Office of the Assistant Secretary for Policy Development and Research; Hispanic-Serving Institutions Work Study Program

SUMMARY: The Departments of Veterans Affairs and Housing and Urban

Development and Independent Agencies Appropriations Act, 1996

appropriated funds for HUD's Community Development Work Study Program

(CDWSP). The Conference Report, H. Rep. 104-384, which serves as

guidance for that statute, earmarked funds for a new Hispanic-Serving

Institutions Work Study Program (HSI-WSP) as part of CDWSP. Elsewhere

in today's issue of the Federal Register, HUD is publishing a Notice of

Funding Availability (NOFA) for the HSI-WSP announcing the availability

of $3 million from amounts earmarked for the program. The NOFA states

the requirements that will govern the use of these funds in FY 1996.

HUD's intents to use the requirements contained in the NOFA, which is

Appendix A to this document, as the basis for a final rule and invites

public comment on the announced requirements.

DATES: Comments must be received by December 2, 1996.

ADDRESSES: Interested persons are invited to submit comments regarding

the proposed requirements to the Office of the Rules Docket Clerk, Room

10276, U.S. Department of Housing and Urban Development, 451 Seventh

Street, SW, Washington, DC 20410. Comments should refer to the above

docket number and title. A copy of each comment submitted will be

available for public inspection and copying during regular business

hours at the above address.

FOR FURTHER INFORMATION CONTACT: Jane Karadbil, Office of University

Partnerships, U.S. Department of Housing and Urban Development, Room

8110, 451 Seventh Street SW, Washington, DC 20410, telephone (202) 708-

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

(202) 708-1455, or 1-800-877-8339 (Federal Information relay Service

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

Ms. Karadbil can also be contacted via the Internet at

Jane__R.__K[email protected].

SUPPLEMENTARY INFORMATION:

Background

The Conference Report (H. Rep. 104-384, dated December 6, 1995)

serving as guidance accompanying ``The Departments of Veterans Affairs

and Housing and Urban Development and Independent Agencies

Appropriations Act, 1996'' (Public Law 104-134) earmarked funds for a

new community development work study program for Hispanic-Serving

Institutions (HSIs). HUD has determined that this Report provides

sufficient legal basis for establishing the HSI-WSP. The Report

included this new program as a companion to the existing Community

Development Work Study (CDWSP) program and the HSI-WSP will, therefore,

be governed by the statutory requirements applicable to the CDWSP.

CDWSP was created by Section 501(b)(2) of the Housing and Community

Development Act of 1987 (Pub. L. 100-242, enacted on February 5, 1988),

which added a new section 107(c) to the Housing and Community

Development Act of 1974 (42 U.S.C. 5301, et seq.). Under this

authority, 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

community development work study programs and are enrolled in full-time

graduate and undergraduate programs in community development, community

planning, or community management. For the HSI-WSP, eligibility will be

limited to two-year public or private non-profit institutions of higher

education, designated as Hispanic-Serving Institutions by the U.S.

Department of Education. A list of these institutions appears as

Appendix A of the Notice of Funding Availability.

Elsewhere in today's issue of the Federal Register, HUD is

publishing a Notice of Funding Availability (NOFA) for HSI-WSP

announcing the availability of $3 million from amounts earmarked for

the program in the above-referenced Conference Report and stating the

requirements that will govern the use of these funds.

HUD intends to use today's NOFA as the basis for a final rule

amending 24 CFR part 570 and establishing requirements for the HSI-WSP.

For this reason, HUD is inviting public comment on the requirements

contained in the NOFA, so that the final rule on the HSI-WSP will have

the benefit of public participation.

Findings and Certifications

Information Collection Requirements

The information collection requirements contained in this proposed

rule have been approved by the Office of Management and Budget (OMB) in

accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-

3520), and assigned OMB control number 2528-0182. An agency 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.

Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995, Pub.L. 104-4,

established requirements for Federal agencies to assess the effects of

their regulatory actions on State, local, and tribal governments and

the private sector. This rule does not impose any Federal mandates on

any State, local, or tribal governments or the private sector within

the meaning of the Unfunded Mandates Reform Act of 1995.

Environmental Review

In accordance with 24 CFR 50.20(b) of the HUD regulations, the

policies and procedures contained in this NOFA relate only to training

grants and technical assistance and, therefore, are categorically

excluded from the requirements of the National Environmental Policy

Act.

The Regulatory Flexibility Act

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 it will not have a significant economic impact on

a substantial number of small entities. The rule only affects

applicants and participants in the Hispanic-Serving Institutions

Community Work Study Program, and will not have any meaningful economic

impact on any entity.

Federalism

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

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

and procedures 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. As a

[[Page 51557]]

result, the rule is not subject to review under the Order.

Specifically, the rule solicits participation by institutions of higher

education in creating community development work study programs for

some of their economically disadvantaged and minority students. The

rule does not impinge upon the relationships between the Federal

Government and State or local governments.

The Family

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that this rule has the

potential for beneficial impact on family formation, maintenance, and

general well-being. The program will enable economically disadvantaged

and minority students to get a college education, helping them to

become self-sufficient. Accordingly, since the impact on the family is

beneficial, no further review is necessary.

List of Subject in 24 CFR Part 570

Community development block grants-technical assistance and

services, Education-higher education-general.

The Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance program number is

14.513.

Dated: August 22, 1996.

Michael A. Stegman,

Assistant Secretary for Policy Development and Research.

Appendix A--Hispanic--Serving Institutions Work Study Program Notice of

Funding Availability--FY 1996

AGENCY: Office of the Assistant Secretary for Policy Development and

Research, HUD.

ACTION: Notice of Funding Availability (NOFA) for Fiscal Year (FY)

1996.

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SUMMARY: This notice invites applications from certain institutions

of higher education (i.e., public and private non-profit Hispanic-

Serving community colleges) for grants under the Hispanic-Serving

Institutions Work Study Program (HSI-WSP), to assist economically

disadvantaged and minority students participating in work study

programs. The HSI-WSP program was created through an earmarking of

funds under the Community development Work Study Program. This

notice announces the availability of up to $3 million in grants from

FY 1996 appropriations to fund the HSI-WSP.

EFFECTIVE DATE: October 2, 1996.

DATES: Applications must be physically received by the Office of

University Partnerships, in care of the Division of Budget,

Contracts, and Program Control, in Room 8230, Department of Housing

and Urban Development, 451 Seventh Street, SW., Washington, DC

20410, by 4:30 p.m. Eastern Time on December 11, 1996. Facsimiles

will not be accepted. This deadline is firm as to date, hour, and

place. In the interest of fairness to all competing applicants, the

Department will treat as ineligible for consideration any

application that is received after the deadline. Applicants should

take this practice into account and make early submissions of their

materials to avoid any risk of loss of eligibility brought about by

unanticipated delays or other delivery-related problems. Applicants

hand-delivering applications are advised that considerable delays

may occur in attempting to enter the building because of security

procedures.

ADDRESSES: Because of the limited number of institutions eligible to

apply for the HSI-WSP, the Department will be sending an application

kit directly to the President of each eligible institution, without

requiring institutions to request them. Application kits may also be

obtained by written request from the following address: HUD USER,

ATTN: Hispanic-Serving Institutions Work Study Program, P.O. Box

6091, Rockville, MD 20850. Requests for application kits may be

faxed to: 301-251-5767 (this is not a toll-free number). Such

requests must include the applicant's name, mailing address

(including zip code), telephone number (including area code), and

must refer to ``Document FR-4105.'' In addition, the application kit

is available on the Internet from the Office of University

Partnerships Clearinghouse. The Clearinghouse can be accessed from

the World Wide Web at: http://oup.aspensys.com:89; or from a Gopher

Server at: gopher://oup.aspensys.com:77.

FOR FURTHER INFORMATION CONTACT: Jane Karadbil, Office of University

Partnerships, Department of Housing and Urban Development, 451

Seventh Street, SW., Washington, DC 20410; telephone (202) 708-1537,

extension 218. The TTY number for the hearing impaired is (202) 708-

1455. (These are not toll-free numbers.) The Federal Information

Relay Service toll free number is 800-877-8339. Ms. Karadbil can

also be reached via the Internet at [email protected]

SUPPLEMENTARY INFORMATION:

A. Background

``The Departments of Veterans Affairs and Housing and Urban

Development and Independent Agencies Appropriations Act, 1996''

(Public Law 104-134) appropriated funds for HUD's Community

Development Work Study Program (CDWSP). The Conference Report, H.

Rep. 104-384, dated December 6, 1995, which serves as guidance for

that statute, earmarked funds for a new community development work

study program for Hispanic-Serving Institutions (HSIs) as part of

the existing CDWSP. HUD has determined that this Report provides

sufficient legal basis for establishing the Hispanic-Serving

Institutions Work Study Program (HSI-WSP).

CDWSP was created through section 501(b)(2) of the Housing and

Community Development Act of 1987 (Public Law 100-242, enacted on

February 5, 1987), which added a new Section 107(c) to the Housing

and Community Development Act of 1974 (42 U.S.C. 5301, et seq.).

Under CDWSP regulations, HUD is authorized to provide grants to

institutions of higher education, either directly or through area-

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

providing assistance to economically disadvantaged and minority

students, including students with disabilities, who participate in

community development work study programs and are enrolled in full-

time graduate programs in community or economic development,

community planning, or community management. While the statute

creating CDWSP authorized funding for students enrolled in eligible

undergraduate or graduate programs, a recently issued regulation has

limited that program to graduate programs. HSI-WSP is subject to the

same statutory requirements applicable to the CDWSP. For the HSI-

WSP, however, eligibility will be limited to two-year public or

private non-profit institutions of higher education, designated as

Hispanic-Serving Institutions by the U.S. Department of Education

(see Appendix A). It should be noted that while the term

``undergraduate'' was never construed under CDWSP to include two-

year institutions of higher education, the U.S. Department of

Education includes these institutions in its definition of

``undergraduate.''

B. Purpose of Notice

This notice announces the requirements that will govern the use

of funds earmarked for HSI-WSP for fiscal year 1996. HUD believes

good cause exists for making these requirements effective for fiscal

year 1996 without prior public comment, because the failure to make

these requirements effective immediately would prevent the use of

HSI-WSP funds during the 1996-1997 school year. The time period

remaining before the end of the 1996-1997 school year will not allow

HUD to publish proposed requirements, respond to public comments,

publish a notice containing revised requirements, select recipients,

and permit the recipients to bring their programs into operation.

Today's notice will make funds available to recipients at the

earliest possible date (i.e., the second semester of the 1996-1997

school year). Elsewhere in today's issue of the Federal Register,

HUD is publishing a notice of proposed rulemaking for the HSI-WSP,

based on the requirements of this NOFA. The notice of proposed

rulemaking incorporates this NOFA by reference, states HUD's

intention to use the requirements contained in this NOFA as the

basis for a final rule amending 24 CFR part 570, and invites public

comment on the announced requirements that will be used in

subsequent funding rounds.

This notice also solicits applications for the $3 million in

funding available for HSI-WSP grants. The applications requirements

and deadlines are set forth in sections XIV. through XVII. of the

program description below.

[[Page 51558]]

C. HSI-WAP Program Description

I. Applicability and Objectives

Under the HSI-WSP, HUD will make grants to certain public and

private non-profit HSIs of higher education for the purpose of

providing assistance to economically disadvantaged and minority

students who participate in a work study program while enrolled in

full-time community college programs in community building, and to

provide entry to pre-professional careers in these fields.

II. Eligible Institutions

Title III of the Higher Education Act of 1965 (20 U.S.C.

1059c(b)(1)) defines an HSI generally as an eligible institution of

education that has an enrollment of undergraduate full-time students

that is at least 25 percent Hispanic; in which not less than 50

percent of the Hispanic students are low-income individuals (i.e.,

their families' taxable income for the preceding year did not exceed

150 percent of the poverty level) who are first generation college

students; and in which another 25 percent of the Hispanic students

are either low-income individuals or first generation college

students. The Department will use this definition to determine

eligibility for the HSI-WSP. Further, the U.S. Department of

Education has issued a list of all institutions meeting this

definition. A list of the community colleges on this list appears as

Appendix A to this Notice of Funding Availability. Only institutions

on this list, or subsequently added to the U.S. Department of

Education's list of qualified HSI's, prior to the application

deadline, are eligible to apply for HSI-WSP funds under this Notice.

The Department has decided to limit eligibility under the HSI-

WSP to community colleges for several reasons. There are currently

200 institutions of higher education certified by the U.S.

Department of Education as ``Hispanic-Serving.'' Of this number 60

are universities, 24 are four-year colleges, 27 are two-year

proprietary, i.e., for-profit, colleges, and 89 are public or

private non-profit community colleges. Hispanic-Serving universities

are already eligible for the CDWSP and there is no compelling reason

to make them eligible for both programs. Because community colleges

are not eligible for the CDWSP, their students are not able to

partake of the benefits the program has to offer. Hispanic-Serving

four-year colleges are not eligible under this NOFA, nor under the

new final rule for the CDWSP. Creating a program which makes

community colleges and four-year colleges and universities all

eligible would mean two sets of policies and requirements because of

the very different nature of the educational programs they provide.

Undue complexity would be created for the benefit of just a few

institutions. The Department has also limited eligibility to

community colleges because it believes it is important to encourage

and assist their previously under-served disadvantaged student

population to gain entry to pre-professional community building

career paths. Increasing access to these career paths will not only

benefit the students, but also the communities in which they live

and will work.

The Department has decided to limit the program to non-profit

two-year institutions of higher education because it does not

believe that for-profit institutions should benefit from this

program.

Areawide planning organizations (APOs) and States will not be

eligible to apply for the HSI-WSP because the Department wishes to

minimize the complexity of implementing a new program. With regard

to the proposed rule published elsewhere in today's Federal

Register, the Department requests comments on whether and under what

circumstances, Hispanic-Serving community colleges could benefit

from the eligibility of APOs and States.

III. Eligible Community Building Academic Programs

The statute authorizing the Community Development Work Study

Program requires that participating students be enrolled in a full-

time program in ``community or economic development, community

planning, or community management.'' The regulation governing the

CDWSP (at 24 CFR part 570.415) construes this statutory language

rather narrowly and specifies such academic disciplines as public

administration, public policy, urban economics, urban management, or

urban planning. However, because community colleges usually do not

offer courses in these specific fields of study, it is necessary for

the HSI-WSP to encompass a wider range of academic programs.

Accordingly, this notice uses the terms ``community building

associate degree program'' and ``community building academic

program'' to reference the types of academic programs encompassed in

the statutory phrase `'community or economic development, community

planning, or community management,'' being construed broadly for

purposes of the HSI-WSP. For the HSI-WSP, a community building

associate degree program will encompass not only academic programs

authorized under the CDWSP, but also other fields that promote

community building or community or social services. For example,

administration of justice, child development, and human services

would all be eligible community building associate degree programs,

while natural sciences, computer sciences, mathematics, accounting,

electronics, engineering, and the humanities (such as English or

history) would not.

IV. Eligible Work Experiences

Work experiences under the HSI-WSP must complement the field of

study the student is pursuing. For example, a student pursuing a

degree in child development might work in a day care center, or a

student pursuing a degree in the administration of justice might

work with parole officers. Students are expected to work 12-20 hours

a week during the academic year and 35-40 hours a week during the

summer.

V. Eligible Students

All students must be economically disadvantaged, regardless of

whether they are members of a minority group. While the program is

restricted to eligible Hispanic-Serving Institutions, the program

may not be restricted to Hispanic students nor provide any

preferential treatment in the selection of students based on race or

ethnicity.

Students must be attending the institution on a full-time basis,

as defined by that institution, and pursuing an eligible community

building associate degree. Students must have attained no more than

half of the credits required for their degree at the time they first

receive assistance under this program. If a student's participation

terminates, the student may not be replaced; the grant will be

reduced by the amount of unused funds allotted for that student.

Students are required to maintain a satisfactory level of

performance, defined for this purpose as a B average. However, with

regard to the proposed rule published elsewhere in today's Federal

Register, because some community colleges provide only pass/fail

grades, comments are requested on whether this definition is

appropriate or what definition should be substituted for it.

VI. Amount of Assistance to a Student

Unlike the CDWSP, the amount of assistance that can be provided

to a student will be a lump sum, allowing the institution to

determine how much will be used for various eligible expenditures.

The maximum amount that may be provided per student is $13,200 a

year, for two years. Eligible expenditures are limited to tuition

and fees, a work stipend, books, and an allowance of $1,000 per

student per year to cover the cost of the institution's

administration of the program. While HUD will not set a maximum on

how much can be spent for each eligible expenditure, except for the

administrative allowance, the institution must be able to document

that the amounts paid are based on usual student expenditures for

that institution and that it has actually paid that amount to the

student.

VII. Number of Students Assisted

The minimum number of students that may be assisted is three per

participating institution of higher education and the maximum is ten

students per participating institution of higher education.

VIII. Graduation Rates

The CDWSP regulations require that, in order for institutions of

higher education to be eligible for funding competitions under that

program, a 50-percent rate of graduation for students participating

in that program be maintained. The regulations also include the rate

of graduation from previous CDWSPs as a selection criterion. It is

important to select institutions that are providing a high-quality

education and other services that will ensure that their students

graduate. However, because the HSI-WSP has no previous track

experience, it is unclear whether such a threshold requirement and/

or a selection criterion are appropriate. Since no previous rates of

graduation will be available for the first funding round, this

notice specifies no such threshold requirement or selection

criterion. However, with regard to the proposed rule published

elsewhere in today's Federal Register, the Department solicits

comments on whether such a threshold requirement and/or selection

criterion should

[[Page 51559]]

be included in the final rule for the program, as well as how these

should be applied.

IX. Definitions

The following definitions apply to HSI-WSP:

Applicant means a public or private non-profit institution of

higher education that offers two year degree programs and qualifies

as a Hispanic-Serving Institution.

Community building means community and economic development,

community planning, community management, land use, and housing

activities.

Community building associate degree program or academic program

means the undergraduate associate degree program whose purpose and

focus is to educate students in community building. The terms

``community building academic program'' or ``academic program''

refer to the types of academic programs encompassed in the statutory

phrase ``community or economic development, community planning or

community management.'' However, this statutory language is being

construed broadly for the HSI-WSP to include but not be limited to

associate degree programs in community and economic development,

community planning, community management, public administration,

public policy, urban economics, urban management, urban planning,

and related fields of study. Related fields of study that promote

community building, such as administration of justice, child

development, and human services are eligible, while fields such as

natural sciences, computer sciences, mathematics, accounting,

electronics, engineering, and the humanities (such as English or

history) would not.

Community building field means any of the fields of study

eligible under a community building academic program.

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, Asian/Pacific Islands, and including students with

disabilities.

Hispanic-Serving Institution is an institution of higher

education that the U.S. Department of Education has determined meets

the criteria set out at 20 U.S.C. 1059c(b)(1), including the

following: an institution that has an enrollment of undergraduate

full-time students that is at least 25 percent Hispanic; in which

not less than 50 percent of the Hispanic students are low-income

individuals (i.e., 150 percent of the poverty level) who are first

generation college students and another 25 percent are either low-

income individuals or first generation college students. The U.S.

Department of Education has determined the eligibility of specific

institutions and has issued a list of institutions meeting this

definition. A list of the community colleges on this list appears as

Appendix A of this NOFA. Only institutions on this list, or

subsequently added to the U.S. Department of Education's list prior

to the application deadline, are eligible to apply for HSI-WSP funds

under this Notice.

HSI-WSP means the Hispanic-Serving Institutions Work Study

Program.

Institution of higher education means a public or private non-

profit educational institution that offers two-year associate

degrees in a community building academic program and that is

accredited by an accrediting agency or association recognized by the

Secretary of Education.

Recipient means an approved applicant that executes a grant

agreement with HUD.

Student means a person attending an institution of higher

education on a full-time basis, as defined by that institution and

pursuing an eligible community building degree. Students must have

attained no more than half of the credits required for their degree

at the time they first receive assistance under HSI-WSP.

Student with disabilities means a student who meets the

definition of a ``person with disabilities'' in the Americans with

Disabilities Act of 1990.

X. Assistance Provided

(a) Types of assistance available

HUD provides funding in the form of grants to recipients who

make assistance available to eligible students. Grants are provided

to cover the costs of student assistance and for an administrative

allowance.

(b) Student assistance.

Grant funds may be provided to students in the form of student

stipends, tuition support, and additional support.

(1) Student stipend. The amount of the student stipend should be

based on the hourly rate for initial entry positions in the

community building field and the number of hours worked by the

student at the work placement assignment. The hourly rate should be

sufficiently high to allow the student to earn the full stipend, as

determined by the recipient, without working over 20 hours per week

during the school year and 40 hours per week during the summer.

(2) Tuition support. The amount of tuition support may not

exceed the tuition and required fees charges at the participating

institution of higher education.

(3) Additional support. The recipient may provide additional

support for books and for travel related to the academic program or

work placement assignment. 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 are eligible under this category.

(c) Administrative allowance.

HUD provides an allowance to recipients to cover the

administrative costs of the program. The administrative allowance is

$1,000 per year for each student participating in the program;

however no more than 20 percent of the grant may be used for

planning and program administrative costs. The maximum amount that

can be provided for each student is $13,200 a year, including $1,000

for the administrative allowance. HUD will not set a maximum on how

much should be spent for each eligible expenditure, aside from the

$1,000 limit on administrative costs. However, the institution must

be able to document that the amounts paid are based on usual student

expenditures for that institution and that it has actually paid that

amount to the student.

(d) Number of students assisted.

The minimum number of students that may be assisted in three

students per participating institution of higher education. The

maximum number of students that may be assisted is ten students per

participating institution of higher education.

XI. Recipient Eligibility and Responsibilities

(a) Recipient eligibility.

Hispanic-Serving Institutions of higher education offering

undergraduate two-year associate degrees in a community building

associate degree program are eligible for assistance under the HSI-

WSP.

(b) Recipient responsibilities.

The recipient is responsible for administering the program, for

compliance with all program requirements, and for coordination of

program activities carried out by the work placement agencies. The

recipient must:

(1) Recruit and select students for participation in the HSI-

WSP. The recipient shall establish recruitment procedures that

identify eligible economically disadvantaged and minority students

pursuing careers in community building, and make them aware of the

availability of assistance opportunities. While the program is

restricted to HSIs, the recipient may neither restrict the program

to any particular minority group or groups nor provide any

preferential treatment in the selection of students based on race or

ethnicity. Students must be selected before the beginning of the

semester for which funding is being provided. If a student's

participation terminates, the student may not be replaced; the grant

will be reduced by the amount of unused funds allotted for that

student.

(2) Provide the educational component for participating

students.

(3) Recruit and select work placement agencies, and negotiate

and execute an agreement covering each work placement assignment.

(4) Refer participating students to work placement agencies and

assist students in the selection of work placement assignments.

(5) Assign sufficient staff to administer and supervise the

program on a day-to-day basis.

(6) Encourage participating students to obtain post-graduation

employment with a unit of State or local government, APO, Indian

tribe or nonprofit organization engaged in community building.

(7) Maintain records by racial and ethnic categories for each

economically disadvantaged and minority student participating in the

HSI-WSP.

(8) Keep such records and make such reports as HUD may require.

(9) Comply with all other applicable Federal requirements.

XII. Work Placement Agencies Eligibility and Responsibilities

(a) Work placement agency eligibility

To be eligible to participate in the HSI-WSP, the work placement

agency must be an agency of a State or local government, an

[[Page 51560]]

areawide planning organization, an Indian tribe, or a private

nonprofit organization involved in community building activities.

(b) Work placement agency responsibilities

Work placement agencies must:

(1) Provide practical experience and training in the community

building field to participating students through work placement

assignments.

(2) Consult with the institution of higher education to ensure

that the student's work placement assignment provides the requisite

experience and training to meet the required number of work hours

specified in the student work place agreement.

(3) Provide a sufficient number of work placement assignments to

provide participating students with a wide choice of work

experience.

(4) Require each student to devote 12-20 hours per week during

the regular school year, and 35-40 hours a week during the summer,

to the work placement assignment. Work placement agencies may

provide flexibility in the work period, if such a schedule is

consistent with the requirements of the student's academic program.

However, a participating student may receive a stipend payment only

during the period when the student is placed with the work placement

agency.

(5) Comply with all other applicable Federal requirements.

(6) Maintain such records as HUD may require.

XIII. Students Eligibility, Selection, and Responsibilities

(a) Student eligibility.

Students apply directly to recipients receiving grants under the

HSI-WSP. To be eligible for the HSI-WSP, the student:

(1) Must satisfy all applicable guidelines established at the

participating institution of higher education to measure financial

need for academic scholarship or loan assistance.

(2) Must be a full-time student enrolled in a community building

associate degree program at the participating institution of higher

education. The student must have attained no more than 50 percent of

the credits required for his/her degree at the time the student

first receives assistance under this program.

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

of performance in a community building associate degree program

(i.e., maintain a B average, as defined by the institution) and in

work placement assignments, and comply with the professional

standards set by the recipient and the work placement agencies.

(4) May not have previously participated in the HSI-WSP.

(b) Student selection.

In selecting among the eligible students, the recipient must

consider the extent to which each student has demonstrated:

(1) Financial need under the applicable guidelines established

at the institution of higher education;

(2) An interest in, and commitment to, a career in community

building;

(3) The ability to satisfactorily complete the academic and work

placement responsibilities under the HSI-WSP.

(c) Student responsibilities.

Participating students must:

(1) Enroll or be enrolled in a two-year community building

associate degree 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 associate degree program and in work

placement assignments; and compliance with the professional conduct

standards set by the recipient and by the work placement agency. A

satisfactory level of academic performance consists of maintaining a

B average, as defined by the institution. A student's participation

in the HSI-WSP shall be terminated for failure to meet these

responsibilities and standards. If the student's participation is

terminated, the student is ineligible for further HSI-WSP

assistance.

(2) Agree to make a good-faith effort to obtain post-graduation

employment in community building with a unit of State or local

government, and APO, and Indian tribe, or a non-profit organization.

However, If the student does not obtain such employment, the student

is not required to repay the assistance received.

XIV. Application Process

HUD has developed an application package describing the

information that applicants for HSI-WSP assistance must submit. The

application due date is December 11, 1996. Because of the limited

number of institutions eligible to apply for the HSI-WSP, the

Department will be sending an application kit directly to the

President of each eligible institution, without requiring

institutions to request them. A list of the eligible institutions

appears in Appendix A of this NOFA. Application kits may also be

obtained by written request from the following address: HUD USER,

ATTN: Hispanic-Serving Institutions Work Study Program, P.O. Box

6091, Rockville, MD 20850. Request for application kits may be faxed

to: 301-251-5767 (this is not a toll-free number). Such requests

must include the applicant's name, mailing address (including zip

code), telephone number (including area code), and must refer to

``Document FR-4105.'' In addition, the application kit is available

on the Internet from the Office of University Partnerships

Clearinghouse. The Clearinghouse can be accessed from the World Wide

Web at: http://oup.aspensys.com:89; or from a Gopher Server at:

gopher://oup.aspensys.com:77.

XV. Submitting Applications and Deadline Date and Time

Applications for funding under this NOFA must be complete and

must be physically received in the place designated in the

application kit for receipt, by 4:30 p.m. Eastern Time on December

11, 1996. Facsimiles will not be accepted. The deadline date and

time will be firm as to date, hour, and place. In the interest of

fairness to all competing applicants, the Department will treat as

ineligible for consideration any application that is received after

the deadline. Applicants should take this practice into account and

make early submission of their materials to avoid any risk of loss

of eligibility brought about by unanticipated delays or other

delivery related problems. Applicants hand-delivering applications

are advised that considerable delays may occur in attempting to

enter the building because of security procedures.

XVI. Selection process

The selection process for applications under the HSI-WSP

consists of a threshold review, rating of eligible applications, and

final selection.

(a) Threshold. To be eligible for rating and ranking, an

applicant must meet all of the following threshold requirements:

(1) The application must be filed in the application form

prescribed by HUD and physically received at the appropriate

location by the required due date;

(2) The applicant must demonstrate that it is an HSI;

(3) The applicant must demonstrate that it is eligible to

participate; and

(4) The applicant must demonstrate that it has the required

academic programs to carry out its activities under the HSI-WSP.

(b) Rating. All applications that meet the threshold

requirements will be rated according to the following selection

factors.

1. Quality of the Academic Program (40 points)--In rating this

factor, HUD will evaluate: (i) The quality of the academic program

in terms of community building course offerings and academic

requirements for students, including its appropriateness to prepare

students for careers in community building fields (25 points); and

(ii) the qualifications of the faculty members and the

percentage of time they will teach in the academic program and the

qualifications of the academic supervisor to direct and manage the

program (15 points).

2. Quality of the Proposed Student Work Placement Assignments

(20 points)--In rating this factor, HUD will evaluate the extent to

which the participating students will receive a sufficient number

and variety of work placement assignments that will provide

practical and useful experience and further the participating

students' preparation for professional careers in community

building.

3. Likelihood of Fostering Students' Permanent Post-Graduation

Employment in Community Building (10 points)--In rating this factor,

HUD will evaluate the extent to which the institution's educational

program (based on past experience), including the assistance it

provides to its students in finding post graduation permanent

employment, has led directly and immediately to career opportunities

in community building fields.

4. Effectiveness of Program Administration (20 points)--In

rating this factor, HUD will evaluate: (i) the degree to which the

Program Director has clear responsibility, ample percentage of time,

and sufficient institutional or academic authority to coordinate the

overall administration of the program; and (ii) the adequacy of the

applicant's plan for placing students in work placement assignments

and keeping track of students during the two-year academic period

and work placement assignments.

[[Page 51561]]

5. Demonstrated Commitment of the Applicant to Meeting

Economically Disadvantaged and Minority Students' Needs (10

points)--In rating this factor, HUD will evaluate the extent to

which the applicant's recruitment activities, special education

programs, and other means, including the provision of reasonable

accommodations for students with disabilities, demonstrates an

active, aggressive, and imaginative effort to identify, attract, and

retain qualified minorities and economically disadvantaged students,

including students with disabilities; and the extent to which the

HSI-WSP award will not result in a decrease in the amount of the

institution's own financial support available for minority and

economically disadvantaged students, including students with

disabilities, in the academic areas or the institution as a whole.

(c) Corrections to Deficient Applications. After the submission

deadline date, HUD will screen each application to determine whether

it is complete. If an application lacks certain technical items or

contains a technical error, such as an incorrect signatory, HUD will

notify the applicant in writing that it has 14 calendar days from

the date of HUD's written notification to cure the technical

deficiency. If the applicant fails to submit the missing material

within the 14-day cure period, HUD may disqualify the application.

This 14-day cure period applies only to non-substantive

deficiencies or errors. Any deficiency capable of cure will involve

only items not necessary for HUD to assess the merits of an

application against the factors specified in this NOFA. Substantive

deficiencies or errors may not be corrected.

(d) Final selection. All applications that are rated will be

rank ordered based on their total scores on the selection factors.

Applications will be considered for selection based on their rank

order. HUD may make awards out of rank order to achieve geographic

diversity, and may provide assistance to support a number of

students that is less than the number requested under an application

in order to provide assistance to as many highly ranked applications

as possible.

If there is a tie in the point scores of two applications, the

rank order will be determined by the applicants' scores on selection

factor (1). The application with the most points on selection factor

(1) will be given the higher rank. If there is still a tie, the rank

order will be determined by the applicants' scores on selection

factor (5). The application with the most points for selection

factor (5) will be given the higher rank.

XVII. Application Content

Applicants must complete and submit applications in accordance

with instructions contained in the application kit. The following is

a checklist of the application content that will be specified in the

application kit:

(a) Transmittal letter, identifying the agency accrediting the

institutions of higher education on whose behalf the application is

filed and further stating that such accrediting agency(ies) are

recognized by the U.S. Department of Education. The transmittal

letter should also include the name, address, phone number,

facsimile number and e-mail address (if any) of the person

responsible for administering the program.

(b) A completed and signed Standard Form 424, Application For

Federal Assistance.

(c) Abstract.

(d) Table of Contents.

(e) Proposal narrative statement addressing the factors for

award.

(f) Sample copy of student/recipient binding agreement.

(g) Sample copy of recipient/student work placement agreement.

(h) Management/Workplan.

(i) Resumes of key staff and faculty.

(k) Budget for the program.

(l) Audit/financial management system information.

(m) Certification by IPA or cognizant audit agency of

applicant's financial management system.

(n) Drug-Free Workplace Certification.

(o) Disclosure of Lobbying Activities on SF-LLL, if applicable.

XVIII. Agreements

(a) Grant agreement.

The responsibilities of the recipient under the HSI-WSP will be

incorporated in a grant agreement executed by HUD and the recipient.

(b) Student agreement.

The recipient and each participating student must execute a

written agreement incorporating their mutual responsibilities under

the HSI-WSP. The agreement must be executed before the student can

be enrolled in the program. A student's participation in the HSI-WSP

shall be terminated for failure to meet the responsibilities and

standards in the agreement.

(c) Work placement assignment agreement.

The recipient, the student, and the work placement agency must

execute a written agreement covering each work placement assignment.

The agreement must address the responsibilities of each of the

parties, the educational objectives, the nature of the supervision,

the standards of evaluation, and the student's time commitments

under the work placement assignment.

XIX. Grant Administration

(a) Initial obligation of funds.

When HUD selects an application for funding, HUD will obligate

funds to cover the amount of the approved grant. The term of the

award will be for two calendar years, unless subsequently altered by

HUD at its discretion for good cause.

(b) Disbursement.

Recipients will receive grant payments by direct deposit. If

that is not possible, grant payments will be made by U.S. Treasury

Checks.

(c) Deobligation.

HUD may deobligate amounts for grants if proposed activities are

not begun or completed within a reasonable period of time after

selection.

XX. Other Federal Requirements

(a) Applicability of part 570

The HSI-WSP shall be subject to the policies and procedures set

forth in subparts A, K, and O of 24 CFR part 570, as applicable,

except as modified or limited under the provisions of this Notice.

The provisions of subparts C and J of part 570 shall not apply to

the HSI-WSP.

b. Uniform Administrative requirements

Recipients under the HSI-WSP shall comply with the requirements

and standards of OMB Circular No. A-22, ``Cost Principles for

Educational Institutions.'' Recipients that are private institutions

of higher education shall comply with OMB Circular A-133, ``Non-

Federal Audit Requirements for Institutions of Higher Education and

other Nonprofit Institutions,'' which is implemented at 24 CFR part

45. Recipients that are public institutions of higher education

shall comply with OMB circular A-128, ``Non-Federal Audit

Requirements for State and Local Governments,'' which is implemented

at 24 CFR part 44. Audits shall be conducted annually. In addition,

all recipients under the HSI-WSP shall comply with the provisions of

OMB Circular A-110, ``Uniform Administrative Requirements for Grants

and Agreements With Institutions of Higher Education, Hospitals and

Other Non-Profit Organizations,'' which is implemented at 24 CFR

part 84. OMB Circular A-110 shall apply to recipients in its

entirety.

Other Matters

Prohibition Against Lobbying Activities

The use of funds awarded under this NOFA is subject to the

disclosure requirements and prohibitions of Section 319 of the

Department of Interior and Related Agencies Appropriations Act for

Fiscal Year 1990 (31 U.S.C. 1352) and the HUD implementing

regulations at 24 CFR Part 87. These authorities prohibit recipients

of federal contracts, grants or loans from using appropriated funds

for lobbying the Executive or Legislative Branches of the Federal

Government in connection with a specific contract, grant or loan.

The prohibition also covers the awarding of contracts, grant,

cooperative agreements or loans unless the recipient has made an

acceptable certification regarding lobbying. Under 24 CFR Part 87,

applicants, recipients and subrecipients of assistance exceeding

$100,000 must certify that no federal funds have been or will be

spent on lobbying activities in connection with the assistance.

Required Reporting. A certification is required at the time

application for funds is made that Federally appropriated funds are

not being or have not been used in violation of section 319 and the

disclosure will be made of payments for lobbying with other than

federally appropriated funds. Also, there is a standard disclosure

form, SF-LLL, ``Disclosure Form to Report Lobbying'', which must be

use to disclose lobbying with other than Federally appropriated

funds at the time of application.

1. Information Collection Requirements

The information collection requirements contained in this NOFA

have been approved by the Office of Management and Budget (OMB) in

accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-

3520), and assigned OMB control number 2528-0182. An agency 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.

[[Page 51562]]

2. Federalism Impact

The General Counsel, as the Designated Official under section

6(a) of Executive Order 12612, Federalism, has determined that the

policies and procedures contained in this notice 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. This notice merely invites

applications from certain institutions of higher education for

grants under the Hispanic-Serving Institutions Work Study Program.

As a result, the notice is not subject to review under the Order.

3. Impact on the Family

The General Counsel, as the Designated Official under Executive

Order 12606, The Family, has determined that this notice will likely

have a beneficial impact on family formation, maintenance, and

general well-being. This notice invites applications from certain

institutions of higher education for grants under the Hispanic-

Serving Institutions Work Study Program. Accordingly, since the

impact on the family is beneficial, no further review is considered

necessary.

4. Accountability in the Provision of HUD Assistance

Section 102 of the Department of Housing and Urban Development

Reform Act of 1989 (HUD Reform Act) and the final rule codified at

24 CFR part 4, subpart A, published on April 1, 1996 (61 FR 1448),

contain a number of provisions that are designed to ensure greater

accountability and integrity in the provision of certain types of

assistance administered by HUD. On January 14, 1992, HUD published,

at 57 FR 1942, a notice that also provides information on the

implementation of section 102. The documentation, public access, and

disclosure requirements of section 102 are applicable to assistance

awarded under this NOFA as follows:

Documentation and public access requirements. HUD will ensure

that documentation and other information regarding each application

submitted pursuant to this NOFA are sufficient to indicate the basis

upon which assistance was provided or denied. This material,

including any letters of support, will be made available for public

inspection for a five-year period beginning not less than 30 days

after the award of the assistance. Material will be made available

in accordance with the Freedom of Information Act (5 U.S.C. 552) and

HUD's implementing regulations at 24 CFR part 15. In addition, HUD

will include the recipients of assistance pursuant to this NOFA in

its Federal Register notice of all recipients of HUD assistance

awarded on a competitive basis.

Disclosures. HUD will make available to the public for five

years all applicant disclosure reports (HUD Form 2880) submitted in

connection with this NOFA. Update reports (also Form 2880) will be

made available along with the applicant disclosure reports, but in

no case for a period less than three years. All reports--both

applicant disclosures and updates--will be made available in

accordance with the Freedom of Information Act (5 U.S.C. 552) and

HUD's implementing regulations at 24 CFR part 15.

5. Prohibition Against Advance Information on Funding Decisions

HUD's regulation implementing section 103 of the HUD Reform Act,

codified as 24 CFR part 4, applies to the funding competition

announced today. The requirements of the rule continue to apply

until the announcement of the selection of successful applicants.

HUD employees involved in the review of applications and in the

making of funding decisions are restrained by part 4 from providing

advance information to any person (other than persons authorized to

receive such information) concerning funding decisions, or from

otherwise giving any applicant an unfair competitive advantage.

Persons who apply for assistance in this competition should confine

their inquiries to the subject areas permitted under 24 CFR part 4.

Applicants or employees who have ethics related questions should

contact the HUD Office of Ethics (202) 708-3815 (voice), (202) 708-

1112 (TTY). (These are not toll-free numbers.) For HUD employees who

have specific program questions, the employee should contact the

appropriate Field Office Counsel or Headquarters Counsel for the

program to which the question pertains.

6. Environmental Impact

In accordance with 24 CFR 50.20(b) of the HUD regulations, the

policies and procedures contained in this NOFA relate only to

training grants and technical assistance and, therefore, are

categorically excluded from the requirements of the National

Environmental Policy Act.

7. The Catalog of Federal Domestic Assistance Program

The Catalog of Federal Domestic Assistance Number is 14.513.

Dated: August 28, 1996.

Michael A. Stegman,

Assistant Secretary for Policy Development and Research.

Appendix A--Hispanic-Serving Community Colleges (As Designated by the

U.S. Department of Education)

SOURCE: 1993 Integrated Post-Secondary Education Data System (IPEDS) of

the U.S. Department of Education

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

State Institution

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

AZ.............................. Arizona Western College.

AZ.............................. Central Arizona College.

AZ.............................. Cochise College

AZ.............................. Prima Community College.

AZ.............................. South Mountain Community College.

CA.............................. Bakersfield College.

CA.............................. Cerritos College.

CA.............................. Chaffey Community College.

CA.............................. Citrus College.

CA.............................. College of the Desert.

CA.............................. College of the Sequioas.

CA.............................. Compton Community College.

CA.............................. Don Bosco Technical Institute.

CA.............................. East Los Angeles College.

CA.............................. Evergreen Valley College.

CA.............................. Fresno City College.

CA.............................. Gavilan College.

CA.............................. Hartnell College.

CA.............................. Imperial Valley College.

CA.............................. Kelsey-Jenney Business College.

CA.............................. Kings River Community College.

CA.............................. Los Angeles City College.

CA.............................. Los Angeles Harbor College.

CA.............................. Los Angeles Mission College.

CA.............................. Los Angeles Southwest College.

CA.............................. Los Angeles Trade Technical College.

CA.............................. Los Angeles Valley College.

CA.............................. Merced College.

CA.............................. Mount San Antonio College.

CA.............................. Fullerton College.

CA.............................. Oxnard College.

CA.............................. Palo Verde College.

CA.............................. Pasadena City College.

CA.............................. Porterville College.

CA.............................. Rancho Santiago College.

CA.............................. Rio Hondo College.

CA.............................. San Bernardino Valley College.

CA.............................. San Diego City College.

CA.............................. San Jose City College.

CA.............................. Skyline College.

CA.............................. Southwestern College.

CA.............................. West Hills Community College.

CO.............................. Community College of Denver.

CO.............................. Otero Junior College.

CO.............................. Pueblo Community College.

CO.............................. Trinidad State Junior College.

FL.............................. Miami-Dade Community College/North

Campus (Main).

FL.............................. Miami-Dade Community College/Homestead

College.

FL.............................. Miami-Dade Community College/Wolfson

Campus.

IL.............................. City Colleges of Chicago--Harry S

Truman College.

IL.............................. City Colleges of Chicago--Malcolm X

College.

IL.............................. City Colleges of Chicago--Richard J.

Daley College.

IL.............................. City Colleges of Chicago--Wilbur

Wright College.

IL.............................. Lexington Institute of Hospitality

Careers.

IL.............................. MacCormac Junior College.

IL.............................. Morton College.

IL.............................. Saint Augustine College.

NJ.............................. Hudson County Community College.

NJ.............................. Passaic County Community College.

NM.............................. Albuquerque Technical Vocational

Institute.

NM.............................. Eastern New Mexico University--Roswell

Campus.

NM.............................. New Mexico State University--Carlsbad

Campus.

NM.............................. New Mexico State University--Dona Ana

Campus.

NM.............................. New Mexico State University--Grants

Campus.

NM.............................. Northern New Mexico Community College.

NM.............................. Santa Fe Community College.

NM.............................. University of New Mexico--Los Alamos

Campus.

NM.............................. University of New Mexico--Valencia

Campus.

[[Page 51563]]

NY.............................. CUNY Bronx Community College.

NY.............................. CUNY Hostos Community College.

NY.............................. CUNY F.H. La Guardia Community

College.

PR.............................. Collegio Tecnologico Del Municipio de

San Juan.

PR.............................. Collegio Universitario Del Este.

PR.............................. University of Puerto Rico--Aguadilla

Regional College.

PR.............................. University of Puerto Rico--Carolina

Regional College.

PR.............................. University of Puerto Rico--La Montana

Regional College.

TX.............................. Bee County College.

TX.............................. Del Mar College.

TX.............................. El Paso Community College.

TX.............................. Laredo Community College.

TX.............................. Odessa Community College.

TX.............................. Palo Alto College.

TX.............................. San Antonio College.

TX.............................. Southwest Texas Junior College.

TX.............................. St. Philips College.

TX.............................. Texas Southmost College.

TX.............................. Texas State Technical College--

Harlingen.

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[FR Doc. 96-25052 Filed 10-1-96; 8:45 am]

BILLING CODE 4210-62-P/M