 24 CFR part 10,and this public statutes and regulations that governed agencies to assess the effects of their
comment,in turn,will inform the final each of the three programs(see,for regulatory actions on State,local,and
rule that will follow this interim rule example,HUD's 2008 Continuum of tribal governments and on the private
Care NOFA at 73 FR 398450,
and govern the funding years following sector.This interim rule does not
FY 2012. specifically page 39845).In impose a federal mandate on any State,
For the reasons stated above,HUD is consolidating these three competitive local,or tribal government,or on the
issuing this rule to take immediate programs into a single grant program, private sector,within the meaning of
effect,but welcomes all comments on the HEARTH Act achieves the UMRA
this interim rule and all comments will administrative efficiency that HUD
be taken into consideration in the strived to achieve to the extent possible, Regulatory Flexibility Act
development of the final rule. through its administrative establishment The Regulatory Flexibility Act(5
of the Continuum of Care planning U.S.C.601 et seq.)generally requires an
VI.Findings and Certifications process.To the extent permitted by the agency.0 t0 conduct a regulatory
Regulatory Review—Executive Orders HEARTH Act and where feasible,the ry
12866 and 13563 regulations build-in flexibility for flexibility analysis of any rule subject to
grantees,based on experience in notice and comment rulemaking
Under Executive Order 12866 administering the Continuum of Care requirements,unless the agency certifies
(Regulatory Planning and Review),a program to date.Given the transition that the rule will not have a significant
determination must be made whether a from administrative operation of the economic impact on a substantial
regulatory action is significant and, Continuum of Care program to statutory number of small entities.This rule
therefore, subject to review by the Office operation of the Continuum of Care solely addresses the allocation and use
of Management and Budget(OMB)in program,this interim rule would also of grant funds under the new
accordance with the requirements of the have no discernible impact upon the McKinney-Vento Act homeless
order.Executive Order 13563 economy. assistance programs,as consolidated
(Improving Regulations and Regulatory The docket file is available for public and amended by the HEARTH Act.As
Review) directs executive agencies to inspection in the Regulations Division, discussed in the preamble,the majority
analyze regulations that are"outmoded, Office of the General Counsel,Room of the regulatory provisions proposed by
ineffective,insufficient, or excessively 10276,451 7th Street SW.,Washington, this rule track the regulatory provisions
burdensome,and to modify,streamline, DC 20410-0500.Due to security of the Continuum of Care program,with
expand, or repeal them in accordance measures at the HUD Headquarters which prospective recipients of the
with what has been learned."Executive building,please schedule an Supportive Housing program and the
Order 13563 also directs that,where appointment to review the docket file by Shelter Plus Care program are familiar.
relevant,feasible,and consistent with calling the Regulations Division at 202– Accordingly,the program requirements
regulatory objectives,and to the extent 708-3055 (this is not a toll-free should raise minimal issues because
permitted by law,agencies are to number).Individuals with speech or applicants and grantees are familiar
identify and consider regulatory hearing impairments may access this with these requirements,and in
approaches that reduce burdens and number via TTY by calling the Federal response to HUD's solicitations to them
maintain flexibility and freedom of Relay Service at 800-877-8339. on the burden of the requirements for
choice for the public.This rule was the Supportive Housing program and
determined to be a"significant Environmental Impact the Shelter Plus Care program,grantees
regulatory action,"as defined in section A Finding of No Significant Impact have not advised that such requirements
3(f)of Executive Order 12866 (although (FONSI)with respect to the are burdensome.Therefore,HUD has
not an economically significant environment has been made in determined that this rule would not
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45441
have a significant economic impact on substantial direct compliance costs on rule have been submitted to the Office
a substantial number of small entities. State and local governments and is not of Management and Budget(OMB)
Notwithstanding HUD's required by statute, or the rule preempts under the Paperwork Reduction Act of
determination that this rule will not State law,unless the agency meets the 1995 (44 U.S.C. 3501-3520).In
have a significant effect on a substantial consultation and funding requirements accordance with the Paperwork
number of small entities,HUD of section 6 of the Executive Order.This Reduction Act,an agency may not
specifically invites comments regarding final rule does not have federalism conduct or sponsor,and a person is not
any less burdensome alternatives to this implications and does not impose required to respond to,a collection of
rule that will meet HUD's objectives as substantial direct compliance costs on information,unless the collection
described in this preamble. State and local governments nor displays a currently valid OMB control
Executive Order 13132,Federalism preempts State law within the meaning number.
of the Executive Order.
Executive Order 13132(entitled
Paperwork Reduction Act The burden of the information
"Federalism")prohibits an agency from p collections in this interim rule is
publishing any rule that has federalism The information collection estimated as follows:
implications if the rule either imposes requirements contained in this interim
REPORTING AND RECORDKEEPING BURDEN
Response
Information collection Number of frequency Total annual Burden hours Total annual
respondents (average) responses per response hours
§578.5(a) Establishing the CoC 450 1 450 8.0 3,600
§578.5(b) Establishing the Board 450 1 450 5.0 2,250
§578.7(a)(1)Hold CoC Meetings 450 2 900 4.0 3,600
§578.7(a)(2) Invitation for New Members 450 1 450 1.0 450
§578.7(a)(4)Appoint committees 450 2 900 0.5 450
§578.7(a)(5)Governance charter 450 1 450 7.0 3,150
§578.7(a)(6)and(7)Monitor performance and evaluation 450 4 450 9.0 4,050
§578.7(a)(8) Centralized or coordinated assessment sys-
tem 450 1 450 8.0 3,600
§578.7(a)(9)Written standards 450 1 450 5.0 2,250
§578.7(b) Designate HMIS 450 1 450 10.0 4,500
§578.9 Application for funds 450 1 450 180.0 81,000
§578.11(c) Develop CoC plan 450 1 450 9.0 4,050
§578.21(c)Satisfying conditions 8,000 1 8,000 4.0 32,000
§578.23 Executing grant agreements 8,000 1 8,000 1.0 8,000
§578.35(b)Appeal-solo 10 1 10 4.0 40
§578.35(c)Appeal-denied or decreased funding 15 1 15 1.0 15
§578.35(d)Appeal-competing CoC 10 1 10 5.0 50
§578.35(e)Appeal-Consolidated Plan certification 5 1 5 2.0 10
§578.49(a)-Leasing exceptions 5 1 5 1.5 7.5
§578.65 HPC Standards 20 1 20 10.0 200
§578.75(a)(1) State and local requirements-appropriate
service provision 7,000 1 7,000 0.5 3,500
§578.75(a)(1) State and local requirements-housing
codes 20 1 20 3.0 60
§578.75(b)Housing quality standards 72,800 2 145,600 1.0 145,600
§578.75(b) Suitable dwelling size 72,800 2 145,600 0.08 11,648
§578.75(c)Meals 70,720 1 70,720 0.5 35,360
§578.75(e)Ongoing assessment of supportive services 8,000 1 8,000 1.5 12,000
§578.75(f) Residential supervision 6,600 3 19,800 0.75 14,850
§578.75(g) Participation of homeless individuals 11,500 1 11,500 1.0 11,500
§578.75(h)Supportive service agreements 3,000 100 30,000 0.5 15,000
§578.77(a)Signed leases/occupancy agreements 104,000 2 208,000 1.0 208,000
§578.77(h)Calculating occupancy charges 1,840 200 368,000 0.75 276,000
§578.77(c)Calculating rent 2,000 200 400,000 0.75 300,000
§578.81(a)Use restriction 20 1 20 0.5 10
§578.91(a)Termination of assistance 400 1 400 4.00 1,600
§578.91(b) Due process for termination of assistance 4,500 1 4,500 3.0 13,500
§578.95(d)-Conflict-of-Interest exceptions 10 1 10 3.0 30
§578.103(a)(3) Documenting homelessness 300,000 1 300,000 0.25 75,000
§578.103(a)(4) Documenting at risk of homelessness 10,000 1 10,000 0.25 2,500
§578.103(a)(5)Documenting imminent threat of harm 200 1 200 0.5 100
§578.103(a)(7) Documenting program participant records 350,000 6 2,100,000 0.25 525,000
§578.103(a)(7) Documenting case management 8,000 12 96,000 1.0 96,000
§578.103(a)(13) Documenting faith-based activities 8,000 1 8,000 1.0 8,000
§578.103(b)Confidentiality procedures 11,500 1 11,500 1.0 11,500
§578.105(a) Grant/project changes-UFAs 20 2 40 2.0 80
§578.105(b)Grant/project changes-multiple project appli-
cants 800 1 800 2.0 1,600
Total 1,921,710.5
45442 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
In accordance with 5 CFR programs-housing and community 578.87 Limitation on use of funds.
1320.8(d)(1),HUD is soliciting development, Supportive services. 578.89 Limitation on use of grant funds to
comments from members of the public Accordingly,for the reasons described other persons defined as homeless under
p g y' other federal laws.
and affected agencies concerning this in the preamble,HUD adds part 578 to 578.91 Termination of assistance to
collection of information to: subchapter C of chapter V of subtitle B program participants.
(1)Evaluate whether the proposed of 24 CFR to read as follows: 578.93 Fair Housing and Equal
collection of information is necessary Opportunity.
for the proper performance of the PART 578-CONTINUUM OF CARE 578.95 Conflicts of interest.
functions HUD,including whether the PROGRAM 578.97 Program income.
information will have practical utility; 578.99 Applicability of other federal
Subpart A-General Provisions requirements.
(2)Evaluate the accuracy of HUD's Sec. Subpart G-Grant Administration
estimate of the burden of the proposed 578.1 Purpose and scope. P
collection of information; 578.3 Definitions. 578.101 Technical assistance.
(3)Enhance the quality,utility,and 578.103 Recordkeeping requirements.
clarity of the information to be Subpart B-Establishing and Operating a 578.105 Grant and project changes.
Collected;and Continuum of Care 578.107 Sanctions.
(4)Minimize the burden of the
578.5 Establishing the Continuum of Care. 578.109 Closeout.
collection of information on those who 578.7 Responsibilities of the Continuum of Authority:42 U.S.C. 11371 et seq.,42
Care.
are to respond,including through the 578.9 Preparing an application for funds. U.S.C.3535(d).
use of appropriate automated collection 578.11 Unified Funding Agency. Subpart A-General Provisions
techniques or other forms of information 578.13 Remedial action.
technology; e.g.,permitting electronic §578.1 Purpose and scope.
submission of responses. Subpart C-Application and Grant Award (a)The Continuum of Care program is
Process
Interested persons are invited to authorized by subtitle C of title N of the
578.15 Eligible applicants.
submit comments regarding the McKinney-Vents Homeless Assistance
578.17 Overview of application and grant
information collection requirements in award process. Act(42 U.S.C. 11381-11389).
this rule. Comments must refer to the 578.19 Application process. (b)The program is designed to:
proposal by name and docket number 578.21 Awarding funds. (1)Promote communitywide
(FR-5476-I-01)and be sent to:HUD 578.23 Executing grant agreements. commitment to the goal of ending
Desk Officer,Office of Management and 578.25 Site control. homelessness;
Budget,New Executive Office Building, 578.27 Consolidated plan. (2)Provide funding for efforts by
Washington,DC 20503,Fax: (202)395- 578.29 Subsidy layering. nonprofit providers,States,and local
6947,and Reports Liaison Officer, 578.31 Environmental review. governments to quickly rehouse
Office of the Assistant Secretary for 578.33 Renewals. homeless individuals(including
578.35 Appeal. unaccompanied youth)and families,
Community Planning and Development, p y
Department of Housing and Urban Subpart D-Program Components and while minimizing the trauma and
Development, 451 Seventh Street SW., Eligible Costs dislocation caused to homeless
Room 7233,Washington,DC 20410- 578.37 Program components and uses of individuals,families,and communities
7000. assistance. by homelessness;
Interested persons may submit 578.39 Continuum of Care planning (3)Promote access to and effective
comments regarding the information activities. utilization of mainstream programs by
comment requirements s information tion 578.41 Unified Funding Agency costs. homeless individuals and families;and
q y 578.43 Acquisition. (4)Optimize self-sufficiency among
through the Federal eRulemaking Portal 578.45 Rehabilitation. individuals and families experiencing •
at http://www.regulations.gov. HUD 578.47 New construction. homelessness.
strongly encourages commenters to 578.49 Leasing.
submit comments electronically. 578.51 Rental assistance. §578.3 Definitions.
Electronic submission of comments 578.53 Supportive services. As used in this part:
578.55 Operating costs.
allows the commenter maximum time to Act means the McKinney-Vents
578.57 Homeless Management Information
prepare and submit a comment,ensures System. Homeless Assistance Act as amended
timely receipt by HUD,and enables 578.59 Project administrative costs. (42 U.S.C. 11371 et seq.).
HUD to make them immediately 578.61 Relocation costs. Annual renewal amount means the
available to the public.Comments 578.63 Indirect costs. amount that a grant can be awarded on
submitted electronically through.the Subpart E-High-Performing Communities an annual basis when renewed. It
http://www.regulations.gov Web site can includes funds only for those eligible
578.65 Standards.
be viewed by other commenters and activities(operating,supportive
578.67 Publication of application.
interested members of the public. services,leasing,rental assistance,
Commenters should follow the 578.69 Cooperation among entities. HMIS,and administration)that were
578.71 HPC-eligible activities.
instructions provided on that site to funded in the original grant(or the
submit comments electronically. Subpart F-Program Requirements original grant as amended),less the
List of Subjects in 24 CFR Part 578 578.73 Matching requirements. unrenewable activities(acquisition,new
1 578.75 General operations. construction,rehabilitation, and any
Community facilities,Continuum of 578.77 Calculating occupancy charges and administrative costs related to these
Care,Emergency solutions grants,Grant rent. activities).
578.79 Limitation on transitional housing.
programs-housing and community 578.81 Term of commitment,repayment of Applicant means an eligible applicant
development, Grant program-social grants,and prevention of undue benefits. that has been designated by the
programs,Homeless,Rural housing, 578.83 Displacement,relocation,and Continuum of Care to apply for
Reporting and recordkeeping acquisition. assistance under this part on behalf of
requirements, Supportive housing 578.85 Timeliness standards. that Continuum.
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45443
At risk of homelessness. (i) An section,but qualifies as"homeless" part and that is composed of
individual or family who: under section 725(2)of the McKinney- representatives of organizations,
(i)Has an annual income below 30 Vento Homeless Assistance Act(42 including nonprofit homeless providers,
percent of median family income for the U.S.C. 11434a(2)),and the parent(s)or victim service providers,faith-based
area,as determined by HUD; guardian(s) of that child or youth if organizations,governments,businesses,
(ii)Does not have sufficient resources living with her or him. advocates,public housing agencies,
or support networks, e.g., family, Centralized or coordinated school districts,social service providers,
friends,faith-based or other social assessment system means a centralized mental health agencies,hospitals,
networks,immediately available to or coordinated process designed to universities,affordable housing
prevent them from moving to an coordinate program participant intake developers,law enforcement,
emergency shelter or another place assessment and provision of referrals.A organizations that serve homeless and
described in paragraph(1) of the centralized or coordinated assessment formerly homeless veterans,and
"Homeless"definition in this section; system covers the geographic area,is homeless and formerly homeless
and easily accessed by individuals and persons to the extent these groups are
(iii)Meets one of the following families seeking housing or services,is represented within the geographic area
conditions: well advertized, and includes a and are available to participate.
(A)Has moved because of economic comprehensive and standardized Developmental disability means,as
reasons two or more times during the 60 assessment tool. defined in section 102 of the
days immediately preceding the Chronically homeless. (1)An Developmental Disabilities Assistance
application for homelessness prevention individual who: and Bill of Rights Act of 2000(42 U.S.C.
assistance; (i)Is homeless and lives in a place not 15002):
(B)Is living in the home of another meant for human habitation,a safe (1)A severe,chronic disability of an
because of economic hardship; haven,or in an emergency shelter;and individual that—
(C)Has been notified in writing that (ii)Has been homeless and living or (i)Is attributable to a mental or
their right to occupy their current residing in a place not meant for human physical impairment or combination of
housing or living situation will be habitation,a safe haven,or in an mental and physical impairments;
terminated within 21 days of the date of emergency shelter continuously for at (ii)Is manifested before the individual
application for assistance; least one year or on at least four separate attains age 22;
(D)Lives in a hotel or motel and the occasions in the last 3 years;and (iii)Is likely to continue indefinitely;
cost of the hotel or motel stay is not paid (iii)Can be diagnosed with one or (iv)Results in substantial functional
by charitable organizations or by more of the following conditions: limitations in three or more of the
federal,State,or local government substance use disorder,serious mental following areas of major life activity:
programs for low-income individuals; illness,developmental disability(as (A) Self-care;
(E)Lives in a single-room occupancy defined in section 102 of the (B)Receptive and expressive
or efficiency apartment unit in which Developmental Disabilities Assistance language;
there reside more than two persons,or Bill of Rights Act of 2000 (42 U.S.C. (C)Learning;
lives in a larger housing unit in which 15002)),post-traumatic stress disorder, (D)Mobility;
there reside more than 1.5 people per cognitive impairments resulting from (E) Self-direction;
room,as defined by the U.S.Census brain injury,or chronic physical illness (F)Capacity for independent living;
Bureau; or disability; (G)Economic self-sufficiency.
(F)Is exiting a publicly funded (2)An individual who has been (v)Reflects the individual's need for
institution, or system of care(such as a residing in an institutional care facility, a combination and sequence of special,
health-care facility,a mental health including a jail,substance abuse or interdisciplinary,or generic services,
facility,foster care or other youth mental health treatment facility, individualized supports,or other forms
facility,or correction program or hospital,or other similar facility,for of assistance that are of lifelong or
institution);or fewer than 90 days and met all of the extended duration and are individually
(G)Otherwise lives in housing that criteria in paragraph(1) of this planned and coordinated.
has characteristics associated with definition,before entering that facility; (2)An individual from birth to age 9,
instability and an increased risk of or inclusive,who has a substantial
homelessness,as identified in the (3)A family with an adult head of developmental delay or specific
recipient's approved consolidated plan; household(or if there is no adult in the congenital or acquired condition,may
(2)A child or youth who does not family,a minor head of household)who be considered to have a developmental
qualify as"homeless"under this meets all of the criteria in paragraph(1) disability without meeting three or more
section,but qualifies as"homeless" of this definition,including a family of the criteria described in paragraphs
under section 387(3)of the Runaway whose composition has fluctuated while (1)(i)through(v) of the definition of
and Homeless Youth Act(42 U.S.C. the head of household has been "developmental disability"in this
5732a(3)),section 637(11)of the Head homeless. section if the individual,without
Start Act(42 U.S.C.9832(11)),section Collaborative applicant means the services and supports,has a high
41403(6) of the Violence Against eligible applicant that has been probability of meeting these criteria
Women Act of 1994(42 U.S.C. 14043e– designated by the Continuum of Care to later in life.
2(6)),section 330(h)(5)(A)of the Public apply for a grant for Continuum of Care Eligible applicant means a private
Health Service Act(42 U.S.C. planning funds under this part on behalf nonprofit organization,State,local
254b(h)(5)(A)), section 3(m)of the Food of the Continuum. government,or instrumentality of State
and Nutrition Act of 2008(7 U.S.C. Consolidated plan means the HUD- and local government.
2012(m)),or section 17(b)(15)of the approved plan developed in accordance Emergency shelter is defined in 24
Child Nutrition Act of 1966(42 U.S.C. with 24 CFR 91. CFR part 576.
1786(b)(15));or Continuum of Care and Continuum Emergency Solutions Grants(ESG)
(3)A child or youth who does not means the group organized to carry out means the grants provided under 24
qualify as"homeless"under this the responsibilities required under this CFR part 576.
45444 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
Fair Market Rent(FMR)means the (ii)Have not had a lease,ownership Point-in-time count means a count of
Fair Market Rents published in the interest,or occupancy agreement in sheltered and unsheltered homeless
Federal Register annually by HUD. permanent housing at any time during persons carried out on one night in the
High-performing community(HPC) the 60 days immediately preceding the last 10 calendar days of January or at
means a Continuum of Care that meets date of application for homeless such other time as required by HUD.
the standards in subpart E of this part assistance; Private nonprofit organization means
and has been designated as a high- (iii)Have experienced persistent an organization:
performing community by HUD. instability as measured by two moves or (1)No part of the net earnings of
Homeless means: more during the 60-day period which inure to the benefit of any
(1)An individual or family who lacks immediately preceding the date of member,founder,contributor,or
a fixed,regular,and adequate nighttime applying for homeless assistance;and individual;
residence,meaning: (iv)Can be expected to continue in (2)That has a voluntary board;
(i)An individual or family with a such status for an extended period of (3)That has a functioning accounting
primary nighttime residence that is a time because of chronic disabilities; system that is operated in accordance
public or private place not designed for chronic physical health or mental health with generally accepted accounting
or ordinarily used as a regular sleeping conditions; substance addiction; principles, or has designated a fiscal
accommodation for human beings, histories of domestic violence or agent that will maintain a functioning
including a car,park,abandoned childhood abuse(including neglect);the accounting system for the organization
building,bus or train station,airport, or presence of a child or youth with a in accordance with generally accepted
camping ground; disability;or two or more barriers to accounting principles;and
(ii)An individual or family living in employment,which include the lack of (4)That practices nondiscrimination
a supervised publicly or privately a high school degree or General in the provision of assistance.
p p y p y Education Development(GED), A private nonprofit organization does
operated shelter designated to provide p organizations,
or de include living arrangements illiteracy,low English proficiency,a not governmental g
(including congregate shelters, history of incarceration or detention for such as public housing agencies.
transitional housing,and hotels and criminal activity, and a history of Program participant means an
g individual(including an
motels paid for by charitable unstable employment; or
organizations or by federal,State,or (4)Any individual or family who: unaccompanied youth)or family who is
local government programs for low- (i)Is fleeing,or is attempting to flee, assisted with Continuum of Care
income individuals); or domestic violence, dating violence, program funds.
sexual assault,stalking,or other Project means a group of eligible
(iii)An individual who is exiling an dangerous or life-threatening conditions activities,such as HMIS costs,identified
institution where he or she resided for that relate to violence against the as a project in an application to HUD for
90 days or less and who resided in an individual or a family member, Continuum of Care funds and includes
emergency shelter or place not meant including a child,that has either taken a structure (or structures)that is(are)
for human habitation immediately place within the individual's or family's acquired,rehabilitated,constructed,or
before entering that institution; primary nighttime residence or has leased with assistance provided under
(2)An individual or family who will made the individual or family afraid to this part or with respect to which HUD
imminently lose their primary nighttime return to their primary nighttime provides rental assistance or annual
residence,provided that: residence; payments for operating costs,or
(i)The primary nighttime residence (ii)Has no other residence;and supportive services under this subtitle.
will be lost within 14 days of the date (iii)Lacks the resources or support Recipient means an applicant that
of application for homeless assistance; networks, e.g.,family,friends,and faith- signs a grant agreement with HUD.
(ii)No subsequent residence has been based or other social networks,to obtain Safe haven means,for the purpose of
identified;and other permanent housing. defining chronically homeless,
(iii)The individual or family lacks the Homeless Management Information supportive housing that meets the
resources or support networks, e.g., System(HMIS)means the information following:
family,friends, faith-based or other system designated by the Continuum of (1) Serves hard to reach homeless
social networks,needed to obtain other Care to comply with the HMIS persons with severe mental illness who
permanent housing; requirements prescribed by HUD. came from the streets and have been
(3)Unaccompanied youth under 25 HMIS Lead means the entity unwilling or unable to participate in
years of'age, or families with children designated by the Continuum of Care in supportive services;
and youth,who do not otherwise accordance with this part to operate the (2)Provides 24-hour residence for
qualify as homeless under this Continuum's HMIS on its behalf. eligible persons for an unspecified
definition,but who: Permanent housing means period;
(i)Are defined as homeless under community-based housing without a (3)Has an overnight capacity limited
section 387 of-the Runaway and designated length of stay,and includes to 25 or fewer persons;and
Homeless Youth Act(42 U.S.C. 5732a), both permanent supportive housing and (4)Provides low-demand services and
section 637 of the Head Start Act(42 rapid rehousing.To be permanent referrals for the residents.
U.S.C. 9832), section 41403 of the housing,the program participant must State means each of the 50 States,the
Violence Against Women Act of 1994 be the tenant on a lease for a term of at District of Columbia,the
(42 U.S.C. 14043e-2),section 330(h) of least one year,which is renewable for Commonwealth of Puerto Rico,
the Public Health Service Act(42 U.S.C. terms that are a minimum of one month American Samoa,Guam,the
254b(h)),section 3 of the Food and long,and is terminable only for cause. Commonwealth of the Northern'
Nutrition Act of 2008 (7 U.S.C. 2012), Permanent supportive housing means Marianas,and the Virgin Islands.
section 17(b) of the Child Nutrition Act permanent housing in which supportive Subrecipient means a private
of 1966 (42 U.S.C. 1786(b)),or section services are provided to assist homeless nonprofit organization,State,local
725 of the McKinney-Vento Homeless persons with a disability to live government,or instrumentality of State
Assistance Act(42 U.S.C. 11434a); independently. or local government that receives a
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45445
subgrant from the recipient to carry out to comply with the requirements of Continuum of Care assistance.At a
a project. paragraph(b)of this section. minimum,these written standards must
Transitional housing means housing, include:
where all program participants have §578.7 Responsibilities of the Continuum (i)Policies and procedures for
P g p P of Care. individuals'and families'
signed a lease or occupancy agreement, evaluating
the purpose of which is to facilitate the (a) Operate the Continuum of Care. eligibility for assistance under this part;
The Continuum of Care must:
movement of homeless individuals and (1)Hold meetings of the full (ii)Policies and procedures for
families into permanent housing within g determining and prioritizing which
24 months or such longer period as membership,with published agendas,at eligible individuals and families will
HUD determines necessary. The least semi-annually; receive transitional housing assistance;
(2)Make an invitation for new (iii)Policies and procedures for
program participant must have a lease members to join publicly available P
or occupancy agreement for a term of at P y determining and prioritizing which
least one month that ends in 24 months within the geographic at least annually; eligible individuals and families will
(3)Adopt and follow a written receive rapid rehousing assistance;
and cannot be extended. process to select a board to act on behalf P g
Unified Funding Agency(UFA)means P (iv)Standards for determining what
f g g Y of the Continuum of Care.The process percentage or amount of rent each
an eligible applicant selected by the must be reviewed,updated,and program participant must pay while
Continuum of Care to apply for a grant approved by the Continuum at least receiving rapid rehousing assistance;
for the entire Continuum,which has the once every 5 years;
capacity to carry out the duties in (4)Appoint additional committees, determining Policies and ri procedures for
§578.11(b),which is approved by HUD PP determining and prioritizing which
PP y subcommittees,or workgroups; eligible individuals and families will
and to which HUD awards a grant. (5)In consultation with the receive permanent supportive housing
Victim service provider means a collaborative applicant and the HMIS assistance;and
private nonprofit organization whose Lead,develop,follow,and update (vi)Where the Continuum is
primary mission is to provide services annually a governance charter,which designated a high-performing
to victims of domestic violence,dating will include all procedures and policies community,as described in subpart G of
violence,sexual assault,or stalking. needed to comply with subpart B of this this part,policies and procedures set
This term includes rape crisis centers, part and with HMIS requirements as forth in 24 CFR 576.400(e)(3)(vi),
battered women's shelters,domestic prescribed by HUD;and a code of (e)(3)(vii), (e)(3)(viii),and(e)(3)(ix).
violence transitional housing programs, conduct and recusal process for the (b)Designating and operating an
and other programs. board,its chair(s),and any person acting HMIS.The Continuum of Care must:
Subpart B—Establishing and on behalf of the board; (1)Designate a single Homeless
Operating a Continuum of and (6)Consult with recipients and Management Information System
P 9 subrecipients to establish performance (HMIS)for the geographic area;
§578.5 Establishing the Continuum of targets appropriate for population and (2)Designate an eligible applicant to
Care. program type,monitor recipient and manage the Continuum's HMIS,which
(a) The Continuum of Care. subrecipient performance,evaluate will be known as the HMIS Lead;
Representatives from relevant outcomes,and take action against poor (3)Review,revise,and approve a
organizations within a geographic area performers; privacy plan,security plan,and data
(7)Evaluate outcomes of projects quality plan for the HMIS.
shall establish a Continuum of Care for funded under the Emergency Solutions q y P
the geographic area to carry out the g y (4)Ensure consistent participation of
duties of geographic
part.Relevant Grants program and the Continuum of recipients and subrecipients in the
duties of this hi s part.Relevant
nonprofit Care program,and report to HUD; HMIS;and
homeless assistance providers,victim (8)In consultation with recipients of (5)Ensure the HMIS is administered
P Emergency Solutions Grants program in compliance with requirements
service providers,faith-based funds within the geographic area,
prescribed by HUD.
organizations,governments,businesses, establish and operate either a (c) Cont inuum
of Care planning.The
advocates,public housing agencies, centralized or coordinated assessment Continuum must develop a plan that
school districts,social service providers, system that provides an initial, includes:
mental health agencies,hospitals, comprehensive assessment of the needs (1)Coordinating the implementation
universities, affordable housing of individuals and families for housing of a housing and service system within
developers,law enforcement,and and services.The Continuum must its geographic area that meets the needs
organizations that serve veterans and develop a specific policy to guide the of the homeless individuals(including
homeless and formerly homeless operation of the centralized or unaccompanied youth)and families.At
individuals. coordinated assessment system on how a minimum,such system encompasses
(b) The board. The Continuum of Care its system will address the needs of the following:
must establish a board to act on behalf individuals and families who are
(i)Outreach,engagement,and
of the Continuum using the process fleeing,or attempting to flee,domestic assessment;
established as a requirement by violence,dating violence,sexual (ii)Shelter,housing,and supportive
§578.7(a)(3) and must comply with the assault,or stalking,but who are seeking services;
conflict-of-interest requirements at shelter or services from nonvictim
(iii)Prevention strategies.
§578.95(b).The board must:
service providers. This system must (2)Planning for and conducting,at
(1)Be representative of the relevant comply with any requirements least biennially,a point-in-time count of
organizations and of projects serving established by HUD by Notice. homeless persons within the geographic
homeless subpopulations;and (9)In consultation with recipients of area that meets the following
(2)Include at least one homeless or Emergency Solutions Grants program requirements:
formerly homeless individual. funds within the geographic area, (i)Homeless persons who are living in
(c) Transition.Continuums of Care establish and consistently follow a place not designed or ordinarily used
shall have 2 years after August 30,2012 written standards for providing as a regular sleeping accommodation for
45446 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
humans must be counted as unsheltered §578.11 Unified Funding Agency. collaborative applicant and give them
homeless persons. (a)Becoming a Unified Funding an opportunity to respond.
(ii)Persons living in emergency Agency.To become designated as the Subpart C—Application and Grant
shelters and transitional housing Unified Funding Agency(UFA)for a p pp
projects must be counted as sheltered Continuum,a collaborative applicant Award Process
homeless persons. must be selected by the Continuum to §578.15 Eligible applicants.
(iii)Other requirements established apply to HUD to be designated as the (a) Who may apply.Nonprofit
by HUD by Notice. UFA for the Continuum. organizations,States,local governments,
(3)Conducting an annual gaps (b) Criteria for designating a UFA. and instrumentalities of State or local
analysis of the homeless needs and HUD will consider these criteria when governments are eligible to apply for
services available within the geographic deciding whether to designate a grants.
area; collaborative applicant a UFA: g
(4)Providing information required to (1)The Continuum of Care it �)Designation applicant(s)the Continuum of
Care.Eligible applicants)must have
complete the Consolidated Plan(s) represents meets the requirements in been designated by the Continuum of
within the Continuum's geographic §578.7; Care to submit an application for grant
area; (2)The collaborative applicant has funds under this part.The designation
(5)Consulting with State and local financial management systems that meet must state whether the Continuum is
government Emergency Solutions the standards set forth in 24 CFR 84.21 designating more than one applicant to
Grants program recipients within the (for nonprofit organizations)and 24 CFR apply for funds and,if it is,which
Continuum's geographic area on the 85.20 (for States); applicant is being designated as the
plan for allocating Emergency Solutions (3)The collaborative applicant collaborative applicant.If the
Grants program funds and reporting on demonstrates the ability to monitor Continuum is designating only one
and evaluating the performance of subrecipients;and applicant to apply for funds,the
Emergency Solutions Grants program (4)Such other criteria as HUD may Continuum must designate that
recipients and subrecipients. establish by NOFA. applicant to be the collaborative
(c)Requirements.HUD-designated applicant.
§578.9 Preparing an application for funds. a P
UFAs shall: c)Exclusion.For-profit entities are
(a)The Continuum must: (1)Apply to HUD for funding for all not eligible to apply for grants or to be
(1)Design,operate,and follow a of the projects within the geographic subrecipients of grant funds.
collaborative process for the area and enter into a grant agreement
development of applications and with HUD for the entire geographic area. §578.17 Overview of application and grant
approve the submission of applications (2)Enter into legally binding award process.
in response to a NOFA published by agreements with subrecipients,and (a)Formula. (1)After enactment of the
HUD under§578.19 of this subpart; receive and distribute funds to annual appropriations act for each fiscal
(2)Establish priorities for funding subrecipients for all projects within the year,and issuance of the NOFA,HUD
projects in the geographic area; geographic area. will publish, on its Web site,the
(3)Determine if one application for (3)Require subrecipients to establish Preliminary Pro Rata Need (PPRN)
funding will be submitted for all fiscal control and accounting assigned to metropolitan cities,urban
projects within the geographic area or if procedures as necessary to assure the counties,and all other counties.
more than one application will be proper disbursal of and accounting for (2)HUD will apply the formula used
submitted for the projects within the federal funds in accordance with the to determine PPRN established in
geographic area; requirements of 24 CFR parts 84 and 85 paragraph(a)(3)of this section,to the
(i)If more than one application will and corresponding OMB circulars. amount of funds being made available
be submitted, designate an eligible (4)Obtain approval of any proposed under the NOFA.That amount is
applicant to be the collaborative grant agreement amendments by the calculated by:
applicant that will collect and combine Continuum of Care before submitting a (i)Determining the total amount for
the required application information request for an amendment to HUD. the Continuum of Care competition in
from all applicants and for all projects accordance with section 413 of the Act
within the geographic area that the §578.13 Remedial action. or as otherwise directed by the annual
Continuum has selected funding.The (a)If HUD finds that the Continuum appropriations act;
collaborative applicant will also apply of Care for a geographic area does not (ii)From the amount in paragraph
for Continuum of Care planning meet the requirements of the Act or its (a)(2)(i)of this section,deducting the
activities. If the Continuum is an implementing regulations,or that there amount published in the NOFA as being
eligible applicant,it may designate is no Continuum for a geographic area, set aside to provide a bonus to
itself; HUD may take remedial action to ensure geographic areas for activities that have
(ii)If only one application will be fair distribution of grant funds within proven to be effective in reducing
submitted,that applicant will be the the geographic area.Such measures may homelessness generally or for specific
collaborative applicant and will collect include: subpopulations listed in the NOFA or
and combine the required application (1)Designating a replacement achieving homeless prevention and
information from all projects within the Continuum of Care for the geographic independent living goals established in
geographic area that the Continuum has area; the NOFA and to meet policy priorities
selected for funding and apply for (2)Designating a replacement set in the NOFA;and
Continuum of Care planning activities; collaborative applicant for the (iii)Deducting the amount of funding
(b)The Continuum retains all of its Continuum's geographic area;and necessary for Continuum of Care
responsibilities, even if it designates one (3)Accepting applications from other planning activities and UFA costs.
or more eligible applicants other than eligible applicants within the (3)PPRN is calculated on the amount
itself to apply for funds on behalf of the Continuum's geographic area. determined under paragraph(a)(2)of
Continuum. This includes approving (b)HUD must provide a 30-day prior this section by using the following
the Continuum of Care application. written notice to the Continuum and its formula:
Federal Register/Vol.`77, No.. 147/Tuesday, July 31, 2012/Rules and Regulations 45447
(i)Two percent will be allocated is the base for the maximum award months in the case of funds for
among the four insular areas (American amount for the Continuum. acquisition,rehabilitation, or new
Samoa,Guam,the Commonwealth of (4)Establishing the maximum award construction. The 12-month deadline
the Northern Marianas,and the Virgin amount.The maximum award amount may be extended by HUD for up to 12
Islands)on the basis of the ratio of the for the Continuum is the FPRN amount additional months upon a showing of
population of each insular area to the plus any additional eligible amounts for compelling reasons for delay due to
population of all insular areas. Continuum planning;UFA costs; factors beyond the control of the
(ii)Seventy-five percent of the adjustments to leasing,operating and recipient or subrecipient.
remaining amount will be allocated, rental assistance line items based on
using the Community Development changes to FMR; and available bonuses. §578.23 Executing grant agreements.
Block Grant(CDBG)formula,to (a)Deadline.No later than 45 days
metropolitan cities and urban counties §578.19 Application process. from the date when all conditions are
that have been funded under either the (a)Notice of Funding Availability. satisfied,the recipient and HUD must
Emergency Shelter Grants or Emergency After enactment of the annual execute the grant agreement.
Solutions Grants programs in any one appropriations act for the fiscal year, (b) Grant agreements. (1)Multiple
year since 2004. HUD will issue a NOFA in accordance applicants for one Continuum.If a
(iii)The amount remaining after the with the requirements of 24 CFR part 4. Continuum designates more than one
allocation under paragraphs(a)(1)and (b)Applications.All applications to applicant for the geographic area,HUD
(2)of this section will be allocated, HUD,including applications for grant will enter into a grant agreement with
using the CDBG formula,to funds and requests for designation as a each designated applicant for which an
metropolitan cities and urban counties UFA or HPC,must be submitted at such award is announced.
that have not been funded under the time and in such manner as HUD may (2) One applicant for a Continuum.If
Emergency Solutions Grants program in require,and contain such information as a Continuum designates only one
any year since 2004 and all other HUD determines necessary.At a applicant for the geographic area,after
counties in the United States and Puerto minimum,an application for grant awarding funds,HUD may enter into a
Rico. funds must contain a list of the projects grant agreement with that applicant for
(4)If the calculation in paragraph for which it is applying for funds;a new awards,if any,and one grant
(a)(2) of this section results in an description of the projects;a list of the agreement for renewals,Continuum of
amount less than the amount required to projects that will be carried out by Care planning,and UFA costs,if any.
renew all projects eligible for renewal in subrecipients and the names of the These two grants will cover the entire
that year for at least one year,after subrecipients;a description of the geographic area.A default by the
making adjustments proportional to subpopulations of homeless or at risk of recipient under one of those grant
increases in fair market rents for the homelessness to be served by projects; agreements will also be a default under
geographic area for leasing,operating, the number of units to be provided and/ the other.
and rental assistance for permanent or the number of persons to be served (3) Unified Funding Agencies.If a
housing,HUD will reduce, by each project;a budget request by Continuum is a UFA that HUD has
proportionately,the total amount project;and reasonable assurances that approved,then HUD will enter into one
required to renew all projects eligible the applicant, or the subrecipient,will grant agreement with the UFA for new
for renewal in that year for at least one own or have control of a site for the awards,if any,and one grant agreement
year, for each Continuum of Care.HUD proposed project not later than the for renewals,Continuum of Care
will publish,via the NOFA,the total expiration of the 12 month period planning and UFA costs,if any. These
dollar amount that every Continuum beginning upon notification of an award two grants will cover the entire
will be required to deduct from renewal for grant assistance. geographic area.A default by the UFA
projects Continuum-wide.
(b) Calculating a Continuum of Care's §578.21 Awarding funds. under one of those grant agreements
maximum award amount. (1)Establish (a)Selection.HUD will review will also be a default under the other.
the PPRN amount.First,HUD will total applications in accordance with the (c)Required agreements.Recipients
the PPRN amounts for each guidelines and procedures provided in will be required to sign a grant
metropolitan city,urban county, other the NOFA and will award funds to agreement in which the recipient agrees:
county,and insular area claimed by the recipients through a national (1)To ensure the operation of the
Continuum as part of its geographic competition based on selection criteria Project(s)in accordance with the
area,excluding any counties applying as defined in section 427 of the Act. provisions of the McKinney-Veto Act
for or receiving funding from the Rural (b)Announcement of awards.HUD and all requirements under 24 CFR part
Housing Stability Assistance program will announce awards and notify 578;
under 24 CFR part 579. selected applicants of any conditions (2)To monitor and report the progress
(2)Establishing renewal demand. imposed on awards.Conditions must be of the project(s)to the Continuum of
Next,HUD will determine the renewal satisfied before HUD will execute a Care and HUD;
demand within the Continuum's grant agreement with the applicant. (3)To ensure,to the maximum extent
geographic area. Renewal demand is the (c)Satisfying conditions.HUD will practicable,that individuals and
sum of the annual renewal amounts of withdraw an award if the applicant does families experiencing homelessness are
all projects within the Continuum not satisfy all conditions imposed on it. involved,through employment,
eligible to apply for renewal in that Correcting all issues and conditions provision of volunteer services,or
fiscal year's competition,before any attached to an award must be completed otherwise,in constructing,
adjustments to rental assistance, leasing, within the time frame established in the rehabilitating,maintaining,and
and operating line items based on FMR NOFA.Proof of site control,match, operating facilities for the project and in
changes. environmental review,and the providing supportive services for the
(3)Establishing FPRN.The higher of documentation of financial feasibility project;
PPRN or renewal demand for the must be completed within 12 months of (4)To require certification from all
Continuum of Care is the FPRN,which the announcement of the award, or 24 subrecipients that:
45448 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
(i)Subrecipients will maintain the meets HUD's minimum requirements ensure that the project is operated in
confidentiality of records pertaining to and the victim service provider uses compliance with law and regulation for
any individual or family that was that system instead; 15 years from the date of initial
provided family violence prevention or (10)To follow the written standards occupancy or initial service provision.
treatment services through the project; for providing Continuum of Care The partnership or corporation must
(ii)The address or location of any assistance developed by the Continuum own the project site throughout the 15-
family violence project assisted under of Care, including the minimum year period. If grant funds were not used
this part will not be made public, except requirements set forth in§578.7(a)(9); for acquisition,rehabilitation,or new
with written authorization of the person (11)Enter into subrecipient construction,then the recipient or
responsible for the operation of such agreements requiring subrecipients to subrecipient must maintain control for
project; operate the project(s)in accordance the term of the grant agreement and any
(iii)Subrecipients will establish with the provisions of this Act and all renewals thereof.
policies and practices that are consistent requirements under 24 CFR part 578;
with,and do not restrict,the exercise of and §578.27 Consolidated plan.
rights provided by subtitle B of title VII (12)To comply with such other terms (a) States or units of general local
of the Act and other laws relating to the and conditions as HUD may establish by government.An applicant that is a State
provision of educational and related NOFA. or a unit of general local government
services to individuals and families must have a HUD-approved,complete
experiencing homelessness; §578.25 Site control. or abbreviated,consolidated plan in
(iv)In the case of projects that provide (a)In general.When grant funds will accordance with 24 CFR part 91.The
housing or services to families,that be used for acquisition,rehabilitation, applicant must submit a certification
subrecipients will designate a staff new construction,operating costs, or to that the application for funding is
person to be responsible for ensuring provide supportive services,the consistent with the HUD-approved
that children being served in the recipient or subrecipient must consolidated plan(s)for the
program are enrolled in school and demonstrate that it has site control jurisdiction(s)in which the proposed
connected to appropriate services in the within the time frame established in project will be located.Funded
community,including early childhood section§578.21 before HUD will applicants must certify in a grant
programs such as Head Start,part C of execute a grant agreement.This agreement that they are following the
the Individuals with Disabilities requirement does not apply to funds HUD-approved consolidated plan.
Education Act,and programs authorized used for housing that will eventually be (b) Other applicants.Applicants that
under subtitle B of title VII of the Act; owned or controlled by the individuals are not States or units of general local
(v)The subrecipient,its officers,and or families served or for supportive government must submit a certification
employees are not debarred or services provided at sites not operated by the jurisdiction(s)in which the
suspended from doing business with the by the recipient or subrecipient. proposed project will be located that the
Federal Government;and (b)Evidence.Acceptable evidence of applicant's application for funding is
(vi) Subrecipients will provide site control is a deed or lease.If grant consistent with the jurisdiction's HUD-
information, such as data and reports,as funds will be used for acquisition, approved consolidated plan.The
required by HUD;and acceptable evidence of site control will certification must be made by the unit
(5)To establish such fiscal control be a purchase agreement.The owner, of general local government or the State,
and accounting procedures as may be lessee,and purchaser shown on these in accordance with the consistency
necessary to assure the proper disbursal documents must be the selected certification provisions under 24 CFR
of, and accounting for grant funds in applicant or intended subrecipient part 91,subpart F.If the jurisdiction
order to ensure that all financial identified in the application for refuses to provide a certification of
transactions are conducted,and records assistance. consistency,the applicant may appeal
maintained in accordance with (c) Tax credit projects.(1)Applicants to HUD under§578.35.
generally accepted accounting that plan to use the low-income housing (c) Timing of consolidated plan
principles,if the recipient is a UFA; tax credit authorized under 26 U.S.C.42 certification submissions.The required
(6)To monitor subrecipient match to finance a project must prove to HUD's certification that the application for
and report on match to HUD; satisfaction that the applicant or funding is consistent with the HUD-
(7)To take the educational needs of subrecipient identified in the approved consolidated plan must be
children into account when families are application is in control of the limited submitted by the funding application
placed in housing and will,to the partnership or limited liability submission deadline announced in the
maximum extent practicable,place corporation that has a deed or lease for NOFA.
families with children as close as the roject site.
possible to their school of origin so as (iITo have control of the limited §578.29 Subsidy layering.
not to disrupt such children's partnership,the applicant or HUD may provide assistance under
education; subrecipient must be the general partner this program only in accordance with
(8)To monitor subrecipients at least of the limited partnership or have a 51 HUD subsidy layering requirements in
annually; percent controlling interest in that section 102 of the Housing and Urban
(9)To use the centralized or general partner. Development Reform Act of 1989(42
coordinated assessment system (ii)To have control of the limited U.S.C.3545)and 24 CFR part 4, subpart
established by the Continuum of Care as liability company,the applicant or A.An applicant must submit
set forth in §578.7(a)(8).A victim subrecipient must be the sole managing information in its application on other
service provider may choose not to use member. sources of governmental assistance that
the Continuum of Care's centralized or (2)If grant funds are to be used for the applicant has received,or
coordinated assessment system, acquisition,rehabilitation,or new reasonably expects to receive,for a
provided that victim service providers construction,the recipient or proposed project or activities.HUD's
in the area use a centralized or subrecipient must maintain control of review of this information is intended to
coordinated assessment system that the partnership or corporation and must prevent excessive public assistance for
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45449
proposed project or activities by (ii)Up to 100 percent of the amount §578.35 Appeal.
combining(layering)assistance under for leasing and operating in the final (a)In general.Failure to follow the
this program with other governmental year of the prior funding period procedures or meet the deadlines
housing assistance from federal, State, adjusted in proportion to changes in the established in this section will result in
or local agencies,including assistance FMR for the geographic area;and denial of the appeal.
such as tax concessions or tax credits. (iii)For rental assistance,up to 100 (b) Solo applicants. (1) Who may
percent of the result of multiplying the appeal.Nonprofits,States,and local
§578.31 Environmental review. number and unit size(s) in the grant governments,and instrumentalities of
(a)Activities under this part are agreement by the number of months in State or local governments that
subject to environmental review by the renewal grant term and the attempted to participate in the
HUD under 24 CFR part 50.The applicable FMR. Continuum of Care planning process in
recipient or subrecipient shall supply (d)Review criteria. (1)Awards made the geographic area in which they
all available,relevant information operate,that believe they were denied
necessary for HUD to perform,for each under title IV of the Act,as in effect the right to participate in a reasonable
property,any environmental review before August 30,2012 are eligible for manner,and that submitted a solo
renewal in the Continuum of Care application for funding by the
required by 24 CFR part 50.The program even if the awardees would not a PP g y
recipient or subrecipient must carry out be eligible for a new grant under the application deadline established in the
mitigating measures required by HUD or NOFA,may appeal the decision of the
program,so long as they continue to
select an alternate eligible property. Continuum to HUD.
serve the same population and the same
HUD may eliminate from consideration number of ersons or units in the same (2)Notice of intent to appeal.The
any application that would require an P solo applicant must submit a written
Environmental Impact Statement. type of housing as identified in their notice of intent to appeal,with a copy
(b)The recipient or State subrecipient,its most recently amended grant agreement to the Continuum,with their funding
P P signed before August 30,2012. Grants application.
project partners,and their contractors will be renewed if HUD receives a (3)Deadline for submitting proof.No
may not acquire,rehabilitate,convert, certification from the Continuum that
lease,repair,dispose of,demolish,or there is a demonstrated need for the HUD than u days after the date that
construct property for a project under project,and HUD finds that the project HUD announces the submit in writing,the solo
this part,or commit ore end HUD or p 1 P 1 applicant shall submit in writing,with
P expend complied with program requirements a copy to the Continuum,all relevant
local funds for such eligible activities applicable before August 30, 2012.For evidence supporting its claim,in such
under this part,until HUD has purposes of meeting the requirements of
performed an environmental review PAP g q manner as HUD may require by Notice.
P this part,a project will continue to be (4)Response from the Continuum of
under 24 CFR part 50 and the recipient administered in accordance with 24 Care.The Continuum shall have 30 days
or subrecipient has received HUD CFR 582.330,if the project received from the date of its receipt of the solo
approval of the property. funding under the Shelter Plus Care applicant's evidence to respond to HUD
§578.33 Renewals. program,or 24 CFR 583.325,if the in writing and in such manner as HUD
(a)In general.Awards made under project received funding under the may require,with a copy to the solo
this part and title IV of the Act,as in Supportive Housing Program. a pplicant.
effect before August 30,2012(the (2)Renewal of awards made after p(5)Decision.HUD will notify the solo
Supportive Housing Program and the August 30,2012.Review criteria for applicant and the Continuum of its
Shelter Plus Care program),may be competitively awarded renewals made decision within 60 days of receipt of the
renewed to continue ongoing leasing, after August 30, 2012 will be described Continuum's response.
operations,supportive services,rental in the NOFA. (6)Funding.If HUD finds that the solo
assistance,HMIS,and administration (e) Unsuccessful projects.HUD may applicant was not permitted to
beyond the initial funding period. To be renew a project that was eligible for participate in the Continuum of Care
considered for funding,recipients must renewal in the competition and was part planning process in a reasonable
submit a request in a form specified by of an application that was not funded manner,then HUD may award a grant
HUD,must meet the requirements of despite having been submitted on time, to the solo applicant when funds next
this part,and must submit the request in the manner required by HUD,and become available and may direct the
within the time frame established by containing the information required by Continuum of Care to take remedial
HUD. HUD,upon a finding that the project steps to ensure reasonable participation
(b)Length of renewal.HUD may meets the purposes of the Continuum of in the future.HUD may also reduce the
f y Care program.The renewal will not award to the Continuum's applicant(s).
award up to 3 years of funds for P (c)Denied or decreased funding. (1)
supportive services,leasing,HMIS,and exceed more than one year and will be Who may appeal.Eligible applicants
operating costs.Renewals of tenant- under such conditions as HUD deems that are denied funds by HUD,or that
based and sponsor-based rental appropriate.
P requested more funds than HUD
assistance may be for up to one year of (f)Annual Performance Report awarded to them,may appeal the award
rental assistance.Renewals of project- condition.HUD may terminate the by filing a written appeal,in such form
based rental assistance may be for up to renewal of any grant and require the and manner as HUD may require by
15 years of rental assistance,subject to recipient to repay the renewal grant if: Notice,within 45 days of the date of
availability of annual appropriations. (1)The recipient fails to timely HUD's announcement of the award.
(c)Assistance available. (1) submit a HUD Annual Performance (2)Decision.HUD will notify the
Assistance during each year of a Report(APR) for the grant year applicant of its decision on the appeal
renewal period may be for: immediately prior to renewal; or within 60 days of HUD's receipt of the
(i)Up to 100 percent of the amount (2)The recipient submits an APR that written appeal.HUD will reverse a
for supportive services and HMIS costs HUD deems unacceptable or shows decision only when the applicant can
in the final year of the prior funding noncompliance with the requirements show that HUD error caused the denial
period; of the grant and this part. or decrease.
45450 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
(3)Funding.Awards and increases to response.As part of its review,HUD a homeless individual or family,with or
awards made upon appeal will be made will consider: without disabilities,move as quickly as
from next available funds. (A)Whether the applicant submitted possible into permanent housing and
(d) Competing Continuums of Care. the request to the appropriate political achieve stability in that housing.When
(1)In general.If more than one jurisdiction;and providing short-term and/or medium-
Continuum of Care claims the same (B)The reasonableness of the term rental assistance to program
geographic area,HUD will award funds jurisdiction's refusal to provide the participants,the rental assistance is
to the Continuum applicant(s)whose certificate. subject to§578.51(a)(1),but not
application(s)has the highest total (ii)If the jurisdiction did not provide §578.51(a)(1)(i)and(ii);(a)(2); (c)and
score.No projects will be funded from written reasons for refusal,including (f)through(i);and(1)(1).These projects:
the lower scoring Continuum.No the reasons why the project is not (A)Must follow the written policies
projects that are submitted in two or consistent with the jurisdiction's and procedures established by the
more competing Continuum of Care Consolidated Plan in its initial response Continuum of Care for determining and
applications will be funded. to the applicant's request for a prioritizing which eligible families and
(2) Who may appeal.The designated certification,HUD will find for the individuals will receive rapid rehousing
applicant(s)for the lower scoring applicant without further inquiry or assistance,as well as the amount or
Continuum may appeal HUD's decision response from the political jurisdiction. percentage of rent that each program
to fund the application(s)from the participant must pay.
competing Continuum by filing a Subpart D—Program Components and (B)May set a maximum amount or
written appeal,in such form and Eligible Costs percentage of rental assistance that a
manner as HUD may require by Notice, program participant may receive,a
within 45 days of the date of HUD's §578.37 Program components and uses of maximum number of months that a
Y assistance. program participant may receive rental
announcement of the award. (a)Continuum of Care funds may be assistance,and/or a maximum number
(3)Decision.HUD will notify the used to pay for the eligible costs listed
applicant(s)of its decision on the appeal p Y g of times that a program participant may
within 60 days of the date of HUD's in§578.39 through§578.63 when used receive rental assistance.The recipient
receipt of the written appeal.HUD will to establish and operate projects under or subrecipient may also require
reverse a decision only upon a showing five program components:permanent program participants to share in the
by the applicant that HUD error caused housing;transitional housing; costs of rent.For the purposes of
the denial. supportive services only;HMIS;and,in calculating rent for rapid rehousing,the
(e) Consolidated plan certification. (1) some cases,homelessness prevention. rent shall equal the sum of the total
In general.An applicant may appeal to Although grant funds may be used by monthly rent for the unit and,if the
HUD a jurisdiction's refusal to provide recipients and subrecipients in all tenant pays separately for utilities,the
a certification of consistency with the components for the eligible costs of monthly allowance for utilities
Consolidated Plan. contributing data to the HMIS (excluding telephone)established by the
(2)Procedure.The applicant must designated by the Continuum of Care, public housing authority for the area in
submit a written appeal with its only HMIS Leads may use grant funds which the housing is located.
application to HUD and send a copy of for an HMIS component.Administrative (C)Limit rental assistance to no more
the appeal to the jurisdiction that costs are eligible for all components.All than 24 months to a household.
denied the certification of consistency. components are subject to the (D)May provide supportive services
The appeal must include,at a restrictions on combining funds for for no longer than 6 months after rental
minimum: certain eligible activities in a single assistance stops.
(i)A copy of the applicant's request project found in§578.87(c).The eligible (E)Must re-evaluate,not less than
to the jurisdiction for the certification of program components are: once annually,that the program
consistency with the Consolidated Plan; (1)Permanent housing(PH). participant lacks sufficient resources
(ii)A copy of the jurisdiction's Permanent housing is community-based and support networks necessary to
response stating the reasons for denial, housing,the purpose of which is to retain housing without Continuum of
including the reasons the proposed provide housing without a designated Care assistance and the types and
project is not consistent with the length of stay.Grant funds may be used amounts of assistance that the program
jurisdiction's Consolidated Plan in for acquisition,rehabilitation,new participant needs to retain housing.The
accordance with 24 CFR 91.500(c);and construction,leasing,rental assistance, recipient or subrecipient may require
(iii)A statement of the reasons why operating costs,and supportive services. each program participant receiving
the applicant believes its project is PH includes: assistance to notify the recipient or
consistent with the jurisdiction's (i)Permanent supportive housing for subrecipient of changes in the program
Consolidated Plan. persons with disabilities(PSH).PSH can participant's income or other
(3)Jurisdiction response.The only provide assistance to individuals circumstances(e.g.,changes in
jurisdiction that refused to provide the with disabilities and families in which household composition)that affect the
certification of consistency with the one adult or child has a disability. program participant's need for
jurisdiction's Consolidated Plan shall Supportive services designed to meet assistance.When notified of a relevant
have 10 days after receipt of a copy of the needs of the program participants change,the recipient or subrecipient
the appeal to submit a written must be made available to the program must reevaluate the program
explanation of the reasons originally participants. participant's eligibility and the amount
given for refusing to provide the (ii)Rapid rehousing.Continuum of and types of assistance that the program
certification and a written rebuttal to Care funds may provide supportive participant needs.
any claims made by the applicant in the services,as set forth in§578.53,and/or (F)Require the program participant to
appeal. short-term(up to 3 months)and/or meet with a case manager not less than
p(4) HUD review.(i)HUD will issue its medium-term(for 3 to 24 months) once per month to assist the program
decision within 45 days of the date of tenant-based rental assistance,as set participant in ensuring long-term
HUD's receipt of the jurisdiction's forth in§578.51(c),as necessary to help housing stability.The project is exempt
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45451
from this requirement if the Violence (7)Establish and operate an HMIS or (5)Participating in the consolidated
Against Women Act of 1994(42 U.S.C. comparable database;and plan(s) of the jurisdiction(s)in the
13925 et seq.) or the Family Violence (8)Establish and carry out a geographic area;and
Prevention and Services Act(42 U.S.C. Continuum of Care planning process (6)Preparing and submitting an
10401 et seq.) prohibits the recipient and operate a Continuum of Care. application to HUD on behalf of the
carrying out the project from making its (c)Multiple purposes.Structures used entire Continuum of Care membership,
housing conditional on the participant's to provide housing,supportive housing, including conducting a sheltered and
acceptance of services. supportive services, or as a facility for unsheltered point-in-time count and
(2) Transitional Housing(THJ. HMIS activities may also be used for other data collection as required by
Transitional housing facilitates the other purposes.However,assistance HUD.
movement of homeless individuals and under this part will be available only in (c)Monitoring costs.The costs of
families to PH within 24 months of proportion to the use of the structure for monitoring recipients and subrecipients
entering TH. Grant funds may be used supportive housing or supportive and enforcing compliance with program
for acquisition,rehabilitation,new services.If eligible and ineligible requirements are eligible.
construction, leasing,rental assistance, activities are carried out in separate §578.41 Unified Funding Agency costs.
operating costs, and supportive services. portions of the same structure or in
(3) Supportive Service Only(SSO). separate structures,grant funds may not (a)In general.UFAs may use up to 3
Funds may be used for acquisition, be used to pay for more than the actual amount to of their established or a maximum
rehabilitation,relocation costs,or cost of acquisition, construction,or amount e be less, by the NOFA,
and
leasing of a facility from which q whichever is less,for fiscal control and
g Y rehabilitation of the portion of the accounting costs necessary to assure the
supportive services will be provided, structure or structures used for eligible
and supportive services in order to activities.If eligible and ineligible proper dings awarded r and accounting for,
provide supportive services to activities are carried out in the same under funds Continuum of Care program.
unsheltered and sheltered homeless structure,the costs will be prorated (b) the costs.UFA costs Care cludeam.
persons for whom the recipient or based on the amount of time that the costs of ensuring costs.UFA costs include
subrecipient is not providing housing or costs c ensuring that all financial
P P g g space is used for eligible versus transactions carried out under the
housing assistance. SSO includes street ineligible activities. Continuum of Care program are
outreach.
(4)HMIS.Funds may be used by §578.39 Continuum of Care planning conducted and records are maintained
HMIS Leads to lease a structure in activities. in accordance with generally accepted
which the HMIS is operated or as (a)In general.Collaborative accounting principles,including
operating funds to operate a structure in applicants may use up to 3 percent of arranging for an annual survey,audit,or
which the HMIS is operated,and for their FPRN,or a maximum amount to be evaluation of the financial records of
other costs eligible in§578.57. established by the NOFA,for costs of: each project carried out by a
(5)Homelessness prevention.Funds (1)Designing and carrying out a subrecipient funded by a grant received
may be used by recipients in collaborative process for the through the Continuum of Care
Continuums of Care-designated high- development of an application to HUD; program.
performing communities for housing (2)Evaluating the outcomes of
(c)Monitoring costs.The costs of
relocation and stabilization services, g monitoring subrecipients and enforcing
projects for which funds are awarded in compliance with program requirements
and short-and/or medium-term rental the geographic area under the are eligible for costs.
assistance,as described in 24 CFR Continuum of Care and the Emergency
576.105 and 24 CFR 576.106,that are Solutions Grants programs;and §578.43 Acquisition.
necessary to prevent an individual or (3)Participating in the consolidated Grant funds may be used to pay up to
family from becoming homeless. plan(s)for the geographic area(s). 100 percent of the cost of acquisition of
(b) Uses of assistance.Funds are (b) Continuum of Care planning real property selected by the recipient or
available to pay for the eligible costs activities.Eligible planning costs subrecipient for use in the provision of
listed in §578.39 through§578.63 when include the costs of: housing or supportive services for
used to: (1)Developing a communitywide or homeless persons.
(1)Establish new housing or new regionwide process involving the
facilities to provide supportive services; §578.45 Rehabilitation.
(2)Expand existing housing and coordination of nonprofit homeless
P g g providers,victim service providers,
(a) Use.Grant funds may be used to
facilities in order to increase the number P. P a up to 100 percent of the cost of
of homeless persons served; faith-based organizations,governments, pay P P
P businesses,advocates,public housing rehabilitation of structures to provide
bi
(3)Bring existing housing and P housing or supportive services to
facilities into compliance with State and agencies, school districts,social service g pP
P homeless persons.
local government health and safety providers,mental health agencies, (b)Eligible costs.Eligible
standards,as described in§578.87; hospitals,universities,affordable
(4)Preserve existing permanent housing developers,law enforcement, rehabilitation costs include installing
g P cost-effective energy measures,and
housing and facilities that provide organizations that serve veterans,and
g P homeless and formerly homeless bringing an existing structure to State
supportive services; Y and local government health and safety
(5)Provide supportive services for individuals;
residents of supportive housing or for (2)Determining the geographic area standards.
homeless persons not residing in that the Continuum of Care will serve; (c)Ineligible costs.Grant funds may
P g not be used for rehabilitation of leased
supportive housing; (3)Developing a Continuum of Care
(6)Continue funding permanent system; property.
housing when the recipient has received (4)Evaluating the outcomes of §578.47 New construction.
funding under this part for leasing, projects for which funds are awarded in (a) Use. Grant funds may be used to:
supportive services,operating costs,or the geographic area,including the (1)Pay up to 100 percent of the cost
rental assistance; Emergency Solutions Grants program; of new construction,including the
45452 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
building of a new structure or building type,quality,amenities, facilities,and (i)The rental assistance may be short-
an addition to an existing structure that management services.In addition,the term,up to 3 months of rent;medium-
increases the floor area by 100 percent rents may not exceed rents currently term,for 3 to 24 months of rent;or long-
or more,and the cost of land associated being charged for comparable units,and term,for longer than 24 months of rent
with that construction,for use as the rent paid may not exceed HUD- and must be administered in accordance
housing. determined fair market rents. with the policies and procedures
(2)If grant funds are used for new (3) Utilities.If electricity,gas, and established by the Continuum as set
construction,the applicant must water are included in the rent,these forth in§578.7(a)(9)and this section.
demonstrate that the costs of new utilities maybe paid from leasing funds. (ii)The rental assistance maybe
construction are substantially less than If utilities are not provided by the tenant-based,project-based,or sponsor-
the costs of rehabilitation or that there landlord,these utility costs are an based,and may be for transitional or
is a lack of available appropriate units operating cost,except for supportive permanent housing.
that could be rehabilitated at a cost less service facilities. If the structure is being (2)Grant funds may be used for
than new construction. For purposes of used as a supportive service facility, security deposits in an amount not to
this cost comparison,costs of then these utility costs are a supportive exceed 2 months of rent.An advance
rehabilitation or new construction may service cost. payment of the last month's rent may be
include the cost of real property (4)Security deposits and first and last provided to the landlord,in addition to
acquisition. month's rent.Recipients and the security deposit and payment of first
(b)Ineligible costs. Grant funds may subrecipients may use grant funds to month's rent.
not be used for new construction on pay security deposits,in an amount not (b)Rental assistance administrator.
leased property. to exceed 2 months of actual rent.An Rental assistance must be administered
advance payment of the last month's by a State,unit of general local
§578.49 Leasing. rent maybe provided to the landlord in government,or a public housing agency.
(a) Use. (1)Where the recipient or addition to the security deposit and
(c) Tenant-based rental assistance.
subrecipient is leasing the structure,or payment of the first month's rent. Tenant-based rental assistance is rental
portions thereof,grant funds may be 5) Occupancy agreements and assistance in which program
used to pay for 100 percent of the costs subleases.Occupancy agreements and participants choose housing of an
of leasing a structure or structures,or subleases are required as specified in appropriate size in which to reside.
portions thereof,to provide housing or §578.77(a).
supportive services to homeless persons (6)Calculation of occupancy charges When necessary to facilitate the
for up to 3 years. Leasing funds may not and rent.Occupancy charges and rent coordination of supportive services,
recipients and subrecipients may
be used to lease units or structures from program participants must be
owned by the recipient,subrecipient, calculated as provided in§578.77. require program participants to live in a
their parent organization(s),any other (7)Program income. Occupancy specific area for their entire period of
related organization(s), or organizations charges and rent collected from program orrthe first year and n a specific areas
that are members of a partnership, participants are program income and for the remainder of their period of
where the partnership owns the may be used as provided under
structure,unless HUD authorized an §578.97. participation.Program participants who
exception for good cause. (8) Transition.Beginning in the first are receiving rental assistance in
(2)Any request for an exception must year awards are made under the transitional housing may be required to
include the following: Continuum of Care program,renewals of live in a specific structure for their
(i)A description of how leasing these grants for leasing funds entered into entire period of participation in
structures is in the best interest of the under the authority of title IV,subtitle transitional housing.
program; D of the Act as it existed before May 20, (1)Up to 5 years worth of rental
(ii) Supporting documentation 2009,will be renewed either as grants assistance maybe awarded to a project
showing that the leasing charges paid for leasing or as rental assistance, in one competition.
with grant funds are reasonable for the depending on the characteristics of the (2)Program participants who have
market;and project.Leasing funds will be renewed complied with all program requirements
(iii)A copy of the written policy for as rental assistance if the funds are used during their residence retain the rental
resolving disputes between the landlord to pay rent on units where the lease is assistance if they move within the
and tenant, including a recusal for between the program participant and Continuum of Care geographic area.
officers,agents, and staff who work for the landowner or sublessor.Projects (3)Program participants who have
both the landlord and tenant. requesting leasing funds will be complied with all program requirements
(b)Requirements.(1)Leasing renewed as leasing if the funds were during their residence and who have
structures.When grants are used to pay used to lease a unit or structure and the been a victim of domestic violence,
rent for all or part of a structure or lease is between the recipient or dating violence,sexual assault,or
structures,the rent paid must be subrecipient and the landowner. stalking,and who reasonably believe
reasonable in relation to rents being they are imminently threatened by harm
charged in the area for comparable §578.51 Rental assistance. from further domestic violence,dating
space.In addition,the rent paid may not (a) Use. (1)Grant funds may be used violence,sexual assault,or stalking
exceed rents currently being charged by for rental assistance for homeless (which would include threats from a
the same owner for comparable individuals and families.Rental third party,such as a friend or family
unassisted space. assistance cannot be provided to a member of the perpetrator of the
(2)Leasing individual units.When program participant who is already violence),if they remain in the assisted
grants are used to pay rent for receiving rental assistance,or living in unit,and are able to document the
individual housing units,the rent paid a housing unit receiving rental violence and basis for their belief,may
must be reasonable in relation to rents assistance or operating assistance retain the rental assistance and move to
being charged for comparable units, through other federal,State,or local a different Continuum of Care
taking into account the location,size, sources. geographic area if they move out of the
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45453
assisted unit to protect their health and providing the housing assistance participants. If the supportive services
safety. described in the application for the full are provided in a supportive service
(d) Sponsor-based rental assistance. 5-year period. facility not contained in a housing
Sponsor-based rental assistance is (3)A recipient must serve at least as structure,the costs of day-to-day
provided through contracts between the many program participants as shown in operation of the supportive service
recipient and sponsor organization.A its application for assistance. facility,including maintenance,repair,
sponsor may be a private,nonprofit (4)If the amount in each grant building security,furniture,utilities,
organization, or a community mental reserved for rental assistance over the and equipment are eligible as a
health agency established as a public grant period exceeds the amount that supportive service.
nonprofit organization.Program will be needed to pay the actual costs (1) Supportive services must be
participants must reside in housing of rental assistance,due to such factors necessary to assist program participants
owned or leased by the sponsor.Up to as contract rents being lower than FMRs obtain and maintain housing.
5 years worth of rental assistance may and program participants being able to (2)Recipients and subrecipients shall
be awarded to a project in one pay a portion of the rent,recipients or conduct an annual assessment of the
competition. subrecipients may use the excess funds service needs of the program
(e)Project-based rental assistance. for covering the costs of rent increases, participants and should adjust services
Project-based rental assistance is or for serving a greater number of accordingly.
provided through a contract with the program participants. (b)Duration. (1)For a transitional
owner of an existing structure,where (i) Vacancies.If a unit assisted under housing project,supportive services
the owner agrees to lease the subsidized this section is vacated before the must be made available to residents
units to program participants.Program expiration of the lease,the assistance for throughout the duration of their
participants will not retain rental the unit may continue for a maximum residence in the project.
assistance if they move.Up to 15 years of 30 days from the end of the month (2)Permanent supportive housing
of rental assistance may be awarded in in which the unit was vacated,unless projects must provide supportive
one competition. occupied by another eligible person.No services for the residents to enable them
(f) Grant amount.The amount of additional assistance will be paid until to live as independently as is
rental assistance in each project will be the unit is occupied by another eligible practicable throughout the duration of
based on the number and size of units person.Brief periods of stays in their residence in the project.
proposed by the applicant to be assisted institutions,not to exceed 90 days for (3) Services may also be provided to
over the grant period.The amount of each occurrence,are not considered former residents of transitional housing
rental assistance in each project will be vacancies. and current residents of permanent
calculated by multiplying the number (j)Property damage.Recipients and housing who were homeless in the prior
and size of units proposed by the FMR subrecipients may use grant funds in an 6 months,for no more than 6 months
of each unit on the date the application amount not to exceed one month's rent after leaving transitional housing or
is submitted to HUD,by the term of the to pay for any damage to housing due homelessness,respectively,to assist
grant. to the action of a program participant. their adjustment to independent living.
(g)Rent reasonableness. HUD will This shall be a one-time cost per (4)Rapid rehousing projects must
only provide rental assistance for a unit participant,incurred at the time a
if the rent is reasonable.The recipient participant exits a housing unit. require the program participant to meet
or subrecipient must determine whether (k)Resident rent.Rent must be with a case manager not less than once
the rent charged for the unit receiving calculated as provided in§578.77. per month as set forth in
rental assistance is reasonable in Rents collected from program §578.37(a)(1)(ii)(F),to assist the
relation to rents being charged for participants are program income and program participant in maintaining
comparable unassisted units,taking into may be used as provided under long-term housing stability.
account the location, size,type,quality, §578.97. (c) Special populations.All eligible
amenities, facilities,and management (1)Leases. (1)Initial lease.For project- costs are eligible to the same extent for
and maintenance of each unit. based,sponsor-based,or tenant-based program participants who are
Reasonable rent must not exceed rents rental assistance,program participants unaccompanied homeless youth;
currently being charged by the same must enter into a lease agreement for a persons living with HIV/AIDS;and
owner for comparable unassisted units. term of at least one year,which is victims of domestic violence,dating
(h)Payment of grant.(1)The amount terminable for cause.The leases must be violence,sexual assault,or stalking.
of rental assistance in each project will automatically renewable upon (d)Ineligible costs.Any cost that is
be reserved for rental assistance over the expiration for terms that are a minimum not described as an eligible cost under
grant period. An applicant's request for of one month long, except on prior this section is not an eligible cost of
rental assistance in each grant is an notice by either party. providing supportive services using
estimate of the amount needed for rental (2)Initial lease for transitional Continuum of Care program funds. Staff
assistance.Recipients will make draws housing.Program participants in training and the costs of obtaining
from the grant funds to pay the actual transitional housing must enter into a professional licenses or certifications
costs of rental assistance for program lease agreement for a term of at least one needed to provide supportive services
participants. month. The lease must be automatically are not eligible costs.
(2)For tenant-based rental assistance, renewable upon expiration,except on (e)Eligible costs.
on demonstration of need: prior notice by either party,up to a (1)Annual Assessment of Service
(i) Up to 25 percent of the total rental maximum term of 24 months. Needs.The costs of the assessment
assistance awarded may be spent in any required by§578.53(a)(2)are eligible
year of a 5-year grant term;or §578.53 Supportive services. costs.
(ii)A higher percentage if approved in (a)In general.Grant funds may be (2)Assistance with moving costs.
advance by HUD,if the recipient used to pay the eligible costs of Reasonable one-time moving costs are
provides evidence satisfactory to HUD supportive services that address the eligible and include truck rental and
that it is financially committed to special needs of the program hiring a moving company.
45454 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
(3)Case management.The costs of providing reasonable stipends to legal services provider and performs the
assessing, arranging,coordinating,and program participants in employment services itself,the eligible costs are the
monitoring the delivery of assistance and job training programs is subrecipient's employees'salaries and
individualized services to meet the also an eligible cost. other costs necessary to perform the
needs of the program participant(s)are (i)Learning skills include those skills services.
eligible costs.Component services and that can be used to secure and retain a (iv)Legal services for immigration
activities consist of: job,including the acquisition of and citizenship matters and issues
(i)Counseling; vocational licenses and/or certificates. related to mortgages and
(ii)Developing,securing,and (ii) Services that assist individuals in homeownership are ineligible.Retainer
coordinating services; securing employment consist of: fee arrangements and contingency fee
(iii)Using the centralized or (A)Employment screening, arrangements are ineligible.
coordinated assessment system as assessment,or testing; (10)Life skills training.The costs of
required under§578.23(c)(9). (B) Structured job skills and job- teaching critical life management skills
(iv)Obtaining federal,State,and local seeking skills; that may never have been learned or
benefits; (C) Special training and tutoring, have been lost during the course of
(v)Monitoring and evaluating including literacy training and pre- physical or mental illness,domestic
program participant progress; vocational training; violence,substance abuse,and
(vi)Providing information and (D)Books and instructional material; homelessness are eligible.These
referrals to other providers; (E)Counseling or job coaching;and services must be necessary to assist the
(vii)Providing ongoing risk (F)Referral to community resources. program participant to function
assessment and safety planning with (7)Food.The cost of providing meals independently in the community.
victims of domestic violence,dating or groceries to program participants is Component life skills training are the
violence,sexual assault,and stalking; eligible. budgeting of resources and money
and (8)Housing search and counseling management,household management,
(viii)Developing an individualized services.Costs of assisting eligible conflict management,shopping for food
housing and service plan,including program participants to locate,obtain, and other needed items,nutrition,the
planning a path to permanent housing and retain suitable housing are eligible. use of public transportation,and parent
stability. (i)Component services or activities training.
(4) Child care.The costs of are tenant counseling;assisting (11)Mental health services.Eligible
establishing and operating child care, individuals and families to understand costs are the direct outpatient treatment
and providing child-care vouchers,for leases; securing utilities;and making of mental health conditions that are
children from families experiencing moving arrangements. provided by licensed professionals.
homelessness,including providing (ii)Other eligible costs are: Component services are crisis
meals and snacks,and comprehensive (A)Mediation with property owners l menta interventions;counseling;individual,
and coordinated developmental and landlords on behalf of eligible
P family, or group therapy sessions;the
activities,are eligible. program participants; prescription of s chotro is
(i)The children must be under the age (B) Credit counseling,accessing a free medications
medications explanations about the
of 13,unless they are disabled children. personal credit report,and resolving
(ii)Disabled children must be under personal credit issues;and use and management of medications;
the age of 18. (C)The payment of rental application and combinations of therapeutic
(iii)The child-care center must be fees. approaches to address multiple
licensed by the jurisdiction in which it (9)Legal services.Eligible costs are problems.
operates in order for its costs to be the fees charged by licensed attorneys (12) Outpatient health services.
eligible. and by person(s)under the supervision Eligible costs are the direct outpatient
(5)Education services.The costs of of licensed attorneys,for advice and treatment of medical conditions when
improving knowledge and basic representation in matters that interfere provided by licensed medical
educational skills are eligible. with the homeless individual or family's professionals including:
(i) Services include instruction or ability to obtain and retain housing. (i)Providing an analysis or
training in consumer education,health (i)Eligible subject matters are child assessment of an individual's health
education,substance abuse prevention, support;guardianship;paternity; problems and the development of a
literacy,English as a Second Language, emancipation;legal separation;orders of treatment plan;
and General Educational Development protection and other civil remedies for (ii)Assisting individuals to
(GED). victims of domestic violence,dating understand their health needs;
(ii)Component services or activities violence,sexual assault,and stalking; (iii)Providing directly or assisting
are screening,assessment and testing; appeal of veterans and public benefit individuals to obtain and utilize
individual or group instruction; claim denials;landlord tenant disputes; appropriate medical treatment;
tutoring;provision of books,supplies, and the resolution of outstanding (iv)Preventive medical care and
and instructional material;counseling; criminal warrants. health maintenance services,including
and referral to community resources. (ii) Component services or activities in-home health services and emergency
(6)Employment assistance and job may include receiving and preparing medical services;
training.The costs of establishing and cases for trial,provision of legal advice, (v)Provision of appropriate
operating employment assistance and representation at hearings,and medication;
job training programs are eligible, counseling. (vi)Providing follow-up services;and
including classroom,online and/or (iii)Fees based on the actual service (vii)Preventive and noncosmetic
computer instruction,on-the-job performed(i.e.,fee for service)are also dental care.
instruction,services that assist eligible,but only if the cost would be (13)Outreach services.The costs of
individuals in securing employment, less than the cost of hourly fees.Filing activities to engage persons for the
acquiring learning skills,and/or fees and other necessary court costs are purpose of providing immediate support
increasing earning potential.The cost of also eligible.If the subrecipient is a and intervention,as well as identifying
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45455
potential program participants,are share in the cost of car repairs or (iv)Obtaining technical support;
eligible. maintenance as a condition of receiving (v)Leasing office space;
(i)Eligible costs include the outreach assistance with car repairs or (vi)Paying charges for electricity,gas,
worker's transportation costs and a cell maintenance. water,phone service,and high-speed
phone to be used by the individual (16) Utility deposits.This form of data transmission necessary to operate
performing the outreach. assistance consists of paying for utility or contribute data to the HMIS;
(ii)Component activities and services deposits. Utility deposits must be a one- (vii)Paying salaries for operating
consist of:initial assessment;crisis time fee,paid to utility companies. HMIS,including:
counseling;addressing urgent physical (17)Direct provision of services.If the (A)Completing data entry;
needs,such as providing meals, service described in paragraphs(e)(1) (B)Monitoring and reviewing data
blankets,clothes,or toiletries;actively through(e)(16) of this section is being quality;
connecting and providing people with directly delivered by the recipient or (C)Completing data analysis;
information and referrals to homeless subrecipient,eligible costs for those (D)Reporting to the HMIS Lead;
and mainstream programs;and services also include: (E)Training staff on using the HMIS;
publicizing the availability of the (i)The costs of labor or supplies,and and
housing and/or services provided materials incurred by the recipient or (F)Implementing and complying with
within the geographic area covered by subrecipient in directly providing HMIS requirements;
the Continuum of Care. supportive services to program (viii)Paying costs of staff to travel to
(14) Substance abuse treatment participants;and and attend HUD-sponsored and HUD-
services.The costs of program (ii)The salary and benefit packages of approved training on HMIS and
participant intake and assessment, the recipient and subrecipient staff who programs authorized by Title N of the
outpatient treatment,group and directly deliver the services. McKinney-Vento Homeless Assistance
individual counseling,and drug testing 578.55 Operating costs. Act;
are eligible.Inpatient detoxification and (ix)Paying staff travel costs to
other inpatient drug or alcohol (a) Use.Grant funds may be used to conduct intake;and
treatment are ineligible. pay the costs of the day to-day operation (x)Paying participation fees charged
(15) Transportation.Eligible costs are: of transitional and permanent housing by the HMIS Lead,as authorized by
(i)The costs of program participant's in a single structure or individual HUD,if the recipient or subrecipient is
travel on public transportation or in a housing units. not the HMIS Lead.
vehicle provided by the recipient or (b)Eligible costs. (1)The maintenance (2)If the recipient or subrecipient is
subrecipient to and from medical care, and repair of housing; the HMIS Lead,it may also use
employment,child care,or other (2)Property taxes and insurance; Continuum of Care funds to pay the
services eligible under this section. (3)Scheduled payments to a reserve costs of:
(ii)Mileage allowance for service for replacement of major systems of the (i)Hosting and maintaining HMIS
workers to visit program participants housing(provided that the payments software or data;
and to carry out housing quality must be based on the useful life of the (ii)Backing up,recovering,or
inspections; system and expected replacement cost); repairing HMIS software or data;
(iii)The cost of purchasing or leasing (4)Building security for a structure (iii)Upgrading,customizing,and
a vehicle in which staff transports
where more than 50 percent of the units enhancing the HMIS;
program participants and/or staff or area is paid for with grant funds; (iv)Integrating and warehousing data,
serving program participants;
(5)Electricity,gas,and water; including development of a data
p (6)Furniture;and
(iv)The cost of gas,insurance,taxes, (7)Equipment. warehouse for use in aggregating data
and maintenance for the vehicle; (c)Ineligible costs.Program funds from subrecipients using multiple
(v)The costs of recipient or may not be used for rental assistance software systems;
subrecipient staff to accompany or assist (v)operating costs in the same project. Administering the system;
program participants to utilize public Program funds may not be used for the (vi)Reporting to providers,the
transportation;and operating costs of emergency shelter- Continuum of Care,and HUD;and
(vi)If public transportation options and supportive service only facilities. (vii)Conducting training on using the
are not sufficient within the area,the Program funds may not be used for the system,including traveling to the
recipient may make a one-time payment maintenance and repair of housing training.
on behalf of a program participant where the costs of maintaining and (3)If the recipient or subrecipient is
needing car repairs or maintenance repairing the housing are included in a victim services provider,or a legal
required to operate a personal vehicle, the lease. services provider,it may use Continuum
subject to the following: of Care funds to establish and operate a
(A)Payments for car repairs or §578.57 Homeless Management comparable database that complies with
maintenance on behalf of the program Information System. HUD's HMIS requirements.
participant may not exceed 10 percent (a)Eligible costs. (1)The recipient or (b) General restrictions.Activities
of the Blue Book value of the vehicle subrecipient may use Continuum of funded under this section must comply
(Blue Book refers to the guidebook that Care program funds to pay the costs of with the HMIS requirements.
compiles and quotes prices for new and contributing data to the HMIS
used automobiles and other vehicles of designated by the Continuum of Care, §578.59 Project administrative costs.
all makes,models,and types); including the costs of: (a)Eligible costs.The recipient or
(B)Payments for car repairs or (i)Purchasing or leasing computer subrecipient may use up to 10 percent
maintenance must be paid by the hardware; of any grant awarded under this part,
recipient or subrecipient directly to the (ii)Purchasing software or software excluding the amount for Continuum of
third party that repairs or maintains the licenses; Care Planning Activities and UFA costs,
car;and (iii)Purchasing or leasing equipment, for the payment of project
(C) The recipients or subrecipients including telephones,fax machines,and administrative costs related to the
may require program participants to furniture; planning and execution of Continuum
45456 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
of Care activities.This does not include supplies,and rental and maintenance time and in such manner as HUD may
staff and overhead costs directly related (but not purchase) of office space. require,must use HMIS data where
to carrying out activities eligible under (2) Training on Continuum of Care required to show the standards for
§578.43 through§578.57,because those requirements.Costs of providing qualifying are met,and must contain
costs are eligible as part of those training on Continuum of Care such information as HUD requires,
activities. Eligible administrative costs requirements and attending HUD- including at a minimum:
include: sponsored Continuum of Care trainings. (1)A report showing how the
(1) General management,oversight, (3)Environmental review. Costs of Continuum of Care program funds
and coordination.Costs of overall carrying out the environmental review received in the preceding year were
program management,coordination, responsibilities under§578.31. expended;
monitoring,and evaluation.These costs (b)Sharing requirement. (1) UFAs.If (2)A specific plan for how grant
include,but are not limited to, the recipient is a UFA that carries out funds will be expended;and
necessary expenditures for the a project,it may use up to 10 percent (3)Information establishing that the
following: of the grant amount awarded for the Continuum of Care meets the standards
(i) Salaries,wages,and related costs of project on project administrative costs. for HPCs.
the recipient's staff,the staff of The UFA must share the remaining (c)Standards for qualifying as an
subrecipients,or other staff engaged in project administrative funds with its HPC.To qualify as an HPC,a
program administration.In charging subrecipients. Continuum must demonstrate through:
costs to this category,the recipient may (2)Recipients that are not UFAs.If the (1)Reliable data generated by the
include the entire salary,wages,and recipient is not a UFA,it must share at Continuum of Care's HMIS that it meets
related costs allocable to the program of least 50 percent of project all of the following standards:
administrative funds with its (i)Mean length of homelessness.
each person whose primary subrecipients. Either the mean length of episode of
responsibilities with regard to the homelessness within the Continuum's
program involve program §578.61 Relocation costs. geographic area is fewer than 20 days,
administration assignments,or the pro (a)In general.Relocation costs under or the mean length of episodes of
rata share of the salary,wages,and the Uniform Relocation Assistance and homelessness for individuals or families
related costs of each person whose job Real Property Acquisition Policies Act in similar circumstances was reduced
includes any program administration of 1970 are eligible. by at least 10 percent from the
assignments.The recipient may use (b)Eligible relocation costs.Eligible preceding federal fiscal year.
only one of these methods for each costs are costs to provide relocation (ii)Reduced recidivism. Of
fiscal year grant.Program payments and other assistance to individuals and families who leave
administration assignments include the persons displaced by a project assisted homelessness,less than 5 percent
following: with grant funds in accordance with become homeless again at any time
(A)Preparing program budgets and §578.83. within the next 2 years; or the
schedules,and amendments to those percentage of individuals and families
budgets and schedules; §578.63 Indirect costs. in similar circumstances who become
(B)Developing systems for assuring (a)In general.Continuum of Care homeless again within 2 years after
compliance with program requirements; funds may be used to pay indirect costs leaving homelessness was decreased by
(C)Developing agreements with in accordance with OMB Circulars A-87 at least 20 percent from the preceding
subrecipients and contractors to carry or A-122,as applicable. federal fiscal year.
out program activities; (b)Allocation.Indirect costs may be
(iii)HMIS coverage.The Continuum's
allocated to each eligible activity as
(D)Monitoring program activities for Provided in subpart D, so long as that HMIS must have a bed coverage rate of
progress and compliance with program P P 80 ercent and a service volume
requirements; allocation is consistent with an indirect coverage rate of 80 percent as calculated
(E)Preparing reports and other cost rate proposal developed in in accordance with HUD's HMIS
documents directly related to the accordance with OMB Circulars A-87 or requirements.
program for submission to HUD; A-122,as applicable. (iv) Serving families and youth.With
(F)Coordinating the resolution of (c)Expenditure limits.The indirect P
res ect to Continuums that served
costs charged to an activity subject to an
audit and monitoring findings; homeless families and youth defined as
(G)Evaluating program results against expenditure limit under§§578.39, homeless under other federal statutes in
stated objectives;and 578.41,and 578.59 must be added to the paragraph(3)of the definition of
(H)Managing or supervising persons direct costs charged for that activity homeless in§576.2:
whose primary responsibilities with when determining the total costs subject (A)95 percent of those families and
regard to the program include such to the expenditure limits. youth did not become homeless again
assignments as those described in Subpart E—High-Performing within a 2-year period following
paragraph(a)(1)(i)(A)through(G)of this Communities termination of assistance; or
section. (B)85 percent of those families
(ii)Travel costs incurred for §578.65 Standards. achieved independent living in
monitoring of subrecipients; (a)In general.The collaborative permanent housing for at least 2 years
(iii)Administrative services applicant for a Continuum may apply to following termination of assistance.
performed under third-party contracts HUD to have the Continuum be (2)Reliable data generated from
or agreements,including general legal designated a high-performing sources other than the Continuum's
services,accounting services,and audit community(HPC). The designation HMIS that is provided in a narrative or
services;and shall be for grants awarded in the same other form prescribed by HUD that it
(iv)Other costs for goods and services competition in which the designation is meets both of the following standards:
required for administration of the applied for and made. (i) Community action.All the
program,including rental or purchase of (b)Applying for HPC designation.The metropolitan cities and counties within
equipment,insurance,utilities,office application must be submitted at such the Continuum's geographic area have a
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45457
comprehensive outreach plan,including subpart D of this part,except that HPCs of structure) of the International Code
specific steps for identifying homeless may use such match for the costs of Council.
persons and referring them to activities that are eligible under (2)Services provided with assistance
appropriate housing and services in that §578.71. under this part must be provided in
geographic area. (b) Cash sources.A recipient or compliance with all applicable State
(ii)Renewing HPC status. If the subrecipient may use funds from any and local requirements,including
Continuum was designated an HPC in source,including any other federal licensing requirements.
the previous federal fiscal year and used sources(excluding Continuum of Care (b)Housing quality standards.
Continuum of Care grant funds for program funds),as well as State,local, Housing leased with Continuum of Care
activities described under§578.71,that and private sources,provided that funds program funds,or for which rental
such activities were effective at from the source are not statutorily assistance payments are made with
reducing the number of individuals and prohibited to be used as a match.The Continuum of Care program funds,must
families who became homeless in that recipient must ensure that any funds meet the applicable housing quality
community. used to satisfy the matching standards(HQS)under 24 CFR 982.401
§578.67 Publication of application. requirements of this section are eligible of this title,except that 24 CFR
HUD will publish the application to under the laws governing the funds in 982.401(j)applies only to housing
be designated publish
HPC through application
HUD order to be used as matching funds for occupied by program participants
Web site,for public comment t e a grant awarded under this program. receiving tenant-based rental assistance.
whether the Continuum comment (c)In-kind contributions.(1)The For housing rehabilitated with funds
seeking recipient or subrecipient may use the under this part,the lead-based paint
designation as an HPC meets the value of any real property, equipment, requirements in 24 CFR part 35,
standards for being one. goods,or services contributed to the subparts A,B,J,and R apply.For
§578.69 Cooperation among entities. project as match,provided that if the housing that receives project-based or
An HPC must cooperate with HUD in recipient or subrecipient had to pay for sponsor-based rental assistance,24 CFR
distributing information about its them with grant funds,the costs would part 35,subparts A,B,H, and R apply.
successful efforts to reduce have been eligible under Subpart D,or, For residential property for which funds
homelessness. in the case of HPCs, eligible under under this part are used for acquisition,
§578.71. leasing,services,or operating costs,24
§578.71 HPC-eligible activities. (2)The requirements of 24 CFR 84.23 CFR part 35,subparts A,B,K,and R
In addition to using grant funds for and 85.24 apply. apply.
the eligible costs described in subpart D (3)Before grant execution,services to (1)Before any assistance will be
of this part,recipients and subrecipients be provided by a third party must be provided on behalf of a program
in Continuums of Care designated as documented by a memorandum of participant,the recipient, or
HPCs may also use grant funds to understanding(MOU)between the subrecipient,must physically inspect
provide housing relocation and recipient or subrecipient and the third each unit to assure that the unit meets
stabilization services and short-and/or party that will provide the services. HQS.Assistance will not be provided
medium-term rental assistance to Services provided by individuals must for units that fail to meet HQS,unless
individuals and families at risk of be valued at rates consistent with those the owner corrects any deficiencies
homelessness as set forth in 24 CFR ordinarily paid for similar work in the within 30 days from the date of the
576.103 and 24 CFR 576.104,if recipient's or subrecipient's initial inspection and the recipient or
necessary to prevent the individual or organization.If the recipient or subrecipient verifies that all deficiencies
family from becoming homeless. subrecipient does not have employees have been corrected.
Activities must be carried out in performing similar work,the rates must (2)Recipients or subrecipients must
accordance with the plan submitted in be consistent with those ordinarily paid inspect all units at least annually during
the application. When carrying out by other employers for similar work in the grant period to ensure that the units
housing relocation and stabilization the same labor market. continue to meet HQS.
services and short-and/or medium-term (i)The MOU must establish the (c)Suitable dwelling size.The
rental assistance,the written standards unconditional commitment,except for dwelling unit must have at least one
set forth in§578.7(a)(9)(v)and selection to receive a grant,by the third bedroom or living/sleeping room for
recordkeeping requirements of 24 CFR party to provide the services,the each two persons.
576.500 apply. specific service to be provided,the (1)Children of opposite sex,other
profession of the persons providing the than very young children,may not be
Subpart F—Program Requirements service,and the hourly cost of the required to occupy the same bedroom or
§578.73 Matching rservice to be provided, living/sleeping room.
(a)In Matching
The requirements.ir recipient. (ii)During the term of the grant,the (2)If household composition changes
g P recipient or subrecipient must keep and during the term of assistance,recipients
subrecipient must match all grant funds, make available,for inspection,records and subrecipients may relocate the
except for leasing funds,with no less documenting the service hours household to a more appropriately sized
than 25 percent of funds or in-kind provided. unit.The household must still have
contributions from other sources.For access to appropriate supportive
Continuum of Care geographic areas in §578.75 General operations. services.
which there is more than one grant (a) State and local requirements. (1) (d)Meals.Each recipient and
agreement,the 25 percent match must Housing and facilities constructed or subrecipient of assistance under this
be provided on a grant-by-grant basis. rehabilitated with assistance under this part who provides supportive housing
Recipients that are UFAs or are the sole part must meet State or local building for homeless persons with disabilities
recipient for their Continuum,may codes,and in the absence of State or must provide meals or meal preparation
provide match on a Continuum-wide local building codes,the International facilities for residents.
basis.Cash match must be used for the Residential Code or International (e) Ongoing assessment of supportive
costs of activities that are eligible under Building Code(as applicable to the type services.To the extent practicable, each
45458 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
project must provide supportive by the disability.Notwithstanding this made must pay a contribution toward
services for residents of the project and provision,if the purpose of the project rent hi accordance with section 3(a)(1)
homeless persons using the project, is to provide substance abuse treatment of the U.S.Housing Act of 1937(42
which may be designed by the recipient services,recipients and subrecipients U.S.C. 1437a(a)(1)).
or participants.Each recipient and may require program participants to (ii)Income of program participants
subrecipient of assistance under this take part in such services as a condition must be calculated in accordance with
part must conduct an ongoing of continued participation in the 24 CFR 5.609 and 24 CFR 5.611(a).
assessment of the supportive services program. (2)Review.Recipients or
needed by the residents of the project, (i)Retention of assistance after death, subrecipients must examine a program
the availability of such services,and the incarceration,or institutionalization for participant's income initially,and at
coordination of services needed to more than 90 days of qualifying least annually thereafter,to determine
ensure long-term housing stability and member.For permanent supportive the amount of the contribution toward
must make adjustments,as appropriate. housing projects surviving,members of rent payable by the program participant.
(f)Residential supervision.Each any household who were living in a unit Adjustments to a program participant's
recipient and subrecipient of assistance assisted under this part at the time of contribution toward the rental payment
under this part must provide residential the qualifying member's death,long- must be made as changes in income are
supervision as necessary to facilitate the term incarceration,or long-term identified.
adequate provision of supportive institutionalization,have the right to (3) Verification.As a condition of
services to the residents of the housing rental assistance under this section until participation in the program,each
throughout the term of the commitment the expiration of the lease in effect at program participant must agree to
to operate supportive housing. the time of the qualifying member's supply the information or
Residential supervision may include the death,long-term incarceration, or long- documentation necessary to verify the
employment of a full-or part-time term institutionalization. program participant's income.Program
residential supervisor with sufficient participants must provide the recipient
knowledge to provide or to supervise §578.77 Calculating occupancy charges or subrecipient with information at any
the provision of supportive services to and rent. time regarding changes in income or
the residents. (a) Occupancy agreements and leases. other circumstances that may result in
(g)Participation of homeless Recipients and subrecipients must have changes to a program participant's
individuals.(1)Each recipient and signed occupancy agreements or leases contribution toward the rental payment.
subrecipient must provide for the (or subleases)with program participants
participation of not less than one residing in housing. §578.79 Limitation on transitional
homeless individual or formerly (b)Calculation of occupancy charges. housing.
homeless individual on the board of Recipients and subrecipients are not A homeless individual or family may
directors or other equivalent required to impose occupancy charges remain in transitional housing for a
policymaking entity of the recipient or on program participants as a condition period longer than 24 months,if
subrecipient,to the extent that such of residing in the housing.However,if permanent housing for the individual or
entity considers and makes policies and occupancy charges are imposed,they family has not been located or if the
decisions regarding any project, may not exceed the highest of: individual or family requires additional
supportive services,or assistance (1)30 percent of the family's monthly time to prepare for independent living.
provided under this part.This adjusted income(adjustment factors However,HUD may discontinue
requirement is waived if a recipient or include the number of people in the assistance for a transitional housing
subrecipient is unable to meet such family,age of family members,medical project if more than half of the homeless
requirement and obtains HUD approval expenses,and child-care expenses); individuals or families remain in that
for a plan to otherwise consult with (2) 10 percent of the family's monthly project longer than 24 months.
homeless or formerly homeless persons income;or
when considering and making policies (3)If the family is receiving payments §578.81 Term of commitment,repayment
and decisions. for welfare assistance from a public of grants,and prevention of undue benefits.
(2)Each recipient and subrecipient of agency and a part of the payments (a)In general.All recipients and
assistance under this part must,to the (adjusted in accordance with the subrecipients receiving grant funds for
maximum extent practicable,involve family's actual housing costs)is acquisition,rehabilitation, or new
homeless individuals and families specifically designated by the agency to construction must operate the housing
through employment;volunteer meet the family's housing costs,the or provide supportive services in
services;or otherwise in constructing, portion of the payments that is accordance with this part,for at least 15
rehabilitating,maintaining,and designated for housing costs. years from the date of initial occupancy
operating the project,and in providing (4)Income.Income must be or date of initial service provision.
supportive services for the project. calculated in accordance with 24 CFR Recipient and subrecipients must
(h) Supportive service agreement. 5.609 and 24 CFR 5.611(a).Recipients execute and record a HUD-approved
Recipients and subrecipients may and subrecipients must examine a Declaration of Restrictive Covenants
require the program participants to take program participant's income initially, before receiving payment of grant funds.
part in supportive services that are not and if there is a change in family (b)Conversion.Recipients and
disability-related services provided composition (e.g.,birth of a child)or a subrecipients carrying out a project that
through the project as a condition of decrease in the resident's income during provides transitional or permanent
continued participation in the program. the year,the resident may request an housing or supportive services in a
Examples of disability-related services interim reexamination,and the structure may submit a request to HUD
include,but are not limited to,mental occupancy charge will be adjusted to convert a project for the direct benefit
health services,outpatient health accordingly. of very low-income persons.The request
services,and provision of medication, (c)Resident rent.(1)Amount of rent. must be made while the project is
which are provided to a person with a (i)Each program participant on whose operating as homeless housing or
disability to address a condition caused behalf rental assistance payments are supportive services for homeless
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45459
individuals and families,must be in individuals and families at risk of relocation,including the cost of moving
writing,and must include an homelessness. to and from the temporarily occupied
explanation of why the project is no housing and any increase in monthly
longer needed to provide transitional or § Displacement,relocation,and rent/occupancy charges and utility
permanent housing or supportive acquisition.
costs;and
services.The primary factor in HUD's (a)Minimizing displacement. (ii)Appropriate advisory services,
decision on the proposed conversion is Consistent with the other goals and including reasonable advance written
the unmet need for transitional or objectives of this part,recipients and notice of:
subrecipients must ensure that they housing or su pp ortive
(A)The date and approximate
services in the Continuum of Care's have taken all reasonable steps to duration of the temporary relocation;
geographic area. minimize the displacement of persons
(c)Repayment of grant funds.If a (families,individuals,businesses, (B)The location of the suitable,
p f g nonprofit organizations,and farms)as a decent,safe,and sanitary dwelling to be
project is not operated as transitional or P g made available for the temporary
permanent housing for 10 years result of projects assisted under this period;
following the date of initial occupancy, part. "Project,"as used in this section, P
(C)The reasonable terms and
HUD will require repayment of the means any activity or series of activities o
conditions under which the program
entire amount of the grant used for assisted with Continuum of Care funds P g
acquisition,rehabilitation, or new received or anticipated in any phase of participant will be able to occupy a
q suitable, decent,safe,and sanitary
construction,unless conversion of the an undertaking. dwelling in the building or complex
project has been authorized under (b) Temporary relocation. (1)Existing g g P
paragraph (b) of this section.If the Building Not Assisted under Title IV of upon completion of the project;and
housing is used for such purposes for the McKinney-Vento Act.No tenant may (D)The provisions of paragraph
more than 10 years,the payment be required to relocate temporarily for a (b)(2)(i) of this section.
amount will be reduced by 20 project if the building in which the (c)Relocation assistance for displaced
percentage points for each year,beyond project is being undertaken or will be persons. (1)In general.A displaced
the 10-year period in which the project undertaken is not currently assisted person(defined in paragraph(c)(2)of
is used for transitional or permanent under Title IV of the McKinney-Vento this section)must be provided
housing. Act.The absence of such assistance to relocation assistance in accordance with
(d)Prevention of undue benefits. the building means the tenants are not the requirements of the URA and
Except as provided under paragraph(e) homeless and the tenants are therefore implementing regulations at 49 CFR part
of this section,upon any sale or other not eligible to receive assistance under 24.A displaced person must be advised
disposition of a project site that received the Continuum of Care program.When of his or her rights under the Fair
grant funds for acquisition, a tenant moves for such a project under Housing Act.Whenever possible,
rehabilitation,or new construction,
conditions that cause the Uniform minority persons must be given
occurring before the 15-year period,the Relocation Assistance and Real Property reasonable opportunities to relocate to
recipient must comply with such terms Acquisition Policies Act of 1970 (URA), decent,safe,and sanitary replacement
and conditions as HUD may prescribe to 42 U.S.C.4601-4655,to apply,the dwellings,not located in an area of
prevent the recipient or subrecipient tenant must be treated as permanently minority concentration,that are within
from unduly benefiting from such sale displaced and offered relocation their financial means.This policy,
or disposition. assistance and payments consistent with however,does not require providing a
(e)Exception.A recipient or paragraph(c)of this section. person a larger payment than is
subrecipient will not be required to (2)Existing Transitional Housing or necessary to enable a person to relocate
comply with the terms and conditions Permanent Housing Projects Assisted to a comparable replacement dwelling.
prescribed under paragraphs(c)and(d) Under Title IV of the McKinney-Vento See 49 CFR 24.205(c)(2)(ii)(D).
of this section if: Act. Consistent with paragraph(c)(2)(ii) (2)Displaced person. (i)For the
(1)The sale or disposition of the of this section,no program participant purposes of paragraph(c)of this section,
property used for the project results in may be required to relocate temporarily the term"displaced person"means any
the use of the property for the direct for a project if the person cannot be person(family,individual,business,
benefit of very low-income persons; offered a decent, safe,and sanitary unit nonprofit organization,or farm)that
(2)All the proceeds are used to in the same building or complex upon moves from real property,or moves
provide transitional or permanent project completion under reasonable personal property from real property,
housing that meet the requirements of terms and conditions.The length of permanently,as a direct result of
this part; occupancy requirements in§578.79 acquisition,rehabilitation, or
(3)Project-based rental assistance or may prevent a program participant from demolition for a project.This includes
operating cost assistance from any returning to the property upon any permanent,involuntary move for a
federal program or an equivalent State completion(See paragraph(c)(2)(iii)(D) project,including any permanent move
or local program is no longer made of this section).Any program from the real property that is made:
available and the project is meeting participant who has been temporarily (A)After the owner(or person in
applicable performance standards, relocated for a period beyond one year control of the site)issues a notice to
provided that the portion of the project must be treated as permanently move permanently from the property,or
that had benefitted from such assistance displaced and offered relocation refuses to renew an expiring lease,if the
continues to meet the tenant income assistance and payments consistent with move occurs after the date of the
and rent restrictions for low-income paragraph(c)of this section.Program submission by the recipient or
units under section 42(g)of the Internal participants temporarily relocated in subrecipient of an application for
Revenue Code of 1986;or accordance with the policies described assistance to HUD(or the recipient,as
(4)There are no individuals and in this paragraph must be provided: applicable)that is later approved and
families in the Continuum of Care (i)Reimbursement for all reasonable funded and the recipient or subrecipient
geographic area who are homeless,in out-of-pocket expenses incurred in has site control as evidenced in
which case the project may serve connection with the temporary accordance with§578.25(b);or
45460 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
(B)After the owner(or person in of-pocket expenses incurred in section,if the displacement is a direct
control of the site)issues a notice to connection with the temporary result of privately undertaken
move permanently from the property,or relocation; rehabilitation,demolition,or
refuses to renew an expiring lease,if the (2)The program participant is not acquisition of the real property,
move occurs after the date the recipient eligible to return to the building or "initiation of negotiations"means the
or subrecipient obtains site control,as complex upon project completion;or execution of the agreement between the
evidenced in accordance with (3) Other conditions of the temporary recipient and the subrecipient,or
§578.25(b),if that occurs after the relocation are not reasonable;or between the recipient(or subrecipient,
application for assistance; or (C)The program participant is as applicable)and the person owning or
(C)Before the date described under required to move to another unit in the controlling the property.In the case of
paragraph(c)(2)(i)(A)or(B)of this same building or complex,and any one an option contract to acquire property,
section,if the recipient or HUD of the following situations occurs: the initiation of negotiations does not
determines that the displacement (1)The program participant is not become effective until execution of a
resulted directly from acquisition, offered reimbursement for all reasonable written agreement that creates a legally
rehabilitation, or demolition for the out-of-pocket expenses incurred in enforceable commitment to proceed
project;or connection with the move; with the purchase,such as a purchase
(D)By a tenant of a building that is (2)The program participant is not agreement.
not assisted under Title IV of the eligible to remain in the building or (d)Real property acquisition
McKinney-Vento Act,if the tenant complex upon project completion;or requirements.Except for acquisitions
moves after execution of the agreement (3)Other conditions of the move are described in 49 CFR 24.101(b)(1)
covering the acquisition,rehabilitation, not reasonable. through(5),the URA and the
or demolition of the property for the (iii)Notwithstanding the provisions of requirements of 49 CFR part 24,subpart
project;or paragraph(c)(2)(i)or(ii)of this section, B apply to any acquisition of real
(ii)For the purposes of paragraph(c) a person does not qualify as a property for a project where there are
of this section,the term"displaced "displaced person"if: Continuum of Care funds in any part of
person"means any person(family, (AThe person has been evicted for the project costs.
individual,business,nonprofit serious or repeated violation of the (e)Appeals.A person who disagrees
organization,or farm)that moves from terms and conditions of the lease or the recipient's(or subrecipient' if
with real property,or moves personal occupancy agreement;the eviction applicable)determination concerning
property from real property, complied with applicable federal,State, whether the person qualifies as a
permanently,as a direct result of or local requirements(see§578.91);and displaced person,or the amount of
acquisition,rehabilitation, or the recipient or subrecipient determines relocation assistance for which the
demolition for a project.This includes that the eviction was not undertaken for person is eligible,may file a written
any permanent,involuntary move for a the purpose of evading the obligation to appeal of that determination with the
project that is made by a program provide relocation assistance; recipient(see 49 CFR 24.10).A low
participant occupying transitional (B)The person moved into the income person who is dissatisfied with
housing or permanent housing assisted property after the submission of the the recipient's determination on his or
under Title IV of the McKinney-Vento application but,before signing a lease or her appeal may submit a written request
Act,if any one of the following three occupancy agreement and commencing for review of that determination to the
situations occurs: occupancy,was provided written notice local HUD field office.
(A)The program participant moves of the project's possible impact on the
after execution of the agreement person(e.g.,the person may be §578.85 Timeliness standards.
covering the acquisition,rehabilitation, displaced,temporarily relocated,or (a)In general.Recipients must initiate
or demolition of the property for the incur a rent increase) and the fact that approved activities and projects
project and is either not eligible to the person would not qualify as a promptly.
return upon project completion or the "displaced person"(or for any (b) Construction activities.Recipients
move occurs before the program relocation assistance provided under of funds for rehabilitation or new
participant is provided written notice this section),as a result of the project; construction must meet the following
offering the program participant an (C)The person is ineligible under 49 standards:
opportunity to occupy a suitable, CFR 24.2(a)(9)(ii)); (1)Construction activities must begin
decent,safe,and sanitary dwelling in (D)The person is a program
the same building or complex upon participant occupying transitional within 9 months of the later of signing
project completion under reasonable housing or permanent housing assisted of the grant agreement or of signing an
terms and conditions. Such reasonable under Title IV of the Act who must addendum to the grant agreement
terms and conditions must include a move as a direct result of the length-of- authorizing use of grant funds for the
lease (or occupancy agreement,as occupancy restriction under§578.79; or project.
applicable) consistent with Continuum (E)HUD determines that the person (2)Construction activities must be
of Care program requirements,including was not displaced as a direct result of completed within 24 months of signing
a monthly rent or occupancy charge and acquisition,rehabilitation,or the grant agreement.
monthly utility costs that does not demolition for the project. (3)Activities that cannot begin until
exceed the maximum amounts (iv)The recipient may request,at any after construction activities are
established in§578.77;or time,HUD's determination of whether a completed must begin within 3 months
(B)The program participant is displacement is or would be covered of the date that construction activities
required to relocate temporarily,does under this section. are completed.
not return to the building or complex, (3)Initiation of negotiations.For (c)Distribution.A recipient that
and any one of the following situations purposes of determining the formula for receives funds through this part must:
occurs: computing replacement housing (1)Distribute the funds to
(1)The program participant is not payment assistance to be provided to a subrecipients(in advance of
offered payment for all reasonable out- displaced person pursuant to this expenditures by the subrecipients);
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45461
(2)Distribute the appropriate portion funds as provided under the regulations be used for the acquisition,
of the funds to a subrecipient no later of this part without impairing its construction,or rehabilitation of
than 45 days after receiving an independence,autonomy,expression of structures only to the extent that those
approvable request for such distribution religious beliefs,or religious character. structures are used for conducting
from the subrecipient;and Such organization will retain its eligible activities under this part.When
(3)Draw down funds at least once per independence from federal,State,and a structure is used for both eligible and
quarter of the program year, after local government,and may continue to explicitly religious activities,program
eligible activities commence. carry out its mission,including the funds may not exceed the cost of those
§578.87 Limitation on use of funds. definition,development,practice,and portions of the acquisition,new
expression of its religious beliefs, construction,or rehabilitation that are
(a)Maintenance of effort.No provided that it does not use direct attributable to eligible activities in
assistance provided under this part(or program funds to support or engage in accordance with the cost accounting
any State or local government funds any explicitly religious activities, requirements applicable to the
used to supplement this assistance)may including activities that involve overt Continuum of Care program.
be used to replace State or local funds religious content,such as worship, Sanctuaries,chapels,or other rooms
previously used,or designated for use, religious instruction,or proselytization, that a Continuum of Care program-
to assist homeless persons. or any manner prohibited by law.
(b)Faith-based activities. (1)Equal y p y funded religious congregation uses as its
Among other things,faith-based principal place of worship,however,are
treatment of program participants and organizations may use space in their ineligible for Continuum of Care
program beneficiaries. (i)Program facilities to provide program-funded program-funded improvements.
participants.Organizations that are services,without removing or altering Disposition of real property after the
religious or faith-based are eligible,on religious art,icons,scriptures, or other term of the grant, or any change in the
the same basis as any other religious symbols.In addition,a use of the property during the term of
organization,to participate in the Continuum of Care program-funded the grant,is subject to governmentwide
Continuum of Care program.Neither the religious organization retains its regulations governing real property
Federal Government nor a State or local authority over its internal governance, disposition(see 24 CFR parts 84 and
government receiving funds under the and it may retain religious terms in its 85).
Continuum of Care program shall organization's name,select its board (6) Supplemental funds.If a State or
discriminate against an organization on members on a religious basis,and local government voluntarily
the basis of the organization's religious include religious references in its contributes its own funds to supplement
character or affiliation.Recipients and organization's mission statements and federally funded activities,the State or
subrecipients of program funds shall other governing documents. local government has the option to
not,in providing program assistance, (4)Alternative provider.If a program segregate the federal funds or
discriminate against a program participant or prospective program commingle them.However,if the funds
participant or prospective program participant of the Continuum of Care are commingled,this section applies to
participant on the basis of religion or program supported by HUD objects to all of the commingled funds.
religious belief. the religious character of an
(ii)Beneficiaries.In providing organization that provides services a single Restriction
tructure or housing unit,the
services supported in whole or in part under the program,that organization following types of assistance may not be
with federal financial assistance, and in shall,within a reasonably prompt time combined:
their outreach activities related to such after the objection,undertake reasonable (1)Leasing and acquisition,
services,program participants shall not efforts to identify and refer the program rehabilitation,or new construction;
discriminate against current or participant to an alternative provider to
(2)Tenant-based rental assistance and
prospective program beneficiaries on
which the prospective program acquisition,rehabilitation,or new
the basis of religion,a religious belief, participant has no objection.Except for construction;
a refusal to hold a religious belief,or a services provided by telephone,the (3) Short-or medium-term rental
refusal to attend or participate in a Internet,or similar means,the referral assistance and acquisition,
religious practice. must be to an alternate provider in rehabilitation,or new construction;
(2) Separation of explicitly religious reasonable geographic proximity to the (4)Rental assistance and leasing; or
activities.Recipients and subrecipients organization making the referral. In
of Continuum of Care funds that engage making the referral,the organization (5)Rental ga rifest.Recipients and operating.
g g (d)Program fees.Recipients and
in explicitly religious activities, shall comply with applicable privacy subrecipients may not charge program
including activities that involve overt laws and regulations.Recipients and participants program fees.
religious content such as worship, subrecipients shall document any
religious instruction,or proselytization, objections from program participants §578.89 Limitation on use of grant funds
must perform such activities and offer and prospective program participants to serve persons defined as homeless
such services outside of programs that and any efforts to refer such participants under other federal laws.
are supported with federal financial to alternative providers in accordance (a)Application requirement.
assistance separately,in time or with the requirements of Applicants that intend to serve
location,from the programs or services §578.103(a)(13).Recipients shall ensure unaccompanied youth and families with
funded under this part,and that all subrecipient agreements make children and youth defined as homeless
participation in any such explicitly organizations receiving program funds under other federal laws in paragraph
religious activities must be voluntary for aware of these requirements. (3)of the homeless definition in§576.2
the program beneficiaries of the HUD- (5)Structures.Program funds may not must demonstrate in their application,
funded programs or services. be used for the acquisition, to HUD's satisfaction,that the use of
(3)Religious identity.A faith-based construction,or rehabilitation of grant funds to serve such persons is an
organization that is a recipient or structures to the extent that those equal or greater priority than serving
subrecipient of Continuum of Care structures are used for explicitly persons defined as homeless under
program funds is eligible to use such religious activities.Program funds may paragraphs(1), (2),and(4)of the
45462 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
definition of homeless in§576.2.To §578.93 Fair Housing and Equal addiction treatment,domestic violence
demonstrate that it is of equal or greater Opportunity. services,or a high intensity package
priority,applicants must show that it is (a)Nondiscrimination and equal designed to meet the needs of hard-to-
equally or more cost effective in meeting opportunity requirements.The reach homeless persons).While the
the overall goals and objectives of the nondiscrimination and equal housing may offer services for a
plan submitted under section opportunity requirements set forth in 24 particular type of disability,no
427(b)(1)(B) of the Act,especially with CFR 5.105(a)are applicable. otherwise eligible individuals with
respect to children and unaccompanied (b)Housing for specific disabilities or families including an
youth. subpopulations.Recipients and individual with a disability,who may
(b)Limit.No more than 10 percent of subrecipients may exclusively serve a benefit from the services provided may
the funds awarded to recipients within particular homeless subpopulation in be excluded on the grounds that they do
a single Continuum of Care's geographic transitional or permanent housing if the not have a particular disability.
area may be used to serve such persons. housing addresses a need identified by (c)Affirmatively furthering fair
the Continuum of Care for the housing.A recipient must implement its
(c)Exception.The 10 percent geographic area and meets one of the programs in a manner that affirmatively
limitation does not apply to following: furthers fair housing,which means that
Continuums in which the rate of (1)The housing may be limited to one the recipient must:
homelessness,as calculated in the most sex where such housing consists of a (1)Affirmatively market their housing
recent point-in-time count,is less than single structure with shared bedrooms and supportive services to eligible
one-tenth of one percent of the total or bathing facilities such that the persons regardless of race,color,
population. considerations of personal privacy and national origin,religion,sex,age,
§578.91 Termination of assistance to the physical limitations of the familial status,or handicap who are
program participants. configuration of the housing make it least likely to apply in the absence of
appropriate for the housing to be limited special outreach,and maintain records
(a) Termination of assistance.The to one sex; of those marketing activities;
recipient or subrecipient may terminate (2)The housing may be limited to a (2)Where a recipient encounters a
assistance to a program participant who specific subpopulation,so long as condition or action that impedes fair
violates program requirements or admission does not discriminate against housing choice for current or
conditions of occupancy.Termination any protected class under federal prospective program participants,
under this section does not bar the nondiscrimination laws in 24 CFR 5.105 provide such information to the
recipient or subrecipient from providing (e.g.,the housing may be limited to jurisdiction that provided the
further assistance at a later date to the homeless veterans,victims of domestic certification of consistency with the
same individual or family. violence and their children,or Consolidated Plan;and
(b)Due process.In terminating chronically homeless persons and (3)Provide program participants with
assistance to a program participant,the families). information on rights and remedies
recipient or subrecipient must provide a (3)The housing may be limited to available under applicable federal,State
formal process that recognizes the rights families with children. and local fair housing and civil rights
of individuals receiving assistance (4)If the housing has in residence at laws.
under the due process of law.This least one family with a child under the (d)Accessibility and integrative
process,at a minimum,must consist of: age of 18,the housing may exclude housing and services for persons with
registered sex offenders and persons disabilities.Recipients and
(1)Providing the program participant with a criminal record that includes a subrecipients must comply with the
with a written copy of the program rules violent crime from the project so long as accessibility requirements of the Fair
and the termination process before the the child resides in the housing. Housing Act(24 CFR part 100),Section
participant begins to receive assistance; (5)Sober housing may exclude 504 of the Rehabilitation Act of 1973 (24
(2)Written notice to the program persons who refuse to sign an CFR part 8),and Titles II and III of the
participant containing a clear statement occupancy agreement or lease that Americans with Disabilities Act, as
of the reasons for termination; prohibits program participants from applicable(28 CFR parts 35 and 36).In
(3)A review of the decision,in which possessing,using,or being under the accordance with the requirements of 24
the program participant is given the influence of illegal substances and/or CFR 8.4(d),recipients must ensure that
opportunity to present written or oral alcohol on the premises. their program's housing and supportive
objections before a person other than the (6)If the housing is assisted with services are provided in the most
person(or a subordinate of that person) funds under a federal program that is integrated setting appropriate to the
who made or approved the termination limited by federal statute or Executive needs of persons with disabilities.
decision;and Order to a specific subpopulation,the (e)Prohibition against involuntary
(4)Prompt written notice of the final housing maybe limited to that family separation.The age and gender
P subpopulation(e.g.,housing also of a child under age 18 must not be used
decision to the program participant. assisted with funding from the Housing as a basis for denying any family's
(c)Hard-to-house populations. Opportunities for Persons with AIDS admission to a project that receives
Recipients and subrecipients that are program under 24 CFR part 574 may be funds under this part.
providing permanent supportive limited to persons with acquired
housing for hard-to-house populations immunodeficiency syndrome or related §578.95 Conflicts of interest.
of homeless persons must exercise diseases). (a)Procurement.For the procurement
judgment and examine all extenuating (7)Recipients may limit admission to of property(goods,supplies, or
circumstances in determining when or provide a preference for the housing equipment)and services,the recipient
violations are serious enough to warrant to subpopulations of homeless persons and its subrecipients must comply with
termination so that a program and families who need the specialized the codes of conduct and conflict-of-
participant's assistance is terminated supportive services that are provided in interest requirements under 24 CFR
only in the most severe cases. the housing(e.g.,substance abuse 85.36(for governments)and 24 CFR
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45463
84.42 (for private nonprofit the criteria in paragraph(d)(2)(ii) of this the same interests or benefits as are
organizations). section,provided that the recipient has being made available or provided to the
(b) Continuum of Care board satisfactorily met the threshold group or class;and
members.No Continuum of Care board requirements of paragraph(d)(2)(ii)of (G)Any other relevant considerations.
member may participate in or influence this section. §578.97 Program income.
discussions or resulting decisions (i) Threshold requirements.HUD will
concerning the award of a grant or other consider an exception only after the (a)Defined.Program income is the
financial benefits to the organization recipient has provided the following income received by the recipient or
that the member represents. documentation: subrecipient directly generated by a
(c) Organizational conflict.An (A)Disclosure of the nature of the grant-supported activity.
organizational conflict of interest arises conflict,accompanied by a written (b) Use.Program income earned
when,because of activities or assurance,if the recipient is a during the grant term shall be retained
relationships with other persons or government,that there has been public by the recipient,and added to funds
organizations,the recipient or disclosure of the conflict and a committed to the project by HUD and
subrecipient is unable or potentially description of how the public disclosure the recipient,used for eligible activities
unable to render impartial assistance in was made; and if the recipient is a in accordance with the requirements of
the provision of any type or amount of private nonprofit organization,that the this part. Costs incident to the
assistance under this part, or when a conflict has been disclosed in generation of program income may be
covered person's,as in paragraph(d)(1) accordance with their written code of deducted from gross income to calculate
of this section,objectivity in performing conduct or other conflict-of-interest program income,provided that the costs
work with respect to any activity policy;and have not been charged to grant funds.
assisted under this part is or might be (B)An opinion of the recipient's (c)Rent and occupancy charges.
otherwise impaired. Such an attorney that the interest for which the Rents and occupancy charges collected
organizational conflict would arise exception is sought would not violate from program participants are program
when a board member of an applicant State or local law, or if the subrecipient income. In addition,rents and
participates in decision of the applicant is a private nonprofit organization,the occupancy charges collected from
concerning the award of a grant,or exception would not violate the residents of transitional housing may be
provision of other financial benefits,to reserved,in whole or in part,to assist
P organization's s internal policies. the residents from whom they are
the organization that such member (ii)Factors to be considered for collected to move to permanent
represents.It would also arise when an exceptions.In determining whether to
housing.of a recipient or subrecipient grant a requested exception after the g'
participates in making rent recipient has satisfactorily met the §578.99 Applicability of other federal
reasonableness determinations under threshold requirements under paragraph requirements.
§578.49(b)(2)and§578.51(g)and (c)(3)(i)of this section,HUD must In addition to the requirements set
housing quality inspections of property conclude that the exception will serve forth in 24 CFR part 5,use of assistance
under§578.75(b)that the recipient, to further the purposes of the provided under this part must comply
subrecipient,or related entity owns. Continuum of Care program and the with the following federal requirements:
(d) Other conflicts.For all other effective and efficient administration of (a)Environmental review.Activities
transactions and activities,the following the recipient's or subrecipient's project, under this part are subject to
restrictions apply: taking into account the cumulative environmental review by HUD under 24
(1)No covered person,meaning a effect of the following factors,as CFR part 50 as noted in§578.31.
person who is an employee,agent, applicable: (b)Section 6002 of the Solid Waste
consultant, officer,or elected or (A)Whether the exception would Disposal Act.State agencies and
appointed official of the recipient or its provide a significant cost benefit or an agencies of a political subdivision of a
subrecipients and who exercises or has essential degree of expertise to the state that are using assistance under this
exercised any functions or program or project that would otherwise part for procurement,and any person
responsibilities with respect to activities not be available; contracting with such an agency with
assisted under this part,or who is in a (B)Whether an opportunity was respect to work performed under an
position to participate in a decision- provided for open competitive bidding assisted contract,must comply with the
making process or gain inside or negotiation; requirements of Section 6003 of the
information with regard to activities (C)Whether the affected person has Solid Waste Disposal Act,as amended
assisted under this part,may obtain a withdrawn from his or her functions, by the Resource Conservation and
financial interest or benefit from an responsibilities, or the decision-making Recovery Act.In accordance with
assisted activity,have a financial process with respect to the specific Section 6002,these agencies and
interest in any contract,subcontract,or activity in question; persons must:
agreement with respect to an assisted (D)Whether the interest or benefit (1)Procure items designated in
activity,or have a financial interest in was present before the affected person guidelines of the Environmental
the proceeds derived from an assisted was in the position described in Protection Agency(EPA) at 40 CFR part
activity,either for him or herself or for paragraph(c)(1)of this section; 247 that contain the highest percentage
those with whom he or she has (E)Whether undue hardship will of recovered materials practicable,
immediate family or business ties, result to the recipient,the subrecipient, consistent with maintaining a
during his or her tenure or during the or the person affected,when weighed satisfactory level of competition,where
one-year period following his or her against the public interest served by the purchase price of the item exceeds
tenure. avoiding the prohibited conflict; $10,000 or the value of the quantity
(2)Exceptions.Upon the written (F)Whether the person affected is a acquired in the preceding fiscal year
request of the recipient,HUD may grant member of a group or class of persons exceeded$10,000;
an exception to the provisions of this intended to be the beneficiaries of the (2)Procure solid waste management
section on a case-by-case basis,taking assisted activity,and the exception will services in a manner that maximizes
into account the cumulative effects of permit such person to receive generally energy and resource recovery;and
45464 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
(3)Must have established an (i) Section 3 of the Housing and establishing and operating a Continuum
affirmative procurement program for the Urban Development Act.Recipients and of Care:
procurement of recovered materials subrecipients must,as applicable, (i)Evidence that the Board selected by
identified in the EPA guidelines. comply with Section 3 of the Housing the Continuum of Care meets the
(c) Transparency Act Reporting. and Urban Development Act of 1968 requirements of§578.5(b);
Section 872 of the Duncan Hunter and its implementing regulations at 24 (ii)Evidence that the Continuum has
Defense Appropriations Act of 2009, CFR part 135,as applicable. been established and operated as set
and additional requirements published forth in subpart B of this part,including
by the Office of Management and Subpart G—Grant Administration published agendas and meeting
Budget(OMB),requires recipients to minutes,an approved Governance
§578.101 Technical assistance. Charter that is reviewed and updated
report subawards made either as pass P
through awards,subrecipient awards,or (a)Purpose.The purpose of annually,a written process for selecting
vendor awards in the Federal Continuum of Care technical assistance a board that is reviewed and updated at
Government Web site www.fsrs.gov or is to increase the effectiveness with least once every 5 years,evidence
its successor system.The reporting of which Continuums of Care,eligible required for designating a single HMIS
award and subaward information is in applicants,recipients,subrecipients, for the Continuum,and monitoring
accordance with the requirements of the and UFAs implement and administer reports of recipients and subrecipients;
Federal Financial Assistance their Continuum of Care planning (iii)Evidence that the Continuum has
Accountability and Transparency Act of process;improve their capacity to prepared the application for funds as set
2006,as amended by section 6202 of prepare applications;prevent the forth in§578.9,including the
Public Law 110-252 and in OMB Policy separation of families in projects funded designation of the eligible applicant to
Guidance issued to the federal agencies under the Emergency Solutions Grants, be the collaborative applicant.
on September 14,2010(75 FR 55669). Continuum of Care,and Rural Housing (2) Unified funding agency records.
(d) The Coastal Barrier Resources Act Stability Assistance programs;and UFAs that requested grant amendments
of 1982(16 U.S.C.3501 et seq.)may adopt and provide best practices in from HUD,as set forth in§578405,
apply to proposals under this part, housing and services for persons must keep evidence that the grant
depending on the assistance requested. experiencing homelessness. amendment was approved by the
(e)Applicability of OMB Circulars. (b)Defined.Technical assistance Continuum.This evidence may include
The requirements of 24 CFR part 85— means the transfer of skills and minutes of meetings at which the grant
Administrative Requirements for Grants knowledge to entities that may need,but amendment was discussed and
and Cooperative Agreements to State, do not possess,such skills and approved.
Local,and Federally Recognized Indian knowledge.The assistance may include, (3)Homeless status.Acceptable
Tribal Governments and 2 CFR part but is not limited to,written evidence of the homeless as status is set
225—Cost Principles for State,Local information such as papers,manuals, forth in 24 CFR 576.500(b).
and Indian Tribal Governments(OMB guides,and brochures;person-to-person (4)At risk of homelessness status.For
Circular A-87)—apply to governmental exchanges;web-based curriculums, those recipients and subrecipients that
recipients and subrecipients except training and Webinars,and their costs. serve persons at risk of homelessness,
where inconsistent with the provisions (c) Set-aside.HUD may set aside the recipient or subrecipient must keep
of this part.The requirements of 24 CFR funds annually to provide technical records that establish"at risk of
part 84—Uniform Administrative assistance,either directly by HUD staff homelessness"status of each individual
Requirements for Grants and or indirectly through third-party or family who receives Continuum of
Agreements with Institutions of Higher providers. Care homelessness prevention
Education,Hospitals,and Other Non- (d)Awards.From time to time,as assistance.Acceptable evidence is
Profit Organizations;2 CFR part 230— HUD determines the need,HUD may found in 24 CFR 576.500(c).
Cost Principles for Non-Profit advertise and competitively select (5)Records of reasonable belief of
Organizations(OMB Circular A-122); providers to deliver technical imminent threat of harm.For each
and 2 CFR part 220—Cost Principles for assistance.HUD may enter into program participant who moved to a
Education Institutions apply to the contracts,grants, or cooperative different Continuum of Care due to
nonprofit recipients and subrecipients, agreements,when necessary,to imminent threat of further domestic
except where inconsistent with the implement the technical assistance. violence,dating violence,sexual
provisions of the McKinney-Vento Act HUD may also enter into agreements assault,or stalking under§578.51(c)(3),
or this part. with other federal agencies for awarding each recipient or subrecipient of
(I)Lead-based paint.The Lead-Based the technical assistance funds. assistance under this part must retain:
Paint Poisoning Prevention Act(42 (i)Documentation of the original
U.S.C.4821-4846),the Residential §578.103 Recordkeeping requirements. incidence of domestic violence,dating
Lead-Based Paint Hazard Reduction Act (a)In general.The recipient and its violence,sexual assault,or stalking,
of 1992 (42 U.S.C.4851-4856),and subrecipients must establish and only if the original violence is not
implementing regulations at 24 CFR part maintain standard operating procedures already documented in the program
35,subparts A,B,H,J,K,M,and R for ensuring that Continuum of Care participant's case file.This may be
apply to activities under this program. program funds are used in accordance written observation of the housing or
(g)Audit.Recipients and with the requirements of this part and service provider;a letter or other
subrecipients must comply with the must establish and maintain sufficient documentation from a victim service
audit requirements of OMB Circular A– records to enable HUD to determine provider,social worker,legal assistance
133, "Audits of States,Local whether the recipient and its provider,pastoral counselor,mental
Governments,and Non-profit subrecipients are meeting the health provider,or other professional
Organizations." requirements of this part,including: from whom the victim has sought
lh)Davis-Bacon Act.The provisions (1) Continuum of Care records.Each assistance;medical or dental records;
of the Davis-Bacon Act do not apply to collaborative applicant must keep the court records or law enforcement
this program. following documentation related to records;or written certification by the
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45465
program participant to whom the subrecipient must keep records for each must maintain copies of their marketing,
violence occurred or by the head of program participant that document: outreach,and other materials used to
household. (i)The services and assistance inform eligible persons of the program
(ii)Documentation of the reasonable provided to that program participant, to document compliance with the
belief of imminent threat of further including evidence that the recipient or requirements in§578.93(c).
domestic violence, dating violence,or subrecipient has conducted an annual (15) Other federal requirements.The
sexual assault or stalking,which would assessment of services for those program recipient and its subrecipients must
include threats from a third-party, such participants that remain in the program document their compliance with the
as a friend or family member of the for more than a year and adjusted the federal requirements in §578.99,as
perpetrator of the violence.This may be service package accordingly,and applicable.
written observation by the housing or including case management services as (16) Subrecipients and contractors. (i)
service provider;a letter or other provided in§578.37(a)(1)(ii)(F);and The recipient must retain copies of all
documentation from a victim service (ii)Where applicable,compliance solicitations of and agreements with
provider,social worker,legal assistance with the termination of assistance subrecipients,records of all payment
provider,pastoral counselor,mental requirement in §578.91. requests by and dates of payments made
health provider, or other professional (8)Housing standards.The recipient to subrecipients,and documentation of
from whom the victim has sought or subrecipient must retain all monitoring and sanctions of
assistance;current restraining order; documentation of compliance with the subrecipients,as applicable.
recent court order or other court housing standards in§578.75(b), (ii)The recipient must retain
records;law enforcement report or including inspection reports. documentation of monitoring
records;communication records from (9) Services provided.The recipient or subrecipients,including any monitoring
the perpetrator of the violence or family subrecipient must document the types findings and corrective actions required.
members or friends of the perpetrator of of supportive services provided under (iii)The recipient and its
the violence,including emails, the recipient's program and the amounts subrecipients must retain copies of all
voicemails,text messages,and social spent on those services.The recipient or procurement contracts and
media posts; or a written certification by subrecipient must keep record that these documentation of compliance with the
the program participant to whom the records were reviewed at least annually procurement requirements in 24 CFR
violence occurred or the head of and that the service package offered to 85.36 and 24 CFR part 84.
household, program participants was adjusted as (17) Other records specified by HUD.
(6)Annual income.For each program necessary. The recipient and subrecipients must
participant who receives housing (10)Match.The recipient must keep keep other records specified by HUD.
assistance where rent or an occupancy records of the source and use of (b) Confidentiality.In addition to
charge is paid where
the or an occupancy made to satisfy the match meeting the specific confidentiality and
participant,the recipient or subrecipient requirement in §578.73.The records security requirements for HMIS data,
must keep the following documentation must indicate the grant and fiscal year the recipient and its subrecipients must
of annual income: for which each matching contribution is develop and implement written
(i)Income evaluation form specified counted.The records must show how procedures to ensure:
by HUD and completed form
by the recipient the value placed on third party in-kind (1)All records containing protected
or HUD comnd contributions was derived. To the extent identifying information of any
(ii)Source documents(e.g.,most feasible,volunteer services must be individual or family who applies for
recent wage statement,unemployment supported by the same methods that the and/or receives Continuum of Care
compensation rew ge s statement,public benefits organization uses to support the assistance will be kept secure and
b statement, for bassets allocation of regular personnel costs. confidential;
held by the bank
ram participant and (11) Conflicts of interest.The (2)The address or location of any
y p g p p recipient and its subrecipients must family violence project assisted with
income received before the date of the keep records to show compliance with Continuum of Care funds will not be
evaluation; the organizational conflict-of-interest made public,except with written
(iii)To the extent that source requirements in§578.95(c),the authorization of the person responsible
documents are unobtainable,a written Continuum of Care board conflict-of- for the operation of the project;and
statement by the relevant third party interest requirements in§578.95(b),the (3)The address or location of any
(e.g.,employer,government benefits other conflict requirements in housing of a program participant will
administrator)or the written §578.95(d),a copy of the personal not be made public,except as provided
certification by the recipient's or conflict-of-interest policy developed under a preexisting privacy policy of the
subrecipient's intake staff of the oral and implemented to comply with the recipient or subrecipient and consistent
verification by the relevant third party requirements in§578.95,and records with State and local laws regarding
of the income the program participant supporting exceptions to the personal privacy and obligations of
received over the most recent period;or conflict-of-interest prohibitions. confidentiality;
(iv)To the extent that source (12)Homeless participation.The (c)Period of record retention.All
documents and third-party verification recipient or subrecipient must records pertaining to Continuum of Care
are unobtainable,the written document its compliance with the funds must be retained for the greater of
certification by the program participant homeless participation requirements 5 years or the period specified below.
of the amount of income that the under§578.75(g). Copies made by microfilming,
program participant is reasonably (13)Faith-based activities.The photocopying,or similar methods may
expected to receive over the 3-month recipient and its subrecipients must be substituted for the original records.
period following the evaluation. document their compliance with the (1)Documentation of each program
(7)Program participant records.In faith-based activities requirements participant's qualification as a family or
addition to evidence of"homeless" under§578.87(b). individual at risk of homelessness or as
status or"at-risk-of-homelessness" (14)Affirmatively Furthering Fair a homeless family or individual and
status,as applicable,the recipient or Housing.Recipients and subrecipients other program participant records must
45466 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations
be retained for 5 years after the proposed reduction in the total number other sources,including citizen
expenditure of all funds from the grant of units funded under the grant. comments,complaint determinations,
under which the program participant (2)Approval of substitution of the and litigation.
was served;and recipient is contingent on the new (2)If HUD determines preliminarily
(2)Where Continuum of Care funds recipient meeting the capacity criteria in that the recipient or one of its
are used for the acquisition,new the NOFA under which the grant was subrecipients has not complied with a
construction, or rehabilitation of a awarded,or the most recent NOFA. program requirement,HUD will give the
project site,records must be retained Approval of shifting funds between recipient notice of this determination
until 15 years after the date that the activities and changing subpopulations and an opportunity to demonstrate,
project site is first occupied,or used,by is contingent on the change being within the time prescribed by HUD and
program participants. necessary to better serve eligible persons on the basis of substantial facts and data
(d)Access to records. (1)Federal within the geographic area and ensuring that the recipient has complied with the
Government rights.Notwithstanding the that the priorities established under the requirements.HUD may change the
confidentiality procedures established NOFA in which the grant was originally method of payment to require the
under paragraph(b)of this section, awarded, or the most recent NOFA,are recipient to submit documentation
HUD,the HUD Office of the Inspector met. before payment and obtain HUD's prior
General,and the Comptroller General of (b)For Continuums having more than approval each time the recipient draws
the United States,or any of their one recipient. (1)The recipients or down funds.To obtain prior approval,
authorized representatives,must have subrecipients may not make any the recipient may be required to
the right of access to all books, significant changes to a project without manually submit its payment requests
documents,papers,or other records of prior HUD approval,evidenced by a and supporting documentation to HUD
the recipient and its subrecipients that grant amendment signed by HUD and in order to show that the funds to be
are pertinent to the Continuum of Care the recipient. Significant changes drawn down will be expended on
grant,in order to make audits, include a change of recipient,a change eligible activities in accordance with all
examinations,excerpts,and transcripts. of project site,additions or deletions in program requirements.
These rights of access are not limited to the types of eligible activities approved (3)If the recipient fails to demonstrate
the required retention period,but last as for a project,a shift of more than 10 to HUD's satisfaction that the activities
long as the records are retained. percent from one approved eligible were carried out in compliance with
(2)Public rights.The recipient must activity to another,a reduction in the program requirements,HUD may take
provide citizens,public agencies,and number of units,and a change in the one or more of the remedial actions or
other interested parties with reasonable subpopulation served. sanctions specified in paragraph(b)of
access to records regarding any uses of (2)Approval of substitution of the this section.
Continuum of Care funds the recipient recipient is contingent on the new (b)Remedial actions and sanctions.
received during the preceding 5 years, recipient meeting the capacity criteria in Remedial actions and sanctions for a
consistent with State and local laws the NOFA under which the grant was failure to meet a program requirement
regarding privacy and obligations of awarded,or the most recent NOFA. will be designed to prevent a
confidentiality and confidentiality Approval of shifting funds between continuation of the deficiency;to
requirements in this part. activities and changing subpopulations mitigate,to the extent possible,its
[e)Reports.In addition to the is contingent on the change being adverse effects or consequences;and to
reporting requirements in 24 CFR parts necessary to better serve eligible persons prevent its recurrence.
84 and 85,the recipient must collect within the geographic area and ensuring (1)HUD may instruct the recipient to
and report data on its use of Continuum that the priorities established under the submit and comply with proposals for
of Care funds in an Annual Performance NOFA in which the grant was originally action to correct,mitigate,and prevent
Report(APR),as well as in any awarded, or the most recent NOFA,are noncompliance with program
additional reports as and when required met. requirements,including:
by HUD.Projects receiving grant funds (c)Documentation of changes not Ii)Preparing and following a schedule
only for acquisition,rehabilitation,or requiring a grant amendment.Any other of actions for carrying out activities and
new construction must submit APRs for changes to an approved grant or project projects affected by the noncompliance,
15 years from the date of initial must be fully documented in the including schedules,timetables,and
occupancy or the date of initial service recipient's or subrecipient's records. milestones necessary to implement the
provision,unless HUD provides an affected activities and projects;
exception under§578.81(e). §578.107 Sanctions. (ii)Establishing and following a
(a)Performance reviews.(1)HUD will management plan that assigns
§578.105 Grant and project changes. review the performance of each responsibilities for carrying out the
(a)For Unified Funding Agencies and recipient in carrying out its remedial actions;
Continuums having only one recipient. responsibilities under this part,with or (iii)Canceling or revising activities or
(1)The recipient may not make any without prior notice to the recipient.In projects likely to be affected by the
significant changes without prior HUD conducting performance reviews,HUD noncompliance,before expending grant
approval,evidenced by a grant will rely primarily on information funds for them;
amendment signed by HUD and the obtained from the records and reports (iv)Reprogramming grant funds that
recipient. Significant grant changes from the recipient and subrecipients,as have not yet been expended from
include a change of recipient,a shift in well as information from on-site affected activities or projects to other
a single year of more than 10 percent of monitoring,audit reports,and eligible activities or projects;
the total amount awarded under the information generated from HUD's (v)Suspending disbursement of grant
grant for one approved eligible activity financial and reporting systems(e.g., funds for some or all activities or
category to another activity and a LOCCS and e-snaps)and HMIS.Where projects;
permanent change in the subpopulation applicable,HUD may also consider (vi)Reducing or terminating the
served by any one project funded under relevant information pertaining to the remaining grant of a subrecipient and
the grant,as well as a permanent recipient's performance gained from either reallocating those funds to other
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45467
subrecipients or returning funds to other funded activities cannot (1)Identification of any closeout costs
HUD;and reasonably be expected to be expended or contingent liabilities subject to
(vii)Making matching contributions for eligible costs during the remaining payment with Continuum of Care
before or as draws are made from the term of the grant; program funds after the closeout
recipient's grant. (3)If the actual total cost of agreement is signed;
(2)HUD may change the method of acquisition,rehabilitation, or new (2)Identification of any unused grant
payment to a reimbursement basis. construction for a project is less than the funds to be deobligated by HUD;
(3)HUD may suspend payments to total cost agreed to in the grant (3)Identification of any program
the extent HUD determines necessary to agreement; income on deposit in financial
preclude the further expenditure of (4)If the actual annual leasing costs, institutions at the time the closeout
funds for affected activities or projects. operating costs,supportive services agreement is signed;
(4)HUD may continue the grant with costs,rental assistance costs, or HMIS (4)Descri tion of the reci ient's
a substitute recipient of HUD's P P
choosing. costs are less than the total cost agreed responsibility after closeout for:
(5)HUD may deny matching credit for to in the grant agreement for a one-year (i)Compliance with all program
all or part of the cost of the affected period; requirements in using program income
activities and require the recipient to (5)Program participants have not on deposit at the time the closeout
make further matching contributions to moved into units within 3 months of the agreement is signed and in using any
make up for the contribution time that the units are available for other remaining Continuum of Care
occupancy;and funds available for closeout
determined to be ineligible. program
(6)HUD may require the recipient to (6)The grant agreement may set forth costs and contingent liabilities;
reimburse the recipient's line of credit in detail other circumstances under (ii)Use of real property assisted with
in an amount equal to the funds used for which funds may be deobligated and Continuum of Care program funds in
the affected activities. other sanctions may be imposed. accordance with the terms of
(7)HUD may reduce or terminate the §578.109 Closeout commitment and principles;
remaining grant of a recipient. (a)In general.Grants will be closed (iii)Use of personal property
(8)HUD may condition a future grant. out in accordance with the requirements losed purchased with Continuum of Care
(9)HUD may take other remedies that of in acc parts 84 and 85,and ent program funds;and
are legally available. P (iv)Compliance with requirements
(c)Recipient sanctions.If the procedures established by HUD.
p governing program income received
recipient determines that a subrecipient (b)Reports.Applicants must submit subsequent to grant closeout.
is not complying with a program all reports required by HUD no later (5)Other provisions appropriate to
requirement or its subrecipient than 90 days from the date of the end any special circumstances of the grant
agreement,the recipient must take one of the project's grant term. closeout,in modification of or in
of the actions listed in paragraphs(a) (c) Closeout agreement.Any addition to the obligations in paragraphs
and (b)of this section. obligations remaining as of the date of (c)(1)through(4)of this section.
(d)Deobligation.HUD may deobligate the closeout must be covered by the
funds for the following reasons: terms of a closeout agreement.The Dated:June 28,2012.
(1)If the timeliness standards in agreement will be prepared by HUD in Mark Johnston,
§578.85 are not met; consultation with the recipient.The Assistant Secretary for Community Planning
(2)If HUD determines that delays agreement must identify the grant being and Development(Acting).
completing construction activities for a closed out,and include provisions with [FR Doc.2012-17546 Filed 7-30-12;8:45 am)
project will mean that the funds for respect to the following: BILLING CODE 4210-67-P