Agenda 04/27/2010 Item #16D10
Agenda Item No. 16010
April 27, 2010
Page 1 of 78
EXECUTIVE SUMMARY
Recommendation to approve and authorize the Chairman to sign three (3) grant
agreements accepting the Continuum of Care Homeless Assistance grant award from the
U.S. Department of Housing and Urban Development (HUD) totaling $330,761 and
approve the associated budget amendments to recognize the funding associated with this
award.
OBJECTIVE: To assist in providing care for the homeless and at risk population, through the
Board of County Commissioners' (BCe) acceptance of three (3) HUD grant agreements for
2009 Continuum of Care (CoC) funding totaling $330,761 and approval of the associated budget
amendments.
CONSIDERATIONS: At the May 27, 2003 BCC meeting, the Board gave 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 Continuum of Care Homeless Assistance (CoC) grant. On December 15,
2009 (Item 16D3), the Board approved the after the fact submission of a Continuum of Care
(CoC) grant application to HUD for three projects requesting $330,761 for homelessness
funding. On December 23, 2009 HUD notified the County that it had received funding in the
amount of$330,761.
HUD has awarded a grant for the Shelter for Abused Women and Children (SAWCC) in the
amount of$113,000, a grant for St. Matthew's House in the amount of$ 113,116.00, and a grant
to the Collier County Department of Housing Human Services in the amount of $104,645 for
administration of the Homeless Management Information System (HMIS). In 2003 when Collier
County agreed to become the CoC Lead Agency, St. Matthew's House agreed that its
administration funds would be equally shared between the non-profit agency and Housing &
Human Services (HHS). Both the Shelter for Abused Women and Children and St. Matthew's
House grants will pass through the Department of Housing and Human Services as Collier
County's CoC Lead Agency. These pass through awards will require the non-profit agencies to
provide a 25% cash match for supportive services. The Department of Housing and Human
Services will not be required to provide a match because no supportive services are required for
the administration of the Homeless Management Information System grant.
Collier County Housing and Human Services has been allocated $4,983 in administration funds
for the Homeless Management Information System (HMIS). The Department of Housing &
Human Services will also receive 50% of St. Matthew's House administration allocation in the
amount of $2,693, for a total of $7,676 in administration dollars. No administration dollars are
associated with the grant for the Shelter for Abused Women and Children.
FISCAL IMPACT: The total award from HUD for the 2009 Continuum of Care award will
total $330,761 to be budgeted in Housing Grants fund 705. No general funds will be used for the
CoC grant award.
Agenda Item No. 16010
April 27, 2010
Page 2 of 78
GROWTH MANAGEMENT IMPACT: Implementation of homelessness assistance grants
will help facilitate efforts to meet the goals, objectives and policies set forth in the Housing
Element of the County's Growth Management Plan.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office.
It is legally sufficient for Board action.-CMG
RECOMMENDATION: To approve and authorize the Chairman to sign three (3) grant
agreements accepting the Continuum of Care Homelessness Assistance grant from the U.S.
Department of Housing and Urban Development (HUD) totaling $330,761; and approve the
associated budget amendments to recognize the funding associated with this award.
Prepared by: Margo Castorena, Grant Operations Manager
Housing and Human Services
Agenda Item No. 16010
April 27, 2010
Page 3 of 78
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16010
Recommendation to approve and authorize the Chairman to sign three (3) grant agreements
accepting the Continuum of Care Homeless Assistance grant award from the U.S.
Department of Housing and Urban Development (HUD) totaling $330,761 and approve the
associated budget amendments to recognize the funding associated with this award.
4/27/20109:00:00 AM
Meeting Date:
Approved By
Colleen Greene
Assistant County Attorney
Date
County Attorney
County Attorney
4/12/20104:24 PM
Approved By
Marcy Krumbine
Director - Housing & Human Services
Date
Public Services Division
Human Services
4/13/20109:50 AM
Approved By
Kathy Carpenter
Executive Secretary
Date
Public Services
Public Services Admin.
4/14/20108:08 AM
Approved By
Marla Ramsey
Administrator - Public Services
Date
Public Services Division
Public Services Division
4/15/20109:56 AM
Approved By
Marlene J. Foord
Grant Development & Mgmt Coordinator
Date
Administrative Services
Division
Administrative Services Division
4/15/2010 4:09 PM
Approved By
Sherry Pryor
Office of Management &
Budget
Management/ Budget Analyst, Senior
Date
Office of Management & Budget
4/16/20101:12 PM
Approved By
Jeff Klatzkow
County Attorney
Date
4/16/20104:52 PM
Approved By
Leo E. Ochs, Jr.
County Manager
Date
County Managers Office
County Managers Office
4/17/20103:49 PM
Agenda Item No. 16010
April 27, 2010
Page 4 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
07697790
FL0294B40060802
Grant Number: FL0294B4D060802
Award Amount: $104,645
Recipient: Collier County Board of County Commissioners, 3301 Tamiaml
Trail East, Naples, Florida 34112
TaxID#:59-6000558
Project Name: FL-606 - Ren - HMIS Renewal
Component Type: HMIS
Official Contact Person: Mr. Fred W. Coyle, Chairman, County Board of
Commissioners
Email Address:fredcoyle@colllergov.net
Phone: (239) 252-8097
Fax: (239) 774-3602
2009 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 the Recipient,
which is described in section 1 of Attachment A, attached hereto and
made a part hereof.
I Consolidated Grant Agreement
Page 1
03/17/2010
Agenda Item No. 16010
April 27, 2010
Page 5 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
07697790
FL029484D060802
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
first part was the Policy Requirements and General Section of the NOFA,
which was published December 29,2008 at 73 FR 79548, and the second
part was the Continuum of Care Homeless Assistance Programs NOFA
Section of the NOFA, which is located at
http://www.hud.gov/offices/adm/grants/nofa09/cocsec.pdf. 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.
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.
Consolidated Grant Agreement
Page 2
03/17/2010
Agenda Item No. 16010
April 27, 2010
Page 6 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
07697790
FL0294B40060802
For any project funded by this grant, which is also financed through the
use of the Low Income Housing Tax Credit, the following applies:
Hue 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, throu~hout 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 A, 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 HUe, 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, HUe may take
one or more of the following 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
(d) direct the Recipient to suspend, discontinue or not incur costs for
the affected activity; or
Consolidated Grant Agreement
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03/17/2010
Agenda Item No. 16010
April 27, 2010
Page 7 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren . HMIS Renewal
07697790
FL0294B4D060802
(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 HUO's choosing;
or
(h) other appropriate action including, but not limited to, any remedial
action legally available, such as affirmative litigation seeking declaratory
judgment, specific performance, damages, temporary or permanent
injunctions and any other available remedies.
No delay or omission by HUO 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 HUO 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 HUO and
the Recipient. More specifically, 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
HUO.
Consolidated Grant Agreement
Page 4
03/17/2010
Agenda Item ~o. 1601 ~
Page 8 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606-Ren-HMIS Renewal
07697790
FL0294B4D060802
SIGNATURES
This Grant Agreement is hereby executed as follows:
UNITED STATES OF AMERICA
Secretary of Housing and Urban Development
By. ~//Afb 3;r-d)
.", Signature and Date
Marla Rosa. Ortiz-Hill
Print name of signatory
- Director. Community Plannin2' and DevelQpment
Tide'
RECIPIENT
Collier County Board of County Commissiol1el1
Name of Organization
By:
Authorized Signature and Date
Fred. w. ('~\e
Print name of si ory
County Administrator
Title
proved 88 to form & Iegal8Ufflclency
ATTEST:
DWIGHT E. BAOCK. Clerk
By:
Colleen Greene,
Alaistant ColM"lty Attorney
I Consolidated Grant Agreement
Page S
03/1712010
~
Agenda Item No. 16010
April 27, 2010
Page 9 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren . HMIS Renewal
07697790
FL0294B4D060802
ATTACHMENT A
1. The recipient is Collier County Board of County Commissioners.
2. HUD's total fund obligation for this project is $104,645, which shall be
allocated as follows:
Leasing $0
Supportive services $0
Operating costs $0
HMIS $99,662
Administration $4,983
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 final 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 B,
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 first operating
year of this Renewal Grant.
Consolidated Grant Agreement
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03/17/2010
Agenda Item No. 16010
April 27, 2010
Page 10 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
07697790
FL0294B4D060802
ATTACHMENT B
24 CFR PART 583--SUPPORTIVE HOUSING PROGRAM
Subpart A--General
Sec
583.1 Purpose and scope.
583.5 Definitions.
583.100
583.105
583.110
583.115
583.120
583.125
583.130
583.135
583.140
583.145
583.150
583.155
583.200
583.230
583.235
583.300
583.305
583.310
583.315
583.320
583.325
583.330
Subpart B--Assistance Provided
Types and uses of assistance.
Grants for acquisition and rehabilitation.
Grants 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--Application and Grant Award Process
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.
Page 7
03/17/2010
Consolidated Grant Agreement
Agenda Item No. 16010
April 27, 2010
Page 11 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
07697790
FL0294B4D060802
Subpart E--Administration
583.400 Grant agreement.
583.405 Program changes.
583.410 Obligation and deobligation of funds.
AUTHORITY: 42 U.S.C. 11389 and 3535(d).
SOURCE: 58 FR 13871, Mar. 15, 1993, unfess otherwise noted.
Subpart A--General
t 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:
(1) 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 altemative 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.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30,1996]
t 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.
Oate of initial occupancy means the date that the supportive housing is initially occupied by a
homeless person for whom HUO provides assistance under this part. If the assistance is for an
existing homeless facility, the date of initial occupancy is the date that services are first provided
to the residents of supportive housing 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).
Consolidated Grant Agreement
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Agenda Item No. 16010
April 27, 2010
Page 12 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
07697790
FL0294B4D060802
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 structure where none existed or an addition to an
existing structure that increases the floor area by more than 100 percent.
Operating costs is defined in section 422(5) of the McKinney Act (42 U.S.C 11382(5)).
Outpatient 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 11384(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 (0)). 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. 11382(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(11) of the McKinney Act (42 U.S.C. 11382(11)).
Supportive housing is defined in section 424(a) of the McKinney Act (42 U.S.C. 11384(a)).
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. 11384(b)).
See also ~ 583.3000).
Tribe is defined in section 102 of the Housing and Community Oevelopment 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
I 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.
Consolidated Grant Agreement
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Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
Agenda Item No. 16010
April 27,2010
Page 13 of 78
07697790
FL0294B4D060802
(b) Uses of grant assistance. Grant assistance may be used to:
(1) Establish new supportive housing facilities or new facilities 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 supportive 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. .
(c) Structures used for multiple purposes Structures used to provide supportive housing or
supportive services may also be used for other purposes, except that assistance under this part
will be available only in proportion to the use of the structure for supportive housing or supportive
services.
(d) Technical assistance. HUD may offer technical assistance, as described in ~ 583.140.
[58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36891, July 19,1994]
fi 583.105 Grants for acquisition and rehabilitation.
(a) Use. HUD will grant funds to recipients to:
(1) 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 rehabilitation 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 rehabilitation of structures, as described in
paragraphs (a)(1) and (2) of this section.
(b) Amount. The maximum grant available for acquisition, rehabilitation, or acquisition and
rehabilitation is the lower of:
(1) $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.
Consolidated Grant Agreement
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Agenda Item No. 16010
April 27, 2010
Page 14 of 78
Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
07697790
FL0294B4D060802
S 583.110 Grants for new construction.
. (a). Use. HUD wi!1 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
le~s 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 acquisition.
(b) Amount. The maximum grant available for new construction is the lower of:
(1) $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.
S 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 )(1) 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]
S 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 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, 1994]
Consolidated Grant Agreement
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Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - HMIS Renewal
Agenda Item No. 16010
April 27, 2010
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07697790
FL0294S4D060802
S 583.125 Grants for operating costs.
(a) General. HUD will provide grants to pay a portion (as described in ~ 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 availability of
such services; relocation assistance under ~ 583.310, 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.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30, 1996; 65 FR 30823, May
12,2000]
S 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 obligated will be equal to an amount necessary for the specified years of operation.
less the recipient's share of operating costs.
(Approved by the Office of Management and Budget under OMS control number 2506-0112) [59
FR 36891, July 19, 1994]
S 583.135 Administrative costs.
(a) 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 include the costs of carrying out eligible activities under
SS 583.105 through 583.125.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30.1996]
S 583.140 Technical assistance.
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(a) General. ~U!J may set aside funds annuall.y to provide technical assistance, either directly
by H~D staff.or Indlr~ctly through third-party pro~lders, for any supportive housing project. This
technical asslst~mce 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 h?meless. persons in the transition from homelessnes~, and promoting the provision of
supportive housing to homeless persons to enable them to live as independently as possible.
(b) Uses of technical assistance. HUD may use these funds to provide technical assistance to
prospective applicants, applicants, recipients, or other providers of supportive housing or
~ervlc~s for homel~ss p.ersons, for supportive housing projects. The assistance may include, 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]
i 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
governments, and private resources, in accordance with 42 U.S. C. 11386. This statute provides
that a recipient may use funds from any source, including any other Federal source (but
excluding the specific statutory subtitle from which Supportive Housing Program funds are
provided), as well as State, local, and private sources are not statutorily prohibited to be used as
a match. It is the responsibility of the recipient to ensure that any funds used to satisfy the
matching requirements of this section are eligible under the laws governing the funds to be used
as matching funds for a grant awarded under this program.
(c) Maintenance 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).
i 583.150 Limitations on use of assistance.
(a) Maintenance of effort. No assistance provided under this part (or any State or local
government funds used to supplement this assistance) may be used to replace State or local
funds previously used, or designated for use, to assist homeless persons.
(b) Faith-based activities. (1) Organizations that are religious or faith-based are eligible, on
the same basis as any other organization, to PartiCirate in the Suppor:tiye Housing Program.
Neither the Federal government nor a State or loca 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 no~
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.
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(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 instruction, or proselytization. Among other things, falth-
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 only to the
extent that those structures are used for conductin~ eligible activities under this part. Where a
structure is used for both eligible and inherently 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 tenn of the grant, is subject to govemment-wide regulations goveming real property
disposition (see 24 CFR parts 84 and 85).
(6) If a State or local govemment 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
following the HUD-approved consolidated plan.
(b) Applicants that are not States or units of general local govemment 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 govemment or the State, in
accordance with the consistency certification provisions of the consolidated plan regulations,. 24
CFR part 91, subpart F.
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(c) Indian tribes a~d the Insular Areas of ~~am, the U.S. Virgin Islands, American Samoa,
and the Northe~n Manana Islands. These entities are not required to have a consolidated plan or
to f!18ke cons~hdated 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. Ho~ever, wher~ an Indian tribe l~ the.applicant for a project that will not be
lo.cated 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 set 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, 1995]
Subpart C-Applicatlon and Grant Award Process
i 583.235 Renewal grants.
(a) General. Grants made under this part, and grants made under subtitles C and 0 (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 basis 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) Assistance 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 initial service provision, as 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 under ~ 583.150(a) may be for:
(1) 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. (1) 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 recipienfs 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 of
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.
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(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
S 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.
(b) Habitability standards. Except for such variations as are proposed by the recipient and
approved by HUD, supportive housing must meet the following requirements:
(1) 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 altemate 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) Interior 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 and/or cooling facilities in
proper operating condition.
(8) Illumination and electricity. The housing must have adequate natural or artificial
illumination to permit 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 refuse 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.
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(11) 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 alarm system designed for
hearing-impaired persons in each bedroom occupied by a hearing-impaired person.
(il) 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 of supportive 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) Residential 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 employment 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 persons. (1) Each recipient must provide for the participation of
homeless persons as required in section 426(g) of the McKinney Act (42 U.S.C. 11386(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 recipient of assistance under this part must, to the maximum extent practicable,
involve homeless individuals and families, through employment, volunteer services, or otherwise,
in constructing, rehabilitating, maintaining, and operating the project and in providing supportive
services for the project.
(g) Records and 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) Confidentiality. Each recipient that provides family violence prevention or treatment
services must develop and implement procedures to ensure:
(1) The confidentiality of records pertaining to any individual services; and
(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.
(3) Prompt written notice of the final decision to the participant.
0) Limitation of stay in transitional housing. A homeless individual or fa'!lily may re.m~i~ 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 indivi~ual ~r family ~equires additiona! ~ime to prepare f~r
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.
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(k) Outpatient 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) Annual 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 2506-0112) [58 FR
13871, Mar. 15, 1993, as amended at 59 FR 36892, July 19,1994; 61 FR 51176, Sept. 30,
1996]
t 583.305 Term of commitment; repayment of grants; prevention of undue
benefits.
(a) Term of commitment and conversion. Recipients must agree to operate the housing or
provide supportive services in accordance with this part and with sections 423 (b)(1) and (b)(3)
of the McKinney Act (42 U.S.C. 11383(b)(1), 11383(b)(3)).
(b) Repayment of grant and prevention of undue benefits. In accordance with section 423(c)
of the McKinney Act (42 U.S.C. 11383(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. 11383(b)(3)).
[61 FR 51176, Sept. 3D, 1996]
t 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 this part.
(b) Relocation assistance for displaced persons. A displaced person (defined in paragraph (f)
of this section) must be provided relocation assistance at the levels described in, and in
accordance with, the requirements of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) (42 U.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. (1) 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 sources.
(3) The recipient must maintain records in sufficient detail to demonstrate compliance with
proviSions of this section.
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(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. (1) 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)(1)(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 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/complex, 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 out-of-pocket expenses
incurred in connection with the move; or
(B) Other conditions of the move are not reasonable.
(2) Notwithstanding the provisions of paragraph (f)(1 ) of this section, a person does not
qualify as a "displaced person" (and is not eligible for relocation assistance under the URA or
this section), if:
(i) Termination of housing assistance
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The recipient may terminate assistance to a participant who violates program requirements.
Recipients 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:
(1) 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
(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 HUD determines that the eviction was not undertaken for the purpose
of evading the obligation to provide relocation assistance;
(ii) The person moved into the property after the submission of the application and, before
signing a lease and commencing occupancy, was 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 person 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) Definition of initiation of negotiations. For purposes of determining the formula for
computing the replacement housing assistance to be provided to a residential tenant displaced
as a direct result of privately undertaken rehabilitation, demolition, or acquisition of the real
property, the term "initiation of negotiations" means the execution of the agreement between the
recipient and HUD. (h) Definition 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, 1994]
1583.315 Resident rent.
(a) Calculation of resident rent. 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:
(1) 30 percent of the family's monthly adjusted income (adjustment factors include the
number of people in the family, 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 applicable;
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(2) 10 percent of the family's monthly gross income; or
(3) If the family i~ receiving payments for welfare assistance from a public agency and a part
of tl)e payments, adjusted In accordance ~ith the family's actual housing costs, is specifically
designated by the agency to meet the family's housing costs, the portion 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]
S 583.320 Site control.
(a) Site control. (1) Where grant funds will be used for acquisition, rehabilitation, or new
construction to provide 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. (1) 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 rehabilitation, 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 recipient is unable to
demonstrate to HUD that it is able to provide for the difference in costs, HUO may deobligate the
award of assistance.
(c) Failure to obtain site control within one year. HUO 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.
S 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 status,
and disability.
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(b) Nondiscrimination and equal opportunity 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 U.S.C. 1301 et seq.) applies to tribes when they exercise their powers of self-
government, and to Indian housing authorities (I HAs) when established by the exercise of 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. (1) 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:
(1) 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 insurance. (1) The Flood Oisaster Protection Act of 1973 (42 U.S.C 4001-4128)
prohibits the approval of applications for assistance for acquisition or construction (including
rehabilitation) for supportive housing located in an area identified by the Federal Emergency
Management Agency (FEMA) as having special flood 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 flood 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 Coastal Barrier Resources Act of 1982 (16 U.S.C. 3501 et seq.) may apply to
proposals under this part, depending on the assistance requested.
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(c) Applicability of OMB Circulars. The policies, guidelines, and requirements of OMB Circular
No. A-87 (Cost Principles Applicable to Grants, Contracts and Other Agreements with State and
Local Governments) and 24 CFR part 85 apply to the award, acceptance, and use of assistance
under the program by governmental entities, and OMB Circular Nos. A-110 (Grants and
Cooperative Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit
Organizations) and A.122 (Cost Principles Applicable to Grants, Contracts and Other
Agreements with Nonprofit Institutions) apply to the acceptance and use of assistance by private
nonprofit organizations, except where inconsistent with the provisions of the McKinney Act, other
Federal statutes, 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 number.) 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 U.S.C. 4851-4856),
and implementing regulations at part 35, subparts A, B, J, K, and R of this title apply to activities
under this program.
(e) Conflicts of interest. (1) In addition to the conflict 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 is in a position to participate in a decisionmaking process or gain
inside information with regard to such 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 ~ 583.300(f) does not constitute a conflict of interest. (2) Upon the written
request of the recipient, HUD may grant an exception to the provisions of raragraPh (e)(1) of this
section on a case-by-case basis when it determines that the exception wil 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 conflict 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 generally 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)(1) of this section;
(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
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(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 applicable. 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 at 61 FR 5211, Feb. 9, 1996; 64 FR 50226, Sept. 15,
1999]
Subpart E--Administration
S 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.
S 583.405 Program changes.
(a) HUD approval. (1) 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. 3D, 1996]
S 583.410 Obligation and deobligation of funds.
(a) Obligation of funds. When HUO and the applicant execute a grant agreement, funds are
obligated 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. (1) HUD may deobligate all or parts of grants for acquisition, rehabilitation,
acquisition and rehabilitation, or new construction:
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(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 deobllgated, and other sanctions may be imposed.
(4) HUD may:
. (i) Readvertise the availability of funds that have been deobllgated under this section in a
notice of fund availability under ~ 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.
Consolidated Grant Agreement
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Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - Shelter Transitional Housing Renewal
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Grant Number: FL0295B4D060802
Award Amount: $113,000
Recipient: Collier County Board of County Commissioners, 3301 Tamlaml
Trail East, Naples, Florida 34112
Tax 10#: 59-6000558
Project Name: FL-606 - Ren - Shelter Transitional Housing Renewal
Component Type: TH '
Official Contact Person: Mr. Fred W. Coyle, Chairman, County Board of
Commissioners
Emall Address:fredcoyle@colllergov.net
Phone: (239) 252-8097
Fax: (239) n 4-3602
2009 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 the Recipient,
which is described in section 1 of Attachment A, attached hereto and
made a part hereof.
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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 'granf or 'grant funds' means the
assistance provided under this A~reement. 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
first part was the Policy Requirements and General Section of the NOFA,
which was published December 29, 2008 at 73 FR 79548, and the second
part was the Continuum of Care Homeless Assistance Programs NOFA
Section of the NOFA, which is located at
http://www.hud.gov/offlces/adm/grants/nofa09/cocsec.pdf. 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 r.rovision
contained herein, this Renewal Grant Agreement shall contro. 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.
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.
Consolidated Grant Agreement
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For any project funded by this grant, which is also financed 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 rears, but shall be for the term of the grant agreement and any
renewa 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 A, 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 following 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
(d) direct the Recipient to suspend, discontinue or not incur costs for
the affected activity; or
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(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 HUO's choosing;
or
(h) other appropriate action including, but not limited to, any remedial
action legally available, such as affirmative 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 HUO 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 HUO and
the Recipient. More specifically, 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
HUO.
Consolidated Grant Agreement
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!
J
SIGNATURES
This Grant Agreement is hereby executed as follows:
UNITED STATES OF AMFRICA
Secretary of Housing and Urban Development
By. ~~~#3-~v-~
.", gnature and Date
Maria. Rosa. Ortiz. Hill
Print name of signatory
_ Director. Commnnity Plannin~ and Dcvclooment
Title
RECIPIENT
Collier County Board of Countv Commissioners
Name of Organization
By:
Authorized Signature and Date
h-cd W COLi \e.
Print name of signatory
Countv Administralor
Title
ATTEST:
DWIGHT E. BROCK. Clerk
By:
Colleen Greene,
Asslstant County Attorney
I Consolidated Grant Agreement
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-'1
ATTACHMENT A
1. The recipient is Collier County Board of County Commissioners.
2. HUD's total fund obligation for this project is $113,000, which shall be
allocated as follows:
Leasing $0
Supportive services $92,900
Operating costs $20,100
HMIS $0
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 final 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 B,
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 first operating
year of this Renewal Grant.
-"
)
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Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - Shelter Transitional Housing Renewal
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
ATTACHMENT B
24 CFR PART 583-5UPPORTIVE HOUSING PROGRAM
Subpart A-General
Purpose and scope.
Definitions.
Subpart B-Assistance Provided
Types and uses of assistance.
Grants for acquisition and rehabilitation.
Grants 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--Application and Grant Award Process
583.200 Application and grant award.
583.230 Environmental review.
583.235 Renewal grants.
583.300
583.305
583.310
583.315
583.320
583.325
583.330
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.
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Subpart E--Administration
583.400 Grant agreement.
583.405 Program changes.
583.410 Obligation and deobligation of funds.
AUTHORITY: 42 U.S.C. 11389 and 3535(d).
SOURCE: 58 FR 13871, Mar. 15, 1993, unless otherwise noted.
Subpart A--General
i 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:
(1) Transitional housing to facilitate the movement of homeless individuals and families to
permanent housing; (2) Permanent housing that provides long-term housing for homeiess
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.
[58 FR 13871, Mar. 15,1993, as amended at 61 FR 51175, Sept. 30,1996]
i 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
govemmental 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 homeless facility, the date of initial occupancy is the date that services are first provided
to the residents of supportive housing 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).
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Metropolitan city Is defined in section 1 02(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 structure where none existed or an addition to an
existing structure that increases the floor area by more than 100 percent.
Operating costs is defined in section 422(5) of the McKinney Act (42 U.S.C 11382(5)).
Outpatient 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 11384(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. 11382(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(11) of the McKinney Act (42 U.S.C. 11382(11)).
Supportive housing is defined in section 424(a) of the McKinney Act (42 U.S.C. 11384(a)).
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. 11384(b)).
See also ~ 583.3000).
Tribe is defined in section 102 of the Housing and Community Oevelopment 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, 1996J
Subpart B--Assistance Provided
i 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.
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(b) Uses of grant assistance. Grant assistance may be used to:
(1) Establish new supportive housing facilities or new facilities 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 supportive 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.
(c) Structures used for multiple purposes Structures used to provide supportive housing or
supportive services may also be used for other purposes, except that assistance under this part
will be available only in proportion to the use of the structure for supportive housing or supportive
services.
(d) Technical assistance. HUD may offer technical assistance, as described in 9 583.140.
[58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36891, July 19,1994]
i 583.105 Grants for acquisition and rehabilitation.
(a) Use. HUD will grant funds to recipients to:
(1) 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 rehabilitation 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 rehabilitation of structures, as described in
paragraphs (a)(1) and (2) of this section.
(b) Amount. The maximum grant available for acquisition, rehabilitation, or acquisition and
rehabilitation is the lower of:
(1) $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.
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S 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-effectlve 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 Inctude the cost of real
property acquisition.
(b) Amount. The maximum grant available for new construction is the lower of:
(1) $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.
S 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)(1) Leasing structures. Where ~rants 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]
S 583.120 Grants for supportive services costs.
(a) General. HUO will provide grants to pay (as described in 9 583.130 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 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, 1994]
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t 583.125 Grants for operating costs.
(a) General. HUD will provide grants to pay a portion (as described in ~ 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. Ther also include the actual expenses that a recipient incurs for conducting
on-going assessments 0 the supportive services needed by residents and the availability of
such services; relocation assistance under ~ 583.310, 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.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30, 1996; 65 FR 30823, May
12. 2000]
t 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, HUO will obligate amounts for a period not to exceed five operating years. The
total amount obligated will be equal to an amount necessary for the specified years of operation,
less the recipienfs share of operating costs.
(Approved by the Office of Management and Budget under OMB control number 2506-0112) [59
FR 36891, July 19,1994]
t 583.135 Administrative costs.
(a) 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 include the costs of carrying out eligible activities under
~~ 583.105 through 583.125.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30, 1996]
t 583.140 Technical assistance.
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(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 homeless ness, and promoting the provision of
supportive housing to homeless persons to enable them to live as independently as possible.
(b) Uses of technical assistance. 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 include, 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]
t 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
governments, and private resources, in accordance with 42 U .S.C. 11386. This statute provides
that a recipient may use funds from any source, including any other Federal source (but
excluding the specific statutory subtitle from which Supportive Housing Program funds are
provided), as well as State, local, and private sources are not statutorily prohibited to be used as
a match. It is the responsibility of the recipient to ensure that any funds used to satisfy the
matching requirements of this section are eligible under the laws goveming the funds to be used
as matching funds for a grant awarded under this program.
(c) Maintenance 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).
i 583.150 Limitations on use of assistance.
(a) Maintenance of effort. No assistance provided under this part (or any State or local
government funds used to supplement this assistance) may be used to replace State or local
funds previously used, or designated for use, to assist homeless persons.
(b) Faith-based activities. (1) Organizations that are religious or faith-based are eligible, on
the same basis as any other organization, to participate in the Supportive Housing Program.
Neither the Federal government nor a State or local government receiving funds under
Supportive Housing programs shall discriminate against an organization on the basis ofthe
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.
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(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 instruction, 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 terms 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 only to the
extent that those structures are used for conductin~ eligible activities under this part. Where a
structure is used for both eligible and inherently 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
dunng the term of the grant, is subject to government-wide regulations goveming 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] .
i 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
following 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 provisions of the consolidated plan regulations, 24
CFR part 91, subpart F.
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(c) Indian tribes and the Insular Areas of Guam, the U.S. Virgin Islands, American Samoa,
and the Northern Mariana Islands. 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 applicant 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 set 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, 1995]
Subpart C-Applicatlon and Grant Award Process
S 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 basis 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) Assistance 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 initial service provision, as 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 under ~ 583.150(a) may be for:
(1) 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. (1) 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 of
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.
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(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
I 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.
(b) Habitability standards. Except for such variations as are proposed by the recipient and
approved by HUD, supportive housing must meet the following requirements:
(1) 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 altemate 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) Interior 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 and/or cooling facilities in
proper operating condition.
(8) Illumination and electricity. The housing must have adequate natural or artificial
illumination to permit 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 refuse 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.
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(11) 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 ~nit is occupied
by hearing- impaired persons, smoke detectors must have an alarm system designed for
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 of supportive 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) Residential 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
housin~. Residential supervision may include the employment 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 persons. (1) Each recipient must provide for the participation of
homeless persons as required in section 426(g) of the McKinney Act (42 U.S.C. 11386(g)). This
requirement is waived if an applicant is unable to meet it and presents a plan for HUe approval
to otherwise consult with homeless or formerly homeless persons in considering and making
policies and decisions. See also ~ 583.330(e).
(2) Each recipient of assistance under this part must, to the maximum extent practicable,
involve homeless Individuals and families, through employment, volunteer services, or otherwise,
in constructing, rehabilitating, maintaining, and operating the project and in providing supportive
services for the project.
(g) Records and 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 HUe may require within the timeframe required.
(h) Confidentiality. Each recipient that provides family violence prevention or treatment
services must develop and implement procedures to ensure:
(1) The confidentiality of records pertaining to any individual services; and
(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.
(3) Prompt written notice of the final decision to the participant.
m 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.
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(k) Outpatient 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) Annual 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 2506-0112) [58 FR
13871, Mar. 15, 1993, as amended at 59 FR 36892, July 19,1994; 61 FR 51176, Sept 30,
1996]
S 583.305 Term of commitment; repayment of grants; prevention of undue
benefits.
(a) Term of commitment and conversion. Recipients must agree to operate the housing or
provide supportive services in accordance with this p'art and with sections 423 (b)(1) and (b)(3)
of the McKinney Act (42 U.S.C. 11383(b)(1), 11383(b)(3)).
(b) Repayment of grant and prevention of undue benefits. In accordance with section 423(c)
of the McKinney Act (42 U.S.C. 11383(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. 11383(b)(3)).
[61 FR 51176, Sept. 30, 1996]
S 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 this part.
(b) Relocation assistance for displaced persons. A displaced person (defined in paragraph (f)
of this section) must be provided relocation assistance at the levels described in, and in
accordance with, the requirements of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) (42 U.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. (1) The recipient must certify (Le., 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 sources.
(3) The recipient must maintain records in sufficient detail to demonstrate compliance with
provisions of this section.
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(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. (1) 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 t() 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)(1)(1)
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 (~) of this section) if the
move occurs before the tenant has been provided written notice offenng 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 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/complex, if either:
(A) A tenant is not offered payment for all reasonable out-of-pocket expenses incurred in
connection with the temporary relocation, or
(8) 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 out-of-pocket expenses
incurred in connection with the move; or
(B) Other conditions of the move are not reasonable.
(2) Notwithstanding the provisions of paragraph (f)(1) of this section, a person does not
qualify as a "displaced person" (and is not eligible for relocation assistance under the URA or
this section), if:
(i) Termination of housing assistance
Consolidated Grant Agreement
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The recipient may terminate assistance to a participant who violates program requirements.
Recipients 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:
(1) 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
(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 HUD determines that the eviction was not undertaken for the purpose
of evading the obligation to provide relocation assistance;
(ii) The person moved into the property after the submission of the application and, before
signing a lease and commencing occupancy, was 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 person 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, HUO's determination of whether a displacement is
or would be covered under this section.
(g) Definition of initiation of negotiations. For purposes of determining the formula for
computing the replacement housing assistance to be provided to a residential tenant displaced
as a direct result of privately undertaken rehabilitation, demolition, or acquisition of the real
property, the term "initiation of negotiations" means the execution of the agreement between the
recipient and HUD. (h) Definition 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 19,1994]
i 583.315 Resident rent.
(a) Calculation of resident rent. 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:
(1) 30 fercent of the family's monthly adjusted income (adjustment factors include the
number 0 people in the family, 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 eamed income as
provided in 24 CFR 5.617, if applicable;
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Project: FL-606 - Ren - Shelter Transitional Housing Renewal
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(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 portion 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]
S 583.320 Site control.
(a) Site control. (1) Where grant funds will be used for acquisition, rehabilitation, or new
construction to provide 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. (1) 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 rehabilitation, 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 recipient 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.
i 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 status,
and disability.
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(b) Nondiscrimination and equal opportunity 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 U.S.C. 1301 et seq.) applies to tribes when they exercise their powers of self-
government, and to Indian housing authorities (IHAs) when established by the exercise of 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. (1) 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:
(1) 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]
I 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 insurance. (1) The Flood DisasterProtection Act of 1973 (42 U.S.C 4001-4128)
prohibits the approval of applications for assistance for acquisition or construction (including
rehabilitation) for supportive housing located in an area identified by the Federal Emergency
Management Agency (FEMA) as having special flood 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 flood 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 Coastal Barrier Resources Act of 1982 (16 U.S.C. 3501 et seq.) may apply to
proposals under this part, depending on the assistance requested.
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(c) Applicability of OMB Circulars. The policies, guidelines. and requirements of OMB Circular
No. A-87 (Cost Principles Applicable to Grants, Contracts and Other Agreements with State and
Local Govemments) and 24 CFR part 85 apply to the award. acceptance, and use of assistance
under the program by govemmental entities. and OMB Circular Nos. A.110 (Grants and
Cooperative Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit
Organizations) and A-122 (Cost Principles Applicable to Grants, Contracts and Other
Agreements with Nonprofit Institutions) apply to the acceptance and use of assistance by private
nonprofit organizations, except where inconsistent with the provisions of the McKinney Act, other
Federal statutes, or this part. (Copies of OMB Circulars may be obtained from E.O.P.
Publications, room 2200, New Executive Office Buildin~. Washington, DC 20503, telephone
(202) 395-7332. (This is not a toll-free number.) 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 U.S.C. 4851-4856),
and implementing regulations at part 35, subparts A, B, J, K, and R of this title apply to activities
under this program.
(e) Conflicts of interest. (1) In addition to the conflict 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 Is in a position to participate In a decisionmaking process or gain
inside Information with regard to such 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 ~ 583.300(f) does not constitute a conflict of interest. (2) Upon the written
request of the recipient, HUD may grant an exception to the provisions of paragraph (e)(1) 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 govemmental entities, a disclosure of the nature of the conflict,
accompanied by an assurance that there has been public disclosure of the conflict 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 generally 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 decision making 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){1) of this section;
(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
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(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 applicable. 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 at 61 FR 5211, Feb. 9, 1996; 64 FR 50226, Sept. 15,
1999]
Subpart E-Administration
t 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.
t 583.405 Program changes.
(a) HUD approval. (1) A recipient may not make any si~niflcant 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]
t 583.410 Obligation and deobligation of funds.
(a) Obligation of funds. When HUD and the applicant execute a grant agreement, funds are
obligated 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. (1) HUD may deobligate all or parts of grants for acquisition, rehabilitation,
acquisition and rehabilitation, or new construction:
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(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 ~ 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.
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Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - Wolfe Apartments Supportive Housing Program
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Grant Number: FL0296B4D060802
Award Amount: $113,116
Recipient: Collier County Board of County Commissioners, 3301 Tamiaml
Trail East, Naples, Florida 34112
TaxID#:59-6000558
Project Name: FL-606 - Ren - Wolfe Apartments Supportive Housing Program
Component Type: PH
Official Contact Person: Mr. Fred W. Coyle, Chairman, County Board of
Commissioners
Email Address:fredcoyle@colliergov.net
Phone: (239) 252-8097
Fax: (239) 774-3602
2009 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 the Recipient,
which is described in section 1 of Attachment A, attached hereto and
made a part hereof.
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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
first part was the Policy Requirements and General Section of the NOFA,
which was published December 29, 2008 at 73 FR 79548, and the second
part was the Continuum of Care Homeless Assistance Programs NOFA
Section of the NOFA, which is located at
http://www.hud.gov/offices/adm/grants/nofa09/cocsec.pdf. 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.
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.
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For any project funded by this grant, which is also financed 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 A, 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 following 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
(d) direct the Recipient to suspend, discontinue or not incur costs for
the affected activity; or
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(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 affirmative 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 specifically, 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.
Consolidated Grant Agreement
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ATTEST:
DWIGHT E. BROCK. a.k
By:
Applicant: Collier County Board of County Commissioners
Project: FL-lS06-Ren~ Wo~e Apartments Supportive Housing
SIGNATURES
This Grant Agreement is hereby executed as follows:
UNITED STATES OF AMERICA
Secretary of Housing and Urban Development
BY~~h-/.P70
tV Signature and Date
Maria Rosa. Ortiz-Hill
Print name of signatory
Director. Communitv Plannin, and DeveJo,pment
Title
RECIPIENT
Collier Collllty Board of Cowty Commill.sioners
Name of Organization
By:
Authorized Signature and Date
F,-eel W, Co0r>-
Print name of &ignatory
County Administrator
Title
roved as 10 form & leg8lsufflclency
Colleen Greene,
AssIstant County Attomey
I Consolidated Grant Agreement
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ATTACHMENT A
1. The recipient is Collier County Board of County Commissioners.
2. HUD's total fund obligation for this project is $113,116, which shall be
allocated as follows:
Leasing $0
Su pportive services $34,230
Operating costs $73,500
HMIS $0
Administration $5,386
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 final 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 B,
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 first operating
year of this Renewal Grant.
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Applicant: Collier County Board of County Commissioners
Project: FL-606 - Ren - Wolfe Apartments Supportive 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
583.200
583.230
583.235
583.300
583.305
583.310
583.315
583.320
583.325
583.330
ATTACHMENT B
24 CFR PART 583--SUPPORTIVE HOUSING PROGRAM
Subpart A--General
Purpose and scope.
Definitions.
Subpart B--Assistance Provided
Types and uses of assistance.
Grants for acquisition and rehabilitation.
Grants 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--Application and Grant Award Process
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.
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Subpart E--Administration
583.400
583.405
583.410
Grant agreement
Program changes.
Obligation and deobligation of funds.
AUTHORITY: 42 U.S.C. 11389 and 3535(d).
SOURCE: 58 FR 13871, Mar. 15, 1993, unless otherwise noted.
Subpart A-General
i 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:
(1) 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.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30.1996]
i 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 HUO provides assistance under this part. If the assistance is for an
existing homeless facility, the date of initial occupancy is the date that services are first provided
to the residents of supportive housing 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).
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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 structure where none existed or an addition to an
existing structure that increases the floor area by more than 100 percent.
Operating costs is defined in section 422(5) of the McKinney Act (42 U.S.C 11382(5)).
Outpatient 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 11384(c)).
Private nonprofit organization Is defined in section 422(7) (A), (8), and (D) of the McKinney
Act (42 U.S.C. 11382(7) (A), (B), and (0)). 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. 11382(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(11) of the McKinney Act (42 U.S.C. 11382(11)).
Supportive housing is defined in section 424{a) of the McKinney Act (42 U.S.C. 11384{a)).
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. 11384{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
I 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.
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(b) Uses of grant assistance. Grant assistance may be used to:
(1) Establish new supportive housing facilities or new facilities 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 supportive 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.
(c) Structures used for multiple purposes Structures used to provide supportive housing or
supportive services may also be used for other purposes, except that assistance under this part
will be available only in proportion to the use of the structure for supportive housing or supportive
services.
(d) Technical assistance. HUD may offer technical assistance, as described in ~ 583.140.
[58 FR 13871, Mar. 15, 1993, as amended at 59 FR 36891, July 19,1994]
S 583.105 Grants for acquisition and rehabilitation.
(a) Use. HUD will grant funds to recipients to:
(1) 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 rehabilitation 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 rehabilitation of structures, as described in
paragraphs (a}(1) and (2) of this section.
(b) Amount. The maximum grant available for acquisition, rehabilitation, or acquisition and
rehabilitation is the lower of:
(1) $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.
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i 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 fiJrant 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 acquisition.
(b) Amount The maximum grant available for new construction is the lower of:
(1) $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.
i 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)(1) 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]
i 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 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, 1994]
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1 583.125 Grants for operating costs.
(a) General. HUD will provide grants to pay a portion (as described in ~ 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 availability of
such services; relocation assistance under ~ 583.310, 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.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30, 1996; 65 FR 30823, May
12,2000]
1 583.130 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 obligated will be equal to an amount necessary for the specified years of operation,
less the recipient's share of operating costs.
(Approved by the Office of Management and Budget under OMB control number 2506-0112) [59
FR 36891, July 19, 1994]
1 583.135 Administrative costs.
(a) 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 include the costs of carrying out eligible activities under
~~ 583.105 through 583.125.
[58 FR 13871, Mar. 15, 1993, as amended at 61 FR 51175, Sept. 30,1996]
1583.140 Technical assistance.
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(a) General. HUO 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 assistance. 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 include, but
is not limited to, written information such as papers, monographs, manuals, guides, and
brochures; person-ta-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]
t 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 govemment, State and local
governrnents, and private resources, in accordance with 42 U.S.C. 11386. This statute provides
that a recipient may use funds from any source, including any other Federal source (but
excluding the specific statutory subtitle from which Supportive Housing Program funds are
provided), as well as State, local, and private sources are not statutorily prohibited to be used as
a match. It is the responsibility of the recipient to ensure that any funds used to satisfy the
matching requirements of this section are eligible under the laws governing the funds to be used
as matching funds for a grant awarded under this program.
(c) Maintenance 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).
t 583.150 Limitations on use of assistance.
(a) Maintenance of effort. No assistance provided under this part (or any State or local
government funds used to supplement this assistance) may be used to replace State or local
funds previously used, or designated for use, to assist homeless persons.
(b) Faith-based activities. (1) Organizations that are religious or faith-based are eligible, on
the same basis as any other organization, to participate in the Supportive Housing Program.
Neither the Federal government nor a State or local government receiving funds under
Supportive Housin~ 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.
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(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 instruction, 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 terms 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 only to the
extent that those structures are used for conducting eligible activities under this part. Where a
structure Is used for both eligible and Inherently 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 term 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
following 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 provisions of the consolidated plan regulations, 24
CFR part 91, subpart F.
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(c) Indian tribes and the Insular Areas of Guam, the U.S. Virgin Islands, American Samoa,
and the Northem Mariana Islands. 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 applicant 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 set 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, 1995]
Subpart C--Application and Grant Award Process
I 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 basis 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) Assistance available. The first renewal will be for a period oftlme 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 initial service provision, as 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 under ~ 583.150(a) may be for.
(1) 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. (1) 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. HUO 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 of
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.,
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(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 O-Program Requirements
I 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.
(b) Habitability standards. Except for such variations as are proposed by the recipient and
approved by Hub, supportive housing must meet the following requirements:
(1) 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) Interior 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 and/or cooling facilities in
proper operating condition.
(8) Illumination and electricity. The housing must have adequate natural or artificial
illumination to permit 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 refuse 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.
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(11) 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 loca~ed, ~o thE! extent practicable, in a hallway adjacent to a bedroom. If the unit is occupied
by heanng- Impaired persons, smoke detectors must have an alarm system designed for
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 of supportive 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) Residential 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 employment 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 persons. (1) Each recipient must provide for the participation of
homeless persons as required in section 426(g) of the McKinney Act (42 U.S.C. 11386(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 recipient of assistance under this part must, to the maximum extent practicable,
involve homeless individuals and families, through employment, volunteer services, or otherwise,
in constructing, rehabilitating, maintaining, and operating the project and in providing supportive
services for the project.
(g) Records and 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) Confidentiality. Each recipient that provides family violence prevention or treatment
services must develop and implement procedures to ensure:
(1) The confidentiality of records pertaining to any individual services; and
(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.
(3) Prompt written notice of the final decision to the participant.
m 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.d
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(k) Outpatient 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) Annual 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 2506-0112) [58 FR
13871, Mar. 15. 1993, as amended at 59 FR 36892, July 19,1994; 61 FR 51176, Sept. 30.
1996]
i 583.305 Term of commitment; repayment of grants; prevention of undue
benefits.
(a) Term of commitment and conversion. Recipients must agree to operate the housing or
provide supportive services in accordance with this part and with sections 423 (b)(1) and (b)(3)
of the McKinney Act (42 U.S.C. 11383(b)(1), 11383(b)(3)).
(b) Repayment of grant and prevention of undue benefits. In accordance with section 423(c)
of the McKinney Act (42 U.S.C. 11383(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. 11383(b)(3)).
[61 FR 51176, Sept. 30, 1996]
i 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 this part.
(b) Relocation assistance for displaced persons. A displaced person (defined in paragraph (f)
of this section) must be provided relocation assistance at the levels described in, and in
accordance with, the requirements of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) (42 U.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. (1) 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 sources.
(3) The recipient must maintain records in sufficient detail to demonstrate compliance with
provisions of this section.
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(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 eli~ible, 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. (1) 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)(1 )(1)
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 (~) of this section) if the
move occurs before the tenant has been provided written notice offenng 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 indude 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 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/complex, 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 out-of-pocket expenses
incurred in connection with the move; or
(B) Other conditions of the move are not reasonable.
(2) Notwithstanding the provisions of paragraph (f)(1) of this section, a person does not
qualify as a "displaced person" (and is not eligible for relocation assistance under the URA or
this section), if:
(i) Termination of housing assistance
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The recipient may terminate assistance to a participant who violates program requirements.
Recipients 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:
(1) 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 ofthat person) who
made or approved the termination decision; and
(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 HUD determines that the eviction was not undertaken for the purpose
of evading the obligation to provide relocation assistance;
(iI) The person moved into the property after the submission of the application and, before
signing a lease and commencing occupancy, was 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 person 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) Definition of initiation of negotiations. For purposes of determining the formula for
computing the replacement housing assistance to be provided to a residential tenant displaced
as a direct result of privately undertaken rehabilitation, demolition, or acquisition of the real
property, the term "initiation of negotiations" means the execution of the agreement between the
recipient and HUD. (h) Definition 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, 1994]
i 583.315 Resident rent.
(a) Calculation of resident rent. 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:
(1) 30 percent of the family's monthly adjusted income (adjustment factors include the
number of people In the family, 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 eamed income as
provided in 24 CFR 5.617, if applicable;
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(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 portion 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]
S 583.320 Site control.
(a) Site control. (1) Where grant funds will be used for acquisition, rehabilitation, or new
construction to provide 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. (1) 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 rehabilitation, 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 recipient 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.
S 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 status,
and disability.
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(b) Nondiscrimination and equal opportunity 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 U.S.C. 1301 et seq.) applies to tribes when they exercise their powers of self-
government, and to Indian housing authorities (IHAs) when established by the exercise of 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. (1) 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 additionai 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:
(1) 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]
S 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 insurance. (1) 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 supportive housing located in an area identified by the Federal Emergency
Management Agency (FEMA) as having special flood 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 flood 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 Coastal Barrier Resources Act of 1982 (16 U.S.C. 3501 et seq.) may apply to
proposals under this part, depending on the assistance requested.
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(c) Applicability of OMB Circulars. The policies, guidelines, and requirements of OMB Circular
No. A-87 (Cost Principles Applicable to Grants, Contracts and Other Agreements with State and
Local Govemments) and 24 CFR part 85 apply to the award, acceptance, and use of assistance
under the program by govemmental entities, and OMB Circular Nos. A-110 (Grants and
Cooperative Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit
Organizations) and A-122 (Cost Principles Applicable to Grants, Contracts and Other
Agreements with Nonprofit Institutions) apply to the acceptance and use of assistance by private
nonprofit organizations, except where inconsistent with the provisions of the McKinney Act, other
Federal statutes, or this part. (Copies of OMB Circulars may be obtained from E.O.P.
Publications, room 2200, New Executive Office Buildin~, Washington, DC 20503, telephone
(202) 395-7332. (This is not a toll-free number.) 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 U.S.C. 4851-4856),
and implementing regulations at part 35, subparts A, B, J, K, and R of this title apply to activities
under this program.
(e) Conflicts of interest. (1) In addition to the conflict 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 is in a position to participate in a decisionmaking process or gain
inside information with regard to such 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 ~ 583.300(f) does not constitute a conflict of interest. (2) Upon the written
request of the recipient, HUD may grant an exception to the provisions of paragraph (e)(1) 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 conflict and a
description of how the public disclosure was made; and
(ii) For all recipients, an opinion of the recipient's attomey 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 generally 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 decision making 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)(1) of this section;
(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
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(vi) Any other relevant considerations.
(1) 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 applicable. 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 at 61 FR 5211, Feb. 9, 1996; 64 FR 50226, Sept. 15,
1999]
Subpart E--Administration
S 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.
S 583.405 Program changes.
(a) HUD approval. (1) A recipient may not make any si~nificant 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]
S 583.410 Obligation and deobligation of funds.
(a) Obligation of funds. When HUD and the applicant execute a grant agreement, funds are
obligated 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. (1) HUD may deobligate all or parts of grants for acquisition, rehabilitation,
acqUIsition and rehabilitation, or new construction:
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<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 ~ 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.
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