Community Development Work Study Program; Proposed Amendments

SUMMARY: This proposed rule would revise HUD's regulations governing

the Community Development Work Study Program (CDWSP). Under the CDWSP,

HUD awards grants to institutions of higher education, either directly

or through areawide planning organizations (APOs) or States, for the

purpose of providing assistance to economically disadvantaged and

minority students who participate in a community development work study

program while enrolled in a full-time graduate or undergraduate

Community Development Academic Program. This rule proposes to make

several revisions to the CDWSP so that it can more effectively and

efficiently meet its program objectives. Among other changes, this

proposed rule would limit the number of students assisted under CDWSP

to 5 students per participating institution of higher education, limit

the CDWSP to graduate-level programs, and permit institutions of higher

learning to apply individually or through APOs.

DATES: Comments Due Date: January 5, 1996.

ADDRESSES: Interested persons are invited to submit comments regarding

this proposed rule to the Office of the General Counsel, Rules Docket

Clerk, Room 10276, Department of Housing and Urban Development, 451

Seventh Street SW., Washington, D.C. 20410-0500. Communications should

refer to the above docket number and title and to the specific sections

of the regulation. Facsimile (FAX) comments are not acceptable. A copy

of each communication submitted will be available for public inspection

and copying during regular business hours at the above address.

FOR FURTHER INFORMATION CONTACT: John Hartung, Office of University

Partnerships, Department of Housing and Urban Development, Room 8130,

451 Seventh Street SW., Washington, D.C. 20410, telephone (202) 708-

1537. Hearing or speech-impaired individuals may call HUD's TDD number

(202) 708-0770, or 1-800-877-8399 (Federal Information Relay Service

TDD). (Other than the ``800'' number, these are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act Statement

The information collection requirements contained in this proposed

rule have been submitted to the Office of Management and Budget (OMB)

for review under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-

3520). No person may be subjected to a penalty for failure to comply

with these information collection requirements until they have been

approved and assigned an OMB control number. The public reporting

burden is estimated to include the time for reviewing the instructions,

searching existing data sources, gathering and maintaining the data

needed, and completing and reviewing the collection of information in

instances where such action would be necessary. Information on the

estimated public reporting burden is provided under the Preamble

heading, Other Matters. Send comments regarding this burden estimate or

any other aspect of this collection of information, including

suggestions for reducing this burden, to the Department of Housing and

Urban Development, Rules Docket Clerk, 451 Seventh Street SW., Room

10276, Washington, D.C., 20410-0500; and to the Office of Information

and Regulatory Affairs, Office of Management and Budget, Attention:

Desk Officer for HUD, Washington, D.C. 20503.

II. Background

Section 501(b)(2) of the Housing and Community Development Act of

1987 (Pub. L. 100-242, approved February 5, 1988) added a new section

107(c) to the Housing and Community Development Act of 1974 (42 U.S.C.

5301 et seq.), authorizing the Community Development Work Study Program

(CDWSP). Under the CDWSP, HUD is authorized to award grants to

institutions of higher education, either directly or through areawide

planning organizations (APOs) or States, for the purpose of providing

assistance to economically disadvantaged and minority students who

participate in a community development work study program while

enrolled in a full-time graduate or undergraduate Community Development

Academic Program.

On June 27, 1989 (54 FR 27128), HUD published a final rule

implementing section 107(c) at 24 CFR 570.415. Since that date, HUD has

published Notices of Funding Availability (NOFAs) for the purpose of

soliciting applications for CDWSP grant awards. Based on its experience

in administering the CDWSP, HUD is proposing to make several amendments

to 24 CFR 570.415 so that the CDWSP can more effectively and

efficiently meet its program objectives.

A. CDWSP Limited to Graduate Programs

The Secretary of HUD is authorized by 24 CFR 570.415(a) to fund

both graduate and undergraduate students through CDWSP. However,

experience has convinced HUD that graduate-level programs are better

suited to CDWSP. Graduate programs in community and economic

development and related fields almost always include an internship or

related component that introduces most of the program's students to

professional work experience.

Moreover, the master's degree has become the accepted credential

for professional positions in community and economic development and

related fields. Graduate-level CDWSP students are, therefore, qualified

to immediately assume positions enabling substantial contributions in

these fields. Accordingly, HUD has determined that CDWSP funds can be

utilized more effectively by limiting CDWSP to graduate-level programs.

HUD proposes to amend Sec. 570.415 to limit CDWSP to provide

opportunities for relevant graduate-level study.

B. Proposed Amendments to 24 CFR 570.415(b)

Paragraph (b) of Sec. 570.415 sets forth the program's definitions.

This proposed rule would clarify the definition of ``areawide planning

organization''. Language in the current definition of that term

referencing the ``metropolitan or nonmetropolitan area'' served by an

APO was confusing inasmuch as no specific ``nonmetropolitan'' areas are

delineated for census purposes. The definition would be amended to make

clear that the relevant geographic area for purposes of the APO is the

area defined by the State law or interlocal agreement creating it.

Amendments to 24 CFR 570.415(b) would also clarify HUD's

interpretation of the statutory phrase ``community and economic

development, community planning or community management'' with

reference to the types of employment opportunities and academic

programs the CDWSP addresses. Specifically, the term ``community

building'' would be added

[[Page 56105]]

and would be defined to include all the disciplines the statutory

phrase ``community and economic development, community planning or

community management'' was meant to encompass. The term ``community

building academic program'' would replace ``community development

academic program'' and would be defined to encompass academic programs

whose purpose and focus is to prepare students for careers in community

building. Finally, the definition of the term ``Institution of higher

education'' would be amended to reference ``community building academic

program'' rather than ``community development academic program.''

C. Proposed Amendments to 24 CFR 570.415(c)

Several changes to 24 CFR 570.415(c) are proposed. First, 24 CFR

570.415(c)(1)(A) would be amended to specify that the student's hourly

rate should be sufficiently high to permit the student to earn the full

stipend by working no more than 20 hours per week during the school

year and 40 hours per week in the summer. HUD's experience suggests

that some CDWSP students have worked at hourly rates which make it

difficult to exhaust the stipend. HUD, however, intends that students

be able to earn the full stipend if the specified hours are worked.

Furthermore, 24 CFR 570.415(c)(2) would be amended to limit the

number of students assisted under the CDWSP to five students per

participating institution of higher education. HUD is interested in

funding economically disadvantaged and minority students who show

strong potential for academic and professional success in community

development and related fields. Given the large number of institutions

of higher education interested in the CDWSP, HUD's experience suggests

that the strongest overall group of CDWSP students would be recruited

by having numerous institutions of higher education select their few

most qualified economically disadvantaged and minority students, rather

than channeling the funds so that any single institution of higher

education distributes up to ten awards. The minimum number of students

to be assisted by a grant would remain unchanged, so that the students

earn adequate funds to pursue their degree.

D. Proposed Amendments to 24 CFR 570.415(d)

This proposed rule would amend 24 CFR 570.415(d)(1) to permit each

eligible institution of higher education to choose whether to apply

individually or participate in an APO or State's CDWSP application.

Through this approach, a State or an APO could apply with some

participating institutions of higher education at the same time that

other institutions of higher education in the area or State submit

separate applications. The current rule prohibits institutions of

higher education from applying individually if they are located within

the jurisdiction of an APO or State that is applying.

HUD has found that many institutions of higher education are

pleased to participate in the application of an APO. However, HUD also

recognizes that some institutions of higher education might submit

stronger applications and administer a program as well or better than

their area APO. HUD's experience suggests that such institutions of

higher education should be permitted to determine whether it is to

their advantage to apply separately or to participate in the

application of an APO or State. HUD, however, does not intend to permit

an institution of higher education to apply both separately and as part

of an APO or State's application during a single funding cycle. The

proposed rule would amend Sec. 570.415(d)(1)(iii) to set forth the

procedure for disregarding an application under such circumstances.

Without this amendment, an institution of higher education that

might be an excellent candidate for CDWSP funding could be denied an

opportunity for funding simply because its APO or State unsuccessfully

applies. Giving institutions this option would also strongly encourage

APOs to develop or maintain excellent work study programs which are

capable of attracting the participation of the area's institutions of

higher education.

Paragraph (d)(2)(i)(D) of Sec. 570.415 sets forth a requirement of

periodic seminars. HUD continues to believe that seminars can often be

a useful means of relating CDWSP work experience to the student's

academic program. Nevertheless, HUD is proposing that CDWSP seminars no

longer be mandatory, for several reasons. First, many graduate programs

in community building have a professional practice seminar as a

requirement of the graduate program itself. Second, the experience of

many students in CDWSP involves ongoing, informal mentoring and work-

related counseling from the program director and other faculty.

Discussions with CDWSP recipients and students have convinced HUD that

the recipients are best positioned to determine how administrative

funds can be used most effectively to further the program's objectives.

Paragraph (d)(2)(i)(F) of Sec. 570.415 would be amended to state

that the recipient must encourage participating students to seek post-

graduation employment with specified types of employers engaged in

community building. The current regulation requires that students be

encouraged to seek employment with specified types of employers

receiving community development funds. This proposed change recognizes

that a CDWSP student's post-graduation employment in community building

comports with CDWSP objectives even if his or her particular employer

is not receiving community development funds.

E. Elimination of the Repayment Requirements in 24 CFR 570.415(g) and

24 CFR 570.415(k)

The repayment requirements in paragraphs (g)(3)(i) and (k)(3)(ii)

of Sec. 570.415 would be eliminated. Currently, 24 CFR 570.415(g)(3)(i)

states that students who are terminated from CDWSP participation

without having completed their academic program must repay to the

recipient any tuition and non-stipend assistance received through

CDWSP. Paragraph (k)(3)(ii) of Sec. 570.415, in turn, requires that the

recipient repay to the Federal Government the tuition and other non-

stipend assistance the student has received, and imposes this

requirement regardless of whether the recipient collects the funds from

the student.

Based on experience and discussions with recipients, HUD has

determined that these repayment requirements should be eliminated, for

several reasons. First, HUD believes that a repayment requirement is

unnecessary as an incentive to select highly motivated students.

Recipients already have a strong incentive to select highly motivated

students since their CDWSP funding in any funding cycle depends in

significant part on the graduation rate of students to whom the

recipient provided CDWSP or similar funding.

Moreover, as noted above, the program is to be revised to further

limit the number of students funded per institution of higher

education. The increased selectivity that institutions of higher

education will necessarily exercise suggests that the academic

potential and motivation of CDWSP students can be expected to be even

higher than in the past. Furthermore, the requirement may discourage

students from seeking to participate in CDWSP since the financial risk

of failure to complete the program may appear substantial.

[[Page 56106]]

HUD further notes that the repayment requirements also impose a

substantial cost (administrative burden and repayment costs) to

recipients who attempt to collect funds for academic credit hours and

other support the student has already been provided. Because a CDWSP

student is necessarily economically disadvantaged, the student cannot

generally repay the debt other than in small payments over a long

period of time involving considerable administrative burden to the

recipient. HUD is aware of occasions in which institutions of higher

education have had to either ``write off'' the debt as uncollectible or

collect small periodic payments.

F. Proposed Amendments to 24 CFR 570.415(i)

Paragraph (i) of Sec. 570.415 would be amended in several respects.

The initial sentence in 24 CFR 570.415(i)(2) would be amended to

clarify that a threshold review for applicant eligibility occurs before

applications are rated and placed in priority funding order.

Paragraph (i)(5) of Sec. 570.415, concerning the ranking of

otherwise eligible applicants, would be amended to clarify the

selection criteria, eliminate duplication of issues among criteria, and

make the criteria consistent with other proposed changes. Paragraph

(i)(2)(i) of Sec. 570.415, which establishes the quality of the

academic program as a ranking factor, would be clarified so as to set

forth a non-exhaustive list of academic program quality indicators. The

issue of the graduation rate among the applicant's past CDWSP students,

which is currently part of the academic quality factor, would be set

forth as a separate factor to reflect that factor's independent

significance.

A new factor would be added as 24 CFR 570.415(i)(2)(iii), dealing

with the recipient's commitment to meeting the needs of CDWSP-funded

students. This consideration is already partially encompassed in 24 CFR

570.415(i)(2)(vi), dealing with the applicant's ``relative commitment

to meeting the needs of minority economically disadvantaged students.''

However, 24 CFR 570.415(i)(2)(vi) has lacked clarity, and applicants

have responded to it in varying and inconsistent ways, with some

applicants referring to their indirect costs, others referring to

additional tuition support, and still others simply restating

information used in responding to other ranking factors.

HUD intends to have this new, separate factor address the

institution of higher education's commitment to help the CDWSP student

see his or her way through the program financially. HUD is aware, from

communications with recipients and students, that the CDWSP award

leaves many CDWSP-funded students significantly short of funds to

pursue their degree, even though they are working twenty hours per

week. HUD believes a student's ability to pursue the academic program

without undue financial stress is of great importance to the student's

success.

Proposed 24 CFR 570.415(i)(2)(v) would address the likelihood that

an applicant's program will lead students to permanent employment in

community building, a consideration currently addressed in 24 CFR

570.415(i)(2)(iv). HUD would clarify this factor by setting forth

several primary determinants of how well the factor is met. Proposed 24

CFR 570.415(i)(2)(vi) would be identical to the current 24 CFR

570.415(i)(2)(v).

Proposed 24 CFR 570.415(i)(2)(vii) would address the applicant's

commitment to meeting the needs of economically disadvantaged and

minority students. This factor, a modification of the present 24 CFR

570.415(i)(2)(vi), would clarify that the program is intended to

address the needs of both minority and nonminority economically

disadvantaged students.

III. Other Matters

A. Environmental 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 implements section 102(2)(C) of the National Environmental Policy

Act of 1969 (NEPA). This Finding of No Significant Impact is available

for public inspection between 7:30 a.m. and 5:30 p.m. weekdays in the

Office of the Rules Docket Clerk, Office of the General Counsel,

Department of Housing and Urban Development, Room 10276, 451 Seventh

Street SW., Washington, DC 20410-0500.

B. Regulatory Flexibility

The Secretary, in accordance with the Regulatory Flexibility Act (5

U.S.C. 605(b)), has reviewed and approved this proposed rule, and in so

doing certifies that this proposed rule will not have a significant

economic impact on a substantial number of small entities. This rule

only affects applicants and participants in HUD's Community Development

Work Study Program, and will not have any meaningful economic impact on

any entity.

C. Public Reporting Burden

This rule does not propose to add to the overall information

collection requirements of the Community Development Work Study

Program. Nevertheless, because the proposed rule would alter the

specific information requirements for applying for the program, the

information collection requirements of this program, as amended, are

being submitted to OMB for review under section 3504(h) of the

Paperwork Reduction Act of 1980. Information on these requirements is

provided as follows:

Annual Reporting Burden--24 CFR 570.415, Community Development Work Study

----------------------------------------------------------------------------------------------------------------

Total

Number of annual Hours per Total hours

respondents responses response

----------------------------------------------------------------------------------------------------------------

Application................................................. 75 75 20 1,500

Annual reports.............................................. 30 30 6 180

Final reports............................................... 30 30 8 240

Recordkeeping............................................... 30 30 5 150

---------------------------------------------------

2,070

----------------------------------------------------------------------------------------------------------------

D. Federalism Impact

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612, Federalism, has determined that the policies

contained in this proposed rule will not have substantial direct

effects on States or their political subdivisions, or the relationship

between the Federal government and the States, or on the distribution

of power and responsibilities among the various levels of government.

Specifically, the requirements of this proposed rule are

[[Page 56107]]

directed toward applicants and participants in HUD's Community

Development Work Study Program (CDWSP). It effects no changes in the

current relationships between the Federal government, the States and

their political subdivisions in connection with CDWSP.

E. Family Impact

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that this proposed rule does

not have the potential for significant impact on family formation,

maintenance and general well-being, and, thus, is not subject to review

under the Order. No significant changes in existing HUD policies or

programs will result from promulgation of this proposed rule, as those

policies and programs relate to family concerns.

F. Executive Order 12866

This proposed rule was reviewed by the Office of Management and

Budget under Executive Order 12866, Regulatory Planning and Review. Any

changes made to the proposed rule as a result of that review are

clearly identified in the docket file, which is available for public

inspection in the office of the Department's Rules Docket Clerk, Room

10276, 451 Seventh Street SW., Washington, DC 20410-0500.

List of Subjects in 24 CFR Part 570

Administrative practice and procedure, American Samoa, Community

development block grants, Grant programs--education, Grant programs--

housing and community development, Guam, Indians, Lead poisoning, Loan

programs--housing and community development, Low and moderate income

housing, New communities, Northern Mariana Islands, Pacific Islands

Trust Territory, Pockets of poverty, Puerto Rico, Reporting and

recordkeeping requirements, Small cities, Student aid, Virgin Islands.

The Catalog of Federal Domestic Assistance program number is

14.234.

Accordingly, 24 CFR part 570 is proposed to be amended as follows:

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

1. The authority citation for 24 CFR part 570 continues to read as

follows:

Authority: 42 U.S.C. 3535(d) and 5300-5320.

Subpart E--Special Purpose Grants

2. Section 570.415 is amended by:

a. Revising paragraph (a);

b. Revising paragraph (b);

c. Revising paragraphs (c)(1)(i) (A), (B), and (C), and (c)(2);

d. Revising paragraphs (d)(1)(i) (A) and (B), (d)(1)(ii), and

(d)(1)(iii);

e. Revising paragraph (d)(2)(i)(A);

f. Removing paragraph (d)(2)(i)(D) and redesignating paragraphs

(d)(2)(i) (E) through (I) as paragraphs (d)(2)(i) (D) through (H),

respectively;

g. Revising newly designated (d)(2)(i)(E);

h. Revising paragraphs (f)(1) and (f)(2)(i);

i. Revising paragraphs (g)(1) (ii) and (iii), (g)(2)(ii), and

(g)(3) (i) and (ii);

j. Revising paragraphs (i)(1)(iii) and (i)(2);

k. Revising paragraph (k)(3)(ii); and

l. Removing paragraph (k)(3)(iii) and redesignating paragraph

(k)(3)(iv) as paragraph (k)(3)(iii), to read as follows:

Sec. 570.415 Community Development Work Study Program.

(a) Applicability and objectives. HUD makes grants under CDWSP to

institutions of higher education, either directly or through areawide

planning organizations or States, for the purpose of providing

assistance to economically disadvantaged and minority students who

participate in a work study program while enrolled in full-time

graduate programs in community and economic development, community

planning, and community management. The primary objectives of the

program are to attract economically disadvantaged and minority students

to careers in community and economic development, community planning,

and community management, and to provide a cadre of well-qualified

professionals to plan, implement and administer local community

development programs.

(b) Definitions. The following definitions apply to CDWSP:

Applicant means an institution of higher education, a State, or an

areawide planning organization that submits an application for

assistance under CDWSP.

Areawide planning organization (APO) means an organization

authorized by law or by interlocal agreement to undertake planning and

other activities for a particular geographic area.

CDWSP means the Community Development Work Study Program.

Community building means community and economic development,

community planning, community management, land use and housing

activities.

Community building academic program or academic program means a

graduate degree program whose purpose and focus is to educate students

in community building. ``Community building academic program'' or

``academic program'' includes but is not limited to graduate degree

programs in community and economic development, community planning,

community management, public administration, public policy, urban

economics, urban management, and urban planning. ``Community building

academic program'' or ``academic program'' excludes social and

humanistic fields such as law, economics (except for urban economics),

education and history. ``Community building academic program'' or

``academic program'' excludes joint degree programs except where both

joint-degree fields have the purpose and focus of educating students in

community building.

Economically disadvantaged and minority students means students who

satisfy all applicable guidelines established at the participating

institution of higher education to measure financial need for academic

scholarship or loan assistance, including, but not limited to, students

who are Black, American Indian/Alaskan Native, Hispanic, or Asian/

Pacific Island, and including students with disabilities.

Institution of higher education means a public or private

educational institution that offers a community building academic

program and that is accredited by an accrediting agency or association

recognized by the Secretary of Education under 34 CFR part 602.

Recipient means an approved applicant that executes a grant

agreement with HUD.

Student means a student enrolled in an eligible full-time academic

program. He/she must be a first-year student in a two-year graduate

program. Students enrolled in Ph.D. programs are ineligible.

Student with disabilities means a student who meets the definition

of ``person with disabilities'' in the Americans with Disabilities Act

of 1990.

(c) * * *

(1) * * *

(i) * * *

(A) Student stipend. The amount of the student stipend is based

upon the prevailing hourly rate for initial entry positions in

community building and the number of hours worked by the student at the

work placement assignment, except that the hourly rate used should be

sufficiently high to allow a student to earn the full stipend without

working over 20 hours per week during the school year and 40 hours per

week during the summer. The amount of the stipend the student receives

may not exceed the actual amount earned, up to $9,000 per year.

[[Page 56108]]

(B) Tuition support. The amount of the tuition support may not

exceed the tuition charged at the participating institution of higher

education up to a maximum of $3,500 per year.

(C) Additional support. The amount of additional support may not

exceed the actual costs incurred, up to a maximum of $1,500 per year.

The recipient may provide additional support for:

(1) Books;

(2) Travel related to the academic program, work placement

assignment, or attendance at conferences sponsored by professional

organizations in community building; and

(3) Costs associated with reasonable accommodations for students

with disabilities including, but not limited to, interpreters for the

deaf/hard of hearing, special equipment, and braille materials.

* * * * *

(2) Number of students assisted. The minimum number of students

that may be assisted is three students per participating institution of

higher education. If an APO or State receives assistance for a program

that is conducted by two or more institutions of higher education, each

participating institution must have a minimum of three students in the

program. The maximum number of students that may be assisted under

CDWSP is five students per participating institution of higher

education.

(d) * * *

(1) * * *

(i) * * *

(A) Institutions of higher education. Institutions of higher

education offering a community building academic program are eligible

for assistance under CDWSP.

(B) Areawide planning organizations and States. An APO or a State

may apply for assistance for a program to be conducted by two or more

institutions of higher education. Institutions participating in an APO

program must be located within the particular area that is served by

the APO and is identified by the State law or interlocal agreement

creating the APO. Institutions of higher education participating in a

State program must be located within the State.

(ii) To be eligible in future funding competitions for CDWSP,

recipients are required to maintain a 50-percent rate of graduation

from a CDWSP-funded academic program.

(iii) If an institution of higher education that submits an

individual application is also included in the application of an APO or

State, then the separate individual application of the institution of

higher education will be disregarded. Additionally, if an institution

of higher education is included in the application of both an APO and a

State, then the references to the institution in the application of the

State will be stricken. The State's application will then be ineligible

if fewer than two institutions of higher education remain as

participants in the State's application.

(2) * * *

(i) * * *

(A) Recruit and select students for participation in CDWSP. The

recipient shall establish recruitment procedures that identify

economically disadvantaged and minority students pursuing careers in

community building, and make such students aware of the availability of

assistance opportunities. Students must be selected before the

beginning of the semester for which funding has been provided.

* * * * *

(E) Encourage participating students to obtain employment for a

minimum of two years after graduation with a unit of State or local

government, Indian tribe or nonprofit organization engaged in community

building.

* * * * *

(f) Work placement agencies eligibility and responsibilities (1)

Eligibility. To be eligible to participate in the CDWSP, the work

placement agencies must be involved in community building and must be

an agency of a State or unit of local government, an APO, an Indian

tribe, or a nonprofit organization.

(2) * * *

(i) Provide practical experience and training in community

building.

* * * * *

(g) * * *

(1) * * *

(ii) Must be a full-time student enrolled in the first year of

graduate study in a community building academic program at the

participating institution of higher education. Individuals enrolled in

doctoral programs are ineligible.

(iii) Must demonstrate an ability to maintain a satisfactory level

of performance in the community building academic program and in work

placement assignments, and to comply with the professional standards

set by the recipient and the work placement agencies.

* * * * *

(2) * * *

(ii) An interest in, and commitment to, a professional career in

community building.

* * * * *

(3) * * *

(i) Enroll in a two-year program. A student's academic and work

placement responsibilities include: Full-time enrollment in an approved

academic program; maintenance of a satisfactory level of performance in

the community building academic program and in work placement

assignments; and compliance with the professional conduct standards set

by the recipient and the work placement agency. A satisfactory level of

academic performance consists of maintaining a B average. A student's

participation in CDWSP shall be terminated for failure to meet these

responsibilities and standards. If a student's participation is

terminated, the student is ineligible for further CDWSP assistance.

(ii) Agree to make a good-faith effort to obtain employment in

community building with a unit of State or local government, an Indian

tribe, or a nonprofit organization. The term of employment should be

for at least two consecutive years following graduation from the

academic program. If the student does not obtain such employment, the

student is not required to repay the assistance received.

* * * * *

(i) * * *

(1) * * *

(iii) The applicant must demonstrate that each institution of

higher education participating in the program as a recipient has the

required academic programs and faculty to carry out its activities

under CDWSP. Each work placement agency must have the required staff

and community building work study program to carry out its activities

under CDWSP.

(2) Rating. All applications that meet the threshold requirements

for applicant eligibility will be rated based on the following

selection criteria:

(i) Quality of Academic Program. The quality of the academic

program offered by the institution of higher education, including

without limitation the:

(A) Quality of course offerings;

(B) Appropriateness of course offerings for preparing students for

careers in community building; and

(C) Qualifications of faculty and percentage of their time devoted

to teaching and research in community building.

(ii) Rates of Graduation. The rates of graduation of students

previously enrolled in a community building academic program at the

institution of

[[Page 56109]]

higher education, specifically including (where applicable) graduation

rates from any previously funded CDWSP academic programs or similar

programs.

(iii) Extent of Financial Commitment. The commitment and ability of

the institution of higher education to assure that CDWSP students will

receive sufficient financial assistance (including loans, where

necessary) above and beyond the CDWSP funding to complete their

academic program in a timely manner and without working in excess of 20

hours per week during the school year.

(iv) Quality of Work Placement Assignments. The extent to which the

participating students will receive a sufficient number and variety of

work placement assignments, the assignments will provide practical and

useful experience to students participating in the program, and the

assignments will further the participating students' preparation for

professional careers in community building.

(v) Likelihood of Fostering Students' Permanent Employment in

Community Building. The extent to which the proposed program will lead

participating students directly and immediately to permanent employment

in community building, as indicated by, without limitation:

(A) The past success of the institution of higher education in

placing its graduates (particularly CDWSP-funded and similar program

graduates where applicable) in permanent employment in community

building; and

(B) The amount of faculty and staff time and institutional

resources devoted to assisting students (particularly students in

CDWSP-funded and similar programs where applicable) in finding

permanent employment in community building.

(vi) Effectiveness of Program Administration. The degree to which

an applicant will be able effectively to coordinate and administer the

program. HUD will allocate the maximum points available under this

criterion equally among the following considerations set forth in

paragraphs (i)(2)(vi)(A), (B), and (C) of this section. Except that the

maximum points available under this criterion will be allocated equally

between the considerations set forth in paragraphs (i)(2)(vi)(A) and

(B) of this section only where the applicant has not previously

administered a CDWSP-funded program.

(A) The strength and clarity of the applicant's plan for placing

CDWSP students on rotating work placement assignments and monitoring

CDWSP students' progress both academically and in their work placement

assignments;

(B) The degree to which the individual who will coordinate and

administer the program has clear responsibility, ample available time,

and sufficient authority to do so; and

(C) The effectiveness of the applicant's prior coordination and

administration of a CDWSP-funded program, where applicable (including

the timeliness and completeness of the applicant's compliance with

CDWSP reporting requirements).

(vii) Commitment to Meeting Economically Disadvantaged and Minority

Students' Needs. The applicant's commitment to meeting the needs of

economically disadvantaged and minority students as demonstrated by

policies and plans regarding, and past effort and success in,

recruiting, enrolling and financially assisting economically

disadvantaged and minority students. If the applicant is an APO or

State, then HUD will consider the demonstrated commitment of each

institution of higher education on whose behalf the APO or State is

applying; HUD will then also consider the demonstrated commitment of

the APO or State to recruit and hire economically disadvantaged and

minority students.

* * * * *

(k) * * *

(3) * * *

(ii) If a student's participation in CDWSP is terminated before the

completion of the two-year term of the student's program, the recipient

may substitute another student to complete the two-year term of a

student whose participation has terminated. The substituted student

must have a sufficient number of academic credits to complete the

degree program within the remaining portion of the terminated student's

two-year term.

* * * * *

Dated: June 8, 1995.

Michael A. Stegman,

Assistant Secretary for Policy Development and Research.

[FR Doc. 95-27431 Filed 11-3-95; 8:45 am]

BILLING CODE 4210-62-P