24 C.F.R. PART 585—YOUTHBUILD PROGRAM
Title 24 - Housing and Urban Development
Authority: 42 U.S.C. 3535(d) and 8011.
Source: 60 FR 9737, Feb. 21, 1995, unless otherwise noted.
(a) General. The Youthbuild program is authorized under subtitle D of title IV of the National Affordable Housing Act (42 U.S.C. 8011), as added by section 164 of the Housing and Community Development Act of 1992 (Pub. L. 102–550). (b) Authority restriction. No provision of the Youthbuild program may be construed to authorize any agency, officer, or employee of the United States to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any educational institution, school, or school system, or over the selection of library resources, textbooks, or other printed or published instructional materials used by any educational institution or school system participating in a Youthbuild program. The purposes of the Youthbuild program are set out in section 451 of the National Affordable Housing Act (42 U.S.C. 12899) (“NAHA”). [61 FR 52187, Oct. 4, 1996] A Youthbuild implementation program uses comprehensive and multi-disciplinary approaches designed to prepare young adults who have dropped out of high school for educational and employment opportunities by employing them as construction trainees on work sites for housing designated for homeless persons and low- and very low-income families. A Youthbuild planning grant is designed to give recipients sufficient time and financial resources to develop a comprehensive Youthbuild program that can be effectively implemented. Youthbuild programs must contain the three components described in paragraphs (a), (b) and (d) of this section. Other activities described in paragraph (c) of this section are optional: (a) Educational services, including: (1) Services and activities designed to meet the basic educational needs of participants. For example, a Youthbuild program may include basic skills instruction and remedial education, bilingual education for individuals with limited English proficiency, secondary educational services and activities designed to lead to the attainment of a high school diploma or its equivalency (GED), or counseling and assistance in attaining post-secondary education and required financial aid; (2) Vocational classroom courses geared to construction terminology and concepts; and (3) Strategies to coordinate with local trade unions and apprenticeship programs where possible. (b) Leadership training, counseling and other support activities, including: (1) Activities designed to develop employment and leadership skills, including support for youth councils; (2) Counseling services to assist trainees in personal, health, housing, child care, family or legal problems and/or referral services to appropriate social service resources; (3) Support services and stipends necessary to enable individuals to participate in the program and, for a period not to exceed 12 months after completion of training, to assist participants through continued support services; (4) Job development and placement activities and post-graduation follow-up assistance; and (5) Pre-employment training plan aimed at developing job seeking skills. (c) Other activities. A local program may be designed to include other, special activities such as: (1) Entrepreneurial training and courses in small business development; (2) Assistance to correct learning disabilities; or (3) Drivers' education courses. (d) On-site training, through actual housing rehabilitation and/or construction work. This component must include: (1) Access to housing sites where construction/ rehabilitation work is being carried out; (2) Work site training plan for a closely supervised construction site; (3) Construction or rehabilitation plan and timetable; and (4) Approaches to work site safety. (e) The Youthbuild implementation program must be structured so that 50 percent of each full-time participant's time is spent in educational services and activities (paragraphs (a), (b), and (c) of this section) and 50 percent is spent in on-site training (paragraph (d) of this section). Youthbuild planning grant applications must contain strategies, plans and approaches to be used during the planning process to ultimately implement these program requirements. The terms “adjusted income,” “community based organization,” “homeless individual,” “housing development agency,” “Indian tribe,” “individual who has dropped out of high school,” “institution of higher education,” “limited-English proficiency,” “low-income family,” “offender,” “State,” and “very low-income family” are defined in section 457 of NAHA. The terms Secretary and 1937 Act are defined in 24 CFR part 5. 1992 Act means the Housing and Community Development Act of 1992. Access to housing applies to Youthbuild implementation grants required to document that the program has access to the housing project(s) for young adult on-site training, e.g. program participants have permission to work on the housing site. Applicable residential rental housing quality standards shall mean those standards of the applicable HUD or other Federal, State or local program providing assistance for residential rental housing involved in a Youthbuild implementation grant as used under section 455(a), Youthbuild Program Requirements, of the Act. Applicant means a public or private nonprofit agency, including: (1) A community-based organization; (2) An administrative entity designated under section 103(b)(1)(B) of the Job Training Partnership Act; (3) A community action agency; (4) A State or local housing development agency; (5) A community development corporation; (6) A public and/or Indian housing authority and resident management corporations, resident councils and resident organizations; (7) A State or local youth service or conservation corps; and (8) Any other entity (including States, units of general local government, and Indian Tribes) eligible to provide education and employment training. Combined Youthbuild application means the submission by an applicant of a single application to HUD for a planning and implementation grant request for one Youthbuild program. Consolidated Plan means the document that is submitted to HUD that serves as the planning documents (comprehensive housing affordability strategy and community development plan) of the jurisdiction and an application for funding under any of the Community Planning and Development formula grant programs which is prepared in accordance with the process described in 24 CFR part 91. Full-time participation for program eligible participants is limited to not less than 6 months and not more than 24 months. Graduates are those participants who have completed the full-time education/on-site training components of a Youthbuild program and who are eligible to take advantage of meaningful opportunities in continued education, in owning their own businesses, in meaningful employment or in other means by which the participant can attain economic self-sufficiency. Homeless Act means the Stewart B. McKinney Homeless Assistance Act, as amended, (42 U.S.C. 11301 et seq.). JTPA means the Job Training Partnership Act (P.L. 102–235), as amended. Participant means: (1) An individual who is: (i) 16 to 24 years of age, inclusive, at time of enrollment; (ii) A very low-income individual or a member of a very low-income family; and (iii) An individual who has dropped out of high school. (2) An exception of not more than 25 percent of all full-time participants is permitted for young adults who do not meet the program's income or educational requirements but who have educational needs despite attainment of a high school diploma or its equivalent. Private nonprofit organization means any private nonprofit organization that: (1) Is organized and exists under Federal, State, local, or tribal law; (2) Has no part of its earnings inuring to the benefit of any individual, corporation, or other entity; (3) Has a voluntary board; (4) Has an accounting system or has designated a fiscal agent in accordance with requirements established by HUD; and (5) Practices nondiscrimination in the provision of assistance. Project-related restrictions mean Youthbuild housing restrictions applicable only in cases where a Youthbuild implementation grant is providing assistance to residential rental, transitional or homeownership housing projects for specific costs relating to property acquisition, architectural and engineering fees, construction, rehabilitation, operating costs, or replacement reserves. Recipient means any entity that receives assistance under this part. Related facilities include cafeterias or dining halls, community rooms or buildings, child care centers, appropriate recreation facilities, and other essential service facilities that are physically attached to the housing to be constructed or rehabilitated. Related facilities which stand alone are not appropriate construction sites for trainees. Title IV means title IV of the National Affordable Housing Act, as amended (42 U.S.C. 1437). Transitional housing means a project that has as its purpose facilitating the movement of homeless individuals and families to permanent housing within a reasonable amount of time (usually 24 months). Transitional housing includes housing primarily designed to serve deinstitutionalized homeless individuals and other homeless individuals with mental or physical disabilities and homeless families with children. Useful life shall mean a period of 10 years upon construction completion and issuance of an occupancy permit applicable to a residential rental, transitional or homeownership property acquired, constructed or rehabilitated (including architectural and engineering fees), or maintained (i.e., operating costs or replacement reserves), in whole or in part, with Youthbuild implementation grant funds (as used in section 455(a), Youthbuild Program Requirements, of the Act). [60 FR 9737, Feb. 21, 1995, as amended at 61 FR 5211, Feb. 9, 1996; 61 FR 52187, Oct. 4, 1996] HUD will award Youthbuild planning grants to eligible applicants for the purpose of developing Youthbuild programs in accordance with subtitle D of title IV of the National Affordable Housing Act. Applications will be selected in a national competition in accordance with the selection process described in the current NOFA. Maximum awards. The maximum amount of a Youthbuild planning grant is $150,000 unless a lower amount is established in the NOFA. HUD may for good cause approve a grant in a higher amount. Funds awarded for planning grants are expected to be used within 12 months of the effective date of the planning grant agreement. The award of a Youthbuild planning grant does not obligate HUD to fund the implementation of the program upon completion of the approved planning activities (unless the companion implementation grant was submitted as a combined application and funded in the implementation grant competition). HUD will not approve multiple applications for planning grants in the same jurisdiction unless it determines that the jurisdiction is sufficiently large to justify approval of more than one application. Planning grant activities to develop a Youthbuild program may include: (a) The undertaking of studies and research efforts to determine the feasibility and need for a Youthbuild program in a selected location including whether a proposed program can meet the education and training needs of young adults, aid in the expansion of affordable housing to meet the needs of the community, and achieve financial feasibility; (b) The formation and establishment of a consortium among Federal, State, or local training and education programs, service providers, housing programs and providers including but not limited to homeless providers, housing owners, developers, and other organizations necessary for the establishment of a Youthbuild program; (c) The preliminary identification and potential selection of housing for the Youthbuild program including an assessment of the type of housing program to be used and the method by which program participants will have access to the housing project; (d) The planning and identification of resources required for basic skills instruction and education, job training and job development, leadership and employment skills development, counseling, referral, and other related support services that will be provided as part of the Youthbuild program; (e) The preparation of an application for an implementation grant. (f) Preliminary architectural and engineering (A & E) work for the Youthbuild proposed housing including: (1) The development of cost and time estimates associated with the amount of work to be done through new construction or the rehabilitation of existing housing; (2) Technical studies to evaluate environmental problems and to determine whether mitigation is feasible on the potential site; and (3) The identification and initiation of the permit process required to commence work on the selected site. (g) The planning and development of multi-disciplinary educational and employment training curricula, leadership development training, counseling, and other supportive services and activities for the Youthbuild program including the identification and training of staff assigned to each program component; (h) The identification and establishment of relationships with local unions, apprenticeship programs, housing owners, local employers and public or private community organizations for job training, development, and placement opportunities; (i) Administration. Youthbuild funds for administrative costs may not exceed 15 percent of the total amount of Youthbuild program and project costs or such higher percentage as HUD determines is necessary to support capacity development by a private nonprofit organization. HUD will award Youthbuild implementation grants to eligible applicants for the purpose of carrying out Youthbuild programs in accordance with subtitle D of title IV of the National Affordable Housing Act. Applications will be selected in a national competition in accordance with the selection process described in the current NOFA. Maximum awards. The maximum award for a Youthbuild implementation grant will be defined in the NOFA for each competition and may vary by competition. HUD may for good cause approve a grant in a higher amount than the specified limit. Funds awarded for implementation grants are expected to be used within 30 months of the effective date of the implementation grant agreement. Each application for an implementation grant may only include activities to carry out one Youthbuild program, i.e., to start a new Youthbuild program or to fund new classes of Youthbuild participants for an existing program. The same applicant organization may submit more than one application in the current competition if the proposed programs are in different jurisdictions. HUD will not approve multiple applications for implementation grants in the same jurisdiction unless it determines that the jurisdiction is sufficiently large to justify approval of more than one application. Implementation grant activities to conduct a Youthbuild program may include: (a) Acquisition of housing and related facilities to be used for the purposes of providing homeownership, residential rental housing, or transitional housing for the homeless and low- and very low-income persons and families; (b) Architectural and engineering work associated with Youthbuild housing; (c) Construction of housing and related facilities to be used for the purposes of providing homeownership, residential rental housing, or transitional housing for the homeless and low- and very low-income persons and families; (d) Rehabilitation of housing and related facilities to be used for the purposes of providing homeownership, residential rental housing, or transitional housing for the homeless and low- and very low-income persons and families, including lead-based paint activities; in accordance with part 35 of this title; (e) Operating expenses and replacement reserves for the housing assisted in the Youthbuild program; (f) Relocation payments and other assistance required to comply with §585.308, legal fees, and construction management; (g) Outreach and recruitment activities, emphasizing special outreach efforts to be undertaken to recruit eligible young women (including young women with dependent children); (h) Education and job training services and activities including work experience, basic skills instruction and remedial education, bilingual education; secondary education leading to the attainment of a high school diploma or its equivalent; counseling and assistance in attaining post-secondary education and required financial aid; (i) Wages, benefits and need-based stipends provided to participants; (j) Leadership development, counseling, support services, and development of employment skills; (k) Defraying costs for the ongoing training and technical assistance needs of the recipient that are related to developing and carrying out a Youthbuild program; (l) Job placement (including entrepreneurial training and business development), counseling, and support services for a period not to exceed 12 months after completion of training to assist participants; and (m) Administration. Youthbuild funds for administrative costs may not exceed 15 percent of the total amount of Youthbuild program and project costs or such higher percentage as HUD determines is necessary to support capacity development by a private nonprofit organization. [60 FR 9737, Feb. 21, 1995, as amended at 64 FR 50226, Sept. 15, 1999] The following budget items are to be considered training or other costs under the Youthbuild implementation grant and should not be considered costs associated with acquisition, rehabilitation, or new construction for the purposes of §§585.307, 585.309, 585.310, and 585.311. (a) Trainees' tools and clothing. (b) Participant stipends and wages. (c) On-site trainee supervisors. (d) Construction management. (e) Relocation costs. (f) Legal fees. (g) Clearance and demolition. (a) Environmental procedures. Applicants are encouraged to select hazard-free and problem-free properties for their Youthbuild projects. Environmental procedures apply to HUD approval of implementation grants when the applicant proposes to use Youthbuild funds to cover any costs for the lease, acquisition, rehabilitation, or new construction of real property that is proposed for housing project development. Environmental procedures do not apply to HUD approval of implementation grants when applicants propose to use their Youthbuild funds solely to cover any costs for classroom and/or on-the-job construction training and supportive services. For those applicants that propose to use their Youthbuild funds to cover any costs of the lease, acquisition, rehabilitation, or new construction of real property, the applicant shall submit all relevant environmental information in its application to support HUD decision-making in accordance with the following environmental procedures and standards. (1) Before any Youthbuild implementation application that requests funds for acquisition, rehabilitation, or construction can be selected for funding, HUD shall determine whether any environmental thresholds are exceeded in accordance with 24 CFR part 50, which implements the National Environmental Policy Act (NEPA) and the related Federal environmental laws and authorities listed under 24 CFR 50.4. (i) If HUD determines that one or more of the thresholds are exceeded, HUD shall conduct a compliance review of the issue and, if appropriate, establish mitigating measures that the applicant shall carry out for the property; (ii) In performing its review, HUD may use previously issued environmental reviews prepared by local, State, or other Federal agencies for the proposed property; (iii)(A) The application for the Youthbuild implementation grant shall provide HUD with: (1) Applicant documentation for environmental threshold review; and (2) Any previously issued environmental reviews prepared by local, State, or other Federal agencies for the proposed property. (B) The applicant is encouraged to contact the local community development agency to obtain any previously issued environmental reviews for the proposed property as well as for other relevant information that can be used in the applicant documentation for the environmental threshold review. In using previous reviews by other sources, HUD must, however, conduct the environmental analysis and prepare the environmental review and be responsible for any required environmental findings. (2) HUD reserves the right to disqualify any application where one or more environmental thresholds are exceeded if HUD determines that the compliance review cannot be conducted and satisfactorily completed within the HUD review period for applications. (3) If Youthbuild funds are requested for acquisition, rehabilitation, or construction, applicants are prohibited from committing or expending State, local or other funds to undertake property acquisition (including lease), rehabilitation or construction under this program until notification of grant award. (b) Environmental thresholds. HUD shall determine whether a NEPA environmental assessment is required. Also, HUD shall determine whether the proposed property triggers thresholds for the applicable Federal environmental laws and authorities listed under 24 CFR 50.4 as follows: (1) For minor rehabilitation of a building and any property acquisition (including lease), Federal environmental laws and authorities may apply when the property is: (i) Located within designated coastal barrier resources; (ii) Contaminated by toxic chemicals or radioactive materials; (iii) Located within a floodplain; (iv) A building for which flood insurance protection is required; (v) Located within a runway clear zone at a civil airport or within a clear zone or accident potential zone at a military airfield; or (vi) Listed on, or eligible for listing on, the National Register of Historic Places; located within, or adjacent to, an historic district, or is a property whose area of potential effects includes a historic district or property. (2) For major rehabilitation of a building and also for substantial improvement in floodplains, in addition to paragraphs (b)(1)(i) through (vi) of this section, other Federal environmental laws and authorities may apply when the property: (i) Has significant impact to the human environment; (ii) Is a project involving five or more dwelling units severely noise-impacted; or (iii) Affects coastal zone management. (3) For new construction, conversion or increase in dwelling unit density, in addition to paragraphs (b)(1)(i) through (vi) and paragraphs (b)(2)(i) through (iii) of this section, other Federal environmental laws and authorities may apply when the property: (i) Is located near hazardous industrial operations handling fuels or chemicals of an explosive or flammable nature; (ii) Affects a sole source aquifer; (iii) Affects endangered species; or (iv) Is located within a designated wetland. (c) Qualified data sources. The environmental threshold information provided by applicants must be from qualified data sources. A qualified data source means any Federal, State, or local agency with expertise or experience in environmental protection (e.g., the local community development agency; the local planning agency; the State environmental protection agency; the State Historic Preservation Officer) or any other source qualified to provide reliable information on the particular property. (d) Minor rehabilitation means proposed fixing and repairs: (1) Whose estimated cost is less than 75 percent of the property value after completion; (2) That does not involve changes in land use from residential to nonresidential, or from nonresidential to residential; (3) That does not involve the demolition of one or more buildings, or parts of a building, containing the primary use served by the property; and (4) That does not increase unit density more than 20 percent. The Youthbuild program is subject to the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) and implementing regulations at 49 CFR part 24. HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition, available from the Relocation and Real Estate Division at the address listed in this section, describes these policies and procedures. Any occupied property used in a Youthbuild program is subject to the URA regardless of the source of the property or construction funds. The URA requires recipients to provide relocation assistance to persons (families, individuals, businesses, and nonprofit organizations) that are displaced as a direct result of acquisition, rehabilitation or demolition for an assisted project. Property occupants who are not displaced also have certain rights. Therefore, if a proposed Youthbuild implementation program involves occupied property, before submitting the application the applicant should consult with staff of the Relocation and Real Estate Division, Office of Community Planning and Development, Department of Housing and Urban Development, Room 7154, 451 Seventh Street, SW, Washington, DC 20410; telephone: (202) 708–0336. TDD: (202) 708–1455. Fax: (202) 708–1744. (These are not toll-free numbers.) Where the award of a Youthbuild implementation grant includes the eligible activities of acquisition, architectural and engineering fees, construction, rehabilitation, operating costs or replacement reserves for residential rental units, and where the costs for these activities are to be funded, in whole or in part, from the Youthbuild grant award, the recipient shall be required to comply with the following Youthbuild project-related restrictions for a period of not less than 10 years: (a) Occupancy by low- and very low-income families. (1) For the 10 year period of the residential rental Youthbuild project, the recipient or rightful owner will be required to maintain at least a 90 percent level of occupancy for individuals and families with incomes less than 60 percent of the area median income, adjusted for family size—“the 90 percent category.” The recipient or rightful owner must offer each available rental unit to the 60 percent of area median income group for an advertising period of not less than 90 days upon each vacancy occurrence throughout the 10 year period. Community-wide advertisements for tenants of this income group must be conducted. (2) In order to maintain the financial stability of the project and to provide flexibility in averting long-term vacancies in the 90 percent category, the rightful owner is permitted, under certain circumstances described below, to execute temporary two year leases with individuals and families with incomes between 60 and 80 percent of the area median income. This temporary deviation is permitted when no qualifying tenant (with an income of 60 percent or less of median) leases the unit upon the end of the 90 day advertising period. The owner may then advertise the unit to individuals and families with incomes less than 80 percent of the area median income, adjusted for family size, for another advertisement period of 90 days. Temporary leases for tenants whose incomes are between 60 and 80 percent of the area median income (exclusive of the 10 percent allowance) shall be limited to two years. Temporary tenants are not covered by Youthbuild tenant protections regarding termination of tenancy (paragraph (b)(2) of this section), tenant selection plan (paragraph (b)(4) of this section) and tenant participation plan (paragraph (d) of this section). (3) The remaining 10 percent of the units must be made available to and occupied by low-income families—“the 10 percent category.” The income test must be conducted for both the 90 percent and 10 percent categories only at time of entry for each unit available for occupancy. (b) Tenant protections. Upon submission of the implementation grant application, the applicant or rightful owner of the residential rental units covered under this paragraph shall certify to the following tenant protections: (1) Lease. As part of the Youthbuild implementation grant application, the applicant or rightful owner of the property shall provide a model lease containing terms and conditions acceptable to HUD. The model lease shall become an addendum to the executed grant agreement and shall remain in force for a period of 10 years. The lease between a tenant and the owner of residential rental housing shall be for a period of not less than one year, unless otherwise mutually agreed to by the tenant and the owner, and shall contain such terms and conditions as HUD determines to be appropriate. Any change to a lease must be approved by HUD. (2) Termination of tenancy. Upon submission of the implementation grant application, the applicant or other rightful owner of the property must certify that the following restrictions will be applied to all lease terminations initiated by the owner. The restrictions must state that an owner shall not terminate the tenancy or refuse to renew the lease of a tenant occupying a Youthbuild residential rental housing unit except for serious or repeated violations of the terms and conditions of the lease, or for violation of applicable Federal, State, or local laws, or for other good cause. Any termination or refusal to renew the lease must be preceded by not less than 30 days by the owner's service upon the tenant of a written notice specifying the grounds for the action. With regard to leases for tenants in units controlled by public housing authorities, 24 CFR part 966 shall take precedence over this provision. (3) Maintenance and replacements. Upon submission of the implementation grant application, the applicant or rightful owner of Youthbuild residential rental housing must certify that the premises will be maintained in compliance with all applicable housing quality standards and local code requirements for the 10 year period. HUD's section 8 housing quality standards apply when no other public assistance is involved other than the Youthbuild grant. In other cases, the applicable HUD or other Federal, State or local program guidelines shall apply. (4) Tenant selection. The applicant or rightful owner of Youthbuild residential rental housing must develop and adopt a tenant selection plan containing selection policies and criteria that are consistent with HUD requirements. The tenant selection plan shall remain in force for the 10 year period. Upon submission of the implementation grant application, the applicant or owner of the property must certify that the plan complies with the following HUD requirements: (i) The plan is consistent with the purpose of providing housing for homeless and very low-income families and individuals; (ii) The plan is reasonably related to program eligibility and the applicant's or owner's ability to perform the obligations of the lease; (iii) The plan gives reasonable consideration to the housing needs of families that would qualify for a preference under section 6(c)(4)(A) of the United States Housing Act of 1937; (iv) The plan provides for the selection of tenants from a written waiting list in the chronological order of their application, to the extent practicable, and for the prompt notification in writing of any rejected applicant of the grounds for any rejection; and (v) The plan acknowledges that a family holding tenant-based assistance under section 8 of the United States Housing Act of 1937 will not be refused tenancy because of the status of the prospective tenant as a holder of such assistance. (c) Limitation on rental payments. Upon submission of the implementation grant application, the applicant or other rightful owner of Youthbuild residential rental housing project involved in a Youthbuild program shall certify that tenants in each rental unit shall be not required to pay rent in excess of the amount provided under section 3(a) of the United States Housing Act of 1937. (d) Tenant participation plan. The Youthbuild program shall require a tenant participation plan applicable to the rightful owner of Youthbuild residential rental housing, provided such owner is a nonprofit public or private organization. Upon submission of the implementation grant application, the nonprofit owner shall certify that the tenant participation plan is the plan to be adopted and followed for tenant participation in management decisions for the 10 year period. (e) Limitations on profit. Youthbuild residential rental housing projects meeting the requirements of this section shall be restricted from producing profit in excess of the limitations set out in sections 455(c)(1) and (2) of NAHA. (f) Restrictions on conveyance. Conveyance restrictions apply to Youthbuild residential rental housing project(s) meeting the requirements of this section. Ownership of the property may not be conveyed unless the instrument of conveyance requires a subsequent owner to comply with the same restrictions imposed upon the original owner for the balance of the 10 year period. (g) Ten year restriction. The restrictions listed in paragraphs (a) through (f) of this section shall remain in force for a period of not less than 10 years after construction completion and issuance of an occupancy permit for all Youthbuild residential rental housing projects receiving Youthbuild assistance. [60 FR 9737, Feb. 21, 1995, as amended at 61 FR 52187, Oct. 4, 1996] Where the award of a Youthbuild implementation grant includes the eligible activities of acquisition, architectural and engineering fees, construction, rehabilitation, operating costs or replacement reserves of transitional housing units, and where the costs for these activities are funded, in whole or in part, with Youthbuild grant funds, the housing project shall be required to comply with the following Youthbuild project-related restrictions: (a) Limitations on profit. Youthbuild residential rental housing projects meeting the requirements of this section shall be restricted from producing profit in excess of the limitations set out in sections 455(c)(1) and (2) of NAHA. (b) Restrictions on conveyance. Conveyance restrictions apply to Youthbuild transitional housing projects meeting the requirements of this section. Ownership of the property may not be conveyed unless the instrument of conveyance requires a subsequent owner to comply with the same restrictions imposed upon the original owner for the balance of the 10 year period. (c) Program requirements for transitional housing. (1) Youthbuild transitional housing projects meeting the requirements of this section shall adhere to the requirements regarding service delivery, housing standards and rent limitations applicable to comparable housing receiving assistance under the Transitional Housing component of the Supportive Housing Program (title IV of the Stewart B. McKinney Homeless Assistance Act). (2) The Secretary may waive these requirements to permit the conversion of a Youthbuild transitional housing project to a permanent housing project only if such housing complies with the Youthbuild project-related restrictions for residential rental housing projects found in §585.309. (d) Ten year restriction. The restrictions listed in paragraphs (a) through (c) of this section shall remain in force for a period of not less than 10 years after construction completion and issuance of an occupancy permit for a Youthbuild transitional housing project receiving Youthbuild assistance. [60 FR 9737, Feb. 21, 1995, as amended at 61 FR 52187, Oct. 4, 1996] Where the award of a Youthbuild implementation grant includes the eligible activities of acquisition, architectural and engineering fees, construction, or rehabilitation of homeownership housing, and where the costs for these activities are to be funded, in whole or in part, with Youthbuild grant funds, the housing project shall be required to comply with the following Youthbuild project-related restrictions: (a) Program compliance. Each homeownership project meeting the requirements of this section shall comply with the requirements of the HOPE II or HOPE III program authorized under subtitle B or C respectively of title IV of the National Affordable Housing Act. (b) Restrictions on conveyance. Conveyance restrictions apply to Youthbuild homeownership housing projects meeting the requirements of this part. Ownership of the property may not be conveyed unless the instrument of conveyance requires a subsequent owner to comply with the same restrictions imposed upon the original owner for the balance of the 10 year period. (c) Ten year restriction. The restrictions listed in paragraphs (a) and (b) of this section shall remain in force for a period of not less than 10 years after construction completion and issuance of an occupancy permit for Youthbuild homeownership housing projects meeting the requirements of this part. Applicable provisions are stated in section 456(e) of NAHA. [61 FR 52187, Oct. 4, 1996] (a) Trainees. Davis-Bacon prevailing wage rate requirements are not applicable to trainees on housing projects or in training programs assisted by Youthbuild grant funds, regardless of whether other Federal assistance is involved. However, where the trainees' performance of public and Indian housing work is subject to HUD-determined prevailing wage rates under section 12 of the United States Housing Act of 1937, trainees must be paid HUD-determined wage rates; as a matter of policy, the wage rates determined by HUD to apply to Youthbuild trainees will be the trainee wage rates rather than journeyperson rates. (b) Laborers and mechanics other than Youthbuild Trainees. (1) All laborers and mechanics (other than Youthbuild trainees) employed by contractors or subcontractors in any construction, alteration or repair, including painting and decorating, of housing that is assisted by a Youthbuild grant shall be paid at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a through 276a–5). The employment of such laborers and mechanics on assisted housing shall be subject to the provisions of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 through 333). Where these requirements are applicable, recipients, sponsors, owners, contractors and subcontractors must comply with all related Department of Labor and HUD rules, regulations and requirements. (2) The labor standards requirements in paragraph (b)(1) of this section do not apply where a Youthbuild grant is provided solely for classroom and/or on-the-job training and supportive services for Youthbuild trainees, and the grant does not include costs for housing project development involving acquisition (including lease), rehabilitation or new construction of real properties; however, if other Federal programs provide assistance to the housing project, labor standards apply to laborers and mechanics other than Youthbuild trainees to the extent required by the other Federal programs. Applicants need to review applicable Federal regulations to determine which relevant requirements apply to their individual situations. (a) Each recipient of a planning or implementation Youthbuild grant award must keep records that will facilitate an effective audit to determine compliance with program requirements and that fully disclose: (1) The amount and disposition by the recipient of the planning or implementation Youthbuild grants received, including sufficient records that document the reasonableness, accuracy and necessity of each expenditure; (2) The amount and disposition of proceeds, if any, from financing obtained in connection with the Youthbuild program, e.g., housing sales to eligible low-income families, property sales to other public or private entities; (3) The total cost from all sources of funding for the Youthbuild program including all educational, training, counseling, placement, and housing activities and services; (4) The amount and nature of any other assistance, including cash, property, services, materials, in-kind contributions or other items contributed as a condition of receiving an implementation grant; (5) Any other proceeds received for, or otherwise used in connection with, the Youthbuild program. (6) Participant information. The recipient must maintain records on each Youthbuild participant, including such information as age, high school drop out status, income level, gender, employment status, and racial and ethnic characteristics. (7) Housing information. If Youthbuild grant funds are used for acquisition, architectural and engineering fees, construction, rehabilitation, operating costs or replacement reserves for housing used in a Youthbuild program, the recipient must maintain records on family size, income, and racial and ethnic characteristics of families renting or purchasing Youthbuild properties. (8) Relocation Assistance and Real Property Acquisition. The recipient shall maintain records sufficient to demonstrate compliance with relocation assistance and real property acquisition requirements, as described in chapter 6 of HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition. See §585.308. (b) Implementation grant recipients must submit reports pursuant to section 3 regulations at 24 CFR part 135. (c) Access by HUD and the Comptroller General. For purposes of audit, examination, monitoring, and evaluation, each recipient must give HUD (including any duly authorized representatives and the Inspector General) and the Comptroller General of the United States (and any duly authorized representatives) access to any books, documents, papers, and records of the recipient that are pertinent to assistance received. (a) General. The recipient will provide education and job training in accordance with the requirements of this part as incorporated in a grant agreement executed by HUD and the recipient. (b) Enforcement. HUD will enforce the obligations in the grant agreement through such actions as may be appropriate, including repayment of funds that have already been disbursed to the recipient. (a) Quarterly Progress Reports. Each recipient of a Youthbuild grant must submit a report on a quarterly basis. The form and substance of the quarterly progress report will be provided to recipients. The Performance Evaluation Report noted in paragraph (b) of this section will constitute the final Quarterly Report. (b) Performance Evaluation Report. Each recipient of a Youthbuild grant must submit a Performance Evaluation Report on activities undertaken and completed in accordance with the grant agreement. The form and substance of the Performance Evaluation Report shall be provided to recipients. (a) There are three basic types of changes that recipients may wish to make to their programs: (1) Grant Agreement amendments. (2) Material changes, which include, but are not limited to changes in housing sites, changes in significant participating parties, and changes in approved activities. All material changes require HUD approval. (3) Self-implementing program changes, which may include changes in recipient staffing and content of curriculum. All self-implementing changes require documentation in the recipient's files. (b) Approval for Grant Agreement amendments and material changes is contingent upon the application ranking remaining high enough after the approved change to have been competitively selected for funding in the year the application was selected. (a) Obligation of funds. When HUD and the applicant execute a grant agreement, funds are obligated to carry out approved activities consistent with §585.205 or 585.305 of this part and in accordance with the grant agreement. (b) Increases. After the initial obligation of funds, HUD will not make revisions to increase the amount obligated. (c) Deobligation. (1) HUD may deobligate all or parts of grants if the grant amounts are not expended within the term of the grant or if there is a condition of default as defined in the grant agreement. (2) HUD may award deobligated funds to applications previously submitted in response to the most recently published NOFA, and in accordance with subpart B of this part. (a) Organizations that are religious or faith-based are eligible, on the same basis as any other organization, to participate in the Youthbuild program. Neither the Federal government nor a State or local government receiving funds under Youthbuild programs shall discriminate against an organization on the basis of the organization's religious character or affiliation. (b) Organizations that are directly funded under the Youthbuild program may not engage in inherently religious activities, such as worship, religious instruction, or proselytization, as part of the programs or services funded under this part. If an organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services funded under this part, and participation must be voluntary for the beneficiaries of the HUD-funded programs or services. (c) A religious organization that participates in the Youthbuild Program will retain its independence from Federal, State, and local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use direct Youthbuild Program funds to support any inherently religious activities, such as worship, religious instruction, or proselytization. Among other things, faith-based organizations may use space in their facilities to provide Youthbuild Program-funded services, without removing religious art, icons, scriptures, or other religious symbols. In addition, a Youthbuild Program-funded religious organization retains its authority over its internal governance, and it may retain religious terms in its organization's name, select its board members on a religious basis, and include religious references in its organization's mission statements and other governing documents. (d) An organization that participates in the Youthbuild program shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief. (e) Youthbuild funds may not be used for the acquisition, construction, or rehabilitation of structures to the extent that those structures are used for inherently religious activities. Youthbuild funds may be used for the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under this part. Where a structure is used for both eligible and inherently religious activities, Youthbuild funds may not exceed the cost of those portions of the acquisition, construction, or rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to Youthbuild funds in this part. Sanctuaries, chapels, or other rooms that a Youthbuild-funded religious congregation uses as its principal place of worship, however, are ineligible for Youthbuild-funded improvements. Disposition of real property after the term of the grant, or any change in use of the property during the term of the grant, is subject to government-wide regulations governing real property disposition (see 24 CFR parts 84 and 85). (f) If a State or local government voluntarily contributes its own funds to supplement federally funded activities, the State or local government has the option to segregate the Federal funds or commingle them. However, if the funds are commingled, this section applies to all of the commingled funds. [68 FR 56407, Sept. 30, 2003] (a) The policies, guidelines and requirements of OMB Circular Nos. A–87 (Cost Principles Applicable to Grants, Contracts and other Agreements with State and Local Governments) and 24 CFR part 85 (Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments) apply to the award, acceptance and use of assistance under the program by applicable entities, and to the remedies for non-compliance, except where inconsistent with the provisions of NAHA, other Federal statutes or this part. 24 CFR part 84 (Grants and Cooperative Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations), OMB Circular A–122 (Cost Principles Applicable to Grants, Contracts and other Agreements with Nonprofit Institutions), and, as applicable, OMB Circular A–21 (Cost Principles for Educational Institutions) apply to the acceptance and use of assistance by covered organizations, except where inconsistent with the provisions of NAHA, other Federal statutes or this part. Recipients are also subject to the audit requirements of 24 CFR part 44 (Audit Requirements for State and Local Governments) and 24 CFR part 45 (Audit Requirements for Institutions of Higher Education and other Nonprofit Institutions), as applicable. HUD may perform or require additional audits as it finds necessary or appropriate. (b) Copies of OMB Circulars may be obtained from E.O.P. Publications, Room 2200, New Executive Office Building, Washington, DC 20503, telephone (202) 395–7332. (This is not a toll-free number.) There is a limit of two free copies. In addition to the standard assurances of compliance with Federal rules and OMB Circulars contained in applications for Federal grant assistance, applicants must also make the following certifications: (a) Consolidated Plan—(1) Applicants that are States or units of general local government. The applicant must have a HUD-approved Consolidated Plan in accordance with 24 CFR part 91 for the current year and must submit a certification that the proposed activities are consistent with the HUD-approved Consolidated Plan. (2) Applicants that are not States or units of general local government. The applicant must submit a certification by the jurisdiction or jurisdictions in which the proposed program will be located that the applicant's proposed activities are consistent with the jurisdiction's current HUD-approved Consolidated Plan. A required certification must be made by the unit of general local government if it is required to have, or has, a Consolidated Plan. Otherwise the certification may be made by the State. (3) The Insular Areas of Guam, the Virgin Islands, American Samoa and the Northern Mariana Islands are not required to have a Consolidated Plan or to make a Consolidate Plan certification. An application by an Indian tribe or other applicant for a Youthbuild program that will be located on a reservation of an Indian tribe does not require a certification by the tribe or State. However, where an Indian tribe or an Indian Housing Authority (IHA) is the applicant for a Youthbuild program that will not be located on a reservation, the requirement for a certification by the jurisdiction or jurisdictions in which the Youthbuild program will be located under the preceding paragraph applies. (b) Fair housing and equal opportunity. A certification that the applicant is in compliance and will continue to comply with the requirements of the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will affirmatively further fair housing, or, in the case of a Youthbuild application from an Indian tribe or an Indian Housing Authority (IHA), a certification that the applicant will comply with the Indian Civil Rights Act (25 U.S.C. 1301 et seq.), section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975. (c) Drug-free workplace. A certification that the applicant will comply with the requirements of the Drug-Free Workplace Act of 1988 (42 U.S.C. 701) and HUD's implementing regulations at 24 CFR part 24, subpart F. (d) Employment opportunities. A certification that the applicant will comply with the requirements of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 17017), as implemented by 24 CFR part 135. Section 3 requires that employment and other economic opportunities generated by HUD assisted housing and community development programs shall, to the greatest extent feasible, be directed toward section 3 residents and business concerns. (e) Anti-lobbying. In accordance with 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) (The Byrd Amendment) and the implementing regulations at 24 CFR part 87, applicants for and recipients 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. Applicants and recipients must also disclose where nonappropriated funds have been spent or committed for lobbying activities if those activities would be prohibited if paid with appropriated funds. Substantial monetary penalties may be imposed for failure to file the required certification or disclosure. (f) Relocation assistance and real property acquisition. A certification that the applicant will comply with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR part 24 and HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition. See §585.308. (g) Use of housing. A certification that the housing to be produced in conjunction with the Youthbuild program is to be provided for the homeless and low- and very low-income families. (h) Lead-based paint. A certification that the applicant will comply with the requirements of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821–4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851–4856), and implementing regulations at part 35, subparts A, B, J, K, and R of this title. (i) State and local standards. A certification that all educational programs and activities supported with funds provided under this subtitle shall be consistent with applicable State and local educational standards. Standards and procedures with respect to the awarding of academic credit and certifying educational attainment in such programs shall be consistent with applicable State and local educational standards. (j) Labor standards. A certification that the applicant and related parties will comply with the provisions of the Davis-Bacon Act, as amended (40 U.S.C. 276a through 276a-5), the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 through 333), and HUD Handbook 1344.1, Revision 1, Federal Labor Standards in Housing and Community Development Programs, as applicable, available from the Office of Assistant to the Secretary for Labor Relations, room 7118, 451 Seventh Street, SW., Washington, DC 20410; Telephone (202) 708–0370; FAX, (202) 619–8022; TDD, (202) 708–1455. (These are not toll-free numbers). [60 FR 9737, Feb. 21, 1995, as amended at 64 FR 50227, Sept. 15, 1999] (a)(1) In addition to the conflict of interest requirements in 24 CFR parts 84 and 85, no person who is an employee, agent, consultant, officer, or elected or appointed official of the recipient or cooperating entity named in the application and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for himself or herself or for those with whom he or she has family or business ties, during his or her tenure or for one year thereafter, except that a resident of an eligible property may acquire an ownership interest. (2) Exception. HUD may grant an exception to the exclusion in paragraph (a)(1) of this section on a case-by-case basis when it determines that such an exception will serve to further the purposes of the Youthbuild program. An exception may be considered only after the applicant or recipient has provided a disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict, a description of how the public disclosure was made, and an opinion of the applicant's or recipient's attorney that the interest for which the exception is sought would not violate State or local law. In determining whether to grant a requested exception, HUD will consider the cumulative effect of the following factors, where applicable: (i) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the Youthbuild program that would otherwise not be available; (ii) Whether an opportunity was provided for open competitive bidding or negotiation; (iii) Whether the person affected is a member of a group or class intended to be the beneficiaries of the activity and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; (iv) Whether the affected person has withdrawn from his or her functions or responsibilities, or the decision-making process, with respect to the specific activity in question; (v) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (a)(2) of this section; (vi) Whether undue hardship will result either to the applicant, recipient, or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (vii) Any other relevant considerations. (b) [Reserved] The provisions of 24 CFR part 24 apply to the employment, engagement of services, awarding of contracts, or funding of any contractors or subcontractors during any period of debarment, suspension, or placement in ineligibility status.
Title 24: Housing and Urban Development
PART 585—YOUTHBUILD PROGRAM
Section Contents
§ 585.1 Authority.
§ 585.2 Program purpose.
§ 585.3 Program components.
§ 585.4 Definitions.
§ 585.201 Purpose.
§ 585.202 Award limits.
§ 585.203 Grant term.
§ 585.204 Locational considerations.
§ 585.205 Eligible activities.
§ 585.301 Purpose.
§ 585.302 Award limits.
§ 585.303 Grant term.
§ 585.304 Locational considerations.
§ 585.305 Eligible activities.
§ 585.306 Designation of costs.
§ 585.307 Environmental procedures and standards.
§ 585.308 Relocation assistance and real property acquisition.
§ 585.309 Project-related restrictions applicable to Youthbuild residential rental housing.
§ 585.310 Project-related restrictions applicable to Youthbuild transitional housing for the homeless.
§ 585.311 Project-related restrictions applicable to Youthbuild homeownership housing.
§ 585.312 Wages, labor standards, and nondiscrimination.
§ 585.313 Labor standards.
§ 585.401 Recordkeeping by recipients.
§ 585.402 Grant agreement.
§ 585.403 Reporting requirements.
§ 585.404 Program changes.
§ 585.405 Obligation and deobligation of funds.
§ 585.406 Faith-based activities.
§ 585.501 Application of OMB Circulars.
§ 585.502 Certifications.
§ 585.503 Conflict of interest.
§ 585.504 Use of debarred, suspended, or ineligible contractors.
Subpart A—General
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§ 585.1 Authority.
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§ 585.2 Program purpose.
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§ 585.3 Program components.
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§ 585.4 Definitions.
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Subpart B [Reserved]
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Subpart C—Youthbuild Planning Grants
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§ 585.201 Purpose.
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§ 585.202 Award limits.
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§ 585.203 Grant term.
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§ 585.204 Locational considerations.
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§ 585.205 Eligible activities.
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Subpart D—Youthbuild Implementation Grants
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§ 585.301 Purpose.
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§ 585.302 Award limits.
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§ 585.303 Grant term.
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§ 585.304 Locational considerations.
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§ 585.305 Eligible activities.
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§ 585.306 Designation of costs.
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§ 585.307 Environmental procedures and standards.
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§ 585.308 Relocation assistance and real property acquisition.
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§ 585.309 Project-related restrictions applicable to Youthbuild residential rental housing.
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§ 585.310 Project-related restrictions applicable to Youthbuild transitional housing for the homeless.
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§ 585.311 Project-related restrictions applicable to Youthbuild homeownership housing.
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§ 585.312 Wages, labor standards, and nondiscrimination.
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§ 585.313 Labor standards.
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Subpart E—Administration
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§ 585.401 Recordkeeping by recipients.
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§ 585.402 Grant agreement.
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§ 585.403 Reporting requirements.
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§ 585.404 Program changes.
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§ 585.405 Obligation and deobligation of funds.
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§ 585.406 Faith-based activities.
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Subpart F—Applicability of Other Federal Requirements
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§ 585.501 Application of OMB Circulars.
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§ 585.502 Certifications.
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§ 585.503 Conflict of interest.
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§ 585.504 Use of debarred, suspended, or ineligible contractors.
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