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Agenda 03/23/2010 Item #16D 4 Agenda Item No. 16D4 March 23. 2010 Page 1 of 22 EXECUTIVE SUMMARY Recommendation to approve and authorize the Chairman to sigu a renewal grant agreement between the U.S. Department of Housing and Urban Development (HUD) and the Collier County Board of Commissioners (BCC). OBJECTIVE: To approve and authorize the Chairman to sign a renewal grant agreement between the U.S. Department of Housing and Urban Development (HUD) and the Collier County Board of Commissioners (BCC). CONSIDERATIONS: At the May 27, 2003 BCC meeting, the Board provided approval for the County to become the Lead Agency and apply to HUD on behalf of the County's social service agencies for the annual CoC grant. On November 18,2008 (Item 16D4), the Board approved the submission of a 2008-2009 CoC grant application to HUD for three projects requesting $761,753 in homeless assistance funding. HUD notified the County that it received partial funding for its application in the amount of$330,763. On July 28, 2009, the BCC approved the receipt of the total CoC award in the amount of$330,763 (Item 16D8). As part of the award, Shelter for Abused Women and Children (SA WCC) was to receive funding in the amount of$I13,OOO. Details for this agreement were $56,500 for supportive services and $56,500 for operating services. SA WCC has requested that Collier County Department of Housing and Human Services (HHS) increase SA WCC's allocation of $56,500 for supportive services to $92,900 and decrease their allocation of $56,500 for operating services to $20, I 00, leaving the total grant amount the same at $113,000. HHS requested HUD make these program amendments and HUD agreed and approved the change through this renewal grant agreement. FISCAL IMPACT: There is no fiscal impact to the County's general fund. GROWTH MANAGEMENT IMPACT: This grant amendment is consistent with the goals and objectives of the Housing Element of the County's Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office and is legally sufficient for Board action - CMG. RECOMMENDATION: Recommendation to approve and authorize the Chairman to sign a renewal grant agreement between the U.s. Department of Housing and Urban Development (HUD) the Collier County Board of Commissioners (BCC). Prepared by: Nick Green, Grants Coordinator Housing and Human Services Department Item Number: Item Summary: Meeting Date: Agenda Item No. 16D4 March 23, 2010 Page 2 of 22 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 1604 Recommendation 10 approve and authorize the Chairman to sign a renewal grant agreement between the U.S. Department of Housing and Urban Development (HUD) and the Collier County Board of Commissioners (BCC) to accomodale HUD approved budget changes for SAWCC. 3/23/2010 g:OO:OO AM Date Prepared By Nick Green Grants Coordinator 3/5/201010:22:03 AM Approved By Housing & Human Services Housing & Human Services Marcy Krumbine Date Public Services Division Director - Housing & Human Services Human Services 3/8/201011:17 AM Approved By Colleen Greene County Attorney Assistant County Attorney Date County Attorney 3/9/201012:50 PM Date Approved By Marla Ramsey Public Services Division Administrator M Public Services Public Services Division 3/9/20103:52 PM Date Approved By Kathy Carpenter Public Services Executive Secretary Public Services Admin. 3/9/20103:59 PM Date Approved By Marlene J. Foard Administrative Services Division Grant Development & Mgmt Coordinator Administrative Services Division 3/9/2010 4:05 PM Date Approved By Lyn Wood Administrative Services Division Contracts Specialist Purchasing & General Services 3/9/20104:36 PM Date Approved By Steve Carnell Administrative Services Division Director - Purchasing/General Services Purchasing & General Services 3/10/2010 10:04 AM Approved By Date OMS Coordinator County Manager's Office Agenda Item No. 16D4 March 23, 2010 Page 3 of 22 Office of Management & Budget 3/10/2010 11:25AM Date Approved By Sherry Pryor Office of Management & Budget ManagementJ Budget Analyst, Senior Office of Management & Budget 3/10/20103:03 PM Approved By Date Jeff Klatzkow County Attorney 3/11/201010:26 AM Mark Isackson Date Approved By Office of Management & Budget Management/Budget Analyst, Senior Office of Management & Budget 3/13/201011:48 AM ~"'a.'''O''O : \ :::i '* * ~ '\. . ....."..~OEt/f."~ u.s. Department of Housing and Urban Development Agenda Item No. 16D4 March 23, 2010 Page 4 of 22 Atlanta Region, Miami Field Office Brickell Plaza Federal Building 909 SE First Avenue, Rm. 500 Miami, FL 33131-3042 Augut 31, 2009 Ms. Sandra Marrero Grants Coordinator Collier County Housing & Human Services 3050 N. Horseshoe Dr. Suite 110 Naples, FL 34104 Dear Ms. Marrero: SUBJECT: Transmittal of FY2008 Homeless Assistance Grants Program: SHP Project Name: Peace Village COC: FL-6006 Project Number: FL0295B4D060801 I am transmitting to you revised grant agreements for the above reference grant as follows: I. Three copies of the Renewal Grant Agreement that constitutes the agreement between you and HUD. Please sign all three (3) originals, Keep one original with regulations attached and send the other two (2) to our office. 2. Financial Instructions with copies of the following forms, which are explained in the instructions: a. The LOCCSNRS Access Authorization Form (HUD 27054). b. The Direct Deposit Form (SF-I I 99A). c. The Request Voucher for Grant Payment (HUD-27053 A or B). If you have any questions about how to proceed on your grant, please contact Ronald M. Muscarlla, Senior CPD Representative at (305) 536-5014 or e-mail atRonald.m.muscarella@hud.l!:ov We look forward to working with you. aria osa, Ortiz-Hill, Directo Community Planning and Development Division Enclosures HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. www.bud.gov espanol.bud.gov Agenda ttem No. 1604 March 23, 2010 Page 5 of 22 Recipient: Collier County Board of County Commissioners Grant #: FL0295B4D060801 Address: 3050 N. Horseshoe Drive, Suite 110, Naples, FL34104 Tax ill #: 59-6000558 Project Location: Shelter/no address 2008 SUPPORTIVE HOUSING PROGRAM RENEWAL GRANT AGREEMENT This Grant Agreement is made by and between the United States Department of Housing and Urban Development (HUD) and Jhe Recipient, which is described in section 1 of Attachment A, attached hereto and made a part hereof._ The assistance which is the subject of this Grant Agreement is authorized by the McKinney- Vento Homeless Assistance Act 42 U.S.C. 11381 (hereafter "the Act"). The term "grant" or "grant funds" means the assistance provided under this Agreement. This grant agreement will be governed by the Act, the Supportive Housing rule codified at 24 CFR 583, which is attached hereto and made a part hereof as Attachment B, and the Notice of Funding Availability (NOFA) that was published in two parts. The fITst part was the Policy Requirements and General Section of the NOFA, which was published March 19,2008 at 73 FR 14882, and the second part was the Continuum of Care Homeless Assistance Programs NOFA Section of the NOFA, which was published July 10, 2008 at 73 FR 39840. The term "Application" means the original and renewal application submissions on the basis of which a Grant was approved by HUD, including the certifications and assurances and any information or documentation required to meet any grant award conditions. The Application is incorporated herein as part of this Agreement, however, in the event of conflict between the provisions of those documents and any provision contained herein, this Renewal Grant Agreement shall control. The Secretary agrees, subject to the terms of the Grant Agreement, to provide the grant funds in the amount specified at section 2 of Attachment A for the approved project described in the Application. The Recipient agrees, subject to the terms of the Grant Agreement, to use the grant funds for eligible activities during the grant term specified at section 3 of Attachment A. The Recipient must provide a 25 percent cash match for supportive services. The Recipient agrees to comply with all requirements of this Grant Agreement and to accept responsibility for such compliance by any entities to which it makes grant funds available. The Recipient agrees to participate in a local Homeless Management Information System (HMIS) when implemented. The Recipient and project sponsor, if any, will not knowingly allow illegal activities in any unit assisted with grant funds. 3 Agenda Item No. 1604 March 23. 2010 Page 6 of 22 The Recipient agrees to draw grant funds at least quarterly. HUD notifications to the Recipient shall be to the address of the Recipient as written above, unless HUD is otherwise advised in writing. Recipient notifications to HUD shall be to the HUD Field Office executing the Grant Agreement. No right, benefit, or advantage of the Recipient hereunder be assigned without prior written approval of HUD. For any project funded by this grant, which is also fmanced through the use of the Low Income Housing Tax Credit, the following applies: HUD recognizes that the Recipient or the project sponsor will or has financed this project through the use of the Low-Income Housing Tax Credit. The Recipient or project sponsor shall be the general partner of a limited partnership formed for that purpose. If grant funds were used for acquisition, rehabilitation or construction, then, throughout a period of twenty years from the date of initial occupancy or the initial service provision, the Recipient or project sponsor shall continue as general partner and shall ensure that the project is operated in accordance with the requirements of this Grant Agreement, the applicable regulations and statutes. Further, the said limited partnership shall own the project site throughout that twenty-year period. If grant funds were not used for acquisition, rehabilitation or new construction, then the period shall not be twenty years, but shall be for the term of the grant agreement and any renewal thereof. Failure to comply with the terms of this paragraph shall constitute a default under the Grant Agreement. A default shall consist of any use of grant funds for a purpose other than as authorized by this Grant Agreement, failure in the Recipient's duty to provide the supportive housing for the minimum term in accordance with the requirements of Attachment B, noncompliance with the Act or Attachment A provisions, any other material breach of the Grant Agreement, or misrepresentations in the application submissions which, if known by HUD, would have resulted in this grant not being provided. Upon due notice to the Recipient of the occurrence of any such default and the provision of a reasonable opportunity to respond, HUD may take one or more of the fol1owing actions: (a) direct the Recipient to submit progress schedules for completing approved activities; or (b) issue a letter of warning advising the Recipient of the default, establishing a date by which corrective actions must be completed and putting the Recipient on notice that more serious actions will be taken if the default is not corrected or is repeated; or (c) direct the Recipient to establish and maintain a management plan that assigns responsibilities for carrying out remedial actions; or 4 Agenda Item No. 1604 March 23, 2010 Page 7 of 22 (d) direct the Recipient to suspend, discontinue or not incur costs for the affected activity; or (e) reduce or recapture the grant; or (f) direct the Recipient to reimburse the program accounts for costs inappropriately charged to the program; or (g) continue the grant with a substitute recipient of HUD's choosing; or (h) other appropriate action including, but not limited to, any remedial action legally available, such as affrrmative litigation seeking declaratory judgment, specific performance, damages, temporary or permanent injunctions and any other available remedies. No delay or omission by HUD in exercising any right or remedy available to it under this Grant Agreement shall impair any such right or remedy or constitute a waiver or acquiescence in any Recipient default. For each operating year in which funding is received, the Recipient shall file annual certifications with HUD that the supportive housing has been provided in accordance with the requirements of the Grant Agreement. This Grant Agreement constitutes the entire agreement between the parties hereto, and may be amended only in writing executed by HUD and the Recipient. More specifical1y, the Recipient shall not change recipients, location, services, or population to be served nor shift more than 10 percent of funds from one approved type of eligible activity to another, or make any other significant change, without the prior written approval of HUD. Recipient: Collier County Board of County Commissioners Grant #: FL0295B4D060801 5 .6.0An,,::a Ita.m t\ln 1Rn.d March 23, 2010 Page 8 of 22 SIGNATURES This Grant Agr=mcnt is hereby executed as follows: UNITEDSTA~OFAMER~A Secretary of Housing and Urllan Development By. jJf2pff~ i-31-~9 ........Signaturc and Date Maria ROSL Ortiz-Hill Print name of signatory Director. CPD Division Title RECIPIENT Collier Countv Board of Commissioners Name of Organization By: Authorized Sisnature and Date Print name of signatory Title Approved. to form & legal sulllciency ~~JJr~ CoII88n Gnlene, AIUlant County AIlomey .";TTEST: DWIGHT E. BROCK, Clerk Recipient: Collier County Board of County Commissioners Grant #: FL029SB4D060801 6 Agenda Item No. 1604 March 23, 2010 Page 9 of 22 ATTACHMENT A 1. The Recipient is Collier Countv Board of Commissioners 2. HUD's total fund obligation for this project is $113.000, which shall be allocated as follows: a. Leasing $-0- b. Supportive services $92,900 c. Operating costs $20,100 d. HMIS $-0- e. Administration $-0- 3. Although this agreement will become effective only upon the execution hereof by both parties, upon execution, the term of this agreement shall run from the end of the Recipient's fmal operating year under the original Grant Agreement or, if the original Grant Agreement was amended to extend its term, the term of this agreement shall run from the end of the extension of the original Grant Agreement term for a period of 12 months. Eligible costs, as defined by the Act and Attachment A, incurred between the end of Recipient's final operating year under the original Grant Agreement, or extension thereof, and the execution of this Renewal Grant Agreement may be paid with funds from the fITst operating year of this Renewal Grant. Recipient: Collier County Board of County Commissioners Grant #: FL0295B4D060801 7 A TT ACHMENT B Agenda Item No. 1604 March 23, 2010 Page 10 of 22 PART 583-SUPPORTlVE HOUSING PROGRAM Sec 583.1 583.5 583.100 583.105 583.110 583.115 583.120 583.125 583.130 583.135 583.140 583.145 583.150 583.155 Subpart A-General Purpose and scope Definitions Subpart B-Assistance Provided Types and uses of assistance Grants for acquisition and rehabilitation Grant~ for new construction Grants for leasing Grants for supportive service costs Grants for operating costs Commitment of grant amounts for leasing, supportive services, and operating costs Administrative costs Technical assistance Matching requirements Limitations on use of assistance Consolidated plan Subpart C-Appllcation and Grant Award Process 383.200 583.230 583.235 583.300 583.305 583.310 583.315 583.320 583.325 583.330 Application and grant award Environmental review Renewal grants Subpart D--Program Requirements General operation Term of commitment; repayment of grants; prevention of undue benefits Displacement, relocation, and acquisition Resident rent Site control Nondiscrimination and equal opportunity requirements Applicability of other Federal requirements Subpart E-Administration 583.400 Grant agreement 583.405 Program changes 583.410 Obi igation and deobl igation of funds. AUTHORITY: 42 U.S.C. 11389 and 3535(d) SOURCE: 58 FR 13871, Mar. 15, 1993, unless therwise noted Subpart A-General ~ 583.1 Purpose and scope. (a) General. The Supportive Housing Program is authorized by title IV of the Stewart B. McKinney Homeless Assistance Act (the McKinney Act) (42 U.S.C. 11381-11389). The Supportive Housing program is designed to promote the development of supportive housing and supportive services, including innovative approaches to assist homeless persons in the transition from homelessness, and to promote the provision of supportive housing to homeless persons to enable them to live as independently as possible. (b) Components. Funds under this part may be used for: (I) Transitional housing to facilitate the movement of homeless individuals and families to permanent housing; (2) Permanent housing that provides long-term housing for homeless persons with disabilities; (3) Housing that is, or is part of, a particularly innovative project for, or alternative methods of, meeting the immediate and long-term needs of homeless persons; or (4) Supportive services for homeless persons not provided in conjunction with supportive housing. [58FR 1387l,Mar.15.1993,asamendedat61 FR 51175, Sept. 30, 1996] ~ 583,5 Definitions As used in this part: Applicant is defined in section 422(1) of the McKinney Act (42 U.S.C 11382(1)). For purposes of this definition, governmental entities include those that have general governmental powers (such as a city or county), as well as those that have limited or special powers (such as public housing agencies). Consolidated plan means the plan that a jurisdiction prepares and submits to HUD in accordance with 24 CFR part 91. Date of initial occupancy means the date that the supportive housing is initially occupied by a homeless person for whom HUD provides assistance under this part. if the assistance is for an existing hometess facility. the date of initial occupancy is the date that 18 services are first provided to the residents of supportive hOllsing with funding under this part. Date of initial service provision means the date that supportive services are initially provided with funds under this part to homeless persons who do not reside in supportive housing. This definition applies only to projects funded under this part that do not provide supportive housing. Disability is defined in section 422(2) of the McKinney Act (42 U.S.C 11382(2)). Homeless person means an individual or family that is described in section 103 of the McKinney Act (42 U.S.C 11302). Metropolitan city is defined in section 102(a)(4) of the Housing and Community Development Act of 1974 (42 U.S.C 5302(a)(4)). In general. metropolitan cities are those cities that are eligible for an entitlement grant under 24 CFR part 570. subpart D. New construction means the building of a stmcture where none existed or an addition to an existing structure that increases the floor area by more than I DO percent. Operating costs is defined in section 422(5) of the McKinney Act (42 U.S.C 11382(5)). Outpatiellt health services is defined in section 422(6) of the McKinney Act (42 U.S.C. 11382(6)). Permanent housing for homeless persons with disabilities is defined in section 424(c) of the McKinney Act (42 U.S.C I I 384(c)). Private nonprofit organization is defined in section 422(7) (A), (B), and (D) of the McKinney Act (42 U.S.c. 11382(7) (A), (B). and (D)). The organization must also have a functioning accounting system that is operated in accordance with generally accepted accounting principles, or designate an entity that will maintain a functioning accounting system for the organization in accordance with generally accepted accounting principles Project is defined in sections 422(8) and 424(d) of the McKinney Act (42 U.s.c. 11382(8), 11384(d)). Recipient is defined in section 422(9) of the McKinney Act (42 U.S.c. It 382(9)). Rehabilitation means the improvement or repair of an existing structure or an addition to an existing structure that does not increase the floor area by more than 100 percent. Rehabilitation does not include minor or routine repairs. State is defined in section 422( II) of the McKinney Act (42 U.S.C. 11382(11)). Agenda Item No. 1604 Supporti ve housing is defined in secticManJlI(~o~fiIfl@ McKinney Act (42 U.S.c. I I 384(a)). Pageuf 1 of 22 Supportive services is defined in section 425 of the McKinney Act (42 U.S.C 11385). Transitional housing is defined in section 424(b) of the McKinney Act (42 U.S.C. I I 384(b)). See also ~ 583.3000). Tribe is defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302). Urban county is defined in section 102(a)(6) of the Housing and Community Development Act of 1974 (42 U.S.C 5302(a)(6)). In general, urban counties are those counties that are eligible for an entitlement grant under 24 CFR part 570, subpart D. [61 FR 51175, Sept. 30,1996] Subpart B-Assistance Provided ~ 583.100 Types and uses of assistance, (a) Grant assistance. Assistance in the form of grants is available for acquisition of structures, rehabilitation of structures, acquisition and rehabilitation of structures, new construction. leasing. operating costs for supportive housing, and supportive services, as described in ~~ 583.105 through 583.125. Applicants may apply for more than one type of assistance. (b) Uses of grant assistance. Grant assistance may be used to: (I) Establish new supportive housing facilities or new facitities to provide supportive services; (2) Expand existing facilities in order to increase the number of homeless persons served; (3) Bring existing facilities up to a level that meets State and local government health and safety standards;. (4) Provide additional supportive services for residents of supportive housing or for homeless persons not residing in sUPPOltive housing; (5) Purchase HUD-owned single family properties currently leased by the applicant for use as a homeless facility under 24 CFR part 291; and (6) Continue funding supportive housing where the recipient has received funding under this part for leasing, supportive services, or operating costs. (e) Structures usetlfor multiple purposes Structures used to provide supportive housing or supportive services may atso be used for other purposes, except that assistance under this part wit! be available 19 only in proportion to the use of the structure for supportive housing or supportive services. (d) Technical assistance. HUD may offer '-'~chnical assistance, as described in ~ 583.140. ,S8 FR 13871, Mar. 15, 1993, as amended at 59 FR 36891,July 19,1994] ~ 583.105 Grants for acquisition and rehabilitation. (a) Use. HUD will grant funds to recipients to: (I) Pay a portion of the cost of the acquisition of real property selected by the recipients for use in the provision of supportive housing or supportive services. including the repayment of any outstanding debt on a loan made to purchase property that has not been used previously as supportive housing or for supportive services; (2) Pay a portion of the cost of rehabil itation of structures, including cost effective energy measures, selected by the recipients to provide supportive housing or supportive services; or (3) Pay a portion of the cost of acquisition and rehabil itation of structures, as described in paragraphs (a)(I) and (2) of this section. (b) Arnoll/lt. The maximum grant available for acquisition. rehabilitation, or acquisition and rehabilitation is the lower of: (I) $200,000; or (2) The total cost of the acquisition, rehabilitation, or acquisition and rehabilitation minus the applicant's contribution toward the cost. (c) Increased amounts. In areas determined by HUD to have high acquisition and rehabilitation costs, grants of more than $200,000, but not more than $400,000, may be available. ~ 583,110 Grants for new construction. (a) Use. HUD will grant funds to recipients to pay a portion of the cost of new construction, including cost-effective energy measures and the cost of land associated with that construction, for use in the provision of supportive housing. If the grant funds are used for new construction. the applicant must demonstrate that the costs associated with new construction are substantially less than the costs associated with rehabilitation or that there is a lack of available appropriate units that could be rehabilitated at a cost less than new construction. For purposes of this cost comparison. costs associated with rehabilitation or new construction may include the cost of real property '-1cquisition. Agenda Item No. 1604 (b) Amount. The maximum gnMtlrPinililbllllfill' new construction is the lower of: Page 12 of 22 (I) $400,000; or (2) The total cost of the new construction, including the cost of land associated with that construction, minus the applicant's contribution toward the cost of same. ~ 583,115 Grants for leasing, (a) General. HUD will provide grants to pay (as described in ~ 583.130 of this part) for the actual costs of leasing a structure or structures. or portions thereof, used to provide supportive housing or supportive services for up to five years. (b)(I) Leasing structures. Where grants are used to pay rent for all or part of structures, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. In addition, the rent paid may not exceed rents currently being charged by the same owner for comparable space. (2) Leasing individual units. Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units, taking into account the location, size, type, quality, amenities, facilities, and management services. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Recipients may use grant funds in an amount up to one month's rent to pay the non-recipient landlord for any damages to leased units by homeless participants. [58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36891, July 19, 1994] ~ 583.120 Grants for supportive services costs. (a) General. HUD will provide grants to pay (as described in ~ 583.130 of this part) for the actual costs of supportive services for homeless persons for up to five years. All or part of the supportive services may be provided directly by the recipient or by arrangement with public or private service providers. (b) Supportive services costs. Costs associated with providing supportive services include salaries paid to providers of supportive services and any other costs directly associated with providing such services. For a transitional housing project, supportive services costs also include the costs of services provided to former residents of transitional housing to assist their adjustment to independent living. Such services may be 20 provided for up to six months after they leave the transitional housing facility. [58 FR 13871. Mar. 15, 1993, as amended at 59 FR 36891, July 19,19941 !l 583.125 Grants for operating costs. (a) General. HUD will provide grants to pay a portion (as described in S 583.130) of the actual operating costs of supportive housing for up to five years. (b) Operating costs. Operating costs are those associated with the day-today operation of the supportive housing. They also include the actual expenses that a recipient incurs for conducting on. going assessments of the supportive services needed by residents and the avaitability of such services; relocation assistance under S 583.3 t O. including payments and services; and insurance. (c) Recipient match requirement for operating costs. Assistance for operating costs will be available for up to 75 percent of the total cost in each year of the grant term. The recipient must pay the percentage of the actual operating costs not funded by HUD. At the end of each operating year, the recipient must demonstrate that it has met its match requirement of the costs for that year. 158 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30,1996; 65 FR 30823, May t2. 20001 !l 583.130 Commitment of grant amounts for leasing, supportive services, and operating costs Upon execution of a grant agreement covering assistance for leasing. supportive services, or operating costs, HUD will obligate amounts for a period not to exceed five operating years. The total amount ohligated will be equ;" to an amount necessary for the specified years of operation, tess the recipient's share of operating costs. (Approved by the Office of Management and Budget under OMB control number 2506--{)112) [59 FR 36891. July 19, 1994J !l 583.135 Administrative costs. (aJ General. Up to five percent of any grant awarded under this part may be used for the purpose of paying costs of administering the assistance. (b) Administrative costs. Administrative costs include the costs associated with accounting for the use of grant funds, preparing reports for submission to HUD, obtaining program audits, similar costs related to administering the grant after the award, and staff salaries associated with these administrative costs. They do not Agenda Item No. 1604 . . include the costs of carrying out elig~tf~t~der 9* 583.105 through 583.125. '. [58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30, t 9961 S 583.140 Technical assistance. (a) General. HUD may set aside funds annually to provide technical assistance, either directly by HUD staff or indirectly through third-party providers, for any supportive housing project. This technical assistance is for the purpose of promoting the development of supportive housing and supportive services as part of a continuum of care approach, including innovative approaches to assist homeless persons in the transition from homelessness, and promoting the provision of supportive housing to homeless persons to enable them to live as independently as possible. (b) Uses of technical assistallce. HUD may use these funds to provide technical assistance to prospective applicants. applicants, recipients, or other providers of supportive housing or services for homeless persons, for supportive housing projects. The assistance may inetude, but is not limited to, written information such as papers, monographs, manuals, guides, and brochures; person-to-person exchanges; and training and related costs. (c) Selection of providers. From time to time, as HUD determines the need, HUD may advertise and competitively select providers to deliver technical assistance. HUD may enter into contracts, grants, or cooperative agreements, when necessary, to implement the technical assistance. [59 FR 36892, July 19, 1994] ~ 583.145 Matching requirements. (a) General. The recipient must match the funds provided by HUD for grants for acquisition, rehabilitation, and new construction with an equal amount of funds from other sources. (b) Cash resources. The matching funds must be cash resources provided to the project by one or more of the following: the recipient, the Federal government, State and local govemments, and private resources. (c) Maintemmce of effort. State or local government funds used in the matching contribution are subject to the maintenance of effort requirements described at ~ 583.150(a). * 583.150 Limitations on use of assistance. (a) Maintenance of effort. No assistance provided under this part (or any State or locat government funds used to supplement this assistance) 21 may be used to replace State or local funds previously used, or designated for use, to assist homeless persons. (b) Faith-based activities. (I) Organizations that are religious or faith-based are eligible, on the same ':lasis as any other organization, to participate in the Supportive Housing Program. Neither the Federal government nor a State or tocal government receiving funds under Supportive Housing programs shall discriminate against an organization on the basis of the organization's religious character or affiliation. (2) Organizations that are directly funded under the Supportive Housing Program may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of the programs or services funded under this part. If an organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services funded under this part, and participation must be voluntary for the beneficiaries of the HUD-funded programs or services. (3) A religious organization that participates in the Supportive Housing Program will retain its independence from Federal, State, and local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use direct Supportive Housing Program funds to support any inherently religious activities, such as worship, religious .nstruction, or proselytization. Among other things, faith-based organizations may use space in their facilities to provide Supportive Housing Program- funded services, without removing religious art, icons, scriptures, or other religious symbols. In addition, a Supportive Housing Program-funded religious organization retains its authority over its internal governance, and it may retain religious tenns in its organization's name, select its board members on a religious basis, and include religious references in its organization's mission statements and other governing documents. (4) An organization that participates in the Supportive Housing Program shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief. (5) Program funds may not be used for the acquisition, construction, or rehabilitation of structures to the extent that those structures are used for inherently religious activities. Program funds may be used for the acquisition, construction, or rehabilitation of structures 'mly to the extent that those structures are used for Agenda Item No. 1604 conducting eligible activities under thllllfUlll.;W,hl!ild a structure is used for both eligible and inlile~~ of 22 religious activities, program funds may not exceed the cost of those portions of the acquisition, construction, or rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to Supportive Housing Program funds in this part. Sanctuaries, chapels, or other rooms that a Supportive Housing Program-funded religious congregation uses as its principal place of worship, however, are ineligible for Supportive Housing Program-funded improvements. Disposition of real property after the term of the grant, or any change in use of the property during the lenn of the grant, is subject to government- wide regulations governing real property disposition (see 24 CFR parts 84 and 85). (6) If a State or local government voluntarily contributes its own funds to supplement federally funded activities, the State or local government has the option to segregate the Federal funds or commingle them. However, if the funds are commingled, this section applies to all of the commingled funds. (c) Participant control of site. Where an applicant does not propose to have control of a site or sites but rather proposes to assist a homeless family or individual in obtaining a lease, which may include assistance with rent payments and receiving supportive services, after which time the family or individual remains in the same housing without further assistance under this part, that applicant may not request assistance for acquisition. rehabilitation, or new construction. [58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36892, July 19, 1993; 68 FR 56407, Sept. 30,2003] ~ 583,155 Consolidated plan. (a) Applicants that are States or units of general local government. The applicant must have a HUD- approved complete or abbreviated consolidated plan, in accordance with 24 CFR part 91, and must submit a certification that the application for funding is consistent with the HUD.approved consolidated plan. Funded applicants must certify in a grant agreement that they are follow ing the HUD-approved consolidated plan. (b) Applicants that are not States or units of general local government. The applicant must submit a certification by the jurisdiction in which the proposed project will be located that the applicant's application for funding is consistent with the jurisdiction's HUD approved consolidated plan. The certification must be made by the unit of general local government or the State, in accordance with the consistency certification 22 provisions of the consolidated plan regulations, 24 CFR part 91, subpart F. (c) Indian tribes and the Insular Areas of Guam, the U.S. Virgin/slands, American Samoa. and the Northem Mariana/slands. These entities are not required to have a consolidated plan or to make consolidated plan certifications. An application by an Indian tribe or other applicant for a project that will be located on a reservation of an Indian tribe will not require a certification by the tribe or the State. However, where an Indian tribe is the appl icant for a project that will not be located on a reservation, the requirement for a certification under paragraph (b) of this section will apply. (d) Timing of consolidated plan certification submissions. Unless otherwise sct forth in the NOFA, the required certification that the application for funding is consistent with the HUD-approved consolidated plan must be submitted by the funding application submission deadline announced in the NOFA. [60 FR 16380, Mar. 30,19951 Subpart C-.'\pplication and Grant Award Process ~ 583.200 Application and grant award When funds are made available for assistance, HUD will publish a notice of funding availability (NOFA) in the FEDERAL REGISTER, in accordance with the requirements of 24 CFR part 4. HUD will review and screen apptications in accordance with the requirements in section 426 of the McKinney Act (42 U.S.c. II3S6) .nd the guidetines, rating criteria. and procedures pliblished in the NOF A. [61 FR51176, Sept. 30,19961 * 583.230 Environmental rC\'iew. (a) Activities under this part are subject to HUD environmental regulations in part 58 of this tilte, except that HUD will perform an environmental review in accordance with pal1 50 of this title prior to its approval of any conditionally selected appl icalions for Fi.scal Year 2000 and prior years that were received directly from private nonprofit entities and governmental entities with special or limited purpose [Jowers. For acti,,'itic's under a grant that generally would be subject to review under part 58. HUD may make a finding in accordance with * 58. I I (d) and may itself perform the environmental review under the provisions of part 50 of this title if the recipient objects in writing to the responsible entity's performing the review under part 58. Irrespective of whether the responsible entity in accord with part 58 (or HUD in accord with part 50) performs the environmental review, the recipient shall Agenda Item No. 1604 supply all available, relevant informati~~W~11lr the responsible entity (or HUD, if applica&f!j to ~erf6rm. for each property any environmental review required by this part. The recipient also shall carry out mitigating measures required by the responsible entity (or HUD, if .pplicable) or select alternate eligible property. HUD may elimin.te from consideration any application that would require an Environmental Impact Statement (ElS). (b) The recipient, its project partners and their contractors may not acquire, rehabilitate. convert, lease. repair. dispose of, demolish or construct property for a project under this part, or commit or expend HUD or local funds for such eligible activities under this part, until the responsible entity (as defined in * 58.2 of this title) has completed the environmental review procedures required by part 58 and the environmental certification and RROF have been approved or HUD has performed an environmental review under part 50 and the recipient has received HUD approval of the property. HUD will not release grant funds if the recipient or any other party commits grant funds (t.e.. incurs .ny costs or expenditures to be paid or reimbursed with such funds) before the recipient submits and HUD approves its RROF (where such submission is required). [68 FR56131, Sept. 29, 2003J ~ 583.235 Renewal grants. (a) General. Grants made under this part, and grants made under subtitles C and D (the Supportive Housing Demonstration and SAFAH, respectively) of the Stewart B. McKinney Homeless Assistance Act as in effect before October 28, 1992, may be renewed on a noncompetitive basi, to continue ongoing leasing, operations, and supportive services for additional years beyond the initial funding period. To be considered for renewal funding for leasing, operating costs, or supportive services, recipients must submit a request for such funding in the form specified by HUD, must meet the requirements of this part, and must submit requests within the time period established by HUD. (b) Assistallce available. The first renewal will be for a period of time not to exceed the difference between the end of the initial funding period and ten years from the date of initial occupancy or the date of initiat service provision. .s applicable. Any subsequent renewal will be for a period of time not to exceed five years. Assistance during each year of the renewal period, subject to maintenance of effort requirements lmder * 583.150(a) may be for: 23 (I) Up to 50 percent of the actual operating and leasing costs in the final year of the initial funding period; (2) Up to the amount of HUD assistance for supportive services in the final year of the initial funding period; and (3) An allowance for cost increases. (c) HUD review. (I) HUD will review the request for renewal and will evaluate the recipient's performance in previous years against the plans and goals established in the initial application for assistance, as amended. HUD will approve the request for renewal unless the recipient proposes to serve a population that is not homeless, or the recipient has not shown adequate progress as evidenced by an unacceptably slow expenditure of funds, or the recipient has been unsuccessful in assisting participants in achieving and maintaining independent living. In determining the recipient's success in assisting participants to achieve and maintain independent living, consideration will be given to the level and type of problems of participants. For recipients with a poor record of success, HUD will also consider the recipient's willingness to accept technical assistance and to make changes suggested by technical assistance providers. Other factors which will affect HUD's decision to approve a renewal request include the following: a continuing history of inadequate financial management accounting practices, indications ~f mismanagement on the part of the recipient, a drastic reduction in the population served by the recipient, program changes made by the recipient without prior HUD approval, and loss of project site. (2) HUD reserves the right to reject a request from any organization with an outstanding obligation to HUD that is in arrears or for which a payment schedule has not been agreed to, or whose response to an audit finding is overdue or unsatisfactory. (3) HUD will notify the recipient in writing that the request has been approved or disapproved. (Approved by the Office of Management and Budget under control number 2506-0112) Subpart D-Program Requirements II 583,300 General operation. (a) State and local requirements. Each recipient of assistance under this part must provide housing or services that are in compliance with all applicable State and local housing codes, licensing requirements, and any other requirements in the jurisdiction in which the project is located regarding the condition of the structure and the operation of the housing or services. . .. Agenda ItemJllo. 1604 (b) Habllablllty stal/daras. E~~~on:l!!t\l10 variations as are proposed by the recipiElagm46tppell;ed by HUD, supportive housing must meet the following requirements: (I) Structure and materials. The structures must be structurally sound so as not to pose any threat to the health and safety of the occupants and so as to protect the residents from the elements. (2) Access. The housing must be accessible and capable of being utilized without unauthorized use of other private properties. Structures must provide alternate means of egress in case of fire. (3) Space and security. Each resident must be afforded adequate space and security for themselves and their belongings Each resident must be provided an acceptable place to sleep. (4) Inter;or air quality. Every room or space must be provided with natural or mechanical ventilation. Structures must be free of pollutants in the air at levels that threaten the health of residents. (5) Water supply. The water supply must be free from contamination. (6) Sanitary facilities. Residents must have access to sufficient sanitary facilities that are in proper operating condition, may be used in privacy, and are adequate for personal cleanliness and the disposal of human waste. (7) Thermal environment. The housing must have adequate heating andlor cooling facilities in proper operating condition. (8) lllumination and electricity. The housing must have adequate natural or artificial illumination to pennit normal indoor activities and to support the health and safety of residents. Sufficient electrical sources must be provided to permit use of essential electrical appliances while assuring safety from fire. (9) Food preparation and refl/se disposal. All food preparation areas must contain suitable space and equipment to store, prepare, and serve food in a sanitary manner. (10) Sanitary condition. The housing and any equipment must be maintained in sanitary condition. (II) Fire safety. (i) Each unit must include at least one battery-operated or hard-wired smoke detector, in proper working condition, on each occupied level of the unit. Smoke detectors must be located, to the extent practicable, in a hallway adjacent to a bedroom. If the unit is occupied by hearing- impaired persons, smoke detectors must have an atarm system designed for 24 hearing-impaired persons in each bedroom occupied by a hearing-impaired person. (ii) The public areas of all housing must be equipped with a sufficient number, but not less than one for each area, of battery-operated or hard-wired smoke detectors. Public areas include. but are not limited to, laundry rooms. community rooms. day care centers, hallways, stairwells, and other common areas. (c) Meals. Each recipient of assistance under this part who provides supportive housing for homeless persons with disabilities must provide meals or meal preparation facilities for residents. (d) Ongoing assessment ofsupport;.'e services. Each recipient of assistance under this part must conduct an ongoing assessment of the supportive services required by the residents of the project and the availability of such services. and make adjustments as appropriate. (e) Residelltial supervision. Each recipient of assistance under this part must provide residential supervision as necessary to facilitate the adequate provision of supportive services to the residents of the housing throughout the term of the commitment to operate supportive housing. Residential supervision may include the emptoyment of a full- or part-time residential supervisor with sufficient knowledge to provide or to supervise the provision of supportive services to the residents. (f) Participation of homeless persolls. (I) Each recipient must provide for the participation of homeless persons as required in section 426(g) of the McKinney Act (42 U.S.c. I i386(g)). This requirement is waived if an applicant is unable to meet it and presents a plan for HUD approval to otherwise consult with homeless or formerly homeless persons in considering and making policies and decisions. See also ~ 583.330(e). (2) Each rec ipient of assistance under this palt must, to the maximum extent practicable, involve homeless individuals and families, through employment, volunteer services, or otherwise, in constructing, rehabilitating. I11cintaining, and operating the project and in providing supportive services for the pL\Jject. (g) Records alld reports. Each recipient of assistance under this part must keep any records and make any reports (including those pertaining to race, ethnicity, gender. and disability status data) that HUD may require within the timeframe required. (h) Conjidmtiality. Each recipient that provides family violence prevention or treatment services must develop and implement procedures to ensure: Agenda Item Nq. 1604 ( I ) The confidentiality of recOlM8~il!QI;1\gl any individual services; and Page 17 of 22 (2) That the address or location of any project assisted will not be made public, except with written authorization of the person or persons responsible for the operation of the project. (i) Tenllil1atioll of housing assistance The recipient may terminate assistance to a participant who violates program requirements. Recipie'nts should terminate assistance only in the most severe cases. Recipients may resume assistance to a participant whose assistance was previously terminated. In terminating assistance to a participant, the recipient must provide a formal process that recognizes the rights of individuals receiving assistance to due process of law. This process, at a minimum, must consist of: (I) Written notice to the participant containing a clear statement of the reasons for termination; (2) A review of the decision, in which the participant is given the opportunity to present written or oral objections before a person other than the person (or a subordinate of that person) who made or approved the termination decision; and (3) Prompt written notice of the final decision to the participant. (j) Limitation of stay in transitional housing. A homeless individual or family may remain in transitional housing for a period longer than 24 months, if permanent housing for the individual or family has not been located or if the individual or family requires additional time to prepare for independent living. However, HUD may discontinue assistance for a transitional housing project if more than half of the homeless individuals or families remain in that project longer than 24 months. (k) Outpa/iem health services. Outpatient health services provided by the recipient must be approved as appropriate by HUD and the Department of Health and Human Services (HHS). Upon receipt of an application that proposes the provision of outpatient health services, HUD will consult with HHS with respect to the appropriateness of the proposed services. (I) rtlllllwl assurances. Recipients who receive assistance only for leasing, operating costs or supportive services costs must provide an annual assurance for each year such assistance is received that the project will be operated for the purpose specified in the application. (Approved by the Office of Management and Budget under control number 2506-01 12) [58 FR 13871, Mar. 25 15,.1993, as amended at 59 FR 36892, July 19, 1994; 61 FR 51176, Sept. 30, 1996] ~ 583.305 Term of commitment; repayment of grants; prevention of undue benefits. (a) Term of commitment ,,"d conversion. Recipients must agree to operate the housing or provide supportive services in accordance with this part and with sections 423 (b)(I) and (b)(3) of the McKinney Act (42 U.S.c. I I 383(b)(I), I I 383(b)(3)). (b) Repaymelll of grant alld pre\'ention of undue benefits. In accordance with section 423( c) of the McKinney Act (42 U.S.C. II383(c)), HUD will require recipients to repay the grant unless HUD has authorized conversion of the project under section 423(b)(3) of the McKinney Act (42 U.S.C. I I 383(b)(3)). [61 FR 51176, Sept. 30,1996] ~ 583.310 Displacement, relocation, and acquisition, (a) Minimizing displacement. Consistent with the other goals and objectives of this part, recipients must assure that they have taken all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of supportive housing assisted under th is part. (b) Relocation assistance for displaced persons. A displaced person (defined in paragraph (f) of this .- section) must be provided relocation assistance at the .evels described in, and in accordance with, the requirements of the Uniform Relocation Assistance and Real Property Acquisition Pol icies Act of 1970 (URA) (42 V.S.C. 4601-4655) and implementing regulations at 49 CFR part 24. (c) Real property acquisition requirements The acquisition of real property for supportive housing is subject to the URA and the requirements described in 49 CFR part 24, subpart B. (d) Responsibility of recipient. (I) The recipient must certify (i.e.. provide assurance of compliance) that it will comply with the URA, the regulations at 49 CFR part 24, and the requirements of this section, and must ensure such compliance notwithstanding any third party's contractual obligation to the recipient to comply with these provisions. (2) The cost of required relocation assistance is an eligible project cost in the same manner and to the same extent as other project costs. Such costs also may be paid for with local public funds or funds available from other SOLlrces. Agenda Item No. 1604 (3) The recipient must maintalfl<lllJAJrdlI iro1 0 sufficient detail to demonstrate compliaReeJ<wl~ of 22 provisions of this section. (e) Appeals. A person who disagrees with the recipient's determination concerning whether the person qualifies as a "displaced person," or the amount of relocation assistance for which the person is eligible, may file a written appeal of that determination with the recipient. A low-income person who is dissatisfied with the recipient's determination on his or her appeal may submit a written request for review of that determination to the HUD field office. (f) Definition of displaced person. (I) For purposes of this section, the term "displaced person" means a person (family, individual, business, nonprofit organization, or farm) that moves from real property, or moves personal property from real property permanently as a direct result of acquisition, rehabilitation, or demolition for supportive housing projects assisted under this part. The term "displaced person" includes, but may not be limited to: (i) A person that moves permanently from the real property after the property owner (or person in control of the site) issues a vacate notice, or refuses to renew an expiring lease in order to evade the responsibility to provide relocation assistance, if the move occurs on or after the date the recipient submits to HUD the application or application amendment designating the project site. (ii) Any person, including a person who moves before the date described in paragraph (f)( I )(i) of this section, if the recipient or HUD determines that the displacement resulted directly from acquisition, rehabilitation, or demolition for the assisted project. (iii) A tenant-occupant of a dwelling unit who moves permanently from the building/complex on or after the date of the "initiation of negotiations" (see paragraph (g) of this section) if the move occurs before the tenant has been provided written notice offering him or her the opportunity to lease and occupy a suitable, decent, safe and sanitary dwelling in the same building/ complex. under reasonable terms and conditions, upon completion of the project. Such reasonable terms and conditions must include a monthly rent and estimated average monthly utility costs that do not exceed the greater of: (A) The tenant's monthly rent before the initiation of negotiations and estimated average utility costs, or (B) 30 percent of gross household income. If the initial rent is at or near the maximum, there must be a 26 reasonable basis for concluding at the time the project is initiated that future rent increases will be modest. (iv) A tenant of a dwelling who is required to relocate temporarily. but does not return to the building/compkx, if either: (A) A tenant is not offered payment for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, or (B) Other conditions of the temporary relocation are not reasonable. (v) A tenant of a dwelling who moves from the building/complex permanently after he or she has been required to move to another unit in the same building/complex, if either: (A) The tenant is not offered reimbursement for all reasonable cut-of-pocket expenses incurred in connection with the move; or (8) Other conditions of the move are not reasonable. (2) Notwithstanding the provisions of paragraph (1)( I) of this sec<ion. a person does not qualify as a "displaced pers,m" (and is not eligible for relocation assistance under the URA or this section), if: (i) The person has been evicted for serious or repeated violation of the terms and conditions of the lease or occupancy agreement, violation of applicable Federal, State, or local or tribal law, or other good cause, and HU 0 determines that the eviction was not undertaken for the purpose of evading the obligation to provide relocation assistance: (ii) Th: person moved into the property after the submission of t<oe application and. before signing a lease and commencing occupancy. ',I,:as provided written notice of the project. its pOSSIble impact on the person (e.g., the person may be displaced, temporarily relocated, or suffer a rent increase) and the fact that the person would not qualify as a "displaced person" (or for any assistance provided under this section). if the project is approved; (iii) The p"rson is ineligible under 49 CFR 24.2(g)(2); or (iv) HUD determines that the person was not displaced as a direct result of acquisition, rehabilitation, or demolition for the project. (3) The recipient may request, at any time. HUD's determination of whether a displacement is or would be covered under this section. (g) Defillitiun of illitiatiun of negutiatiolls. For purposes of determining the formula for computing the . . Aoenda ItwJl/Q. 1604 replacement houslIlg assIstance to ue prWl~'r'Eff ~,1l201 Q residential tenant displaced as a direct resltll~ P!lt!\!I~y . undertaken rehabilitation, demolition, or acquisition of the real property, the term "initiation of negotiations" means the e.xecution of the agreement between the recipient and HUD. (h) DefillitiuI\ of project. For purposes of this section, the term "project" means an undertaking paid for in whole or in part with assistance under this part. Two or more activities that are integrally related, each essential to the others. are considered a single project, whether or not all component activities receive assistance under this part. [58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36892. July 19, 1994J ~ 583.315 Resident rent. (a) Calculation of resident re/lt. Each resident of supportive housing may be required to pay as rent an amount determined by the recipient which may not exceed the highest of: (I) 30 percent of the family's monthly adjusted income (adjustment factors include the number of people in the famity, age of family members, medical expenses and child care expenses). The calculation of the family's monthly adjusted income must include the expense deductions provided in 24 CFR 5.611(a), and for persons with disabilities, the calculation of the family's monthly adjusted income also must include the disallowance of earned income as provided in 24 CFR 5.617, if applicabte; (2) 10 percent of the family's monthly gross income; or (3) If the family is receiving payments for welfare assistance from a public agency and a part of the payments, adjusted in accordance with the family's actual housing costs, is specifically designated by the agency to meet the family's housing costs, the pOltion of the payment that is designated for housing costs. (b) Use of rent. Resident rent may be used in the operation of the project or may be reserved, in whole or in part. to assist residents of transitional housing in moving to permanent housing. (c) Fees. In addition to resident rent. recipients may charge residents reasonable fees for services not paid with grant funds. [58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36892, July 19, 1994; 66 FR 6225, Jan. 19,2001] ~ 583.320 Site control. (a) Site cO/ltrol. (I) Where grant funds will bepused for acquisition, rehabilitation, or new construction 27 ~ to prov ide supportive housing or supportive services, or where grant funds will be used for operating costs of supportive housing, or where grant funds will be used to provide supportive services except where an applicant will provide services at sites not operated by the applicant, an applicant must demonstrate site control before HUD will execute a grant agreement (e.g., through a deed, lease, executed contract of sale). If such site control is not demonstrated within one year after initial notification of the award of assistance under this part, the grant will be deobligated as provided in paragraph (c) of this section. (2) Where grant funds will be used to lease all or part of a structure to provide supportive housing or supportive services, or where grant funds will be used to lease individual housing units for homeless persons who will eventually control the units, site control need not be demonstrated. (b) Site change. (I) A recipient may obtain ownership or control of a suitable site different from the one specified in its application. Retention of an assistance award is subject to the new site's meeting all requirements under this part for suitable sites. (2) If the acquisition, rehabilitation, acquisition and rehabil itation, or new construction costs for the substitute site are greater than the amount of the grant awarded for the site specified in the application, the .-. recipient must provide for all additional costs. If the :ecipient is unable to demonstrate to HUD that it is able to provide for the difference in costs, HUD may deobligate the award of assistance. (c) Failure to obtain site control within one year. HUD will recapture or deobligate any award for assistance under this part if the recipient is not in control of a suitable site before the expiration of one year after initial notification of an award. ~ 583.325 Nondiscrimination and equal opportunity requirements. (a) General. Notwithstanding the permissibility of proposals that serve designated populations of disabled homeless persons, recipients serving a designated population of disabled homeless persons are required, within the designated population, to comply with these requirements for nondiscrimination on the basis of race, color, religion, sex, national origin, age, familial stalUs, and disability. (b) Nondiscrimination and equal opporrunity requirements. The nondiscrimination and equal opportunity requirements set forth at part 5 of this title apply to this program. The Indian Civil Rights Act (25 . J.S.c. 130 I et seq.) applies to tribes when they exercise Agenda Item No. 1604 their powers of self-govemment, and MoIruIi:m3I111Q~Qlg authorities (!HAs) when established byli*l@~~saf such powers. When an IHA is established under State law, the applicability of the Indian Civil Rights Act will be determined on a case-by-case basis. Projects subject to the Indian Civil Rights Act must be developed and operated in compliance with its provisions and all implementing HUD requirements, instead of title VI and the Fair Housing Act and their implementing regulations. (c) Procedures. (I) If the procedures that the recipient intends to use to make known the availability of the supportive housing are unlikely to reach persons of any particular race, color, religion, sex, age, national origin, familial status, or handicap who may qualify for admission to the housing, the recipient must establish additional procedures that will ensure that such persons can obtain information concerning availability of the housing. (2) The recipient must adopt procedures to make available information on the existence and locations of facilities and services that are accessible to persons with a handicap and maintain evidence of implementation of the procedures. (d) Accessibility requirements. The recipient must comply with the new construction' accessibility requirements of the Fair Housing Act and section 504 of the Rehabilitation Act of 1973, and the reasonable accommodation and rehabilitation accessibility requirements of section 504 as follows: ( I ) All new construction must meet the accessibility requirements of 24 CFR 8.22 and, as applicable, 24 CFR 100.205. (2) Projects in which costs of rehabilitation are 75 percent or more of the replacement cost of the building must meet the requirements of 24 CFR 8.23(a). Other rehabilitation must meet the requirements of 24 CFR 8.23(b). [58 FR 13871, Mar. 15, 1993, as amended at 59 FR 33894, June 30,1994; 61 FR 5210, Feb. 9,1996: 61 FR 51176, Sept. 30, 1996] ~ 583.330 Applicability of other Federal requirements In addition to the requirements set forth in 24 CFR part 5, use of assistance provided under this part must comply with the following Federal requirements: (a) Flood insrmlnce. (I) The Flood Disaster Protection Act of 1973 (42 U.S.C 4001-4128) prohibits the approval of applications for assistance for acquisition or construction (including rehabilitation) for 28 supportive housing located in an area identified by the Federal Emergency Management Agency (FEMA) as having special tlood hazards, unless: (i) The community in which the area is situated is participating in the National Flood Insurance Program (see 44 CFR parts 59 through 79), or less than a year has passed since FEMA notification regarding such hazards; and (ii) Flood insurance is obtained as a condition of approval of the application. (2) Applicants with supportive housing located in an area identified by FEMA as having special tlood hazards and receiving assistance for acquisition or construction (including rehabilitation) are responsible for assuring that flood insurance under the National Flood Insurance Program is obtained and maintained. (b) The Coastat Barrier Resources Act of 1982 (16 U.S.e. 3501 et seq.) may apply to proposals under this part, depending on the assistance requested. (c) Applicability of OMB Circl/lars. The policies, guidelines. and requirements of OMB Circular No. A--87 (Cost Principles Applicable '0 Grants, Contracts and Other Agreements with State and Local Governments) and 24 eFR part 85 apply to the award. acceptance, and use of assistance under the program by governmental entities, and OMB Circular Nos. A-IIO (Grants and Coopei'a.jve Agreements with tnstitutions of Higher Education. Hospitals. and Other Nonprofit Organizations) and I\-! 22 (Cost Principles Applicable to Grants. Contracts and Other Agreements with Nonprofit Institutions) apply to the acceptance and use of assistance by priv:lte nonprofit organizations. except where inconsistent ." ith the provisions of the McKinney Act, other Federa: ,t",utes. or this part. (Copies of OMB Circulars may be obtained from E.O.P. Publications, room 2200, New Executive Office Building, Washington, DC 20503, telephone (202) 395-7332. (This is not a toll-free numbeL) There is a limit of two free copies. (d) Lead-based paint. The Lead-Based Paint Poisoning Prevention Act (42 U.S.c. 4821-4846). the Residential Lead- Based Paint Hazard Reduction Act of 1992 (42 USe. 4851-4856), and implementing regulations at pat1 35, subparts A, B. J. K. and R of this title apply to activities under this program. (e) Conflicts of interest. (I) In addition to the contlict of interest requirements in 24 CFR part 85, no person who is an employee, agent, consultant. officer. or elected or appointed official of the recipient and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who Agenda Item No. 1604 is in a position to participate in a decisMamllk:l1Jg201 0 process or gain inside information with fegiilti:to!lbi1l? activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for himself or herself or for those with whom he or she has family or business ties. during his or her tenure or for one year thereafter. Participation by homeless individuals who also are participants under the program in policy or decisionmaking under ~ 583.3oo(f) does not constitute a contl ict of interest. (2) Upon the written request of the recipient, HUD may grant an exception to the provisions of paragraph (e)( I) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the program and the effective and efficient administration of the recipient's project. An exception may be considered only after the recipient has provided the following: (i) For States and other governmental entities, a disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the contl ict and a description of how the public disclosure was made; and (ii) For all recipients, an opinion of the recipient's attorney that the interest for which the exception is sought would not violate State or local law. (3) In determining whether to grant a requested exception after the recipient has satisfactorily met the requirement of paragraph (e)(2) of this section, HUD will consider the cumulative effect of the following factors, where applicable: (i) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the project which would otherwise not be available; (ii) Whether the person affected is a member of a group or class of eligible persons and the exception will permit such person to receive generatly the same interests or benefits as are being made available or provided to the group or class; (iii) Whether the affected person has withdrawn from his or her functions or responsibilities. or the decisionmaking process with respect to the specific assisted activity in question: (iv) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (e)(I) of this section; 29 '. (v) Whether undue hardship will result either to the recipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (vi) Any other relevant considerations. (f) Audit. The financial management systems used by recipients under this program must provide for audits in accordance with 24 CFR part 44 or part 45, as appl icable. HUD may perform or require additional audits as it finds necessary or appropriate. (g) Davis-Bacon Act. The provisions of the Davis-Bacon Act do not apply to this program. [58 FR 13871, Mar. 15, 1993, as amended at61 FR 5211, Feb. 9,1996; 64 FR 50226, Sept. 15, 1999] Subpart E-Administration ~ 583,400 Grant agreement, (a) General. The duty to provide supportive housing or supportive services in accordance with the requirements of this part will be incorporated in a grant agreement executed by HUD and the recipient. (b) Enforcement. HUD will enforce the obligations in the grant agreement through such action as may be appropriate, including repayment of funds that have already been disbursed to the recipient. ~ 583.405 Program changes. (a) HUD approval. (I) A recipient may not make any significant changes to an approved program without prior HUD approval. Significant changes include, but are not limited to, a change in the recipient. a change in the project site, additions or deletions in the types of activities listed in ~ 583.100 of this part approved for the program or a shift of more than 10 percent of funds from one approved type of activity to another, and a change in the category of participants to be served. Depending on the nature of the change, HUD may require a new certification of consistency with the consolidated plan (see ~ 583.155). (2) Approval for changes is contingent upon the application ranking remaining high enough after the approved change to have been competitively selected for funding in the year the application was selected. (b) Documentation of other changes. Any changes to an approved program that do not require prior HUD approval must be fully documented in the recipient's records. [58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51176, Sept. 30,1996] ~ 583.410 Obligation and deobligation of funds. Ag"nda Item No. 1604 (a) Obligation of funds. Whe~ i!BP:!IJlfO applicant execute a grant agreement. fufililgitrS:()bfiglted to cover the amount of the approved assistance under subpart B of this part. The recipient will be expected to carry out the supportive housing or supportive services activities as proposed in the application. (b) Increases. After the initial obligation of funds, HUD will not make revisions to increase the amount obligated. (c) Deobligation. (I) HUD may deobl igate all or parts of grants for acquisition, rehabilitation, acquisition and rehabilitation, or new construction: (i) If the actual total cost of acquisition, rehabilitation, acquisition and rehabilitation, or new construction is less than the total cost anticipated in the application; or (ii) If proposed activities for which funding was approved are not begun within three months or residents do not begin to occupy the facility within nine months after grant execution. (2) HUD may deobligate the amounts for annual leasing costs, operating costs or supportive services in any year: (i) If the actual leasing costs, operating costs or supportive services for that year are less than the total cost anticipated in the application; or (ii) If the proposed supportive housing operations are not begun within three months after the units are available for occupancy. (3) The grant agreement may set forth in detail other circumstances under which funds may be deobligated, and other sanctions may be imposed. (4) HUD may: (i) Readvertise the availability of funds that have been deobligated under this section in a notice of fund availability under II 583.200, or (ii) Award deobligated funds to applications previously submitted in response to the most recently published notice of fund availability. and in accordance with subpart C of this part. 30