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Monday,
October 6, 2008
Part III
Department of
Housing and Urban
Development
Notice of Allocations, Application
Procedures, Regulatory Waivers Granted
to and Alternative Requirements for
Emergency Assistance for Redevelopment
of Abandoned and Foreclosed Homes
Grantees Under the Housing and
Economic Recovery Act, 2008; Notice
58330 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR -5255—N-01]
Notice of Allocations, Application
Procedures, Regulatory Waivers
Granted to and Alternative
Requirements for Emergency
Assistance for Redevelopment of
Abandoned and Foreclosed Homes
Grantees Under the Housing and
Economic Recovery Act, 2008
AGENCY: Office of the Secretary, HUD.
ACTION: Notice of allocation method,
waivers granted, alternative
requirements applied, and statutory
program requirements.
SUMMARY: This notice advises the public
of the allocation formula and allocation
amounts, the list of grantees, alternative
requirements, and the waivers of
regulations granted to grantees under
Title III of Division B of the Housing
and Economic Recovery Act of 2008, for
the purpose of assisting in the
redevelopment of abandoned and
foreclosed homes under the Emergency
Assistance for Redevelopment of
Abandoned and Foreclosed Homes
heading, referred to throughout this
notice as the Neighborhood
Stabilization Program (NSP). As
described in the SUPPLEMENTARY
INFORMATION section of this notice, HUD
is authorized by statute to specify
alternative requirements and make
regulatory waivers for this purpose. This
notice also notes statutory issues
affecting program design and
implementation.
DATES: Effective Date: September 29,
2008.
FOR FURTHER INFORMATION CONTACT:
Stanley Gimont, Director, Office of
Block Grant Assistance, Department of
Housing and Urban Development, 451
Seventh Street, SW., Room 7286,
Washington, DC 20410, telephone
number 202-708-3587. Persons with
hearing or speech impairments may
access this number via TTY by calling
the Federal Information Relay Service at
800-877-8339. FAX inquiries may be
sent to Mr. Gimont at 202-401-2044.
(Except for the "800" number, these
telephone numbers are not toll-free.)
SUPPLEMENTARY INFORMATION:
Authority To Provide Alternative
Requirements and Grant Regulatory
Waivers
Title III of Division B of the Housing
and Economic Recovery Act, 2008
(HERA) (Pub. L. 110-289, approved July
30, 2008) appropriates $3.92 billion for
emergency assistance for redevelopment
of abandoned and foreclosed homes and
residential properties, and provides
under a rule of construction that, unless
HERA states otherwise, the grants are to
be considered Community Development
Block Grant (CDBG) funds. The grant
program under Title III is commonly
referred to as the Neighborhood
Stabilization Program (NSP). When
referring to a provision of the
appropriations statute itself, this notice
will refer to HERA; when referring to
the grants, grantees, assisted activities,
and implementation rules, this notice
will use the term NSP.
HERA authorizes the Secretary to
specify alternative requirements to any
provision under Title I of the Housing
and Community Development Act of
1974, as amended, (the HCD Act) except
for requirements related to fair housing,
nondiscrimination, labor standards, and
the environment (including lead-based
paint), in accordance with the terms of
section 2301 of HERA and for the sole
purpose of expediting the use of grant
funds. (Current and former disaster
recovery CDBG grantees should note
that this authority is substantially and
significantly more limited from that
generally provided with disaster
recovery CDBG supplemental
appropriations; therefore, waivers under
the NSP are much more limited. For
example, HUD does not have authority
to provide alternative requirements for
the National Affordable Housing Act
(NAHA) or for the Uniform Relocation
Assistance Real Property Acquisition
Policies Act of 1970 (URA). Unless this
notice describes how HERA has
superseded one of their provisions,
these statutes will apply as in the CDBG
program. Such regulatory relief as HUD
deemed necessary and was authorized
to provide under 24 CFR 5.110 and
91.600 to permit implementation of the
NSP is provided in this notice.)
The Secretary finds that the following
alternative requirements are necessary
to expedite the use of these funds for
their required purposes.
Under the requirements of HERA, the
Secretary must provide Congress written
notice of its intent to exercise the
authority to specify alternative
requirements not less than 10 business
days before such exercise of authority is
to occur. Under the HUD Reform Act,
regulatory waivers must be justified and
published in the Federal Register. The
Department is also using this notice to
provide grantees information about
other ways in which the requirements
for this grant vary from regular CDBG
program rules. Compiling this
information in a single notice creates a
helpful resource for grant administrators
and HUD field staff.
Except as described in this notice,
statutory and regulatory provisions
governing the CDBG program, including
those at 24 CFR part 570 subpart I for
states or, for CDBG entitlement
communities, including those at 24 CFR
part 570 subparts A, C, D, J, K, and O,
as appropriate, shall apply to the use of
these funds. (The State of Hawaii will be
allocated funds and will be subject to
part 570, subpart I, as modified by this
notice.) Other sections of the notice will
provide further details of the changes,
the majority of which deal with
adjustments necessitated by HERA
provisions, simplifying program rules to
expedite administration, or relate to the
ability of state grantees to act directly
instead of solely through distribution to
local governments. In a separate
guidance issuance, HUD also will
provide a simplified "crosswalk" of
NSP and State CDBG requirements for
state grantee administrators.
Table of Contents
I. Allocations
A. Formula: Allocation
B. Formula: Reallocation
Alternative Requirements and Regulatory
Waivers
A. Definitions for purposes of the CDBG
Neighborhood Stabilization Program
B. Pre -Grant Process
1. General
2. Contents of an NSP Action Plan
Substantial Amendment
3. Continued Affordability
4. Citizen Participation Alternative
Requirement
5. Joint Requests
6. Effect of Existing Cooperation
Agreements Governing Joint Programs
and Urban Counties
C. Reimbursement for Pre -Award Costs
D. Grant Conditions
E. Income Eligibility Requirement Changes
F. State Distribution to Entitlement
Communities and Indian Tribes
G. State's Direct Action
H. Eligibility and Allowable Costs
I. Rehabilitation Standards
J. Sale of Homes
K. Acquisition and Relocation
L. Note on Eminent Domain
M. Timeliness of Use and Expenditure of
NSP Funds
N. Alternative Requirement for Program
Income (Revenue) Generated by
Activities Assisted With Grant Funds
O. Reporting
P. Note That FHA Properties Are Eligible
for NSP Acquisition and Redevelopment
Q. Purchase Discount
R. Removal of Annual Requirements
S. Affirmatively Furthering Fair Housing
T. Certifications
U. Note on Statutory Limitation on
Distribution of Funds
V. Information Collection Approval Note
W. Duration of Funding
Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58331
I. Allocations
A. Formula: Allocation
HERA provides $3.92 billion of funds
that are generally to be construed as
CDBG program funds for the
communities and in the amounts listed
in Attachment A to this notice.
Attachment A also includes a
description of the allocation formula
used to determine the grant amounts, as
required by HERA.
B. Formula: Reallocation
1.a. To expedite the use of NSP funds,
the Department is specifying alternative
requirements to 42 U.S.C. 5306(c). If a
unit of general local government
receiving an allocation of NSP funds
under this notice (as designated in
Attachment A) fails to submit a
substantially complete application for
its grant allocation by December 1, 2008,
or submits an application for less than
the total allocation amount, HUD will
simultaneously notify the jurisdiction of
the cancellation of all or part of its
allocation amount and proceed to
reallocate the funds to the state in
which the jurisdiction is located.
b. If a state or insular area receiving
an allocation of funds under this notice
fails to submit a substantially complete
application for its allocation by
December 1, 2008, or submits an
application for less than the total
allocation amount, HUD will
simultaneously notify the state or
insular area of the reduction in its
allocation amount and proceed to
reallocate the funds to the 10 highest -
need states based on original rankings of
need.
2. If any jurisdiction, state, insular, or
local area fails to meet the requirement
to use its grant within 18 months of
receipt of the amounts, as required,
HUD, on the first business day after that
deadline, will simultaneously notify the
grantee and restrict the amount of
unused funds in the grantee's line of
credit. HUD will allow the grantee 30
days to submit information to HUD
regarding any additional "use" of funds
not already recorded in the Disaster
Recovery Grant Reporting system
(DRGR). Then HUD will proceed to
recapture the unused funds. HUD will
reallocate these unused funds in
accordance with 42 U.S.C. 5306(c)(4).
U. Alternative Requirements and
Regulatory Waivers
This section of the notice briefly
provides a justification for alternative
requirements, where additional
explanation is necessary, and describes
the necessary basis for each regulatory
waiver. This section also highlights
some of the statutory items applicable to
the grants. This background narrative is
followed by the NSP requirement(s).
HUD's resources for implementing
HERA are limited and have other calls
upon them (for managing the regular
CDBG and HOME Investment
Partnership programs (HOME) and the
New York, Gulf Coast, and Midwest
disaster recovery grants), and the
Department wants to target the use of its
resources toward achieving NSP
program performance, and preventing
and eliminating fraud, waste, and
misuse of program funds. Because no
funds were available specifically for
tracking the use of NSP grants, HUD is
applying an existing system,
unmodified. This all militates toward
keeping standards simple or familiar,
wherever possible. Therefore,
throughout this notice, where HUD had
any choice of a standard to use to
measure compliance, HUD selected the
simplest one to administer, giving a
preference to a standard already in
common use.
Each grantee eligible for an NSP grant
already receives annual CDBG
allocations, has carried out needs
hearings, has a consolidated plan, an
annual action plan, a citizen
participation plan, a monitoring plan,
an analysis of impediments to fair
housing choice, and has made CDBG
certifications. The consolidated plan
already discusses housing needs related
to up to four major grant programs:
CDBG, HOME, Emergency Shelter
Grants (ESG), and Housing
Opportunities for Persons With AIDS
(HOPWA). A grantee's annual action
plan describes the activities budgeted
under each of those annual programs.
HUD is treating a grantee's use of its
NSP grant to be a substantial
amendment to its current approved
consolidated plan and annual action
plan. The NSP grant is a special CDBG
allocation to address the problem of
abandoned and foreclosed homes.
HERA establishes the need, targets the
geographic areas, and limits the eligible
uses of NSP funds. Treating the NSP as
a substantial amendment will expedite
the distribution of NSP funds, while
ensuring citizen participation on the
specific use of the funds. HUD is
waiving the consolidated plan
regulations on the certification of
consistency with the consolidated plan
to mean the NSP funds will be used to
meet the congressionally identified
needs of abandoned and foreclosed
homes in the targeted areas set forth in
the grantee's substantial amendment. In
addition, HUD is waiving the
consolidated plan regulations to the
extent necessary to adjust reporting to
fit the requirements of HERA and the
use of the DRGR.
The waivers, alternative requirements,
and statutory changes apply only to the
grant funds appropriated under HERA
and not to the use of regular formula
allocations of CDBG funds, even if they
are used in conjunction with NSP funds
for a project. They provide expedited
program implementation and
implement statutory requirements
unique to this appropriation.
A. Definitions for Purposes of the CDBG
Neighborhood Stabilization Program
Background
Certain terms are used in HERA that
are not used in the regular CDBG
program, or the terms are used
differently in HERA and the HCD Act.
In the interest of speed and clarity of
administration, HUD is defining these
terms in this notice for all grantees,
including states. For the same reason,
HUD is also defining eligible fund uses
for all grantees, including states. States
may define other program terms under
the authority of 24 CFR 570.481(a), and
will be given maximum feasible
deference in accordance with 24 CFR
570.480(c) in matters related to the
administration of their NSP programs.
Requirement
Abandoned. A home is abandoned
when mortgage or tax foreclosure
proceedings have been initiated for that
property, no mortgage or tax payments
have been made by the property owner
for at least 90 days, AND the property
has been vacant for at least 90 days.
Blighted structure. A structure is
blighted when it exhibits objectively
determinable signs of deterioration
sufficient to constitute a threat to
human health, safety, and public
welfare.
CDBG funds. CDBG funds means, in
addition to the definition at 24 CFR
570.3, grant funds distributed under this
notice.
Current market appraised value. The
current market appraised value means
the value of a foreclosed upon home or
residential property that is established
through an appraisal made in
conformity with the appraisal
requirements of the URA at 49 CFR
24.103 and completed within 60 days
prior to an offer made for the property
by a grantee, subrecipient, developer, or
individual homebuyer.
Foreclosed. A property "has been
foreclosed upon" at the point that,
under state or local law, the mortgage or
tax foreclosure is complete. HUD
generally will not consider a foreclosure
to be complete until after the title for the
58332 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices
property has been transferred from the
former homeowner under some type of
foreclosure proceeding or transfer in
lieu of foreclosure, in accordance with
state or local law.
Land bank. A land bank is a
governmental or nongovernmental
nonprofit entity established, at least in
part, to assemble, temporarily manage,
and dispose of vacant land for the
purpose of stabilizing neighborhoods
and encouraging re -use or
redevelopment of urban property. For
the purposes of the NSP program, a land
bank will operate in a specific, defined
geographic area. It will purchase
properties that have been abandoned or
foreclosed upon and maintain,
assemble, facilitate redevelopment of,
market, and dispose of the land -banked
properties. If the land bank is a
governmental entity, it may also
maintain abandoned or foreclosed
property that it does not own, provided
it charges the owner of the property the
full cost of the service or places a lien
on the property for the full cost of the
service.
Revenue for the purposes of section
2301(d)(4). Revenue has the same
meaning as program income, as defined
at 24 CFR 570.500(a) with the
modifications in this notice.
Subrecipient. Subrecipient shall have
the same meaning as at the first
sentence of 24 CFR 570.500(c). This
includes any nonprofit organization
(including a unit of general local
government) that a state awards funds
to.
Use for the purposes of section
2301(c)(1). Funds are used when they
are obligated by a state, unit of general
local government, or any subrecipient
thereof, for a specific NSP activity; for
example, for acquisition of a specific
property. Funds are obligated for an
activity when orders are placed,
contracts are awarded, services are
received, and similar transactions have
occurred that require payment by the
state, unit of general local government,
or subrecipient during the same or a
future period. Note that funds are not
obligated for an activity when
subawards (e.g., grants to subrecipients
or to units of local government) are
made.
B. Pre -Grant Process
Background
With this notice, HUD is establishing
the NSP allocation formula, including
reallocation provisions, and announcing
the distribution of funds. CDBG grantees
receiving NSP allocations may
immediately begin to prepare and
submit action plan substantial
amendments for NSP funds, in
accordance with this notice. (Insular
areas should follow the requirements for
entitlement communities.)
To receive NSP funding, each CDBG
grantee listed in Attachment A must
submit an action plan substantial
amendment to HUD in accordance with
this notice by December 1, 2008.
HUD encourages each grantee to carry
out its NSP activities in the context of
a comprehensive plan for the
community's vision of how it can make
its neighborhoods not only more stable,
but also more sustainable, competitive,
and integrated into the overall
metropolitan fabric, including access to
transit, affordable housing, employers,
and services.
HUD encourages each local
jurisdiction receiving an allocation to
carefully consider its administrative
capacity to use the funds within the
statutory deadline versus the capacity of
the state administrator. HUD expects
that after such consideration, some
jurisdictions may choose to apply for
less than the full amount, which will
allow the balance of their grants to pass
to the NSP administrator at the state
level.
Another way jurisdictions may
cooperate to carry out their grant
programs is through a joint request to
HUD. HUD is providing regulatory
waivers and alternative requirements to
allow joint requests among entitlement
communities and to allow joint requests
between an entitlement community and
a state. Any two or more contiguous
entitlement communities (metropolitan
cities or urban counties) that are in the
same metropolitan area and that are
eligible to receive an NSP grant may
instead make a joint request to HUD to
implement a joint NSP program. A
jurisdiction need not have a joint
agreement with an urban county under
the regular CDBG entitlement program
to request a joint program for NSP
funding. Similarly, any entitlement
community eligible to receive an NSP
grant may instead make a request for a
joint NSP program with its state. An
NSP joint request under a cooperation
agreement results in a single combined
grant and a single action plan
substantial amendment. Potential
requestors should contact HUD as soon
as possible (as far as possible in advance
of publishing a proposed NSP
substantial amendment) for technical
guidance. The requestors will specify
which jurisdiction will receive the
funds and administer the combined
grant on behalf of the requestors; in the
case of a joint request between a local
government jurisdiction and a state, the
state will administer the combined
grant. (Grantees choosing this option
should consider the Consolidated Plan
and citizen participation implications of
this approach. The lead entity's
substantial amendment will cover any
participating members. The citizen
participation process must include
citizens of all jurisdictions participating
in the joint NSP program, not just those
of the lead entity.)
Given the rule of construction in
HERA that NSP funds generally are
construed as CDBG program funds,
subject to CDBG program requirements,
HUD generally is treating NSP funds as
a special allocation of Fiscal Year (FY)
2008 CDBG funding. This has important
consequences for local governments
presently participating in an existing
urban county program, and for
metropolitan cities that have joint
agreements with urban counties. HUD
will consider any existing cooperation
agreements between a local government
and an urban county governing FY2008
CDBG funding (for purposes of either an
urban county or a joint program) to
automatically cover NSP funding as
well. These cooperation agreements will
continue to apply to the use of NSP
funds for the duration of the NSP grant,
just as cooperation agreements covering
regular CDBG Entitlement program
funds continue to apply to any use of
the funds appropriated during the 3 -
year period covered by the agreements.
For example, a Iocal government
presently has a cooperation agreement
covering a joint program or participation
in an urban county for federal FYs 2007,
2008 and 2009. The local government
may choose to discontinue its
participation with the county at the end
of the applicable qualification period for
purposes of regular CDBG entitlement
funding. However, the county will still
be responsible for any NSP projects
funded in that community, and for any
NSP funding the local government
receives from the county, until those
funds are expended and the funded
activities are completed.
A third method of cooperating is also
available. A jurisdiction may choose to
apply for its entire grant, and then enter
into a subrecipient agreement with
another jurisdiction or nonprofit entity
to administer the grant. In this manner,
for example, all of the grantees
operating in a single metropolitan area
could designate the same land -bank
entity (or the state housing finance
agency) as a subrecipient for some or all
of their NSP activities.
Each grantee will have until
December 1, 2008, to complete and
submit a substantial amendment to its
annual action plan. A grantee that
wishes to initially submit its action plan
Federal Register / Vol. 73, No. 194/Monday, October 6, 2008/Notices 58333
amendment to HUD electronically in the
DRGR system rather than via paper may
do so by contacting its local field office
for the DRGR submission directions.
Paper submissions to HUD also will be
allowed, although each grantee must set
up its action plan in DRGR prior to the
deadline for the first required
performance report after receiving a
grant.
HUD is using DRGR for the NSP
because no other application and
reporting system was sufficiently
flexible to deal with the alternative
requirements. The emergency nature of
this legislation and corresponding
statutory time frames do not give HUD
sufficient time to develop a new system
or modify an existing system to
perfectly fit NSP.
HUD encourages grantees, during
development of their action plan
amendments, to contact HUD field
offices for guidance in complying with
these requirements, or if they have any
questions regarding meeting grant
requirements.
Normally, in the CDBG program, a
grantee takes at least 30 days soliciting
comment from its citizens before it
submits an annual action plan to HUD,
which then has 45 days to accept or
reject the plan. To expedite the process
and to ensure that the NSP grants are
awarded in a timely manner, while
preserving reasonable citizen
participation, HUD is waiving the
requirement that the grantee follow its
citizen participation plan for this
substantial amendment. HUD is
shortening the minimum time for
citizen comments and requiring the
substantial amendment materials to be
posted on the grantee's official website
as the materials are developed,
published, and submitted to HUD.
Each grantee must use its NSP funds
within 18 months of receipt. A grantee
will be deemed by HUD to have
received its NSP grant at the time HUD
signs its NSP grant agreement (or
amendment thereof, in the case of a
state that later receives reallocated grant
funds).
Grantees are cautioned that, despite
the expedited application and plan
process, they are still responsible for
ensuring that all citizens have equal
access to information about the
programs. Among other things, this
means that each grantee must ensure
that program information is available in
the appropriate languages for the
geographic area served by the
jurisdiction. This will be a particular
issue for those states that this notice is
allowing to make grants throughout the
state, including into regular CDBG
entitlement areas. Because regular State
CDBG funds are not used in entitlement
areas, State CDBG staffs may not be
aware of limited English proficient
(LEP) speaking populations in those
metropolitan jurisdictions.
HUD will review each grantee
submission for completeness and
consistency with the requirements of
this notice and will disapprove
incomplete and inconsistent action plan
amendments. HUD will allow revision
and resubmission of a disapproved
action plan in accordance with 24 CFR
91.500 so long as any such resubmission
is received by HUD 45 days or less
following the date of first disapproval
and in no case later than the close of
business February 13, 2009.
In combination, the notice alternative
requirements provide the following
expedited steps for NSP grants:
• Proposed action plan amendment
published via the usual methods and on
the Internet for no less than 15 calendar
days of public comment;
• Final action plan amendment
posted on the Internet and submitted to
HUD by December 1, 2008 (grant
application includes Standard Form 424
(SF -424) and certifications);
• HUD expedites review,
• HUD accepts the plan and prepares
a cover letter, grant agreement, and
grant conditions;
• Grant agreement signed by HUD
and immediately transmitted to the
grantee;
• Grantee signs and returns the grant
agreements;
• HUD establishes the line of credit
and the grantee requests and receives
voice response system (VRS) access;
• After completing the environmental
review(s) pursuant to 24 CFR part 58
and, as applicable, receiving from HUD
or the state an approved Request for
Release of Funds and certification, the
grantee may draw -down funds from the
line of credit.
The action plan substantial
amendment and citizen participation
alternative requirement will permit an
expedited grant -making process, but one
that still provides for public notice,
appraisal, examination, and comment
on the activities proposed for the use of
NSP grant funds.
Requirement
1. General note. Except as described
in this notice, statutory and regulatory
provisions governing the CDBG program
for states and entitlement communities,
as applicable, shall apply to the use of
these funds.
2. Contents of an NSP Action Plan
substantial amendment. The elements in
the NSP substantial amendment to the
Annual Action Plan required for the
CDBG program under part 91 are:
a. General information about needs,
distribution, use of funds, and
definitions:
i. Summary needs data identifying the
geographic areas of greatest need in the
grantee's jurisdiction. (A state must
include the needs of the entire state and
not just the areas not receiving an NSP
allocation. To include the needs of an
entitlement community, the state may
either incorporate an entitlement
jurisdiction's consolidated plan and
NSP needs by reference and hyperlink
on the Internet, or state the needs for
that jurisdiction in the state's own plan);
ii. A narrative describing how the
distribution and uses of the grantee's
NSP funds will meet the requirements
of Section 2301(c)(2) of HERA that
funds be distributed to the areas of
greatest need, including those with the
greatest percentage of home
foreclosures, with the highest
percentage of homes financed by a
subprime mortgage related loan, and
identified by the grantee as likely to face
a significant rise in the rate of home
foreclosures. The grantee's narrative
must address the three need categories
in the NSP statute, but the grantee may
also consider other need categories;
iii. For the purposes of the NSP, the
narratives will include:
(A) A definition of "blighted
structure" in the context of state or local
law;
(B) A definition of "affordable rents;"
(C) A description of how the grantee
will ensure continued affordability for
NSP -assisted housing; and
(D) A description of housing
rehabilitation standards that will apply
to NSP -assisted activities.
b. Information by activity describing
how the grantee will use the funds,
identifying:
i. The eligible use of funds under
NSP;
ii. The eligible CDBG activity or
activities;
iii. The areas of greatest need
addressed by the activity or activities;
iv. The expected benefit to income -
qualified persons or households or
areas;
v. Appropriate performance measures
for the activity (e.g., units of housing to
be acquired, rehabilitated, or
demolished for the income levels
represented in DRGR, which are
currently 50 percent of area median
income and below, 51 to 80 percent, and
81 to 120 percent);
vi. Amount of funds budgeted for the
activity;
vii. The name and location of the
entity that will carry out the activity;
and
58334 Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
viii. The expected start and end dates
of the activity.
c. A Description of the general terms
under which assistance will be
provided, including:
i. If the activity includes acquisition
of real property, the discount required
for acquisition of foreclosed -upon
properties;
ii. Range of interest rates (if any);
iii. Duration or term of assistance;
iv. Tenure of beneficiaries (e.g., rental
or homeownership); and
v. If the activity produces housing,
how the design of the activity will
ensure continued affordability; and
vi. If the funds used for the activity
are to count toward the requirement at
section 2301(f)(3)(A)(ii) to provide
benefit to low-income persons (earning
50 percent or less of area median
income).
d. Information on how to contact
grantee program administrators, so that
citizens and other interested parties
know who to contact for additional
information.
3. Continued affordability. Grantees
shall ensure, to the maximum extent
practicable and for the longest feasible
term, that the sale, rental, or
redevelopment of abandoned and
foreclosed -upon homes and residential
properties under this section remain
affordable to individuals or families
whose incomes do not exceed 120
percent of area median income or, for
units originally assisted with funds
under the requirements of section
2301(f)(3)(A)(ii), remain affordable to
individuals and families whose incomes
do not exceed 50 percent of area median
income.
a. In its NSP action plan substantial
amendment, a grantee will define
"affordable rents" and the continued
affordability standards and enforcement
mechanisms that it will apply for each
(or all) of its NSP activities. HUD will
consider any grantee adopting the
HOME program standards at 24 CFR
92.252(a), (c), (e), and (f), and 92.254 to
be in minimal compliance with this
standard and expects any other
standards proposed and applied by a
grantee to be enforceable and longer in
duration. (Note that HERA's continued
affordability standard is longer than that
required of subrecipients and
participating units of general local
government under 24 CFR 570.503 and
570.501(b).)
b. The grantee must require each NSP -
assisted homebuyer to receive and
complete at least 8 hours of homebuyer
counseling from a HUD -approved
housing counseling agency before
obtaining a mortgage loan. The grantee
must ensure that the homebuyer obtains
a mortgage loan from a lender who
agrees to comply with the bank
regulators' guidance for non-traditional
mortgages (see, Statement on Subprime
Mortgage Lending issued by the Office
of the Comptroller of the Currency,
Board of Governors of the Federal
Reserve System, Federal Deposit
Insurance Corporation, Department of
the Treasury, and National Credit Union
Administration, available at http://
www. fdic.gov/regulations/laws/rules/
5000-5160.html). Grantees must design
NSP programs to comply with this
requirement and must document
compliance in the records, for each
homebuyer. Grantees are cautioned
against providing or permitting
homebuyers to obtain subprime
mortgages for whom such mortgages are
inappropriate, including homebuyers
who qualify for traditional mortgage
loans.
c. If NSP funds assist a property that
was previously assisted with HOME
funds, but on which the affordability
restrictions were terminated through
foreclosure or transfer in lieu of
foreclosure pursuant to 24 CFR part 92,
the grantee must revive the HOME
affordability restrictions for the greater
of the remaining period of HOME
affordability or the continuing
affordability requirements of this notice.
4. Citizen participation alternative
requirement. HUD is providing an
alternative requirement to 42 U.S.C.
5304(a)(2) and (3), to expedite
distribution of grant funds and to
provide for expedited citizen
participation for the NSP substantial
amendment. Provisions of 24 CFR
570.302 and 570.486 and those of 24
CFR 91.105(k) and 91.115(i), with
respect to following the citizen
participation plan, are waived to the
extent necessary to allow
implementation of the requirements
below.
a. To receive its grant allocation, a
grantee must submit to HUD for
approval an NSP application by
December 1, 2008. This submission will
include a signed standard federal form
SF -424, signed certifications, and a
substantial action plan amendment
meeting the requirements of paragraph b
below. (24 CFR 91.505 is waived to the
extent necessary to require submission
of the substantial amendment to HUD
for approval in accordance with this
notice.)
b. Each grantee must prepare and
submit its annual Action Plan
amendment to HUD in accordance with
the consolidated plan procedures for a
substantial amendment under the
annual CDBG program as modified by
this notice or HUD will reallocate the
funds allocated for that grantee. HUD is
providing alternative requirements to 42
U.S.C. 5304(a)(2) and waiving 91.105(k)
and 91.115(1) to the extent necessary to
allow the grantee to provide no fewer
than 15 calendar days for citizen
comment (rather than 30 days) for its
initial NSP submission, and to require
that, at the time of submission to HUD,
each grantee post its approved action
plan amendment and any subsequent
NSP amendments on its official website
along with a summary of citizen
comments received within the 15 -day
comment period. After HUD processes
and approves the plan amendment and
both HUD and the grantee have signed
the grant agreement, HUD will establish
the grantee's line of credit in the amount
of funds included in the Action Plan
amendment, up to the allocation
amount.
5. Joint requests. To expedite the use
of funds, HUD is providing an
alternative requirement to 42 U.S.C.
5304(1) and is waiving 24 CFR 570.308
to the extent necessary to allow for
additional joint programs described
below.
a. Entitlement Community Joint
Agreements. Two or more contiguous
entitlement communities (metropolitan
cities or urban counties) that are eligible
to receive a NSP allocation and are
located in the same metropolitan area
may enter into joint agreements. All
members to the joint agreement must be
eligible to receive NSP funds, and one
unit of general local government must
be designated as the lead entity. The
lead entity must execute the NSP grant
agreement with HUD. Consistent with
24 CFR 570.308, the lead entity must
assume responsibility for administering
the NSP grant on behalf of all members,
in compliance with applicable program
requirements. The substantial
amendment to the lead entity's action
plan will include all participating
entitlement communities.
b. Joint agreements with a state. Any
entitlement community that is eligible
to receive an NSP allocation may enter
into a joint agreement with its state. The
state shall be the lead entity and must
assume responsibility for administering
the NSP grant on behalf of the
entitlement community, in compliance
with applicable program requirements.
The substantial amendment to the
state's action plan will include any
participating entitlement community.
6. Effect of existing cooperation
agreements governing joint programs
and urban counties. Any cooperation
agreement between a unit of general
local government and a county,
concerning either a joint program or
participation in an urban county under
Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58335
24 CFR 570.307 or 570.308, and
governing CDBG funds appropriated for
federal FY 2008, will be considered to
incorporate and apply to NSP funding.
Any such cooperation agreements will
continue to apply to the use of NSP
funds until the NSP funds are expended
and the NSP grant is closed out.
Grantees should note that certain
provisions in existing cooperation
agreements that govern FY2008 CDBG
funding may be inconsistent with parts
of HERA and this notice. For instance,
set minimum and/or maximum
allocation amounts may conflict with
priority distributions to areas of greatest
need identified in the grantee's action
plan substantial amendment.
Conforming amendments should be
made to existing cooperation
agreements, as necessary, to comply
with HERA and this notice.
C. Reimbursement for Pre -Award Costs
Background
NSP allocatees will need to move
forward rapidly to prepare the NSP
substantial amendment and to
undertake other administrative actions,
including environmental reviews, as
soon as allocations are known.
Therefore, HUD is granting permission
to states and entitlement jurisdictions
receiving a direct allocation of NSP
funds (see Attachment A) to incur pre-
award costs as if each was a new grantee
preparing to receive its first allocation of
CDBG funds.
Requirement
24 CFR 570.200(h) is waived to the
extent necessary to grant permission to
entitlement jurisdictions receiving a
direct NSP allocation under this notice
to incur pre -award costs as if each was
a new grantee preparing to receive its
first allocation of CDBG funds.
Similarly, in accordance with OMB
Circular A-87, Attachment B, paragraph
31, HUD is allowing states to incur pre-
award costs as if each was a new grantee
preparing to receive its first allocation of
CDBG funds. As a new grantee, an NSP
allocatee will be allowed to incur costs
necessary to develop the NSP
substantial action plan amendment and
undertake other administrative actions
necessary to receive its first grant, prior
to the costs being included in the final
plan, provided that the other conditions
of 24 CFR 570.200(h) are met. (For units
of general local government (including
entitlements not receiving a direct NSP
allocation under this notice) applying to
the state, 24 CFR 570.489(b) applies
unmodified.)
D. Grant Conditions
For NSP grantees that HUD
determines are high risk in accordance
with 24 CFR 85.12(a), HUD will apply
additional grant conditions in
accordance with 24 CFR 85.12(b).
E. Income Eligibility Requirement
Changes
Background
The NSP program includes two low -
and moderate -income requirements at
section 2301(f)(3)(A) that supersede
existing CDBG income qualification
requirements. Under the heading "Low
and Moderate Income Requirement,"
HERA states that: "All of the funds
appropriated or otherwise made
available under this section shall be
used with respect to individuals and
families whose income does not exceed
120 percent of area median income."
This provision does two main things.
First, for the purposes of the NSP, it
effectively supersedes the overall
benefit provisions of the HCD Act and
the CDBG regulations, which allow up
to 30 percent of a grant to be used for
activities that meet a national objective
other than the low- and moderate -
income one. Thus, NSP allows the use
of only the low- and moderate -income
national objective. Activities may not
qualify under NSP using the "prevent or
eliminate slums and blight" or "address
urgent community development needs"
objectives.
Second, this provision also redefines
and supersedes the definition of "low -
and moderate -income," effectively
allowing households whose incomes
exceed 80 percent of area median
income but do not exceed 120 percent
of area median income to qualify as if
their incomes did not exceed the
published low- and moderate -income
levels of the regular CDBG program. To
prevent confusion, HUD will refer to
this new income group as "middle
income," and keep the regular CDBG
definitions of "low-income" and
"moderate income" in use. Further,
HUD will characterize aggregated
households whose incomes do not
exceed 120 percent of median income as
"low-, moderate-, and middle-income
households," abbreviated as LMMH. For
the purposes of NSP CDBG only, an
activity may meet the HERA low- and
moderate -income national objective if
the assisted activity:
• Provides or improves permanent
residential structures that will be
occupied by a household whose income
is at or below 120 percent of area
median income (abbreviated as LMMH);
• Serves an area in which at least 51
percent of the residents have incomes at
or below 120 percent of area median
income (LMMA);
• Creates or retains jobs for persons
whose household incomes are at or
below 120 percent of median income
(LMMJ); or
• Serves a limited clientele whose
incomes are at or below 120 percent of
area median income (LMMC).
HUD will use the parenthetical terms
above to refer to NSP national objectives
in program implementation, to avoid
confusion with the regular HCD Act
definitions.
Land banks are not allowed in the
regular CDBG program because of the
very high risk that the delay between
acquiring property and meeting a
national objective can be excessively
long, attenuating the intended CDBG
program benefits by delaying benefit far
beyond the annual or even the 5 -year
consolidated plan cycles. In the regular
CDBG program (and in the NSP other
than in an eligible land -bank use), a
property acquisition activity is
dependent on the national objective met
by the subsequent reuse of the property
in order to demonstrate program
compliance. Given this, the HERA
direction that assistance to land banks is
an eligible use of NSP funds requires an
alternative requirement and policy
clarification.
For grantees choosing to assist land
banks or demolition of structures with
NSP funds, the change to the income
qualification level for low-, moderate-,
and middle-income areas will likely
include most of the neighborhoods
where property stabilization is required.
If an assisted land bank is not merely
acquiring properties, but is also carrying
out other activities intended to arrest
neighborhood decline, such as
maintenance, demolition, and
facilitating redevelopment of the
properties, HUD will, for NSP -assisted
activities only, accept that the
acquisition and management activities
of the land bank may provide sufficient
benefit to an area generally (as described
in 24 CFR 570.208(a)(1) and
570.483(b)(1)) to meet a national
objective (LMMA) prior to final
disposition of the banked property.
HUD notes that the grantee must
determine the actual service area
benefiting from a land bank's activities,
in accordance with the regulations.
However, HUD does not believe the
benefits of just holding property are
sufficient to stabilize most
neighborhoods or that this is the best
use of limited NSP funds absent a re -use
plan. Therefore, HUD is requiring that a
land bank may not hold a property for
more than 10 years without obligating
the property for a specific, eligible
58336 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices
redevelopment of that property in
accordance with NSP requirements.
Note that if a state provides funds to
an entitlement community, the
entitlement community must apply the
area median income levels applicable to
its regular CDBG program geography
and not the "balance of state" levels.
Other than the change in the
applicable low- and moderate -income
qualification level from 80 percent to
120 percent, the area benefit, housing,
jobs, and limited clientele benefit
requirements at 570.208(a) and
570.483(b) remain unchanged, as does
the required documentation.
The other NSP low- and moderate -
income related provision states that:
"not less than 25 percent of the funds
appropriated or otherwise made
available under this section shall be
used for the purchase and
redevelopment of abandoned or
foreclosed homes or residential
properties that will be used to house
individuals or families whose incomes
do not exceed 50 percent of area median
income."
HUD advises grantees to take note of
this new threshold as they design NSP
activities. This provision does not have
a parallel in the regular CDBG program.
Grantees must document that an amount
equal to at least 25 percent of a grantee's
NSP grant (initial allocation plus any
reallocations) has been budgeted in the
initial approved action plan substantial
amendment for activities that will
provide housing for income -qualified
individuals or families. Prior to and at
grant closeout, HUD will review
grantees for compliance with this
provision by determining whether at
least 25 percent of grant funds have
been expended for housing for
individual households whose incomes
do not exceed 50 percent of area median
income.
Requirements
1. Overall benefit supersession and
alternative requirement. The
requirements at 42 U.S.C. 5301(c), 42
U.S.C. 5304(b)(3)(A), 24 CFR 570.484
(for states), and 24 CFR 570.200(a)(3)
that 70 percent of funds are for activities
that benefit low- and moderate -income
persons are superseded and replaced by
section 2301(f)(3)(A) of HERA. One
hundred percent of NSP funds must be
used to benefit individuals and
households whose income does not
exceed 120 percent of area median
income. NSP shall refer to such
households as "low-, moderate-, and
middle-income."
2. National objectives supersession
and alternative requirements. The
requirements at 42 U.S.0 5301(c) are
superseded and 24 CFR 570.208(a) and
570.483 are waived to the extent
necessary to allow the following
alternative requirements:
a. For purposes of NSP only, the term
"low- and moderate -income person" as
it appears throughout the CDBG
regulations at 24 CFR part 570 shall be
defined as a member of a low-,
moderate-, and middle-income
household, and the term "low- and
moderate -income household" as it
appears throughout the CDBG
regulations shall be defined as a
household having an income equal to or
less than 120 percent of area median
income, measured as 2.4 times the
current Section 8 income limit for
households below 50 percent of median
income, adjusted for family size. A state
choosing to carry out an activity directly
must apply the requirements of 24 CFR
570.208(a) to determine whether the
activity has met the low-, moderate-,
and middle-income (LMMI) national
objective and must maintain the
documentation required at 24 CFR
570.506 to demonstrate compliance to
HUD.
b. The national objectives related to
prevention and elimination of slums
and blight and addressing urgent
community development needs (24 CFR
570.208(b) and (c) and 570.483(c) and
(d)) are not applicable to NSP -assisted
activities.
c. Each grantee whose plan includes
assisting rental housing shall develop
and make public its definition of
affordable rents for NSP -assisted rental
projects.
d. An NSP -assisted property may not
be held in a land bank for more than 10
years without obligating the property for
a specific, eligible redevelopment of that
property in accordance with NSP
requirements.
F. State Distribution to Entitlement
Communities and Indian Tribes
Background
This notice includes an alternative
requirement to the HCD Act and a
regulatory waiver allowing distribution
of funds by a state to CDBG regular
entitlement communities and Tribes.
This is consistent with the provision of
HERA that specifically sets distribution
priorities for areas with the greatest
need, including "metropolitan areas,
metropolitan cities, urban areas, rural
areas, low- and moderate -income areas
* * *" Therefore, states receiving
allocations under this notice may
distribute funds to or within any
jurisdiction within the state that is
among those with the greatest need,
even if the jurisdiction is among those
receiving a direct formula allocation of
funds from HUD under the regular
CDBG program or this notice.
Requirement
Alternative requirement for
distribution to CDBG metropolitan
cities, urban counties, and Tribes. In
accordance with the direction of HERA
that grantees distribute funds to the
areas of greatest need, HUD is providing
an alternative requirement to 42 U.S.C.
5302(a)(7) (definition of
"nonentitlement area") and waiving
provisions of 24 CFR part 570, including
24 CFR 570.480(a), that would prohibit
states electing to receive CDBG funds
from distributing such funds to units of
general local government in entitlement
communities or to Tribes. The
appropriations law supersedes the
statutory distribution prohibition at 42
U.S.C. 5306(d)(1) and (2)(A).
Alternatively, the state is required to
distribute funds without regard to a
local government status under any other
CDBG program and must use funds in
entitlement jurisdictions if they are
identified as areas of greatest need,
regardless of whether the entitlement
receives its own NSP allocation.
G. State's Direct Action
Background
In the State CDBG program, states
receiving CDBG funds may not directly
use the funds for activities, but must
distribute them to units of general local
government, which then use the funds
for program activities. States may still
use this "method of distribution"
program model under NSP, but HUD
reminds the states of the 18 -month
"use" requirement. HUD also notes the
language of section 2301(c) that says, in
part, that:
Any State * * that receives amounts
pursuant to this section shall * * * use such
amounts to purchase and redevelop * * *.
This clearly speaks to the states using
funds directly for projects and
supersedes the HCD Act direction for
states to only distribute funds to
nonentitlement areas. Direct use of
funds by a state may also result in more
expeditious use of NSP funds.
Therefore, a state receiving NSP funds
may carry out NSP activities directly for
some or all of its assisted grant
activities, just as CDBG entitlement
communities do under 24 CFR
570.200(f), including, but not limited to,
carrying out activities using its own
employees, procuring contractors,
private developers, and providing loans
and grants through nonprofit
subrecipients (including local
governments and other public
Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58337
nonprofits such as regional or local
planning or development authorities
and public housing authorities).
For those activities a state chooses to
carry out directly, HUD strongly advises
the state to adopt the recordkeeping
required for an entitlement community
at 570.506 and the subrecipient
agreement provisions at 570.503. Also,
in such cases, as an alternative
requirement to 42 U.S.C. 5304(i), the
state may retain and re -use program
income as if it were an entitlement
community.
HUD is granting regulatory waivers of
State CDBG regulations to conform the
applicable management, real property
change of use, and recordkeeping rules
when a state chooses to carry out
activities as if it were an entitlement
community.
Requirements
1. Responsibility for state review and
handling of noncompliance. This
change conforms NSP requirements
with the waiver allowing the state to
carry out activities directly. 24 CFR
570.492 is waived and the following
alternative requirement applies: The
state shall make reviews and audits,
including on-site reviews of any
subrecipients, designated public
agencies, and units of general local
government as may be necessary or
appropriate to meet the requirements of
42 U.S.C. 5304(e)(2), as amended, as
modified by this notice. In the case of
noncompliance with these
requirements, the state shall take such
actions as may be appropriate to prevent
a continuance of the deficiency, mitigate
any adverse effects or consequences,
and prevent a recurrence. The state shall
establish remedies for noncompliance
by any designated public agencies or
units of general local governments and
for its subrecipients.
2. Change of use of real property for
state grantees acting directly. This
waiver conforms the change of use of
real property rule to the waiver allowing
a state to carry out activities directly.
For purposes of this program, in 24 CFR
570.489(j), (j)(1), and the last sentence of
(j)(2), "unit of general local
government" shall be read as "unit of
general local government or state."
3. Recordkeeping for a state grantee
acting directly. Recognizing that the
state may carry out activities directly, 24
CFR 570.490(b) is waived in such a case
and the following alternative provision
shall apply: State records. The state
shall establish and maintain such
records as may be necessary to facilitate
review and audit by HUD of the state's
administration of NSP funds under 24
CFR 570.493. Consistent with applicable
statutes, regulations, waivers and
alternative requirements, and other
federal requirements, the content of
records maintained by the state shall be
sufficient to: (1) Enable HUD to make
the applicable determinations described
at 24 CFR 570.493; (2) make compliance
determinations for activities carried out
directly by the state; and (3) show how
activities funded are consistent with the
descriptions of activities proposed for
funding in the action plan. For fair
housing and equal opportunity
purposes, and as applicable, such
records shall include data on the racial,
ethnic, and gender characteristics of
persons who are applicants for,
participants in, or beneficiaries of the
program.
4. State compliance with certifications
for state grantees acting directly. This is
a conforming change related to the
waiver to allow a state to act directly.
Because a state grantee under this
appropriation may carry out activities
directly, HUD is applying the
regulations at 24 CFR 570.480(c) with
respect to the basis for HUD
determining whether the state has failed
to carry out its certifications, so that
such basis shall be that the state has
failed to carry out its certifications in
compliance with applicable program
requirements.
5. Clarifying note on the process for
environmental release of funds when a
State carries out activities directly.
Usually, a state distributes CDBG funds
to units of local government and takes
on HUD's role in receiving
environmental certifications from the
grant recipients and approving releases
of funds. For this grant, HUD will allow
a state grantee to also carry out activities
directly instead of distributing them to
other governments. According to the
environmental regulations at 24 CFR
58.4, when a state carries out activities
directly, the state must submit the
certification and request for release of
funds to HUD for approval.
H. Eligibility and Allowable Costs
Background
Most of the activities eligible under
NSP represent a subset of the eligible
activities under 42 U.S.C. 5305(a). Due
to limitations in the reporting system,
DRGR, the NSP -eligible uses must be
correlated with CDBG-eligible activities
The alternative to this approach, using
a paper-based action plan and reporting
process using NSP -eligible uses only
would be much slower to implement.
This correlation also reduces
implementation risks, because it will
ensure that the NSP grants are
administered largely in accordance with
long-established CDBG rules and
controls. The table in the requirements
paragraph below shows the eligible uses
under NSP and the corresponding
eligible activities from the regulations
for the regular CDBG entitlement
program that HUD has determined best
correspond to those uses. If a grantee
creates a program design that includes
a CDBG-eligible activity that is not
shown in the table to support an NSP -
eligible use, the Department is
providing an alternative requirement to
42 U.S.C. 5305(a) that HUD may allow
a grantee an additional eligible -activity
category if HUD finds the activity to be
in compliance with the NSP statute. As
under the regular CDBG program,
grantees may fund costs, such as
reasonable developer's fees, related to
NSP -assisted housing rehabilitation or
construction activities. NSP funds may
be used to redevelop acquired property
for nonresidential uses, such as a public
park, commercial use, or mixed
residential and commercial use.
The annual entitlement CDBG
program allows up to 20 percent of any
grant amount plus program income may
be used for general administration and
planning costs. The State CDBG
program is also subject to the 20 percent
limitation, but within that cap up to 3
percent may be used by the state for
state administrative cost and technical
assistance to potential local government
program grant recipients, with the
remainder available to be granted to
local government recipients for their
administrative costs. Because some of
the costs usually allocated under these
caps are not applicable to NSP grants
(for example, the costs of completing the
entire consolidated plan process), these
amounts seem excessive to HUD in the
context of the NSP program. On the
other hand, HUD wants to encourage
and support expeditious, appropriate,
and compliant use of grant funds, and
to prevent fraud, waste, and abuse of
funds. Therefore, HUD is providing an
alternative requirement that an amount
of up to 10 percent of an NSP grant
provided to a jurisdiction and of up to
10 percent of program income earned
may be used for general administration
and planning activities as those are
defined at 24 CFR 570.205 and 206. For
all grantees, including states, the 10
percent limitation applies to the grant as
a whole.
The regulatory and statutory
requirements for state match for
program administration at 24 CFR
570.489 (a)(i) are superseded by the
statutory direction at section 2301(e)(2)
that no matching funds shall be required
for a state or unit of general local
government to receive a grant.
58338 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices
Requirements
3.a. Certain CDBG-eligible activities
below) or with permission granted, in
correlate to specific NSP -eligible uses
writing, by HUD upon a written request
1. Use of grant funds must constitute
and vice versa. 42 U.S.C. 5305(a) and 24
by the grantee that demonstrates that the
an eligible use under HERA.
CFR 570.201-207 and 482(a) through (d)
proposed activity constitutes an eligible
2. In addition to being an eligible NSP
are superseded to the extent necessary
use under NSP. All NSP grantees,
use of funds, each activity funded under
to allow the eligible uses described
including states, will use the NSP
this notice must also be CDBG-eligible
under section 2301(c)(3) of HERA in
categories and CDBG entitlement
under 42 U.S.C. 5305(a) and meet a
accordance with this paragraph
regulations listed below.
CDBG national objective.
(including the table and subparagraphs
NSP -eligible uses
Correlated eligible activities from the CDBG entitlement regulations
(A) Establish financing mechanisms for purchase and redevelopment of
foreclosed upon homes and residential properties, including such
mechanisms as soft -seconds, loan loss reserves, and shared -equity
loans for low- and moderate -income homebuyers.
(B) Purchase and rehabilitate homes and residential properties that
have been abandoned or foreclosed upon, in order to sell, rent, or
redevelop such homes and properties.
(C) Establish land banks for homes that have been foreclosed upon ....
(D) Demolish blighted structures..............................................................
(E) Redevelop demolished or vacant properties ......................................
b. HUD will not consider requests to
allow foreclosure prevention activities,
or to allow demolition of structures that
are not blighted, or to allow purchase of
residential properties and homes that
have not been abandoned or foreclosed
upon as provided in HERA and defined
in this notice. HUD does not have the
authority to permit uses or activities not
authorized by HERA.
c. New construction of housing is
eligible as part of eligible -use (E) to
redevelop demolished or vacant
properties.
d. 24 CFR 570.201(n) is waived and
an alternative requirement provided for
42 U.S.C. 5305(a) to the extent necessary
to allow provision of NSP -assisted
homeownership assistance to persons
whose income does not exceed 120
percent of median income.
4. Alternative requirement for the
limitation on planning and
administrative costs. 24 CFR 570.200(g)
and 570.489(a)(3) are waived to the
extent necessary to allow each grantee
under this notice to expend no more
than 10 percent of its grant amount, plus
10 percent of the amount of program
income received by the grantee, for
activities eligible under 24 CFR 570.205
or 206. The requirements at 24 CFR
570.489 are waived to the extent that
they require a state match for general
administrative costs. (States may use
• As part of an activity delivery cost for an eligible activity as defined in
24 CFR 570.206.
• Also, the eligible activities listed below to the extent financing mech-
anisms are used to carry them out.
• 24 CFR 570.201(a) Acquisition
(b) Disposition,
(i) Relocation, and
(n) Direct homeownership assistance (as modified below);
• 570.202 eligible rehabilitation and preservation activities for homes
and other residential properties (HUD notes that rehabilitation may
include counseling for those seeking to take part in the activity).
24 CFR 570.201(a) Acquisition and (b) Disposition.
• 24 CFR 570.201(d) Clearance for blighted structures only.
• 24 CFR 570.201(a) Acquisition,
(b) Disposition,
(c) Public facilities and improvements,
(e) Public services for housing counseling, but only to the extent that
counseling beneficiaries are limited to prospective purchasers or ten-
ants of the redeveloped properties,
(i) Relocation, and
(n) Direct homeownership assistance (as modified below).
• 204 Community based development organizations.
NSP funds under this 10 percent
limitation to provide technical
assistance to local governments and
nonprofit program participants.)
L Rehabilitation Standards
Background
HERA provides that any NSP -assisted
rehabilitation of a foreclosed -upon
home or residential property shall be to
the extent necessary to comply with
applicable laws, codes, and other
requirements relating to housing safety,
quality, and habitability, in order to sell,
rent, or redevelop such homes and
properties. This imposes a requirement
that does not exist in the CDBG
program. This means that each grantee
must describe or reference in its NSP
action plan amendment what
rehabilitation standards it will apply for
NSP -assisted rehabilitation. HUD will
monitor to ensure the standards are
implemented.
HERA defines rehabilitation to
include improvements to increase the
energy efficiency or conservation of
such homes and properties or to provide
a renewable energy source or sources for
such homes and properties. Such
improvements are also eligible under
the regular CDBG program. HUD
strongly encourages grantees to use NSP
funds not only to stabilize
neighborhoods in the short-term, but to
strategically incorporate modern, green
building and energy -efficiency
improvements in all NSP activities to
provide for long-term affordability and
increased sustainability and
attractiveness of housing and
neighborhoods.
J. Sale of Homes
Background
Section 2301(d)(2) of HERA directs
that, if an abandoned or foreclosed -upon
home or residential property is
purchased, redeveloped, or otherwise
sold to an individual as a primary
residence, then such sale shall be in an
amount equal to or less than the cost to
acquire and redevelop or rehabilitate
such home or property up to a decent,
safe, and habitable condition. (Sales and
closing costs are eligible NSP
redevelopment or rehabilitation costs.)
Note that the maximum sales price for
a property is determined by aggregating
all costs of acquisition, rehabilitation,
and redevelopment (including related
activity delivery costs, which generally
may include, among other items, costs
related to the sale of the property).
Requirements
1. In its records, each grantee must
maintain sufficient documentation
Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58339
about the purchase and sale amounts of
each property and the sources and uses
of funds for each activity so that HUD
can determine whether the grantee is in
compliance with this requirement. A
grantee will be expected to provide this
documentation individually for each
activity.
2. In determining the sales price
limitation, HUD will not consider the
costs of boarding up, lawn mowing,
simply maintaining the property in a
static condition, or, in the absence of
NSP -assisted rehabilitation or
redevelopment of the property, the costs
of completing a sales transaction or
other disposition to be redevelopment
or rehabilitation costs. These costs may
not be included by the grantee in the
determination of the sales price for an
NSP -assisted property.
3. For reporting purposes only, for a
housing program involving multiple
single-family structures under the
management of a single entity, HUD will
permit reporting the aggregation of
activity delivery costs across the total
portfolio of projects until completion of
the program or closeout of the grant
with HUD, whichever comes earlier.
K. Acquisition and Relocation
Background
Acquisition of Foreclosed -Upon
Properties. HUD notes that section
2301(d)(1) of HERA conflicts with
section 301(3) of the URA (42 U.S.C.
4651) and related regulatory
requirements at 49 CFR 24.102(d). As
discussed further, section 2301(d)(1) of
HERA requires that any acquisition of a
foreclosed -upon home or residential
property under NSP be at a discount
from the current market -appraised value
of the home or property and that such
discount shall ensure that purchasers
are paying below-market value for the
home or property. Section 301(3) of the
URA, as implemented at 49 CFR
24.102(d), provides that an offer of just
compensation shall not be less than the
agency's approved appraisal of the fair
market value of such property. These
URA acquisition policies apply to any
acquisition of real property for a
federally funded project, except for
acquisitions described in 49 CFR
24.101(b)(1) through (5) (commonly
referred to as "voluntary acquisitions").
As the more recent and specific
statutory provision, section 2301(d)(1)
of HERA prevails over section 301 of the
URA for purposes of NSP -assisted
acquisitions of foreclosed -upon homes
or residential properties.
NSP Appraisal Requirements. As
noted above, section 301 of the URA
does not apply to voluntary
acquisitions. While the URA and its
regulations do not require appraisals for
such acquisitions, the URA acquisition
policies do not prohibit acquiring
agencies from obtaining appraisals.
Appendix A, 49 CFR 24.101(b)(2)
acknowledges that acquiring agencies
may still obtain an appraisal to support
their determination of fair market value.
Section 2301(d)(1) of HERA requires an
appraisal for purposes of determining
the statutory purchase discount. This
appraisal requirement applies to any
NSP -assisted acquisition of a foreclosed -
upon home or residential property
(including voluntary acquisitions).
One -for -One Replacement. HUD is
providing an alternative requirement to
the one-for-one replacement
requirements set forth in 42 U.S.C.
5304(d)(2), as implemented at 24 CFR
42.375. The Department anticipates a
large number of requests from grantees
for whom the requirements will be
onerous given the pressing rush to
implement NSP, and several of the
major housing markets affected by the
foreclosure crisis have a surplus of
abandoned and foreclosed -upon
residential properties. The additional
workload of reviewing requests under
42 U.S.C. 5304(d)(3) and 24 CFR
42.375(d) could cause a substantial
backlog at HUD and delay NSP program
operations. Therefore, the alternative
requirement is that an NSP grantee will
not be required to meet the
requirements of 42 U.S.C. 5304(d), as
implemented at 24 CFR 42.375, to
provide one-for-one replacement of low -
and moderate -income dwelling units
demolished or converted in connection
with activities assisted with NSP funds.
Alternatively, each grantee must submit
the information described below
relating to its demolition and
conversion activities in its action plan
substantial amendment. The grantee
will report to HUD and citizens (via
prominent posting of the DRGR reports
on the grantee's official Internet site) on
progress related to these measures until
the closeout of its grant with HUD.
As noted earlier, HUD does not have
the authority to waive or specify
alternative requirements to the URA's
acquisition policies or relocation
provisions. Those requirements that do
not conflict with HERA continue to
apply. HUD is not specifying alternative
requirements to the relocation
assistance provisions at 42 U.S.C.
5304(d). Guidance on meeting these
requirements is available on the HUD
Web site and through local HUD field
offices. HUD urges grantees to consider
URA requirements in designing their
programs and to remember that there are
URA obligations related to voluntary
and involuntary property acquisition
activities, even for vacant and
abandoned property. HUD reminds
grantees to be aware of the requirement
to have and follow a residential
anti displacement and relocation plan
for the CDBG and HOME programs. This
requirement is not waived for those
programs and continues to apply to
activities assisted with regular CDBG
and HOME funds.
Requirements
1. The one-for-one replacement
requirements at 24 CFR 570.488,
570.606(c), and 42.375 are waived for
low- and moderate -income dwelling
units demolished or converted in
connection with an activity assisted
with NSP funds. As an alternative
requirement to 42 U.S.C.
5304(d)(2)(A)(i) and (ii), each grantee
planning to demolish or convert any
low- and moderate -income dwelling
units as a result of NSP -assisted
activities must identify all of the
following information in its NSP
substantial amendment:
(a) The number of low- and moderate -
income dwelling units reasonably expected
to be demolished or converted as a direct
result of NSP -assisted activities;
(b) The number of NSP affordable housing
units (made available to low-, moderate-, and
middle-income households) reasonably
expected to be produced, by activity and
income level as provided for in DRGR, by
each NSP activity providing such housing
(including a proposed time schedule for
commencement and completion); and
(c) The number of dwelling units
reasonably expected to be made available for
households whose income does not exceed
50 percent of area median income.
The grantee must also report on actual
performance for demolitions and
production, as required elsewhere in
this notice.
L. Note on Eminent Domain
Although section 2303 of HERA
appears to allow some use of eminent
domain for public purposes, HUD
cautions grantees that section 2301(d)(1)
may effectively ensure that all NSP -
assisted property acquisitions must be
voluntary acquisitions as the term is
defined by the URA and its
implementing regulations. Section
2301(d)(1) directs that any purchase of
a foreclosed -upon home or residential
property under NSP be at a discount
from the current market appraised value
of the home or property and that such
discount shall ensure that purchasers
are paying below-market value for the
home or property. However, the Fifth
Amendment to the U.S. Constitution
provides that private property shall not
be taken for public use without just
58340 Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
compensation. The Supreme Court has
ruled that a jurisdiction must pay fair
market value for the purchase of
property through eminent domain. A
grantee contemplating using NSP funds
to assist an acquisition involving an
eminent domain action is advised to
consult appropriate legal counsel before
taking action.
M. Timeliness of Use and Expenditure
of NSP Funds
Background
One of the most critical NSP
provisions is the HERA requirement at
section 2301(c)(1) that any grantee
receiving a grant:
* * * shall, not later than 18 months after
the receipt of such amounts, use such
amounts to purchase and redevelop
abandoned and foreclosed homes and
residential properties.
HUD has defined the term "use" in
this notice to include obligation of
funds.
A further complication is that HERA
clearly expects grantees to earn program
income under this grant program. As
provided under 24 CFR 85.21 for
entitlements, grantees and subrecipients
shall disburse program income before
requesting additional cash withdrawals
from the U.S. Treasury. States are
governed similarly by 24 CFR 489(e)(3)
and 31 CFR part 205. This requirement
is reflected in the regulations governing
use of program income by States and
units of general local government under
the CDBG program. This means that a
grantee that successfully and quickly
deploys its program and generates
program income may obligate, draw
down, and expend an amount equal to
its NSP allocation amount, and still
have funds remaining in its line of
credit, possibly subject to recapture at
the 18 -month deadline.
On consideration, the Department
chose to implement the use test based
on whether the state or unit of general
local government has expended or
obligated the NSP grant funds and
program income in an aggregate amount
at least equal to the NSP allocation.
HUD is also imposing a deadline for
expending NSP grant funds because the
intent of these grants clearly is to
quickly address an emergency situation
in areas of the greatest need.
Requirements
1. Timely use of NSP funds. At the
end of the statutory 18 -month use
period, which begins when the NSP
grantee receives its funds from HUD, the
state or unit of general local government
NSP grantee's accounting records and
DRGR information must reflect outlays
(expenditures) and unliquidated
obligations for approved activities that,
in the aggregate, are at least equal to the
NSP allocation. (The DRGR system
collects information on expenditures
and obligations.)
2. Timely expenditure of NSP funds.
The timely distribution or expenditure
requirements of sections 24 CFR
570.494 and 570.902 are waived to the
extent necessary to allow the following
alternative requirement: All NSP
grantees must expend on eligible NSP
activities an amount equal to or greater
than the initial allocation of NSP funds
within 4 years of receipt of those funds
or HUD will recapture and reallocate the
amount of funds not expended.
N. Alternative Requirement for Program
Income (Revenue) Generated by
Activities Assisted With Grant Funds
Requirement
Revenue received by a state, unit of
general local government, or
subrecipient (as defined at 24 CFR
570.500(c)) that is directly generated
from the use of CDBG funds (which
term includes NSP grant funds)
constitutes CDBG program income. To
ensure consistency of treatment of such
revenue, the definition of program
income at 24 CFR 570.500(a) shall be
applied to amounts received by states,
units of general local government, and
subrecipients. However, Section
2301(d)(4) imposes certain limitations
and requirements that necessitate an
alternative requirement to govern the
use of program income generated by
activities carried out pursuant to
Section 2301(c). The limitations and
requirements are based on the NSP
activity that generated the program
income and on the date the income is
received. In addition, Section 2301(d)(4)
requires any revenue from the sale,
rental, redevelopment, rehabilitation or
any other eligible use of NSP funds to
be provided to and used by the state or
unit of local general government. This
includes revenue received by a private
individual or other entity that is not a
subrecipient.
1. Program income generated by
activities carried out pursuant to
Section 2301(c)(3)(B) and (E).
a. Program income received before
July 30, 2013, may be retained by the
state or unit of general local government
if it is treated as additional CDBG funds
and used in accordance with the
requirements of Section 2301.
b. Program income received on or
after July 30, 2013—Return to the
Treasury.
Any program income received by a
state, unit of general local government,
or subrecipient on or after July 30, 2013,
that is generated by activities carried out
pursuant to Section 2301(c)(3)(B) and
(E) (e.g., proceeds from the sale of rental
housing by a state, unit of general local
government, or subrecipient) and is not
authorized to be retained as described
below must be remitted to HUD for
deposit in the Treasury. Any program
income received by a state, unit of
general local government, or
subrecipient on or after July 30, 2013,
that is generated by activities carried out
pursuant to Section 2301(c)(3)(B) and
(E) and that is in excess of the cost to
acquire and redevelop or rehabilitate an
abandoned or foreclosed -upon home or
residential property may be retained if
HUD approves a request to use the
funds for other NSP purposes. Note that
no profit can be earned on the sale of
an abandoned or foreclosed -upon home
or residential property to an individual
as a primary residence; as provided
under Section 2301(c)(3), the sale must
be in an amount equal to or less than the
cost to acquire and redevelop or
rehabilitate the home or property up to
a decent, safe, and habitable condition.
Example: A unit of general local
government acquires a foreclosed -upon
multi -family residential property for
$100,000, spends $100,000 to redevelop the
property, and sells the property for $225,000.
If the sale occurs on or after July 30, 2013,
the amount to be remitted to HUD by the
state or unit of general government is
$200,000 if HUD authorizes the profit of
$25,000 to be used for other NSP purposes,
or $225,000 if HUD does not authorize such
use.
c. Revenue received by a private
individual or other entity that is not a
subrecipient.
i. Any revenue generated by activities
carried out pursuant to Section
2301(c)(3)(B) and (E) that is in excess of
the cost to acquire and redevelop
(including reasonable development fees)
or rehabilitate an abandoned or
foreclosed -upon home or residential
property must be provided to the state
or unit of general local government and
treated as program income. The
disposition of the program income by
the state or unit of general local
government is governed by a. and b.
above.
ii. Any revenue that is generated by
activities carried out pursuant to
Section 2301(c)(3)(B) and (E) and is
received on or after July 30, 2013, shall
be provided to the State or unit of
general local government and treated as
program income. The disposition of the
program income by the state or unit of
general local government is governed by
b. above.
Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58341
Example: A unit of general local
government uses NSP funds to make a loan
(or grant) to a developer to finance the
acquisition and rehabilitation of a foreclosed -
upon multi -family residential property. The
developer uses $200,000 in NSP funds (loan
or grant) from the unit of general local
government to pay the total costs of
acquisition and rehabilitation (including
reasonable development fees) and
subsequently sells the property for $225,000.
The developer is required to provide
$225,000 to the unit of general local
government. (If the NSP funding was a loan,
the sale proceeds would be used to repay the
NSP loan.) If the sale occurs on or after July
30, 2013, the unit of general local
government must remit $225,000 to HUD for
deposit in the United States Treasury, unless
HUD approves a request to use $25,000 of
that amount for other NSP purposes. If in this
same example, the developer received
$100,000 of NSP funding and used $100,000
of its own funds for eligible costs, the
revenue to be provided to the local
government would be $125,000.
2. Program income generated by
activities carried out pursuant to
Section 2301(c)(3)(A), (C) and (E).
Program income received may be
retained by the State or unit of general
local government if it is treated as
additional CDBG funds and used in
accordance with the requirements of
Section 2301. Revenue received by a
private individual or other entity that is
not a subrecipient must be returned to
the State or unit of general local
government.
3. Cash management. Substantially all
program income must be disbursed for
eligible NSP activities before additional
cash withdrawals are made from the
U.S. Treasury.
4. Agreements with subrecipients and
other entities. States and units of
general local governments must
incorporate in subrecipient agreements
such provisions as are necessary to
ensure compliance with the
requirements of this paragraph,
including the requirement that program
income described in N.1.(b) be remitted
to HUD for deposit in the Treasury.
States, units of general local
government, and subrecipients must
incorporate in agreements with private
individuals and other entities that are
not subrecipients such provisions as are
necessary to ensure compliance with the
requirements governing disposition of
revenue generated by activities carried
out pursuant to Section 2301(c).
O. Reporting
Background
HUD is requiring regular reporting on
each NSP grant in the DRGR system to
ensure the Department gets sufficient
management information to follow-up
promptly if a grantee lags in
implementation and risks recapture of
its grant funds. For NSP only, HUD is
waiving the annual reporting
requirements of the consolidated plan to
allow HUD to collect more regular
information on various aspects of the
uses of funds and of the activities
funded with these grants. HUD will use
the reports to exercise oversight for
compliance with the requirements of
this notice and for prevention of fraud,
waste, and abuse of funds.
The regular CDBG performance
measurement requirements will not
apply to the NSP funds. To the extent
feasible, HUD will configure DRGR
performance measures to fit the NSP
activities and will provide additional
guidance on NSP performance
measures,
To collect these data elements and to
meet its reporting requirements, HUD is
requiring each grantee to report on its
NSP funds to HUD using the online
DRGR system, which uses a
streamlined, Internet -based format. HUD
will use grantee reports to monitor for
anomalies or performance problems that
suggest fraud, waste, and abuse of
funds; to reconcile budgets, obligations,
fund draws, and expenditures; to
calculate applicable administrative and
public service limitations and the
overall percent of benefit to LMMI
persons; and as a basis for risk analysis
in determining a monitoring plan.
The grantee must post the NSP report
on a Web site for its citizens when it
submits the report to HUD (DRGR
generates a version of the report that the
grantee can download, save, and post).
Requirements
1. Performance report alternative
requirement. The Secretary may specify
the form and timing of reports provided
by the grantee under both 42 U.S.C.
5304(e) (the HCD Act) and 42 U.S.C.
12708 (NAHA). Therefore, the
consolidated plan regulation at 24 CFR
91.520 is waived and the alternative
reporting form and timing for the NSP
funds is that:
a. Each grantee must enter its NSP
Action Plan amendment into HUD's
web -based DRGR system in sufficient
detail to meet the NSP action plan
content requirements of this notice and
to serve as the basis for acceptable
performance reports. (Because DRGR
was not specifically redesigned for the
NSP, HUD field staff will provide
grantees with specific technical
assistance on where in DRGR the
required NSP narrative and data
elements must be placed.)
b.i. Each grantee must submit a
quarterly performance report, as HUD
prescribes, no later than 30 days
following the end of each quarter,
beginning 30 days after the completion
of the first full calendar quarter after
grant award and continuing until the
end of the 15th month after initial
receipt of grant funds. In addition to this
quarterly performance reporting, each
grantee will report monthly on its NSP
obligations and expenditures beginning
30 days after the end of the 15th month
following receipt of funds, and
continuing until reported total
obligations are equal to or greater than
the total NSP grant. After HUD has
accepted a report from a grantee
showing such obligation of funds, the
monthly reporting requirement will end
and quarterly reports will continue until
all NSP funds (including program
income) have been expended and those
expenditures are included in a report to
HUD, or until HUD issues other
instructions pursuant to paragraph b.ii.
below. Each report will include
information about the uses of funds,
including, but not limited to, the project
name, activity, location, national
objective, funds budgeted and
expended, the funding source and total
amount of any non -NSP funds, numbers
of properties and housing units,
beginning and ending dates of activities,
and numbers of low- and moderate -
income persons or households
benefiting. Reports must be submitted
using HUD's web -based DRGR system
and, at the time of submission, be
posted prominently on the grantee's
official Web site.
ii. During the winter of 2008-2009,
HUD is undertaking a major
enhancement of DRGR, initiated as part
of a series of improvements designed to
prevent fraud, waste, and abuse of funds
in the Gulf Coast CDBG disaster
recovery programs, whose grantees are
reporting on the uses of more than $19
billion of CDBG disaster recovery funds
through DRGR. Prior to roll-out of the
enhancement, NSP grantees will use the
Voice Response System (VRS) to access
the line of credit and will prepare and
submit action plans and performance
reports through DRGR. After this
enhancement is complete, grantees also
will be able to access their lines of
credit through DRGR. At that time, HUD
will issue updated guidance on all
DRGR reporting and require most
activity data to be updated on a
transactional basis.
P. Note That FHA Properties Are
Eligible for NSP Acquisition and
Redevelopment
The Department notes that it is an
eligible use of CDBG grant funds to
acquire and redevelop FHA foreclosed
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properties. The Department strongly
urges every community to consider and
include such properties under their NSP
programs because the nature and
location of many of these homes will
make them very compatible with the
eligible uses of grant funds, the areas of
greatest need, and the income eligibility
thresholds and limits. Furthermore, in
many areas, FHA foreclosed properties
will be available for purchase at below-
market value to meet HERA
requirements. FHA provides quick
access to location, condition, and sales
price information; FHA may also offer
expedited closing time frames. These
factors may help expedite NSP fund use.
HUD will provide technical assistance
on its Web site regarding how these
programs can effectively interact.
Grantees may also contact their local
HUD FHA field office for further
information.
Q. Purchase Discount
Background
Section 2301(d)(1) limits the purchase
price of a foreclosed home, as follows:
Any purchase of a foreclosed upon home
or residential property under this section
shall be at a discount from the current market
appraised value of the home or property,
taking into account its current condition, and
such discount shall ensure that purchasers
are paying below-market value for the home
or property.
To ensure that uncertainty over the
meaning of this section does not delay
program implementation, HUD is
defining "current market appraised
value" in this notice. For mortgagee
foreclosed properties, HUD is requiring
that grantees seek to obtain the
"maximum reasonable discount" from
the mortgagee, taking into consideration
likely "carrying costs" of the mortgagee
if it were to not sell the property to the
grantee or subrecipient. These likely
carrying costs are different from market
to market, and the "maximum
reasonable discount" is likely to be
higher in markets where homes are
taking many months to more than a year
to sell as compared to markets with
shorter average time to sell a property.
In recognition of the need for flexibility
in administering the purchase discount
requirement, HUD has adopted an
approach that requires a minimum
discount of 5 percent for each
residential property purchased with
NSP funds and a minimum average
discount for all properties acquired with
NSP funds over the 18 -month HERA use
period. The minimum average discount
for the "portfolio" of properties
acquired with NSP funds depends upon
how the purchase discount for an
individual property is determined. If the
state, unit of general local government,
or subrecipient determines the discount
through use of a methodology that
incorporates the factors discussed above
(keeping in mind that the discount must
be at least 5 percent), then the minimum
average discount for the NSP portfolio is
10 percent. If not, the minimum average
discount is 15 percent. Recipients and
subrecipients are cautioned that a
purchase discount negotiated with the
seller on an individual property that is
below the minimum average discount
requirement must be offset by a
purchase discount that is above the
minimum average discount.
Requirements
1.a. Individual purchase transaction.
Each foreclosed -upon home or
residential property shall be purchased
at a discount of at least 5 percent from
the current market -appraised value of
the home or property.
b. Purchase transactions in the
aggregate. Except as set forth below, the
average purchase discount for all
properties purchased with NSP funds
during the 18 -month use period shall be
at least 15 percent. The average
purchase discount shall be at least 10
percent if the state, unit of general local
government, or subrecipient determines
the maximum reasonable discount for
each purchase transaction through use
of a methodology that results in a
discount equivalent to the total carrying
costs that would be incurred by the
seller if the property were not
purchased with NSP funds (provided
the discount is at least 5 percent). Such
methodology shall provide for an
analysis of the estimated holding period
for the property and the nature and
amount of the carrying costs of holding
the property for this period. Such
carrying costs shall include, but not be
limited to: Taxes, insurance,
maintenance, marketing, overhead, and
interest. The procedures to implement
such methodology shall be in writing
and applied consistently to all
purchases. The analysis for each
purchase transaction shall be
documented in the grantee's program
records.
2. An NSP recipient may not provide
NSP funds to another party to finance
an acquisition of tax foreclosed (or any
other) properties from itself, other than
to pay necessary and reasonable costs
related to the appraisal and transfer of
title. A property conveyed in this
manner to a subrecipient, homebuyer,
developer, or jurisdiction will be NSP -
assisted and subject to all program
requirements, such as requirements for
NSP -eligible use and benefit to income -
qualified persons.
3. The address, appraised value,
purchase offer amount, and discount
amount of each property purchase must
be documented in the grantee's program
records.
R. Removal of Annual Requirements
Requirement
Throughout 24 CFR parts 91 and 570,
all references to "annual" requirements
such as submission of plans and reports
are waived to the extent necessary to
allow the provisions of this notice to
apply to NSP funds, with no recurring
annual requirements other than those
related to civil rights and fair housing
certifications and requirements.
S. Affirmatively Furthering Fair Housing
Nothing in this notice may be
construed as affecting each grantee's
responsibility to carry out its
certification to affirmatively further fair
housing. HUD encourages each grantee
to review its analysis of impediments to
fair housing choice to determine
whether an update is necessary because
of current market conditions or other
factors.
T. Certifications
Background
HUD is substituting alternative
certifications. The alternative
certifications are tailored to NSP grants
and remove certifications and references
that are appropriate only to the annual
CDBG formula program.
Requirements
Certifications for states and for
entitlement communities, alternative
requirement. Although the NSP is being
implemented as a substantial
amendment to the current annual action
plan, HUD is requiring submission of
this alternative set of certifications as a
conforming change, reflecting
alternative requirements and waivers
under this notice. Each jurisdiction will
submit the following certifications:
1. Affirmatively furthering fair
housing. The jurisdiction certifies that it
will affirmatively further fair housing,
which means that it will conduct an
analysis to identify impediments to fair
housing choice within the jurisdiction,
take appropriate actions to overcome the
effects of any impediments identified
through that analysis, and maintain
records reflecting the analysis and
actions in this regard.
2. Anti -lobbying. The jurisdiction
must submit a certification with regard
to compliance with restrictions on
lobbying required by 24 CFR part 87,
Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices 58343
together with disclosure forms, if
required by that part.
3. Authority of jurisdiction. The
jurisdiction certifies that the
consolidated plan is authorized under
state and local law (as applicable) and
that the jurisdiction possesses the legal
authority to carry out the programs for
which it is seeking funding, in
accordance with applicable HUD
regulations and other program
requirements.
4. Consistency with plan. The
jurisdiction certifies that the housing
activities to be undertaken with NSP
funds are consistent with its
consolidated plan.
5. Acquisition and relocation. The
jurisdiction certifies that it will comply
with the acquisition and relocation
requirements of the Uniform Relocation
Assistance and Real Property
Acquisition Policies Act of 1970, as
amended (42 U.S.C. 4601), and
implementing regulations at 49 CFR part
24, except as those provisions are
modified by the notice for the NSP
program published by HUD.
6. Section 3. The jurisdiction certifies
that it will comply with section 3 of the
Housing and Urban Development Act of
1968 (12 U.S.C. 1701u), and
implementing regulations at 24 CFR part
135.
7. Citizen participation. The
jurisdiction certifies that it is in full
compliance and following a detailed
citizen participation plan that satisfies
the requirements of Sections 24 CFR
91.105 or 91.115, as modified by NSP
requirements.
8. Following a plan. The jurisdiction
certifies it is following a current
consolidated plan (or Comprehensive
Housing Affordability Strategy) that has
been approved by HUD.
9. Use of funds. The jurisdiction
certifies that it will comply with Title III
of Division B of the Housing and
Economic Recovery Act of 2008 by
using all of its grant funds within 18
months of receipt of the grant.
10. The Jurisdiction certifies:
a. that all of the NSP funds made
available to it will be used with respect
to individuals and families whose
incomes do not exceed 120 percent of
area median income; and
b. The jurisdiction will not attempt to
recover any capital costs of public
improvements assisted with CDBG
funds, including Section 108 loan
guaranteed funds, by assessing any
amount against properties owned and
occupied by persons of low- and
moderate -income, including any fee
charged or assessment made as a
condition of obtaining. access to such
public improvements. However, if NSP
funds are used to pay the proportion of
a fee or assessment attributable to the
capital costs of public improvements
(assisted in part with NSP funds)
financed from other revenue sources, an
assessment or charge may be made
against the property with respect to the
public improvements financed by a
source other than CDBG funds. In
addition, with respect to properties
owned and occupied by moderate -
income (but not low-income) families,
an assessment or charge may be made
against the property with respect to the
public improvements financed by a
source other than NSP funds if the
jurisdiction certifies that it lacks NSP or
CDBG funds to cover the assessment.
11. Excessive force. The jurisdiction
certifies that it has adopted and is
enforcing:
a. A policy prohibiting the use of
excessive force by law enforcement
agencies within its jurisdiction against
any individuals engaged in nonviolent
civil rights demonstrations; and
b. A policy of enforcing applicable
state and local laws against physically
barring entrance to, or exit from, a
facility or location that is the subject of
such nonviolent civil rights
demonstrations within its jurisdiction.
12. Compliance with anti-
discrimination laws. The jurisdiction
certifies that the NSP grant will be
conducted and administered in
conformity with Title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d),
the Fair Housing Act (42 U.S.C. 3601-
3619), and implementing regulations.
13. Compliance with lead-based paint
procedures. The jurisdiction certifies
that its activities concerning lead-based
paint will comply with the requirements
of part 35, subparts A, B, J, K, and R of
this title.
14. Compliance with laws. The
jurisdiction certifies that it will comply
with applicable laws.
U. Note on Statutory Limitation on
Distribution of Funds
Section 2304 of HERA states that none
of the funds made available under this
Title or title IV shall be distributed to an
organization that has been indicted for
a violation under federal law relating to
an election for federal office; or an
organization that employs applicable
individuals. Section 2304 defines
applicable individuals.
V. Information Collection Approval
Note
HUD has approval from the Office of
Management and Budget (OMB) for
information collection requirements in
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-
3520). OMB approval is under OMB
control number 2506-0165. In
accordance with the Paperwork
Reduction Act, HUD may not conduct or
sponsor and a person is not required to
respond to, a collection of information,
unless the collection displays a valid
control number.
W. Duration of Funding
The appropriation accounting
provisions in 31 U.S.C. 1551-1557,
added by section 1405 of the National
Defense Authorization Act for Fiscal
Year 1991 (Pub. L. 101-510), limit the
availability of certain appropriations for
expenditure. Such a limitation may not
be waived. The appropriations acts for
NSP grants direct that these funds be
available until expended. However, the
Department is imposing a shorter
deadline on the expenditure of NSP
funds in this notice.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance numbers for grants made
under NSP are as follows: 14.218;
14.225; and 14.228.
Finding of No Significant Impact
A Finding of No Significant Impact
with respect to the environment has
been made in accordance with HUD
regulations at 24 CFR part 50, which
implement section 102(2)(C) of the
National Environmental Policy Act of
1969 (42 U.S.C. 4332(C)(2)). The
Finding of No Significant Impact is
available for public inspection between
8 a.m. and 5 p.m. weekdays in the
Office of the Rules Docket Clerk, Office
of General Counsel, Department of
Housing and Urban Development, 451
Seventh Street, SW., Room 10276,
Washington, DC 20410-0500.
Establishment of Formula
I hereby establish the funding formula
set out in Attachment A to this notice.
Dated: September 29, 2008.
Steven C. Preston,
Secretary.
Attachment A
HERA calls for allocating funds "to
States and units of general local
government with the greatest need, as
such need is determined in the
discretion of the Secretary based on—
(A) The number and percentage of
home foreclosures in each State or unit
of general local government;
(B) The number and percentage of
homes financed by a subprime mortgage
related loan in each State or unit of
general local government; and
(C) The number and percentage of
homes in default or delinquency in each
58344 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices
State or unit of general local
government."
It further directs that "each State shall
receive not less than 0.5 percent of
funds". The allocation formula operates
as follows. In this formula, the primary
data on foreclosure rates, subprime loan
rates, and rates of loans delinquent or in
default come from the Mortgage Bankers
Statewide Allocation = $3.92 billion*
( (0.70 *
Association National Delinquency Survey increased with data from the
Survey (MBA—NDS). Because the MBA— Home Mortgage Disclosure Act to
NDS may have uneven coverage from
state -to -state in respect to the total
number of mortgages reported, the total
count of mortgages is calculated as the
number of owner -occupied mortgages
from the 2006 American Community
(State's number of foreclosure starts in last 6 quarters)*
National number of foreclosure starts in last 6 quarters
capture the proportion of total
mortgages made within a state made to
investors between 2004 and 2006. The
first step of the allocation is to make a
"statewide" allocation using the
following formula:
(Percent of all loans in state to enter foreclosure last 6 quarters)
Percent of all loans in nation to enter foreclosure last 6 quarters
0.15 * (State's number of subprime loans)* (Percent of all loans in state subprime) }
National number of subprime loans Percent of all loans in nation subprime
0.10 * (States number of loans in default (90+ days delinquent)* (Percent of all loans in state in default) +
National number of loans in default Percent of all loans in nation in default
0.05 (State's number of loans 60 to 89 days delinquent)* (Percent of all loans in state 60 to 89 days delinquent) ]*
National number of loans 60 to 89 days delinquent National percent of all loans 60 to 89 days delinquent
(Pct of all addresses in state vacant in Census Tracts where more than 40% of the 2004 to 2006 loans were high costs)}
Pct of all addresses in nation vacant in Census Tracts where more than 40% of the 2004 to 2006 loans were high cost
This formula allocates 70 percent of
the funds based on the number and
percent of foreclosures, 15 percent for
subprime loans, 10 percent for loans in
default (delinquent 90 days or longer),
and 5 percent for loans delinquent 60 to
90 days. The higher weight on
foreclosures is based on the emphasis
the statute places on targeting foreclosed
homes. The percentage adjustments, the
rate of a problem in a state relative to
the national rate of a problem, are
restricted such that a state's allocation
based on its proportional share of a
problem cannot be increased or
decreased by more than 30 percent.
Because HERA specifically indicates
that the funds are needed for the
"redevelopment of abandoned and
foreclosed upon homes and residential
properties", HUD has included a
variable to proxy where abandonment of
homes due to foreclosure is more likely,
specifically each state's rate of vacant
residential addresses in neighborhoods
with a high proportion (more than 40
percent) of loans in 2004 to 2006 that
were high cost. Information on vacant
addresses is based on United States
Postal Service data as of June 30, 2008
aggregated by HUD to the Census Tract
level. The residential vacancy
adjustment factor reflects a state's
vacancy rate relative to the national
average and cannot increase or decrease
a state's proportional share of the
allocation based on foreclosures,
subprime loans, and delinquencies and
defaults by more than 10 percent.
Finally, if a statewide allocation is
less than $19.6 million, the statewide
grant is increased to $19.6 million.
Because this approach will result in a
total allocation in excess of
appropriation, all grant amounts above
$19.6 million are reduced pro -rata to
make the total allocation equal to the
total appropriation.
From each statewide allocation, a
substate allocation is made as follows:
• Each state government is allocated
$19.6 million.
• If the statewide allocation is more
than $19.6 million, the remaining funds
are allocated to FX 2008 CDBG
entitlement cities, urban counties, and
non -entitlement balance of state
proportional to relative need.
• If a local government receives less
than $2 million under this sub -
allocation, their grant is rolled up into
the state government grant.
Note that HUD has determined that
HERA's direction that a minimum of
$19.6 million be allocated to the state
means that a minimum grant must be
provided to each state government of
$19.6 million. As a result, this approach
provides state governments with
proportionally more funding than their
estimated need. As such, state
governments should use their best
judgment to serve both those areas not
receiving a direct grant and those areas
that do receive a direct grant, making
sure that the total of all funds in the
state are going proportionally more to
those places (as prescribed by HERA):
• "With the greatest percentage of
home foreclosures;
• With the highest percentage of
homes financed by a subprime mortgage
related loan; and
• Identified by the State or unit of
general local government as likely to
face a significant rise in the rate of home
foreclosures."
For the amount of funds above each
state's $19.6 million, the remaining
funds are allocated among the
entitlement communities and non-
Federal Register / Vol. 73, No. 194/Monday, October 6, 2008/Notices 58345
entitlement balances using the following
formula:
Local Allocation= (Statewide allocation — $19,600,000)*
[(Local estimate number of foreclosure starts in last 6 quarters)*
State total number of foreclosure starts in last 6 quarters
(Local vacancy rate in Census Tracts with more than 40% of the loans High-cost)]
State vacancy rate in Census Tracts with more than 40% of the loans High-cost
Where the residential vacancy rate
adjustment cannot increase or reduced a
local jurisdiction's allocation by more
than 30 percent and the estimated
number of foreclosures is calculated
based on a predicted foreclosure rate
times the estimated number of
mortgages in a community. HUD
analysis shows that 75 percent of the
variance between states on foreclosure
rates can be explained by three variables
available from public data:
• Office of Federal Housing
Enterprise Oversight (OFHEO) data on
change in home values as of June 2008
compared to peak home value since
2000.
• Percent of all loans made between
2004 and 2006 that are high cost as
reported in the Home Mortgage
Disclosure Act (HMDA).
• Unemployment rate as of June 2008
(from Bureau of Labor Statistics).
Because these three variables are
publicly available for all CDBG eligible
communities and they are good
predictors of foreclosure risk, they are
used in a model to calculate the
estimated number of foreclosures in
each jurisdiction within a state. The
formula used is as follows:
Predicted Foreclosure Rate = — 2.211
— (0.131 * Percent change in MSA
OFHEO current price relative to the
maximum in past 8 years)
+(0.152* Percent of total loans made
between 2004 and 2006 that are
high cost)
+(0.392*Percent unemployed in the
place our county in June 2008).
This predicted foreclosure rate is then
multiplied times the estimated number
of mortgages within a jurisdiction
(number of HMDA loans made between
2004 and 2006 times the ratio of ACS
2006 data on total mortgages in state /
HMDA loans in state). This "estimated
number of mortgages in the
jurisdiction" is further adjusted such
that the estimated number of
foreclosures from the model will equal
the total foreclosure starts in the state
from the Mortgage Bankers Association
National Delinquency Survey.
As noted above, for entitlement cities
and urban counties that would receive
an NSP allocation of less than $2
million, the funds are allocated to the
state grantee. The District of Columbia
and the four Insular Areas receive direct
allocations and are not subject to the
minimum grant threshold.
Because this funding is one-time
funding and the eligible activities under
the program are different enough from
the regular program, HUD believes that
a grantee must receive a minimum
amount of $2 million to have adequate
staffing to properly administer the
program effectively. In addition, fewer
grants will allow HUD staff to more
effectively monitor grantees to ensure
proper implementation of the program
and reduce the risk for fraud, waste, and
abuse.
State Grantee name NSP grant
amount
AK ............
ALASKA STATE PROGRAM....................................................................................................................................
$19,600,000
AL .............
ALABAMA STATE PROGRAM................................................................................................................I................
37,033,031
AL.............
BIRMINGHAM ............................................... ...................... ,............. .............. .......................................................
1..
2,580,214
AL.............
JEFFERSON COUNTY.............................................................................................................................................
2,237,876
AR............
ARKANSAS STATE PROGRAM..............................................................................................................................
19,600,000
AZ.............
PHOENIX..................................................................................................................................................................
39,478,096
AZ .............
ARIZONA STATE PROGRAM................................................................................................................I.................
38,370,206
AZ.............
MARICOPA COUNTY...............................................................................................................................................
9,974,267
AZ.............
MESA......................................................................................................................................................................,.
9,659,665
AZ.............
TUCSON...................................................................................................................................................................
7,286,911
AZ.............
GLENDALE...............................................................................................................................................................
6,184,112
AZ.............
PIMA COUNTY.........................................................................................................................................................
3,086,867
AZ.............
AVONDALE CITY.....................................................................................................................................................
2,466,039
AZ.............
CHANDLER...............................................................................................................................................................
2,415,100
AZ.............
SURPRISE TOWN ................................... ................................. ............. ............. .............
......................... ................
2,197,786
CA ............
CALIFORNIA STATE PROGRAM ............................................ ..................... ..............
........................................... -
145,071,506
CA ............
RIVERSIDE COUNTY...............................................................................................................................................
48,567,786
CA............
LOS ANGELES....................................................................................................................................................I....
32,860,870
CA ............
SAN BERNARDINO COUNTY.................................................................................................................................
22,758,188
CA............
SACRAMENTO COUNTY.........................................................................................................................................
18,605,460
CA ............
LOS ANGELES COUNTY.............................................................................................................I...........................
16,847,672
CA............
SACRAMENTO................................................................................................................................................I........
13,264,829
CA............
STOCKTON..............................................................................................................................................................
12,146,038
CA............
MORENO VALLEY .................................. ....................................................................................................
I............
11,390,116
CA............
KERN COUNTY........................................................................................................................................................
11,211,385
CA............
FRESNO...................................................................................................................................................................
10,969,169
58346 Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
State Grantee name NSP grant
amount
CA ............
STANISLAUS COUNTY............................................................................................................................................
9,744,482
CA............
SAN DIEGO..............................................................................................................................................................
9,442,370
CA............
SAN JOAQUIN COUNTY.........................................................................................................................................
9,030,385
CA............
BAKERSFIELD..........................................................................................................................................................
8,982,836
CA............
SAN BERNARDINO..................................................................................................................................................
8,408,558
CA............
OAKLAND.....................................................................................................................................................I...........
8,250,668
CA............
MODESTO................................................................................................................................................................
8,109,274
CA............
PALMDALE...............................................................................................................................................................
7,434,301
CA............
FRESNO COUNTY .. ....................... ____ .......................................................................
................................... I......
7,037,465
CA............
LANCASTER.............................................................................................................................................................
6,983,533
CA............
RIVERSIDE...............................................................................................................................................................
6,581,916
CA ............
CONTRA COSTA COUNTY.....................................................................................................................................
6,019,051
CA............
FONTANA ..............................................................................................................................................................
5,953,309
CA............
SANTA ANA..............................................................................................................................................................
5,795,151
CA............
SAN JOSE............................................................................................................................................................._
5,628,283
CA............
RIALTO.....................................................................................................................................................................
5,461,574
CA............
VICTORVILLE..................................................................................................................................................
I........
5,311,363
CA............
SAN DIEGO COUNTY................................................................................................................I.............................
5,144,152
CA............
LONG BEACH...........................................................................................................................................................
5,070,310
CA............
HESPERIA.................................................................................................................................I..............................
4,590,719
CA............
ANTIOCH..................................................................................................................................................................
4,049,228
CA............
CORONA...................................................................................................................................................................
3,602,842
CA............
POMONA....................... ..................................................................................................
............... I .......... I ............ 1.
3,530,825
CA............
RICHMOND.......................................................................................................................................................I.......
3,346,105
CA............
ORANGE COUNTY..................................................................................................................................................
3,285,926
CA............
COMPTON................................................................................................................................................................
3,242,817
CA............
APPLE VALLEY................................................................................................................................................I.......
3,064,836
CA............
HEMET.....................................................................................................................................................I................
2,888,473
CA............
CHULA VISTA................................................................................................................................................I_.......
2,830,072
CA............
ONTARIO........................................................................................................................................I.........................
2,738,309
CA............
VALLEJO...................................................................................................................................................................
2,657,861
CA............
ANAHEIM..................................................................................................................................................................
2,653,455
CA............
ELK GROVE.............................................................................................................................................................
2,389,651
CA............
VISALIA..............................................................................................................................................I.....................1
2,388,331
CA............
RANCHO CUCAMONGA..........................................................................................................................................
2,133,397
CA............
ALAMEDA COUNTY.................................................................................................................................................
2,126,927
CO ............
COLORADO STATE PROGRAM.............................................................................................................................
34,013,566
CO............
DENVER...................................................................................................................................................................
6,060,170
CO............
ADAMS COUNTY.....................................................................................................................................................
4,600,211
CO............
AURORA...................................................................................................................................................................
4,474,097
CO............
COLORADO SPRINGS............................................................................................................................................
3,904,989
CT ............
CONNECTICUT STATE PROG................................................................................................................................
25,043,385
DC............
WASHINGTON..........................................................................................................................................................
2,836,384
DE ............
DELAWARE STATE PROGRAM......................................................................................................I.......................
19,600,000
FL .............
FLORIDA STATE PROGRAM..........................................................................................................................I.......
91,141,478
FL .............
MIAMI-DADE COUNTY............................................................................................................................................
62,207,200
FL.............
ORANGE COUNTY...........................................................................................................................I......................
27,901,773
FL.............
PALM BEACH COUNTY...........................................................................................................................................
27,700,340
FL .............
JACKSONVILLE-DUVAL................................................................................................................I.........................
26,175,317
FL.............
PASCO COUNTY.................................................................................................................................I...................
19,495,805
FL.............
HILLSBOROUGH COUNTY.............................................................................................................................I.......
19,132,978
FL.............
LEE COUNTY...........................................................................................................................................................
18,243,867
FL.............
BROWARD COUNTY...............................................................................................................................................
17,767,589
FL.............
POLK COUNTY........................................................................................................................................................
14,586,258
FL.............
TAMPA......................................................................................................................................................................
13,600,915
FL.............
PORT ST LUCIE.......................................................................................................................................................
13,523,132
FL.............
MIAMI........................................................................................................................................................................
12,063,702
FL.............
ST PETERSBURG....................................................................................................................................................
9,498,962
FL.............
MIRAMAR.................,..............................................................................................................................I................
9,312,658
FL.............
PINELLAS COUNTY.................................................................................................................................................
8,063,759
FL.............
HOLLYWOOD...........................................................................................................................................................
7,534,603
FL.............
COLLIER COUNTY......................................................................................................................I...I....I...................
7,306,755
FL.............
SARASOTA COUNTY..............................................................................................................................................
7,140,861
FL.............
CAPE CORAL...........................................................................................................................................................
7,065,484
FL.............
SEMINOLE COUNTY...............................................................................................................................................
7,019,514
FL .............
MIAMI GARDENS CITY...............................................................................................................I....................I.......
6,866,119
FL.............
ORLANDO........................................................................................................,........................................................
6,730,263
FL.............
DELTONA.................................................................................................................................................................
6,635,909
FL.............
MARION COUNTY....................................................................................................................................................
6,324,055
FL.............
HIALEAH......................................... ...................................... ............................................................................
,.......
5,385,046
FL.............
MANATEE COUNTY.................................................................................................................................................
5,283,122
FL.............
BREVARD COUNTY.....................................................................................................................I...........................
5,269,667
FL.............
VOLUSIA COUNTY ................................................. ....................................... .........................................................
5,222,831
Federal Register/Vol. 73. No. 194/MoudaT. October 0' 2008/Noticeo 58347
otate| o�n�onu�a | wsp
grant
amount
5,208,104
FL
*772,218
FL
4.565.918
FL
4,398.575
FL
*,366.157
FL
*.349.546
FL
4,293.288
FL
3.700.096
FL
3.*94.986
FL
3.378.142
FL
3.136.9e7
FL
2.963.311
FL
2.887.010
FL
2,847,089
FL
2.371.7*e
FL
2'2e7.318
FL
2.106.555
FL
pLAmrxTmw ----------------------------------------------------
2.016.30e
FL
ELAND
2.005.781
FL.............
neEop/sLmaEAc* .......................................... --- ..... .......................................................................................
...
2,005,699
GA
77.085.125
sa
18,545,013
GA
12.316.082
ux
10,507,827
GA----
puoumCOUNTY ............................................................................ ...................
...................................... ............
10'333.410
GA----
CLAYTON COUNTY ........ ......................... ................ ....... .....................................................................................
e.732.1e6
GA
COBB COUNTY
6,889.134
ua ----
cuLomBus'mmsCuuEs ---------------------------------------------.
3.117.03e
aA---'
AUGUSTA
2.473,064
GA ---'
uavAmmxH ----------------------------------------------------'
2,038.631
HI ----'
19,600000
IA ----
21,607197
ID- ---
19,600,000
/L ----'
omoAGo -----------------------------------------------------'
55,238017
/L ----
ILLINOIS STATE PROGRAM -------------------------------------------'
53'113,044
|L —
COOK COUNTY -----------..................................................................................................................
28,156,32
|L ----
ouPAGE COUNTY ------_---.......................
5,176,438
|L ..............
WILL COUNTY ---------------------------------------------------
5.160,424
/L ----'
LAKE COUNTY ---------------------------------------------------
4,600.800
|L ---'
JouET ...................................................
3,53 1,810
|L ----'
wCc*EwnvCoowry -----------------------------------------------
3.085.695
/L ..............
AURORA ..... ........................... ......................... ......................................................................
..............................
3,083,56e
|L ----'
nAmscouwTv --------------------------------------------------.
2.576,36e
/L ----'
ROCKFORD ......................... ................................................................. ......................
.... ...... .............................
2.287.004
IL ----'
GTCuun oDowTv ------------------------------------------------'
2,262,015
|L ..............
ELGIN ----------....................................................................................................................................
2,159,623
IL----'
nICeno ..................................... ..............................................................................................
....... .......................
2,078,35
xv----'
INDIANA STATE PROGRAM -------------------------------------------.
83757.048
IN ..............
/wmAmApoua —__------_--------------------------------'
29,05 1,059
IN ..............
poRTWm/ws —_------_------------------------------.-----'
7,063,956
IN ----'
LAKE COUNTY ---------------------------------------------------
5738,024
IN..............
SOUTH BEND ...........................................................................................................................................................
4,098,52
IN ----'
*Awm0wo ---------------------------------------------------.
3.860,473
IN----'
GARY ........................................................
3/836758
IN ----'
evAwowLLE --------------------------------------------------'
3,605.204
|m----'
HAMILTON COUNTY .............. ................................................................................................................................
2,343868
IN ----'
ELx*Aqr -----------------------------------------------------
2,251,346
IN ----'
xomomo -----------------------------------------------------'
2.181,088
IN ..............
AmosRsow _--------------------------------'_---------'
2,1*1Je5
IN ----'
wuwcIE ------------------------------------------------------
2.007,35e
xs ---.
KANSAS STATE PROGRAM ----------------------------'_--------.
e0,970,242
wv ----
KENTUCKY STATE PROGRAM ------------------------------------------
37,*0878e
KY ----
LoumvuLs ----------------------------------------------------
6,973J21
Lx .............
LOUISIANA STATE PROGRAM ------------------_-----------------'
34,183,994
LA .............
BATON R000s --------------------------------------------------.
2,308848
LA .............
NEW onLsAme --------------------------------------------------
2.302.208
MA ---'
MASSACHUSETTS STxTEpnoo ----------------------------------------.
*3.466,030
wm ---'
eooTow ------------------------------------------------------
*,230191
wm ---'
opmwaFIsLo ---------------------------------------------------
e,566.272
wm ---'
WonoeaTsR ---------------------------------------------------.
2,3e0,858
wm ---
eRnopTow ---_--------------_--------------------------_'
2,152,979
MD.-- —' |
MARYLAND STATE PROGRAM .............................. .............. —....... ......................................................................
|
28,778,469
58348 Federal Register/Vol. 73, No. 194/Monday, October 6, 2008/Notices
State Grantee name NSP grant
amount
MD............
BALTIMORE..............................................................................................................................................................
4,112,239
MD............
BALTIMORE COUNTY.............................................................................................................................................
2,596,880
ME............
MAINE STATE PROGRAM......................................................................................................................................
19,600,000
MI .............
MICHIGAN STATE PROGRAM................................................................................................................................
98,653,915
MI.............
DETROIT ........................................... ............................ ...............
...................... ......... .......................................... I...
47,137,690
MI.............
WAYNE COUNTY.....................................................................................................................................................
25,909,153
MI.............
OAKLAND COUNTY.................................................................................................................................................
17,383,776
MI.............
MACOMB COUNTY.................................................................................................................................................1
9,765,375
MI.............
GENESEE COUNTY.................................................................................................................................................
7,506,343
MI.............
GRAND RAPIDS.......................................................................................................................................................
6,187,686
MI.............
LANSING...................................................................................................................................................................
5,992,160
MI.............
WARREN..................................................................................................................................................................
5,829,447
MI.............
FLINT........................................................................................................................................................................
4,224,621
MI.............
KENT COUNTY........................................................................................................................................................
3,912,796
MI.............
PONTIAC..................................................................................................................................................................
3,542,002
MI.............
SOUTHFIELD............................................................................................................................................................
3,241,457
MI.............
REDFORD.................................................................................................................................................................
3,041,364
MI.............
WASHTENAW COUNTY..........................................................................................................................................
3,024,719
MI.............
TAYLOR..............................................................................................................................................................I.....
2,495,056
MI.............
STERLING HEIGHTS...............................................................................................................................................
2,454,961
MI.............
DEARBORN..............................................................................................................................................................
2,436,246
MI.............
LINCOLN PARK........................................................................................................................................................
2,417,688
MI.............
CANTON TWP..........................................................................................................................................................
2,182,988
MI.............
CLINTON TWP.........................................................................................................................................................
2,147,608
MI.............
WESTLAND..............................................................................................................................................................
2,061,722
MI .............
WATERFORD TOWNSHIP.......................................................................................................................................
2,014,489
MN............
MINNESOTA STATE PROGRAM............................................................................................................................
38,849,929
MN............
MINNEAPOLIS.......................................................................................................................................I..................
5,601,967
MN............
ST PAUL...................................................................................................................................................................
4,302,249
MN............
HENNEPIN COUNTY...............................................................................................................................................
3,885,729
MN—.........
DAKOTA COUNTY...........................................................................................................................................I.......
2,765,991
MN—.........
ANOKA COUNTY.....................................................................................................................................................
2,377,310
MO ...........
MISSOURI STATE PROGRAM................................................................................................................................
42,664,187
MO...........
ST LOUIS COUNTY.................................................................................................................................................
9,338,562
MO...........
KANSAS CITY..........................................................................................................................................................
7,323,734
MO...........
ST LOUIS..................................................................................................................................................................
5,532,792
MS ............
MISSISSIPPI STATE PROG....................................................................................................................................
43,151,914
MS............
JACKSON.................................................................................................................................................................
3,116,049
MT ............
MONTANA STATE PROGRAM................................................................................................................................
19,600,000
NC ............
NORTH CAROLINA STA PROG......................................................................................................................I.......
52,303,004
NC............
CHARLOTTE.............................................................................................................................................................
5,431,777
NO ............
NORTH DAKOTA STATE PROG.............................................................................................................................
19,600,000
NE ............
NEBRASKA STATE PROGRAM..............................................................................................................................
19,600,000
NH ............
NEW HAMPSHIRE STATE PROG...........................................................................................................................
19,600,000
NJ .............
NEW JERSEY STATE PROGRAM..................................................................................................................I.......
51,470,620
NJ.............
NEWARK...................................................................................................................................................................
3,406,849
NJ.............
UNION COUNTY......................................................................................................................................................
2,601,755
NJ.............
PATERSON...............................................................................................................................................................
2,266,641
NJ.............
JERSEY CITY...........................................................................................................................................................
2,153,431
NJ.............
BERGEN COUNTY...................................................................................................................................................
2,096,194
NM ............
NEW MEXICO STATE PROGRAM..................................................................................................................I.......
19,600,000
NV............
NEVADA STATE PROGRAM...................................................................................................................................
24,287,240
NV............
CLARK COUNTY......................................................................................................................................................
22,829,062
NV............
LAS VEGAS..............................................................................................................................................................
14,775,270
NV............
NORTH LAS VEGAS................................................................................................................................................
6,837,736
NV............
HENDERSON...........................................................................................................................................................
3,205,044
NY............
NEW YORK STATE PROGRAM..............................................................................................................................
54,556,464
NY............
NEW YORK CITY.....................................................................................................................................................
24,257,740
NY............
NASSAU COUNTY...................................................................................................................................................
7,767,916
NY............
SUFFOLK COUNTY.................................................................................................................................................
5,681,443
NY............
ISLIP TOWN..........................................................................................................................................I........I.........
3,720,392
NY............
BABYLON TOWN.....................................................................................................................................................
2,170,909
NY............
ORANGE COUNTY..................................................................................................................................................
2,163,744
OH ............
OHIO STATE PROGRAM.........................................................................................................................................
116,859,223
OH............
COLUMBUS .............................. ..............................................................................................................
....... I..........
22,845,495
OH............
CLEVELAND............................................................................................................................................I................
16,143,120
OH............
TOLEDO....................................................................................................................................................................
12,270,706
OH............
CUYAHOGA COUNTY.............................................................................................................................................
11,212,447
OH............
AKRON......................................................................................................................................................................
8,583,492
OH............
CINCINNATI..............................................................................................................................................................
8,361,592
OH............
HAMILTON COUNTY...............................................................................................................................................
7,970,490
OH.............
MONTGOMERY COUNTY.......................................................................................................................................
5,988,000
OH............
DAYTON...................................................................................................................................................................
5,582,902
Federal Register/Vol. 73, No. 194/Monday, October 6, 2008 /Notices 58349
State
Grantee name
NSP grant
amount
OH............
FRANKLIN COUNTY............................................................. ......... .................... .....................
...................... I ........ ..
5,439,664
OH............
BUTLER COUNTY........................................................................................................................................I...........
4,213,742
OH............
STARK COUNTY......................................................................................................................................................
4,181,673
OH............
SUMMIT COUNTY....................................................................................................................................................
3,767,144
OH............
CANTON...................................................................................................................................................................
3,678,562
OH............
LAKE COUNTY.........................................................................................................................................................
3,402,859
OH............
LORAIN.....................................................................................................................................................................
3,031,480
OH............
YOUNGSTOWN........................................................................................................................................I...............
2,708,206
OH............
EUCLID.....................................................................................................................................................................
2,580,464
OH............
ELYRIA......................................................... ........... .............................................................................................
I....
2,468,215
OH............
HAMILTON CITY......................................................................................................................................................
2,385,315
OH............
SPRINGFIELD..........................................................................................................................................................
2,270,009
OH............
MIDDLETOWN..........................................................................................................................................................
2,144,379
OK ............
OKLAHOMA STATE PROGRAM.............................................................................................................................
29,969,459
OK ............
OKLAHOMA CITY.....................................................................................................................................................
2,882,282
OR ............
OREGON STATE PROGRAM....................................................................................................................I.............
19,600,000
PA ............
PENNSYLVANIA STATE PROG.....................................................................................................................I........
59,631,318
PA............
PHILADELPHIA......................................................................................................................................I.................1
16,832,873
PA ............
ALLEGHENY COUNTY............................................................................................................................................
5,524,950
PA............
ALLENTOWN.................................................................................................................................................I..........
2,113,456
PA............
YORK COUNTY........................................................................................................................................................
2,017,253
PA............
PITTSBURGH ............................ ................................................... ........... .....................................
I ... I .................. I....
2,002,958
PR............
PUERTO RICO STATE PROG.................................................................................................................................
19,600,000
RI ..............
RHODE ISLAND STATE PROG.........................................................................................................I.....................
19,600,000
SC ............
SOUTH CAROLINA STA PROG..............................................................................................................................
44,673,692
SC............
GREENVILLE COUNTY...........................................................................................................................................
2,262,856
SC ............
RICHLAND COUNTY................................................................................................................................................
2,221,859
SD ............
SOUTH DAKOTA STATE PROG............... ..........................................................................................................
I...
19,600,000
TN ............
TENNESSEE STATE PROGRAM............................................................................................................................
49,360,421
TN............
MEMPHIS..................................................................................................................................................................
11,506,415
TN ............
NASHVILLE-DAVIDSON...........................................................................................................................................
4,051,398
TN ............
SHELBY COUNTY....................................................................................................................................................
2,752,708
TN............
KNOXVILLE..............................................................................................................................................................
2,735,980
TN............
CHATTANOOGA.......................................................................................................................................................
2,113,727
TX .............
TEXAS STATE PROGRAM .................. .............................................................. ..........................
I...........................
101,996,848
TX.............
HARRIS COUNTY....................................................................................................................................................
14,898,027
TX.............
HOUSTON................................................................................................................................................................
13,542,193
TX.............
SAN ANTONIO......................................................................................................................................................
8,635,899
TX.............
DALLAS ........................ ............................................................................................ .
................................. I..............
7,932,555
TX.............
FORT WORTH..........................................................................................................................................................
6,307,433
TX.............
DALLAS COUNTY............................................................................................................................................I.......
4,405,482
TX.............
TARRANT COUNTY.................................................................................................................................................
3,293,388
TX.............
EL PASO...................................................................................................................................................................
3,032,465
TX_...........
HIDALGO COUNTY..................................................................................................................................................
2,867,057
TX_..........
FORT BEND COUNTY .... ...... ..............................................................................................................
I....................
2,796,177
TX.............
GRAND PRAIRIE........................................................................................................................I.............................
2,267,290
TX.............
MESQUITE................................................................................................................................................................
2,083,933
TX.............
ARLINGTON..............................................................................................................................I............I.......I.........
2,044,254
TX.............
GARLAND............................................................................................................................................I....................
2,040,196
UT............
UTAH STATE PROGRAM........................................................................................................................................
19,600,000
VA............
VIRGINIA STATE PROGRAM.............................................................................................................I....................
38,749,931
VA............
PRINCE WILLIAM COUNTY.........................................................................................................................I......I...
4,134,612
VA............
FAIRFAX COUNTY ....................................... ............................................................................
................. I ......... .....
2,807,300
VT .............
VERMONT STATE PROGRAM................................................................................................................................
19,600,000
WA ...........
WASHINGTON STATE PROGRAM...........................................................................................................I.........I...
28,159,293
WI .............
WISCONSIN STATE PROGRAM ................. ....................................... .........................
........ ....... I.,..........................
38,779,123
WI.............
MILWAUKEE..............................................................................................................................................I...I..........
9,197,465
WV ...........
WEST VIRGINIA STATE PROG..............................................................................................................................
19,600,000
WY ...........
WYOMING STATE PROGRAM.....................................................................................................I..........................
19,600,000
XX............
INSULAR AREAS.....................................................................................................................................................
1,144,289
[FR Doc. E8-23476 Filed 10-3-08; 8:45 am]
BILLING CODE 4210-67-P