[Federal Register Volume 59, Number 82 (Friday, April 29, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-9878] [[Page Unknown]] [Federal Register: April 29, 1994] _______________________________________________________________________ Part II Department of Agriculture _______________________________________________________________________ Farmers Home Administration _______________________________________________________________________ 7 CFR Part 1944 _______________________________________________________________________ Department of Housing and Urban Development _______________________________________________________________________ Office of the Secretary _______________________________________________________________________ 24 CFR Part 700 Congregate Housing Services Program; Final Rule and Notice of Funding Availability for Fiscal Year 1994 DEPARTMENT OF AGRICULTURE Farmers Home Administration 7 CFR Part 1944 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of the Secretary 24 CFR Part 700 [Docket No. R-94-1617; FR-2990-F-02] RIN 2501-AB34 Congregate Housing Services Program; Final Common Rule AGENCY: Farmers Home Administration, (USDA) and the Department of Housing and Urban Development, (HUD). ACTION: Final common rule. ----------------------------------------------------------------------- SUMMARY: This document is the joint final rule for the supportive services component of the Congregate Housing Services Program, which is authorized by section 802 of the National Affordable Housing Act and section 604 of the Housing and Community Development Act of 1992. The program provides assistance in the form of supportive services to the frail elderly, persons with disabilities, and temporarily disabled persons for the purpose of preventing premature or unnecessary institutionalization and encouraging deinstitutionalization. The joint interim rule for the supportive services component of the program was published on December 8, 1992 (57 FR 58042). EFFECTIVE DATE: May 31, 1994. FOR FURTHER INFORMATION CONTACT: For general information concerning the Congregate Housing Services Program (CHSP), contact Jerold S. Nachison, Housing for Elderly and Handicapped People Division, Office of Elderly and Assisted Housing, Department of Housing and Urban Development, 451 Seventh Street SW., room 6122, Washington, DC 20410, telephone (202) 708-3291. For general information concerning Farmers Home Administration's Congregate Housing Services Program contact Sue M. Harris-Green, Senior Loan Officer, Farmers Home Administration, U.S. Department of Agriculture, 14th & Independence Ave., SW., room 5343, Washington, DC 20250, telephone (202) 720-1606. Hearing or speech impaired individuals may call HUD's TDD number (202) 708-4594. (The telephone numbers listed above are not toll-free.) SUPPLEMENTARY INFORMATION: Paperwork Reduction Act Statement The information collection requirements contained in this rule have been submitted to the Office of Management and Budget (OMB) for review under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520). No person may be subjected to a penalty for failure to comply with these information collection requirements until they have been approved and assigned an OMB control number. The OMB control number, when assigned, will be announced by separate notice in the Federal Register. Public reporting burden for the collection of information requirements contained in this rule is estimated to include the time for reviewing the instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Information on the estimated public reporting burden is provided under Other Matters. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Department of Housing and Urban Development, Rules Docket Clerk, 451 Seventh Street, SW., room 10276, Washington, DC 20410-0500; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Desk Officer for HUD, Washington, DC 20503. I. Introduction The Congregate Housing Services Demonstration Program was first established by the Congregate Housing Services Act of 1978 (42 U.S.C. 8001). It provided congregate housing and coordinated supportive services for elderly disabled and non-elderly disabled individuals to allow them to maintain their independence and avoid costly and unnecessary institutionalization. Congress appropriated funds for fiscal years 1979 through 1982, to remain available until expended. Since then, Congress has appropriated funds annually to continue the grantees funded. The Congregate Housing Services Program was implemented through the HUD Congregate Housing Services Handbook (4640.1). On November 28, 1990, the National Affordable Housing Act (42 U.S.C. 8011) (NAHA) was enacted. In section 802, Congress specifically directed the Secretary of Housing and Urban Development (HUD) and the Secretary of Agriculture (USDA) through the Farmers Home Administration (FmHA) to jointly implement regulations to carry out the Congregate Housing Services Program (CHSP). Section 802 provides for congregate services which are minimally necessary to prevent premature or unnecessary institutionalization of frail elderly persons, persons with disabilities regardless of whether a person is elderly, or temporarily disabled persons living in eligible housing for the elderly. HUD and FmHA shall enter into grants with States, units of general local government, Indian tribes, PHAs, IHAs, and local nonprofit housing sponsors, to provide congregate services. An IHA, PHA, and local non-profit housing sponsor can enter into grants only on behalf of its project. States, units of general local government and Indian tribes may enter into grants on behalf of for profit or not for profit owners of eligible housing. Each grant agreement shall be made for a term of five years and shall be renewable (subject to the availability of funds) at the expiration of the term by the Secretary concerned. The CHSP funds will provide for not more than 40 percent of the cost of providing the congregate services program; at least 50 percent of the total cost will come from the grantee or third party organization, and at least 10 percent from the program participant (up to a maximum of 20% of the participant's adjusted income). Program participant fees may be waived by the Secretary concerned for eligible residents without income. In instances where a waiver is granted, the grantee and the Secretary concerned will share the deficit on a 50/50 basis. The grantee will develop a supportive services plan and a case management process as part of the application. Supportive services include meals, transportation, personal care (which may include dressing, bathing, and toileting), housekeeping, chore assistance, non- medical counseling, group and socialization activities, non-medical supervision, wellness programs, preventive health screening, monitoring of medication consistent with State law, personal emergency response systems, and other requested supportive services if approved by the Secretary concerned. Under NAHA, eligible housing projects that were receiving assistance under the Congregate Housing Services Act of 1978 on November 28, 1990 shall continue to receive priority for assistance funded under that Act. These grantees will receive priority for assistance under this section after the expiration of the term of the grant. Each grantee shall maintain, for the six-year transition period, the same dollar amount of its annual contributions in support of the activities eligible for assistance under this section equal to the amount contributed for such activities in the year ending on November 28, 1990. The grantee's contribution shall be equal to no less than the amount of the eligible owner's annual contribution plus any inflationary increases allowed by the Secretary concerned. At the end of six years, each grantee must meet the requirements of the new Congregate program. On October 28, 1992, the Housing and Community Development Act of 1992 (HCDA of 1992) was enacted (Public Law 102-550). Sections 604 and 672 of the HCDA of 1992 amended section 802 of NAHA. Section 604 amended section 802(i)(1)(B)(i) of NAHA by increasing from three to six years the period of time that grantees funded under the Congregate Housing Services Act of 1978 would be exempt from the requirement to provide 50% matching funds upon expiration of the term of the grant. It also increased the three-year requirement for maintenance of funds contributed by the grantee to six years. Section 672 of the HCDA of 1992, amended section 802(d)(4) of NAHA by requiring that service coordinators be trained in the aging process, elder services, disability services, eligibility for and procedures of Federal and applicable State entitlement programs, legal liability issues relating to providing service coordination, drug and alcohol use and abuse by the elderly, and mental health issues. On December 8, 1992, HUD and FmHA published a joint interim rule and invited the public to comment on it for consideration in drafting the final joint common rule. The public was also invited to comment and provide suggestions concerning the implementation of the retrofitting and renovation components of the Congregate Housing Services Program. The joint final rule responds to public comments on the joint interim rule. The FmHA and HUD are promulgating identical regulations applicable to the Congregate Housing Services Program. Since the regulations are identical, the text of the regulations is set out only once at the end of the common preamble. The part heading, table of contents, and authority citation for the regulations as they will appear in each CFR title follow the text of the final common rule. The entire text of the regulations as they will appear in each CFR title follows the text of the final common rule. The entire text of the regulation will appear in the respective parts of the Code of Federal Regulations of both FmHA and HUD. II. Public Comments HUD received 9 comments on the December 8, 1992, joint interim rule. The comments were from governmental entities, public housing agencies (PHAs), nonprofit organizations, HUD field offices and advocacy groups for the aging. General Comment: One comment was directed to the overall program with the commenter stating that the language in the rule was too complex and that the number of repetitions was ``dumbfounding''. The commenter stated that he would like to see a ``simple and common English explanation of how employment will impact an elderly individual's Section 8 or 236 rent subsidy, medicare premiums and 551 payments. The commenter also indicated that he would like to see a concise list of the duties of a service coordinator. HUD and FmHA response: The CHSP does not set income limits for the section 8 program or for the Section 236 program. The CHSP also does not set requirements regarding medicaid and section 551. The regulations concerning the definition of income and income limits for participants in the section 8 program can be found at 24 CFR (Code of Federal Regulations) Part 813. The CHSP interim rule has been simplified in the final version of the rule. Section ______.220 of both the interim common rule and this final rule list the duties of the service coordinator. Comment: One commenter stated the rule appears to discriminate against the housing authority that has not been able to accumulate unrestricted funds sufficient to purchase services, and that many housing authorities already have in place (prior to 1992 and 1993), eligible housing for the elderly already adapted for use with frail elderly and persons with disabilities for the purpose of preventing unnecessary institutionalization, without having grant funds available to them under the Congregate Housing Service Program. This commenter also indicated that the interim common rule clearly contradicts the intent and spirit of the statute. HUD and FmHA response: Section 802(i)(1)(A)(i) of the National Affordable Housing Act requires that the cost for services under the CHSP be shared between the Secretary concerned and the grantee. The grantee or other third party shall provide 50% of the cost of providing the CHSP; the Secretary concerned shall provide no more than 40% of the cost of providing CHSP; and fees from the program participant shall provide at least 10% of the cost. HUD and FmHA recognize that there are many projects that already had supportive services programs in existence prior to the implementation of this CHSP and therefore, cannot use existing services as match for the CHSP. In accordance with the statutory requirement, only new or expanded services can be used as match. The matching funds provided by the grantee must cover at least 50% of the cost of providing supportive services under the CHSP. The rule is consistent with the statutory purpose which is to provide new or expanded supportive services in federally assisted housing to prevent premature institutionalization in a manner that respects the dignity of the elderly and persons with disabilities and the cost sharing requirements of the program. Comment: One commenter stated that the interim joint rule does not require applicants to address transition to other service programs in the event of cessation of CHSP funding. The commenter suggested that the rule include a provision which would provide that requests for grant application include a plan for the continuation of necessary services or transition to other service providers in the event CHSP funds are no longer available. HUD and FmHA response: While HUD and FmHA share the commenter's concern for a commitment from the applicant to continue to provide services in the event funds are no longer appropriated for this program, it was agreed not to impose any additional paperwork or commitments upon the applicant. Applicants are experiencing difficulties obtaining matching funds and it was agreed that requiring the grantees to factor in funds for continuation or transition to other service providers five years in advance would be too burdensome. Comment: The commenter stated that the interim rule should be amended to permit applicants to request CHSP funding for multiple projects. HUD and FmHA response: The rule does not contain application requirements. The application requirements are set forth in the Notice of Funding Availability (NOFA) for the CHSP. The NOFA announces the availability of funds and sets forth the application requirements. HUD and FmHA will publish a new NOFA announcing the availability of funding and the application requirements. The commenter's suggestion will be considered in drafting the NOFA for fiscal year 1994. Comment: One commenter states that Sec. ______. 205(f) should spell out whether the Grants Officer will be a field, regional or headquarters employee. HUD and FmHA response: The Grants Officer responsibility and the responsible office will be explained in the CHSP notice and handbook. Cost Distribution Comment: One commenter states that the regulation should be amended to allow the 10% of the total program costs that are required to be generated by participants' fees to be generated by participants' fees, contributions, or the cost-sharing that is already required by an existing program eligible for match rather than just through participant fees. The commenter states that for fee-generating purposes Secs. ______.235(2) and ______.240(a) preclude the use of otherwise eligible local match programs that permit contributions, but not fees, or which already charge cost-share fees. The commenter states that if fees generated by participant fees, contributions, or cost-sharing already in an existing program eligible for match are allowed, HUD can retain the CHSP's program's intent to incorporate a participant expense sharing component and will also address the significant barriers to sufficient fee-generation that applicants will experience because of the different fee-charge regulations in a variety of programs that would logically be used for the CHSP matching requirements. HUD and FmHA response: Section ______.240 of the rule has been revised to allow fees to include cash contributions of the program participant, food stamps and any other contributions or donations. Cost sharing and fees collected by any eligible new or expanded service program for the CHSP are currently eligible. However, due to the statutory constraints concerning matching funds, funds for existing services which are not expanded are not eligible for match. Matching funds must pay for 50% of the cost of the services under CHSP and therefore, only costs for new or expanded services are eligible for match. Definitions Comment: One commenter urged the Department to reconsider its definition of activities of daily living (ADL) and the way that its definition is applied in the interim common rule. The commenter stated that the definition of ADL promulgated in the new rule combines what are now commonly known in the worlds of gerontological research and community-based aging programs as ``activities of daily living'' (ADL) and ``instrumentalities of daily living'' (IDL). The commenter stated that the rule definition of ADL was created by combining these terms without regard to what is currently used in the community and other common programs. The commenter argues that this definition is not in the spirit of coordination of housing and services which it believes is intended by the CHSP. The commenter further states that the way in which the definition of activities of daily living is applied is ``antithetical to the concept of aging in place.'' The commenter states that when one looks at the definition and all its caveats, the potential population to be served is not what is commonly known as the frail elderly but rather a fairly narrow niche of somewhat frail older adults. The commenter stated that while it understands HUD might want to be cautious about this definition in order to maintain a housing rather than an institutional character to its developments, it is also important that such appropriateness decisions be reviewed on an individual rather than a categorical basis whenever possible. HUD and FmHA response: Program participants are limited to the frail elderly deficient in at least three activities of daily living by statute. Therefore, HUD and FmHA decided to combine the ADL's and IDL's based upon HUD's past experiences in operating the CHSP of 1978. By combining ADLs and IDLs for the definition of ADLs and stating the minimum deficiency level, the program is able to serve a larger population of frail elderly persons than would be served by the traditional definitions of the ADLs. Comment: One commenter states that the definition of activities of daily living (ADL) should be more concise and the minimum requirements of ADL which are listed in Sec. ______.225(c)(2) should be initially stated under the definitions. HUD and FmHA response: Section ______.225(c)(2) restates the definition of activities of daily living found in the definition section. Comment: One commenter states that instead of including PHAs specifically in the definition of ``Applicant'' PHAs are identified as eligible grantees under the definition of ``Local nonprofit housing sponsor.'' The commenter suggests that the rule specifically identify PHAs and IHAs as eligible grantees. HUD and FmHA response: The definition of ``Applicant'' has been revised to specifically identify PHAs and IHAs as eligible grantees. Comment: One commenter states that the definition of qualifying supportive services found in Sec. ______.105 and the eligible activities found in Sec. ______.210 do not tie in directly to the minimum requirements for ADL. The commenter states that the minimum requirements of ADL do not include non-medical supervision and personal emergency response systems. HUD and FmHA response: Qualifying supportive services and eligible activities should not tie directly into the requirements of ADL. The ADLs are used to determine if frail elderly persons are minimally eligible to participate in the program. Program participants (frail elderly persons deficient in at least three ADLs and persons with disabilities) would then be eligible to receive qualifying supportive services such as non-medical supervision and personal emergency response systems, if they need them. Comment: The commenter states that the section number in the reference for the Developmental Disabilities Assistance and Bill of Rights Act contained in Sec. ______.105(7) should be changed from (7) to (5). HUD and FmHA response: This error has been corrected. Comment: The commenter states that in Sec. ______.205(e) Eligible housing projects of the interim rule the reference to non-elderly ``disabled'' should be changed to non-elderly people with ``disabilities.'' HUD and FmHA response: All references to non-elderly handicapped or non-elderly disabled have been changed to non-elderly people with disabilities. Eligibility Comment: One commenter recommended deleting the reference to nonresidents in Sec. ______.230 under eligibility. The commenter maintained that due to the limited amount of funds available for this CHSP, funds should be utilized by tenants occupying eligible housing and that if a community shows a need to serve nonresidents, other sources of funding could be pursued to meet that need. HUD and FmHA response: Nonresident elderly persons, persons with disabilities, and temporarily disabled are eligible to participate in CHSP at the option of the program management in consultation with project residents. The program management has the discretion to deny nonresidents participation in the program if their participation is not cost-effective or if it adds to the need for assistance under the program. Nonresidents who receive services under CHSP must pay a fee equal to the cost of the services provided. Nonresidents are not eligible for CHSP funds to subsidize their costs for services. Match Comment: The commenter states that the 50% match requirement for the grantee or eligible owner is excessively burdensome and may result in an inordinate amount of program failures. These program failures would have the ultimate result of doing harm to the program participants who relocate to the congregate housing locations in reliance on the programs. The commenter also states that the rules as written necessitate the inclusion of a great deal of estimated information in the budget. The commenter states that while service costs may be known, the likelihood of program failure increases because the number of participants, types of services to be requested and the ability of the participant to pay cannot be known until program startup. HUD and FmHA response: Section 802(i)(1)(A)(i) of the National Affordable Housing Act requires that the cost for services under the CHSP be shared between the Secretary concerned and the grantee. The grantee shall provide 50% of the cost of providing the CHSP; the Secretary concerned shall provide 40% of the cost of providing CHSP; and fees from the program participant shall provide 10% of the cost. While HUD and FmHA agree that both participant interest and need are estimated at best, the budget information is necessary to establish a dollar value and limit for the application and to assist in the rating and ranking of applications for CHSP funding. Comment: One commenter stated that the 50% match requirement and the restrictions on what can be counted as in-kind service are barriers that the rule presents which causes its housing authority to be unable to participate in the program. The commenter suggests that in instances like its own where projects have limited resources that it be allowed to count the services already provided as in-kind match. The commenter also contends that local community services are already ``maxed'' out because housing authorities have been successful in having a number of services provided by community agencies and that the housing authorities prior to the grant period have already invested as much or more than the match requirement. HUD and FmHA response: Section 802(i)(1)(A)(i) of the National Affordable Housing Act requires that the cost for services under the CHSP be shared between the Secretary concerned and the grantee. The grantee or other third party is required to provide 50% of the cost of providing the CHSP; the Secretary concerned provides no more than 40% of the cost of providing CHSP; and fee from the program participant provides at least 10% of the cost. Match funds must account for 50% of the cost of services under the CHSP program. Only qualified supportive services are eligible services under the CHSP. Since section 802(k)(16) defines qualified supportive services as new or expanded services, match funds can only be used for new or expanded services. Non-Allowable Costs Commenter: One commenter states that the examples of non-allowable costs under the program include capital funding items. The commenter states that the failure to allow projects access to funds to cover capital cost will place projects at a disadvantage in developing a CHSP and may also discourage many nonprofit owners from applying and participating in the program. The commenter also states that during congressional consideration of NAHA, it supported Senate passage of a new and separately funded retrofit program to provide for modernization and retrofitting of elderly housing projects. HUD and FmHA response: HUD and FmHA decided to disallow capital funding items because they were concerned the majority of the funds for supportive services would be used to fund capital improvements. Upon implementation of the retrofit component of the CHSP, modernization and retrofitting will be eligible activities. Due to the limited amount of funding available FmHA and HUD decided that the purposes of the program are best served by only funding the supportive services component. Program Participant Fees Comment: One commenter states that the regulations should include a provision that does not cap HUD's contribution for resident fee deficits. The commenter also suggests that the regulations should allow the CHSP to use other income sources to make up for any resident-fee deficit that arises because of the 20% cap on resident fees, or that arises because the local program match program permits only contributions. The commenter states that contributions should be permitted to count as part of the fee amount and that the regulations should be amended to allow a flexible sliding scale fee schedule for participants for whom 20% or even 10% of adjusted income is too costly or where 10% of the cost of a specific fee is too high. Commenter also states that there should be more flexible fee waivers to include participants who are at or below the poverty level. HUD and FmHA response: Section ______ .240 of the regulation has been revised to allow food stamps and other contributions or donations to be included as part of the 10% fee amount for program participants. In instances where the grantee finds that the fees for a participant are too high, the grantee can request a waiver of Sec. ______.240(e) of the regulation. Any waived fees are shared 50% between the Secretary concerned and the grantee. Retrofit and Renovations Component Comment: There were several comments and suggestions concerning the retrofitting and renovation component of the Congregate Housing Services Program. Several commenters expressed discontent with the decisions not to fund the retrofit and renovation component and the failure to implement regulations. Many stated that the retrofit component was an integral and critical part of the program. One commenter stated that HUD and FmHA had the authority and the flexibility to allocate some funding for retrofit in order to have the program in place for full funding later. There was a general concern for the Department's failure to develop interim regulations in order to implement retrofit once funding is made available. HUD and FmHA response: Since HUD and FmHA had very little guidance from Congress on the implementation of the program, they invited comments from the public on how the renovation and retrofit component should be implemented. They also invited comments on specific issues concerning this component. HUD and FmHA will use the responses received to assist in the drafting of regulations implementing the retrofit and renovation component at a later date. III. Findings and Certifications A. National Environmental Policy Act. A Finding of No Significant Impact with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50 implementing section 102(2)(C) of the National Environmental Policy Act of 1969, 42 U.S.C. 4332. The Finding of No Significant Impact is available for public inspection and copying between 7:30 a.m. and 5:30 p.m. weekdays at the Office of the Rules Docket Clerk, 451 Seventh Street, SW., room 10276, Washington, DC 20410. B. Regulatory Flexibility. The Secretary and the Administrator, in accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)), have reviewed this rule before publication and by approving it certify that this rule does not have a significant economic impact on a substantial number of small entities. The rule will provide grants to States, Indian tribes, units of general local government and local nonprofit housing sponsors for congregate services programs for eligible project residents. Although small entities will participate in the program, the rule would not have a significant impact on them. C. Family Impact. The General Counsel of HUD, as the Designated Official under Executive order 12606, The Family, has determined that the policies contained in this rule will have some significant impact on the maintenance and general well-being of families. The revised CHSP can be expected to provide supportive services which can prevent or postpone unnecessary or premature institutionalization, and reduce unnecessary stress and financial burdens on participants' families by allowing them to remain in their apartments. Because the impact on family concerns is wholly beneficial, no further review under the executive order is considered necessary. D. Federalism Impact. The General Counsel of the Department of Housing and Urban Development, as the Designated Official for the Department of Housing and Urban Development under section 6(a) of Executive Order No. 12611--Federalism, has determined that the rule does not involve the preemption of State law by Federal statute or regulation and does not have Federalism implications. E. Semiannual Agenda. This final common rule was listed as item number 1477 in the Department of Housing and Urban Development's Semiannual Agenda of Regulations published on October 25, 1993 (58 FR 56402) under Executive Order 12291 and the Regulatory Flexibility Act. F. This rule has been reviewed in light of Executive Order 12778 and meets the applicable standards provided in sections 2(a) and 2(b)(2) of that Order. Provisions within this part which are inconsistent with state law are controlling. All administrative remedies pursuant to 7 CFR part 1900, subpart B must be exhausted prior to filing suit. Public Reporting Burden The information collection requirements contained in this rule have been submitted to the Office of Management and Budget under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520). The Department has determined that the following provisions contain information collection requirements. Existing Congregate Housing Services Program 7 responses are estimated from each respondent. 3.71 hours is the estimated average response time for each respondent. Total Respondents time is 1456 hours. Estimate of cost to the respondents is $15.00 per hour. Total respondents time @ $15/hour=1456 x $15=$21,840. Tabulation of Reporting Burden ---------------------------------------------------------------------------------------------------------------- No. of No. of x responses Total x Hours per Total hours Information collected respondents per = annual response respondent responses ---------------------------------------------------------------------------------------------------------------- Existing congregate housing services program 17.1 17.2 17.3 17.4 17.5 Budget submission........... 56 1 56 3 168 Annual program reports...... 56 1 56 3 168 Participant applications to CHSP....................... 56 5 280 4 1120 Summary..................... 56 7 392 3.71 1456 ---------------------------------------------------------------------------------------------------------------- Revised Congregate Services Housing Program 14 responses are estimated from each respondent. 5.10 hours is the estimated average response time for each respondent per response. Total Respondents time is 9,675. Estimate of cost to the respondents is $15.00 per hour. Total respondents time @ $15/hour=9675 x $15=$145,125 Tabulation of Reporting Burden ---------------------------------------------------------------------------------------------------------------- No. of No. of x responses Total x Hours per Total hours Information collected respondents per = annual response respondent responses ---------------------------------------------------------------------------------------------------------------- Revised congregate housing services program 17.1 17.2 17.3 17.4 17.5 Initial owner applications.. 150 1 150 14 2100 Budget formats.............. 50 1 50 3 150 Semiannual program reports.. 50 1 50 1.5 75 Annual program reports...... 50 1 50 3 150 Participant applications to new CHSP................... 50 36 1800 4 7200 Summary..................... 150 14 2100 5.10 9675 ---------------------------------------------------------------------------------------------------------------- Total existing and Revised CHSP is 11,131. IV. Regulations Promulgation On October 25, 1990, Congress passed the NAHA. 42 U.S.C. 8011. NAHA was signed into law by President Bush on November 29, 1990. Section 802(m) of NAHA states inter alia as follows: Promulgation of Regulations: The Secretary of Housing and Urban Development and the Secretary of Agriculture shall, not later than the expiration of the 180-day period beginning on the date of enactment of this Act, jointly issue any regulations necessary to carry out this section. Conference Report 101-943, October 25, 1990. Accordingly, the regulation was to have been published by May 27, 1991. ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Text of Final Common Rule The text of the final common rule, as adopted by the agencies in this document, appears below: Part ______ Congregate Housing Services Program Sec. Sec. ______.100 Authority and purpose. Sec. ______.105 Definitions. Sec. ______.200 Announcement of fund availability and selection criteria. Sec. ______.205 Grant agreement. Sec. ______.210 Eligible activities. Sec. ______.215 Service plan. Sec. ______.220 Service coordinator. Sec. ______.225 Professional Assessment Committee (PAC). Sec. ______.230 Eligibility. Sec. ______.235 Cost distribution. Sec. ______.240 Program participant fees. Sec. ______.245 Other Federal requirements. Sec. ______.300 Application. Sec. ______.305 Application evaluation and selection. Sec. ______.325 Monitoring of project sites by governmental units. Sec. ______.330 Evaluation of provision of congregate services programs. Sec. ______.335 Renewal of grants. Sec. ______.400 Participatory agreement. Sec. ______.405 Reserve for supplemental adjustment. Sec. ______.415 Recapture. Sec. ______.420 Reports. Sec. ______.425 Budget submissions. Sec. ______.430 Program costs. Sec. ______.435 Use of residents in providing services. Sec. ______.440 Services provided, not income. Sec. ______.445 Consultation with the Department of Health and Human Services. Sec. ______.500 Eligibility and priority for 1978 Act recipients. Sec. ______.505 Submission and approval of applications by grantees. Sec. ______.510 Submission and approval of applications by grantees funded initially under the 1978 Act, after the six-year transition period. Sec. ______.515 Waiver authority. Sec. ______.100 Authority and purpose. (a) Authority. This part is adopted pursuant to section 802 of the National Affordable Housing Act (42 U.S.C. 8011) and section 604 of the Housing and Community Development Act of 1992. Pursuant to section 802(m) of the National Affordable Housing Act (NAHA), the Farmers Home Administration (FmHA) and HUD are promulgating rules and regulations applicable to the supportive services component of the congregate housing services program. (b) Purpose. (1) The program under this part provides for minimal supportive services to the frail elderly, persons with disabilities and temporarily disabled individuals as a means of preventing unnecessary institutionalization and encouraging deinstitutionalization. The program also provides management with the capacity to assess the service needs of eligible residents and to locate and arrange for the delivery of community based supportive services. The program is implemented in a manner that both respects the dignity of the participants and encourages their independence. The provision of supportive services allows for a continuum of care on a long term basis and offers another option in supportive living arrangements. The program functions as an active proponent of community based care and affords an opportunity for housing projects to become an additional source for supportive service delivery in the local area. (2) The program is additionally designed to: (i) Improve the quality of life of older Americans living in federally assisted housing; (ii) Preserve the viability of existing affordable housing projects for low income older residents who are aging in place by assisting managers of housing with the difficulties and challenges created by serving older residents; (iii) Develop partnerships between the Federal Government and State governments in providing services to the frail elderly and persons with disabilities and the temporarily disabled, and (iv) Utilize Federal and State funds in a more cost-effective and humane way in serving the needs of older adults. (c) Applicability. This part applies to: (1) Public housing as that term is defined in section 3(b) of the United States Housing Act of 1937; (2) Low income housing developed or operated under a contract between the Secretary of Housing and Urban Development and an Indian housing authority under title II of the United States Housing Act of 1937; (3) Housing assisted under section 8 of the United States Housing Act of 1937 with a contract that is attached to the structure under section 8(d)(2) or with new construction or substantial rehabilitation of the structure under section 8(b)(2), as that section existed before October 1, 1983; (4) Housing assisted under section 202 of the Housing Act of 1959; (5) Housing assisted under section 221(d) or 236 of the National Housing Act, with respect to which the owner has made a binding commitment to the Secretary of Housing and Urban Development not to prepay the mortgage or terminate the insurance contract under section 229 of the National Housing Act (unless the binding commitments have been made to extend the low-income use restriction relating to the housing); (6) Housing assisted under section 514 or 515 of the Housing Act of 1949, with respect to which the owner has made a binding commitment to the Secretary of Agriculture not to prepay or refinance the mortgage (unless the binding commitments have been made to extend the low income use restrictions relating to the housing for not less than the 20-year period under section 502(c)(4) of the Housing Act of 1949); and (7) Housing assisted under section 516 of the Housing Act of 1949. Sec. ______.105 Definitions. As used in this part-- Act means section 802 of the Cranston-Gonzalez National Affordable Housing Act. Activity of Daily Living (ADL) means an activity regularly necessary for personal care and includes eating (may need assistance with cooking, preparing or serving food, but must be able to feed self); dressing (must be able to dress self, but may need occasional assistance); bathing (may need assistance in getting in and out of the shower or tub, but must be able to wash self; grooming (may need assistance in washing hair, but must be able to take care of personal appearance); getting in and out of bed and chairs, walking, going outdoors, using the toilet; and household management activities (may need assistance in doing housework, grocery shopping or laundry, or getting to and from one location to another for activities such as going to the doctor and shopping, but must be mobile. The mobility requirement does not exclude persons in wheelchairs or those requiring mobility devices). Each of the Activities of Daily Living noted above includes a requirement that a person must be deficient in his or her ability to perform at a specified minimal level (e.g., to satisfy the eating ADL, the person must be able to feed him/herself). The determination of whether a person is deficient in this minimal level of performance must include consideration of those services that will be performed by a person's spouse, relatives or other attendants to be provided by the individual. For example, if a person requires assistance with cooking, preparing or serving food plus assistance in feeding him/herself, the individual would meet the minimal performance level and thus satisfy the eating ADL, if a spouse, relative or attendant provides assistance with feeding the person. Should such assistance become unavailable at any time, the Owner is not obligated at any time to provide individualized services beyond those offered to the resident population in general. The Activities of Daily Living analysis is relevant only with regard to determination of a person's eligibility to receive supportive services paid for by CHSP and is not a determination of eligibility for occupancy. Adjusted income means adjusted income as defined in 24 CFR part 813 or 913. Applicant means a State, Indian tribe, unit of general local government, PHA, IHA or local nonprofit housing sponsor. A State, Indian tribe, or unit of general local government may apply on behalf of a local nonprofit housing sponsor or a for-profit owner of eligible housing for the elderly. Area agency on aging means the single agency designated by the State Agency on Aging to administer the program described in Title III of the Older Americans Act of 1965 (45 CFR chapter XIII). Assistant Secretary means the HUD Assistant Secretary for Housing-- Federal Housing Commissioner or the HUD Assistant Secretary for Public and Indian Housing. Case management means implementing the processes of: establishing linkages with appropriate agencies and service providers in the general community in order to tailor the needed services to the program participant; linking program participants to providers of services that the participant needs; making decisions about the way resources are allocated to an individual on the basis of needs; developing and monitoring of case plans in coordination with a formal assessment of services needed; and educating participants on issues, including, but not limited to, supportive service availability, application procedures and client rights. Congregate housing means low-rent housing that is connected to a central dining facility where wholesome and economical meals can be served to the residents. Congregate Housing Services Program (CHSP) means a program assisted under this part undertaken by an eligible housing project to provide congregate services to program participants. Elderly person means a person who is at least 62 years of age. Eligible housing for the elderly means any eligible project including any building within a mixed-use project that was designated for occupancy by elderly persons, or persons with disabilities at its inception or, although not so designated, for which the eligible owner or grantee gives preference in tenant selection (with HUD approval) for all units in the eligible project (or for a building within an eligible mixed-use project) to eligible elderly persons, persons with disabilities, or temporarily disabled individuals. For purposes of this part, this term does not include projects assisted under the Low-Rent Housing Homeownership Opportunity program (Turnkey III (24 CFR part 905, subpart G)). Eligible housing project means: (1) Public housing (as that term is defined in section 3(b) of the United States Housing Act of 1937); (2) Low income housing developed or operated under a contract between the Secretary of Housing and Urban Development and an Indian housing authority under title II of the United States Housing Act of 1937; (3) Housing assisted under section 8 of the United States Housing Act of 1937 with a contract that is attached to the structure under section 8(d)(2), or with a contract entered into in connection with the new construction or substantial rehabilitation of the structure under section 8(b)(2), as that section existed before October 1, 1983; (4) Housing assisted under section 202 of the Housing Act of 1959; (5) Housing assisted under section 221(d) or 236 of the National Housing Act, with respect to which the owner has made a binding commitment to the Secretary of Housing and Urban Development not to prepay the mortgage or terminate the insurance contract under section 229 of the National Housing Act (unless the binding commitments have been made to extend the low-income use restrictions relating to the housing for the remaining useful life of the housing); (6) Housing assisted under section 514 or 515 of the Housing Act of 1949, with respect to which the owner has made a binding commitment to the Secretary of Agriculture not to prepay or refinance the mortgage (unless the binding commitments have been made to extend the low income use restrictions relating to the housing for not less than the 20-year period under section 502(c)(4) of the Housing Act of 1949); and (7) Housing assisted under section 516 of the Housing Act of 1949. Eligible owner means an owner of an eligible housing project. Eligible project resident means a person residing in eligible housing for the elderly who qualifies under the definitions of frail elderly, person with disabilities (regardless of whether the person is elderly), or temporarily disabled. Excess residual receipts mean residual receipts of more than $500/ per unit in the project which are available and not committed to other uses at the time of application to HUD for CHSP. Such receipts may be used as matching funds and may be spent down to a minimum of $500/unit. Farmers Home Administration (FmHA) means a credit agency for agriculture and rural development in the U.S. Department of Agriculture (USDA). Fees mean charges levied to residents for meals with or without other supportive services under CHSP and equivalent fees and donations made to new or expanded State and local supportive services program which are used to match the CHSP other than those of the Older Americans Act. For-profit owner of eligible housing for the elderly means an owner of an eligible housing project in which some part of the project's earnings lawfully inure to the benefit of any private shareholder or individual. Frail elderly person means a person at least 62 years of age who is unable to perform three or more activities of daily living. Grantee or grant recipient means the recipient of funding or an eligible owner receiving funding under the Congregate Housing Services Program. HUD means the Department of Housing and Urban Development. Indian tribe means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional corporation as defined in or established under the Alaska Native Claims Settlement Act, that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. Instrumental activity of daily living means a regularly necessary home management activity, and includes preparing meals, shopping for personal items, managing money, using the telephone, and performing light or heavy housework. Local nonprofit housing sponsor means an owner or borrower of eligible housing for the elderly; no part of the net earnings of the owning organization shall lawfully inure to the benefit of any shareholder or individual. Nonprofit, as applied to an organization, (1) Means no part of the net earnings of the organization inures, or may lawfully inure, to the benefit of any private shareholder or individual; or (2) Means a public housing agency as that term is defined in section 3(b)(6) of the United States Housing Act of 1937. Person with disabilities means a household composed of one or more persons, at least one of whom is an adult who has a disability. A person shall be considered to have a disability if such person is determined under regulations issued by the Secretary to have a physical, mental, or emotional impairment which (1) Is expected to be of long-continued and indefinite duration; (2) Substantially impedes his or her ability to live independently; and (3) Is of such a nature that the person's ability could be improved by more suitable housing conditions. A person shall also be considered to have a disability if the person has a developmental disability as defined in section 102(5) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-7). Notwithstanding the preceding provisions of this paragraph, the terms ``person with disabilities'' or ``temporarily disabled'' include two or more persons with disabilities living together, one or more such persons living with another person who is determined (under regulations prescribed by the Secretary of HUD) to be essential to their care or well-being, and the surviving member or members of any household where at least one or more persons was an adult with a disability who was living, in a unit assisted under this section, with the deceased member of the household at the time of his or her death. Professional Assessment Committee (PAC) means a group consisting of at least 3 individuals appointed by the officials of the eligible housing project responsible for the Congregate Housing Services Program and shall include at least one qualified medical and other health and social service professional competent to appraise the functional abilities of the frail elderly, persons with disabilities, and temporarily disabled persons in relation to the performance of activities of daily living. Program participant means a frail elderly person, person with disabilities, or temporarily disabled person receiving services under the Congregate Housing Services Program. Qualifying supportive services means new or significantly expanded services determined by the Secretary concerned to be minimally necessary and essential to enable eligible residents to live independently and avoid unnecessary institutionalization, including, but not limited to: (1) Meal service adequate to meet nutritional need; (2) Housekeeping aid; (3) Personal assistance (which may include, but is not limited to, aid given to eligible residents in grooming, dressing, and other activities which maintain personal appearance and hygiene); (4) Transportation services; (5) Non-medical supervision, wellness programs, preventive health screening, monitoring of medication consistent with State law; (6) Non-medical components of adult day care; (7) Personal emergency response systems and other requested supportive services essential for achieving and maintaining independent living if approved by the Secretary concerned. An owner may provide the qualifying services directly to eligible residents or may, by contract, provide such services through other appropriate agencies or providers. Secretary concerned means: (1) The Secretary of Housing and Urban Development, with respect to eligible federally assisted housing administered by HUD; and (2) The Secretary of Agriculture, with reference to programs administrated by the Administrator of the Farmers Home Administration. Service coordinator means a social services staff person who is hired by an eligible owner, grantee or management company, or another third party contractor such as a local case management agency. The service coordinator is responsible for assuring thorough case management so that program participants are linked to the supportive services they need to continue independent living. Service provider means a person or organization licensed or otherwise approved in writing by a State or local agency (e.g., Department of Health, Department of Human Services or Welfare) to provide supportive services. State means the states of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States. State agency on aging means the single agency designated by the Governor to administer the program described in Title III of the Older Americans Act of 1965 (see 45 CFR part 13). State agency means the State or an agency or instrumentality of the State. Temporarily disabled means having an impairment that is expected to be of no more than 6 months duration; and that impedes the ability of the individual to live independently unless the individual receives congregate services. Unit of general local Government means any city, town, township, county, parish, village, or other general purpose political subdivision of a State; and includes a unit of general government acting as an applicant for assistance under this section in cooperation with a nonprofit housing sponsor, and a nonprofit housing sponsor acting as an applicant for assistance under this section in cooperation with a unit of general local government. Sec. ______.200 Announcement of Fund Availability and Selection Criteria. (a) Notice of funding availability. A Notice of Funding Availability will be published periodically in the Federal Register by the Secretary concerned containing the amounts of funds available, allocation or distribution of funds available among eligible applicant groups, where to obtain and submit applications, the deadline for submissions, and further explanation of the selection criteria. The Secretary concerned will designate the maximum allowable size for grants. (b) Selection criteria. The criteria for selection shall include: (1) The types and priorities of the basic services proposed to be provided, the appropriateness of the targeting of services, the methods of providing for deinstitutionalized older individuals and individuals with disabilities, and the relationship of the proposal to the needs and characteristics of the eligible residents of the projects where the services are to be provided; (2) The schedule for establishment of services following approval of the application; (3) The degree to which local social services are adequate for the purpose of assisting eligible project residents to maintain independent living and avoid unnecessary institutionalization; (4) The professional qualifications of the members of the professional assessment committee (PAC); (5) The reasonableness and application of fees schedules established for congregate services; (6) The adequacy and accuracy of the proposed budgets; and (7) The extent to which the owner will provide funds from other services in excess of that required under the CHSP. Sec. ______.205 Grant Agreement. (a) General. HUD will enter into grant agreements with states, units of general local government, Indian tribes, PHAs, IHAs and local nonprofit housing sponsors, utilizing amounts appropriated under NAHA for the purpose of providing congregate services for program participants for eligible housing for the elderly to promote and encourage maximum independence within a home environment for such residents capable of self-care, with appropriate supportive services. (b) Term of grant agreement. A grant will be for a term of five years, and will be renewable at the expiration of the term, subject to the availability of funds and in conformance with these regulations except as otherwise provided in Sec. ______.500. (c) Reservation of amount. The Secretary concerned shall reserve a sum equal to the total approved grant amount for each grantee. (d) Eligible grant recipients. The Secretary concerned will provide assistance, and enter into grant agreements with grant recipients cited under paragraph (a) of this section. (e) Grant Officer. The Grant Officer for the Secretary concerned will enter into the supportive services grant agreement on behalf of HUD or FmHA. The Secretary concerned will hold the grantee responsible for the administration of the Congregate Housing Services Program. (f) Grantee requirements. The grant agreement will require that the grantee: (1) Operate the congregate services program in accordance with applicable program regulations, laws, or other requirements of the Secretary concerned; (2) Assure the effective provision of supportive services to the program participants; (3) Conduct an ongoing assessment of the housing assistance and supportive services required by the program participants; and (4) Comply with such other terms and conditions, required by NAHA or its implementing regulations, including monitoring, if required, data and record keeping requirements and submission of reports (which must include racial and ethnic data on participants) that the Secretary concerned establishes for the purposes of carrying out an effective Congregate Housing Services Program. The Department concerned will enforce the obligations of the grantee under the agreement through such action as may be necessary, including the termination and recapture of supportive services funds awarded under CHSP. Sec. ______.210 Eligible activities. (a) Supportive services. Funding for supportive services may be provided by state, local, public, or private providers, and/or CHSP funds. Grantees may provide the services directly or may subcontract with service providers in the community. (1) Qualifying supportive services may include, but need not be limited to: (i) Meal service adequate to meet nutritional need; (ii) Housekeeping aid; (iii) Personal assistance (which may include, but is not limited to, aid given to eligible residents in grooming, dressing, and other activities which maintain personal appearance and hygiene); (iv) Transportation services; (v) Non-medical supervision, wellness programs, preventive health screening, monitoring of medication consistent with state law; (vi) Non-medical components of adult day care; (vii) Personal emergency response systems; and (viii) Other requested supportive services essential for achieving and maintaining independent living, which are approved by the Secretary concerned. (2) The grantee may provide the qualifying services directly to program participants or may contract out the services through other appropriate agencies or providers. A congregate services program under this section shall provide meal and other services for program participants (and other residents and nonresidents, as provided in this section) that are coordinated on site. (3) Meal services shall meet the following guidelines: (i) Type of service. At least one meal a day must be served in a group setting for some or all of the participants; if more than one meal a day is provided, a combination of a group setting and carry-out meals may be utilized. (ii) Hot meals. At least one meal a day must be hot. A hot meal for the purpose of this program is one in which the principal food item is hot at the time of serving. (iii) Special menus. Grantees shall provide special menus as necessary for meeting the dietary needs arising from the health requirements of conditions such as diabetes and hypertension. Grantees should attempt to meet the dietary needs of varying religious and ethnic backgrounds. (iv) Meal service standards. Grantees shall plan for and provide meals which are wholesome, nutritious, and each of which meets a minimum of one-third of the minimum daily dietary allowances as established by the Food and Nutrition Board of the National Academy of Sciences-National Research Council (or State or local standards, if these standards are higher). Grantees must have an annual certification, prepared and signed by a registered dietitian, which states that each meal provided under CHSP meets the minimum daily dietary allowances. (v) Food stamps and agricultural commodities. In providing meal services under this paragraph (a)(2), each congregate services program shall apply for approval as a retail food store under section 9 of the Food Stamp Act of 1977 (42 U.S.C. 2018); and (A) If approved under the Food Stamp Act, accept coupons (as defined in section 3(e) of that Act) as payment from individuals to whom such meal services are provided; and (B) Shall request, and use to provide such meal services, agricultural commodities made available without charge by the Secretary of Agriculture. (vi) Preference for nutrition providers: In contracting for or otherwise providing for meal services under subparagraph (a)(2), each congregate housing services program shall give preference to any provider of meal services who: (A) Receives assistance under title III of the Older Americans Act of 1965; or (B) Has experience, according to such standards as the Secretary concerned shall require, in providing meal services in a housing project under the Congregate Housing Services Act of 1978, or any other program for congregate services. (b) The requirements of paragraph (a)(2) of this section do not preclude a grantee or owner from directly preparing and providing meals under its own auspices. Sec. ______.215 Service plan. (a) The grantee shall provide a service plan with the application, estimating the type and nature of the services to be provided, and the estimated cost for each unit of service. (b) The grantee shall develop the service plan in consultation with the Area Agency on Aging and the appropriate state or local agency serving persons with disabilities, as applicable. Supportive services or funding for supportive services may be provided by state, local, public or private providers. Grantees may provide the services or may contract out the services with service providers in the community. Sec. ______.220 Service coordinator. (a) Assistance may be provided to fund one or more service coordinators who may be responsible for: (1) Working with the professional assessment committee established under section Sec. ______.225 on an ongoing basis to assess the service needs of eligible residents; (2) Working with service providers and the professional assessment committee to tailor the provision of services to the minimum needs and characteristics of eligible residents; (3) Mobilizing public and private resources to ensure that the qualifying supportive services identified under Sec. ______.210 can be funded over the time period identified under Sec. ______.205; (4) Monitoring the effectiveness of any supportive service program receiving grant assistance under this section; and (5) Performing other duties and functions that the Secretary concerned determines to be appropriate to enable frail elderly persons, persons with disabilities, and temporarily disabled individuals residing in federally assisted housing for the elderly to live with dignity and independence. (b) The service coordinator shall comply with the qualifications and standards required by the Secretary concerned. The service coordinator shall be trained in the aging process, elder services, disability services, eligibility for and procedures of Federal and applicable State entitlement programs, legal liability issues relating to providing service coordination, drug and alcohol use and abuse by the elderly, mental health issues, and any other areas required by the Secretary concerned. (c) The Service Coordinator may be employed directly by the grantee, or employed under a contract with a case management agency on a fee-for-service basis, and may serve less than full-time. The Service Coordinator or the case management agency providing service coordination shall not provide supportive services under a CHSP grant or have a financial interest in a service provider agency which intends to provide services to the grantee for the CHSP. (d) Funding for service coordinators may be provided by state, local, public or private providers or CHSP. (e) The Service Coordinator shall: (1) Provide general case management and referral services to all potential participants in the Congregate Housing Services Program. This involves intake screening upon referral, from the grantee, of income- eligible frail elderly persons, persons with disabilities and temporarily disabled individuals, and preliminary assessment of frailty or disability, using a commonly accepted assessment tool. The Service Coordinator then will refer to the professional assessment committee (PAC) those individuals who appear eligible for the CHSP; (2) Establish professional relationships with all agencies and service providers in the community, and develop a directory of providers for use by program staff and program participants; (3) Refer proposed participants to service providers in the community, or those of the grantee. Serve as staff to the PAC. Complete, for the PAC, all paperwork necessary for the assessment, referral, case monitoring and reassessment processes; implement the case plan developed by the PAC and agreed to by the program participant. Maintain necessary case files on each program participant, containing such information and kept in such form that HUD and FmHA shall require. Provide the files to PAC members upon request, in connection with PAC duties; (4) Monitor the ongoing provision of services from community agencies and keep the PAC and the agency providing the supportive service informed of the progress of the participant; (5) Educate grant recipient's program participants on such issues as application procedures, service availability, and program participant options and responsibilities; (6) Establish volunteer support programs with service organizations in the community; (7) Assist the grant recipient to build informal support networks with neighbors, friends and family; (8) Educate other project management staff on issues related to ``aging-in-place'' and services coordination, to help them to work with and assist other persons receiving housing assistance through the grantee. (f) Service coordinators shall not serve as members of the PAC. (g) For a Service Coordinator obtained under contract with a case management agency, the contract must include provisions containing, at a minimum: beginning and end dates of the contract; number and responsibilities of staff provided by the agency; rates of pay/costs of services to be provided; location of offices, and an agreement to provide HUD and FmHA access to the files; and other documentation pertinent to the Congregate Housing Services Program. Any contracts awarded or purchases made under this subsection by grantees that are public bodies must conform to the policies and procedures stated at 24 CFR 85.36. (h) (1) Each frail elderly person, person with disabilities and temporarily disabled individual tentatively selected by the grantee must be assessed for degree of functional incapacity before being accepted into the Congregate Housing Services Program. The assessment is performed by a voluntary PAC, which handles the individual's entrance into and the transition out of the Congregate Housing Services Program, development of case plans for that person, and regular reassessment of the individuals in the program. PAC members may not be paid with Congregate program grant funds, but if the duties and responsibilities of the PAC are discharged by a community agency, the agency's costs may be counted as matching funds for any time spent on assessments after the initial approval of program participants, if approved by the Secretary concerned. (2) The PAC, upon completion of the assessment, must make a recommendation to the Service Coordinator for acceptance into (or denial of acceptance into) the Congregate Program. In the case of an acceptance, the PAC must provide a case plan for each eligible resident. Once an individual is accepted into the CHSP it is the responsibility of the Service Coordinator to tailor the case plan to the needs of that participant, and to work with community agencies, the grantee and third party service providers to ensure that the services are provided on a regular, ongoing, and satisfactory basis, in accordance with the plan. Before actual acceptance into the Congregate Housing Services Program, the eligible resident must work with the PAC and the Service Coordinator in developing his or her supportive services plan. Acceptance of any services under the plan by the program participant is voluntary. In developing this plan, the PAC must take into consideration the participant's needs and wants and must provide the minimum supportive services necessary to maintain independence. If participants want other services, they can buy them at cost, if available. Sec. ______.225 Professional Assessment Committee (PAC). (a) General. A professional assessment committee, under paragraph (b) of this section, shall identify eligible project residents and shall designate services appropriate to the functional abilities and needs of each eligible project resident. The committee shall utilize procedures that ensure that the process of determining eligibility of individuals for congregate services affords individuals fair treatment, due process and a right of appeal of the determination of eligibility, and shall ensure the confidentiality of personal and medical records. A professional assessment committee under this section shall consist of not less than three individuals, who shall be appointed to the committee by the officials of the eligible housing project responsible for the congregate services program. It shall include at least one qualified medical or other health professional and social services professionals competent to appraise the functional abilities of frail elderly persons, persons with disabilities and temporarily disabled individuals in relation to the performance of tasks of daily living. Service coordinators shall not serve as PAC members. PAC members are subject to the conflict of interest provisions in Sec. ______.245(f). The PAC may be either a voluntary committee appointed by the project management or an agency in the community which provides assessment services and can conform to HUD and FmHA requirements. At least one PAC member shall not have any direct or indirect relationship to the grantee. No PAC member may be affiliated with organizations providing services under the grant. If a case management agency provides the service coordination, the agency may not be affiliated with the organization providing supportive services under the grant. (b) Operating procedures. The PAC shall: (1) Recommend, to the Service Coordinator, persons eligible for entrance, or for transition out of, CHSP; (2) Authorize or perform medical evaluations, if necessary. These evaluations may be performed by a PAC medical professional, or the applicants to CHSP may be referred to another agency in the community that will perform the evaluation without charge; (3) Recommend, and update as necessary, a supportive services plan for each frail elderly person or person with disabilities, or temporarily disabled person; (4) Obtain and retain information in files concerning program participants. The files should contain such information and be maintained in such form, as HUD and FmHA shall require; (5) Present written evaluations to the grantee; and (6) Allow program participants to appeal decisions related to entrance to, degree of participation needed, and transition out of CHSP. (c) Duties of the PAC. The PAC is required to: (1) Perform a formal assessment of each potential elderly program participant's deficiencies in performing the ADLs. This assessment shall be based upon the screening done by the Service Coordinator, and shall include a review of the adequacy of the informal support network (i.e., family and friends available to the potential participant to assist in meeting the ADL needs of that individual); (2) Determine that each elderly program participant is deficient in at least three ADLs. The minimum requirements of ADL include: (i) Eating (may need assistance with cooking, preparing or serving food, but must be able to feed self), (ii) Dressing (must be able to dress self, but may need occasional assistance), (iii) Bathing (may need assistance in getting in and out of the shower or tub, but must be able to wash self), (iv) Grooming (may need assistance in washing hair, but must be able to take care of personal appearance), (v) Getting in and out of bed and chairs, walking, going outdoors, using the toilet and (vi) Household management activities (may need assistance in doing housework, grocery shopping or laundry, or getting to and from one location to another for activities such as going to the doctor and shopping, but must be mobile. The mobility requirement does not exclude persons in wheelchairs or those requiring mobility devices.) Each of the Activities of Daily Living noted above includes a requirement that a person must be able to perform at a specified minimal level (e.g., to satisfy the eating ADL, the person must be able to feed him/herself). The determination of whether a person meets this minimal level of performance must include consideration of those services that will be performed by a person's spouse, relatives or other attendants to be provided by the individual. For example, if a person requires assistance with cooking, preparing or serving food plus assistance in feeding him/herself, the individual would meet the minimal performance level and thus satisfy the eating ADL, if a spouse, relative or attendant provides assistance with feeding the person. Should such assistance become unavailable at any time, the Owner is not obligated at any time to provide individualized services beyond those offered to the resident population in general. The Activities of Daily Living analysis is relevant only with regard to determination of a person's eligibility to receive supportive services paid for by CHSP and is not a determination of eligibility for occupancy; (3) Determine that non-elderly disabled individuals qualify under the definition of person with disabilities under Sec. ______.105; (4) Perform a regular assessment and updating of the supportive services plan of all participants; (5) Replace any members of the PAC within 30 days after a member resigns. A PAC shall not do formal assessments if its membership drops below three, or if the qualified medical professional leaves the PAC and has not been replaced by the grantee; (6) Notify the grantee or eligible owner and the program participants of any proposed modifications to PAC procedures, and provide these parties with a process and reasonable time period in which to review and comment, before adoption of a modification; (7) Provide assurance of nondiscrimination in selection of CHSP participants, with respect to race, religion, color, sex, national origin, familial status or type of disability; (8) Provide complete confidentiality of information related to any individual examined, in accordance with the Privacy Act of 1974; (d) Procedural rights of participants. (1) The PAC must provide an informal process that recognizes the rights of individuals receiving assistance to due process of law. This process, at a minimum, must consist of: (i) Serving the participant with a written notice containing a clear statement of the reasons for termination; (ii) A review of the decision, in which the participant is given the opportunity to present written or oral objections before a person other than the person (or a subordinate of that person) who made or approved the termination decision; and (iii) Prompt written notification of the final decision to the participant. (2) Procedures must ensure that any frail elderly person, person with disabilities, or temporarily disabled person (and program participant upon reassessment) has the option of refusing offered services and requesting other supportive services as part of the case planning process. (3) In situations where an individual requests additional services, not initially recommended by the PAC, the PAC must make a determination whether the request is legitimately a needs-based service that can be covered under the CHSP subsidy. Individuals can pay for services other than those recommended by the PAC as long as the additional services do not interfere with the efficient operation of the program. (e) Eligibility, admissions and transition-out procedures. (1) Before selecting frail elderly persons, persons with disabilities, or temporarily disabled participants, each grantee (with PAC assistance) shall develop a supportive services application form for the use of persons applying for supportive services under CHSP. The information in the individual's supportive services application is crucial to the PAC's determination of the need for further physical or psychological evaluation of any individual who wishes to receive the supportive services offered. The application should include: any intake form, the ADL assessment, and appropriate comments from both the applicant's physician and the Service Coordinator. (2) The grantee or PAC must develop procedures for providing for an individual's transition out of the CHSP to another setting. Transition out is based upon the degree of supportive services needed by an individual to continue to live independently. If a program participant is transitioned out of the program, but wishes to retain supportive services, he or she may do so, as long as he or she remains income eligible, continues to live in an eligible project, and pays the full cost of services provided. A participant can be transitioned out of CHSP if he or she: (i) Gains physical and mental health and is able to function without supportive services, even if only for a short time (in which case readmission, based upon reassessment to determine the degree of frailty or the disability, is acceptable); (ii) Requires a higher level of care than that which can be provided under CHSP; or (iii) Refuses or fails to pay service fees. Sec. ______.230 Eligibility. (a) Participants. (1) Any eligible resident as defined in Sec. ______.105 of an eligible housing project (or any person who, with deinstitutionalization and appropriate supportive services under this section, could become a resident of eligible federally assisted housing) shall be eligible for services under the CHSP. (2) In providing services under a Congregate Housing Services Program, the program shall give priority to very low income individuals, and shall consider their service needs in selecting program participants. (b) Other residents. Elderly persons, persons with disabilities and temporarily disabled individuals who reside in an eligible housing project other than eligible project residents under paragraph (a)(1) of this section may receive services from a congregate services program if the housing managers, congregate service coordinators, and the professional assessment committee jointly determine that the participation of these individuals will not negatively affect the provision of services to eligible project residents. Residents eligible for services under this paragraph shall pay fees as provided under Sec. ______.240. (c) Nonresidents. Elderly persons, persons with disabilities, and temporarily disabled persons who are not residents of the project may participate in the Congregate Housing Services Program at the option of program management in consultation with project residents, if the participation of these persons will not adversely affect the cost effectiveness or operation of the program, or add significantly to the need for assistance. Nonresidents who receive services under the congregate services program shall pay a fee as established under Sec. ______.240(f). Sec. ______.235 Cost distribution. (a) General. Each state, Indian tribe, unit of general government, or local nonprofit housing sponsor that receives amounts under a contract under Sec. ______.205(a) shall supplement any such amount with amounts sufficient to provide at least 50 percent of the cost of providing the congregate services program. In instances where the state is the applicant, the local government's contribution shall not exceed 10 percent of the amount required of the state. The Secretary concerned shall authorize owners to use excess residual receipts (if authorized) to the extent available to supplement funds received from CHSP. (1) The CHSP shall provide no more than 40 percent of the cost of the program, under a grant agreement in accordance with Sec. ______.205(a). (2) Fees paid by the participants under Sec. ______.240 shall provide at least 10% of the cost of the program up to a maximum of 20% of each participant's adjusted income. The Secretary concerned shall provide for the waiver of fees for individuals who are without income. (b) Maintenance of existing supportive services. In the application, the applicant (and or Project, if different) shall certify that it shall maintain the existing supportive services that frail elderly and nonelderly disabled residents are already receiving, including those which a PAC may determine are necessary to maintain independence for potential CHSP participants. These services will be maintained either for the time the individual remains in the CHSP, or for the duration of the CHSP grant. These services do not qualify as matching funds. (c) Prohibition on substitution of funds. The grantee shall ensure that the activities provided to the project under a grant in support of activities eligible for assistance under this part will be in addition to, and not in substitution for, annual funds the grantee was providing to the project in support of activities eligible for assistance under this part before the date of the submission of the application for CHSP assistance. The grantee shall certify to the Secretary concerned that CHSP funds will not be substituted for funds that the grantee was providing before the date of application for assistance under CHSP. (d) Eligible supplemental contributions (Matching Funds). (1) All sources of matching funds must be directly related to the types of supportive services prescribed by the PAC or CHSP administration. (2) Matching funds may include: (i) Cash (which may include funds from federal, state and local governments, third party contributions, available payments authorized under Medicaid for specific individuals in the Congregate Housing Services Program, Community Development Block Grants or Community Services Block Grants, Older Americans Act programs or excess residual funds with the approval of the Secretary concerned). (ii) The imputed dollar value of other agency or third party- provided direct services or staff who will work with or provide services to program participants; these services must be justified in the application to assure that they are the new or expanded services of the CHSP necessary to keep the program participants independent without creating dependence. If services are provided by the state, Indian tribe, unit of general local government, or local nonprofit housing sponsor, IHA, PHA, for profit or not for profit owner, any salary paid to staff from governmental sources to carry out the program of the grantee and any salary paid to residents employed by the program (other than from amounts under a contract under Sec. ______.205) is allowable match. (iii) In-kind items (these are limited to 10 percent of the 50 percent matching amount), such as the current market value of donated common or office space, utility costs, furniture, material, supplies, equipment and food used in direct provision of services. The applicant must provide an explanation for the estimated donated value of any item listed. (iv) The value of services performed by volunteers to the program, at the rate of $5.00 an hour. (e) Limitation. (1) The following are not eligible for use as cash match funds: (i) Funds from a PHA's operating funds; (ii) PHA's section 8 administrative fee; (iii) CHSP funds; (iv) Section 8 funds other than excess residual receipts; (v) CIAP funds unless used for service coordination or case management; (vi) Comprehensive grant funds unless used for service coordination or case management. (2) For purposes of complying with the requirements of paragraph (a) of this section, if the state is the applicant, the Secretary concerned may not consider any amounts contributed or provided by any local government to any state receiving assistance under this section that exceeds 10 percent of the amount required of the state. (f) Annual review of match. The Secretary concerned will review the infusion of matching funds annually, as part of the program/budget review. If there are insufficient matching funds available to meet program requirements at any point after grant start-up, or at any time during the term of the grant (i.e., if matching funds from sources other than program participant fees drop below 50 percent of total supportive services cost), the Secretary concerned may decrease the federal grant share of supportive services funds accordingly. Sec. ______.240 Program participant fees. (a) Eligible program participants. The grantee of each funded eligible housing project shall establish fees for meals and other services provided under a congregate services program, which shall be sufficient to provide at least 10 percent of the costs of the program. Each program participant shall pay CHSP fees as stated below up to a maximum of 20 percent of the program participant's adjusted income. In cases where a program participant has no adjusted income, the fee requirement may be waived by the grantee. If a participant's fees are waived, the grantee shall share 50/50 the cost of any shortfall in fee collections with the Secretary concerned. (b) Fees shall include. (1) Cash contributions of the program participant; (2) Food Stamps; and (3) Contributions or donations to other eligible programs acceptable as match under Sec. ______.235(d). (c) Older Americans Act Program. No fee may be charged for any meals or supportive services under the CHSP if that service is funded under an Older Americans Act Program. (d) Meal Fees. (1) For full meal services, the fees for residents receiving more than one meal per day, seven days per week, shall be reasonable and shall equal between 10 and 20 percent of the adjusted income of the project resident, or the cost of providing the services, whichever is less. (2) The fees for residents receiving meal services less frequently than as described in subparagraph (d)(1) shall be in an amount equal to 10 percent of the adjusted income of the project resident, or the cost of providing the services, whichever is less. (e) Other service fees. The grantee of an eligible project may also establish fees for other supportive services so that the total fees collected from all participants for meals and other services is no less than 10 percent of the total cost of the CHSP. However, no program participants may pay more than 20 percent of their adjusted incomes for any combination of services. (f) Other residents and nonresidents. Fees shall be established for residents of eligible housing projects (other than eligible project residents) and for nonresidents who receive meals and other services from a congregate services program under Sec. ______.230 (b) or (c). These fees shall be in an amount equal to the cost of providing the services. Sec. ______.245 Other Federal requirements. (a) OMB circulars and administrative requirements. The policies, guidelines and requirements of OMB Circular No. A-87 and 24 CFR part 85 apply to the acceptance and use of assistance under this program by public body grantees. The policies, guidelines and requirements of OMB Circular No. A-122 apply to the acceptance and use of assistance under this program by nonprofit grantees. Grantees are also subject to the audit requirements described in 24 CFR part 44 (OMB Circular A-128). (b) Drug-free workplace. Grantees must certify that they will provide a drug-free workplace, in accordance with the Drug-Free Workplace Act of 1988 and HUD's implementing regulations at 24 CFR part 24, subpart F. (c) Nondiscrimination and equal opportunity. Recipients must comply with the following requirement for nondiscrimination on the basis of race, color, religion, sex, national origin, age, familial status, and disability: (1) Fair housing requirements. The requirements of the Fair Housing Act (42 U.S.C. 3601-19) and HUD's fair housing regulations (24 CFR part 100); Executive Order 11063 (Equal Opportunity in Housing) and 24 CFR part 107; the fair housing poster regulations (24 CFR part 110) and advertising guidelines (24 CFR part 109). (2) Nondiscrimination in housing. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and HUD regulations at 24 CFR part 1. (3) Discrimination on the basis of age or handicap. The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and HUD regulations at 24 CFR part 146, and the prohibitions against discrimination against disabled individuals under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD regulations at 24 CFR part 8. (4) Employment opportunities. The requirements of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Employment Opportunities for Lower Income Persons in Connection With Assisted Projects) and the implementing regulations at 24 CFR part 135. (5) Minority and women's business enterprises. The requirements of Executive Orders 11246, 11625, 12432, and 12138. Consistent with HUD's responsibilities under these Orders, recipients must make efforts to encourage the use of minority and women's business enterprises in connection with funded activities. (6) Affirmative outreach. The Affirmative Fair Housing Marketing Program requirements of 24 CFR part 200, subpart M, and the implementing regulations at 24 CFR part 108. (7) Disability requirements. Fair Housing Act and section 504. (8) Racial and ethnic collection requirements. Recipients must maintain current data on the race, ethnicity and gender of program applicants and beneficiaries in accordance with section 562 of the Housing and Community Development Act of 1987 and section 808(e)(6) of the Fair Housing Act. (d) Anti-lobbying certification. Section 319 of Public Law 101-121 prohibits recipients of Federal contracts, grants and loans from using appropriated funds for lobbying the Executive or Legislative Branches of the Federal Government. Indian tribes, tribal organizations and Indian Housing Authorities created under Tribal Law are excluded from coverage under Section 319. A common rule governing the restrictions on lobbying was published by the Department of Agriculture at 7 CFR part 3018 and by the Department of Housing and Urban Development at 24 CFR part 87. The rule requires applicants, grantees, and subgrantees of assistance exceeding $100,000 in budget authority to certify that no Federal funds have been or will be spent on lobbying activities in connection with the assistance. The rule also requires disclosures from applicants, among others, if nonappropriated funds have been spent or committed for lobbying activities if those activities would be prohibited if paid with appropriated funds. The law provides substantial monetary penalties for failure to file the required certification or disclosure. (e) Debarred or suspended contractors. The provisions of 24 CFR part 24 and 7 CFR part 3017 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. (f) Conflict of interest. In addition to the conflict of interest requirements in OMB Circular A-87 and 24 CFR part 85, no person who is an employee, agent, consultant, officer, or elected or appointed official of the applicant, and who exercises or has exercised any function or responsibilities with respect to activities assisted with congregate housing services program grant funds, 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 personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or any 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. (g) Disclosures required by Reform Act. Section 102(c) of the HUD Reform Act of 1989, Public Law 101-235 (December 15,1980) requires disclosure concerning other government assistance to be made available with respect to the program and parties with a pecuniary interest in the Congregate Housing Services Program and submission of a report on expected sources and uses of funds to be made available for CHSP. Each applicant shall include information required by 24 CFR part 12 on form HUD-2880 ``Applicant/Recipient Disclosure/Update Report.'' Sec. ______.300 Application. The application must contain all of the information required by the Notice of Funding Availability (NOFA). Sec. ______.305 Application evaluation and selection. Each application shall be reviewed and screened for technical deficiencies in accordance with the guidelines and procedures published in the NOFA. Applications will be selected in accordance with the procedures set forth in the NOFA. Sec. ______.325 Monitoring of project sites by Governmental units. States, Indian tribes and units of general local government with a grant for multiple projects shall be responsible for monitoring the performance of all project sites for compliance with CHSP regulations and procedures in such manner as prescribed by HUD/FmHA. Sec. ______.330 Evaluation of provision of congregate services programs. (a) States, Indian tribes and units of general local government receiving assistance annually shall review and evaluate the performance of the congregate services programs at eligible housing projects receiving assistance in their respective jurisdictions. (b) Grantees annually shall submit to the Secretary concerned, a report evaluating the impact and effectiveness of congregate services programs in the jurisdiction of the grantee, in such form as the Secretary concerned shall require. (c) The Secretary of Housing and Urban Development and the Secretary of Agriculture shall review and evaluate the performance of the congregate services programs of eligible housing projects receiving assistance under this section. (d) Each state, Indian tribe, unit of general local government and nonprofit housing sponsor receiving assistance shall submit a certification with its application, agreeing to cooperate with and to provide requested data to the entity responsible for the program evaluation, if requested to do so by the Secretary concerned. Sec. ______.335 Renewal of grants. (a) Grantees funded initially under this part shall be eligible to receive continued, non-competitive renewals after the initial five-year term of the grant, if funds are appropriated and available. (b) Grantees will receive priority funding within time periods prescribed by the Secretary concerned, subject to the availability of funding, satisfactory performance, and compliance with these regulations. (c) Renewal of these grants shall be within the time periods and in the form as prescribed by the Secretary concerned. Sec. ______.400 Participatory agreement. Each program participant must sign a participatory agreement governing the utilization of supportive services and the payment of supportive services fees. The agreement must be renegotiated with the participant annually by the grantee. Sec. ______.405 Reserve for supplemental adjustment. The Secretary concerned may reserve not more than 5 percent of the amounts made available in each fiscal year to supplement grants awarded to owners under this section when, in the determination of the Secretary concerned, supplemental adjustments are required to maintain adequate levels of services to eligible residents. Requests to utilize supplemental funds by the grantee shall be transmitted to the Secretary concerned in such form as may be required. Funds in the reserve which are not used during the first six months of each annual review cycle may be used for future CHSP grants. Sec. ______.415 Recapture. (a) The Secretary concerned may impose sanctions, recapture grant funds or terminate grants for supportive services for: (1) Grantee's non-compliance with the grant agreement, regulations of HUD or FmHA requirements; or (2) Failure of the grantee to provide supportive services within 12 months of execution of the Congregate Housing Services Program grant. (b) Sanctions include but are not limited to the following: (1) Temporary withholding of reimbursements, extensions or renewals under the grant agreement, pending correction of deficiencies by the grantee; (2) Contract conditioning; (3) Termination of the grant; (4) Substitution of grantee; (5) And any other action deemed necessary by the Secretary concerned. Sec. ______.420 Reports. Each grantee shall submit annual and other program and fiscal reports to the Secretary concerned in such form and at such times, as the Department concerned requires. Sec. ______.425 Budget submissions. Each grantee shall submit a supportive services budget for the first year of supportive services delivery, and annually thereafter, in such form as the Department concerned requires. The budget for the first year normally will utilize less than 20 percent of the funds potentially available, due to start-up. Any utilization of less than 20 percent of supportive services funds in any year can be carried forward for use in later years. Sec. ______.430 Program costs. (a) Allowable costs. (1) Allowable costs for direct provision of supportive services includes the provision of supportive services and others approved by the Department concerned for: (i) Direct hiring of staff, including a Service Coordinator; (ii) Supportive service contracts with third parties; (iii) Equipment and supplies (including food) necessary to provide services; (iv) Operational costs of a transportation service (e.g., mileage, insurance, gasoline and maintenance, driver wages, taxi or bus vouchers); (v) Purchase or leasing of vehicles; (vi) Direct and indirect administrative expenses for administrative costs such as annual fiscal review and audit, telephones, postage, travel, professional education, furniture and equipment, and costs associated with self evaluation or assessment (not to exceed one percent of the total budget for the activities approved) and (vii) States, Indian tribes and units of general local government with more than one project included in the grant may receive up to 1% of the total cost of the grant for monitoring the projects. (2) Allowable costs shall be reasonable, necessary and recognized as expenditures in compliance with the Office of Management and Budget's (OMB) Cost Policies, i.e., OMB Circular A-87, 24 CFR 85.36, and OMB Circular A-128. (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. (b) Nonallowable costs. (1) The Congregate Housing Services Program supportive service funds may not be used to cover expenses related to any grantee program, service, or activity existing at the time of application to the Congregate Housing Services Program. (2) Examples of non-allowable costs under the program are: (i) Capital funding (such as purchase of buildings, related facilities or land and certain major kitchen items such as stoves, refrigerators, freezers, dishwashers, trash compactors or sinks); (ii) Administrative costs, such as a non-proportional share of costs charged to the Congregate Housing Services Program for rent/ lease, utilities, staff time; (iii) Payments to PAC members (other than the Service Coordinator) or third party organizations providing that function; (iv) Cost of supportive services other than those approved by the Secretary concerned; (v) Modernization, renovation or new construction of a building or facility, including kitchens; (vi) Any costs related to the development of the application and plan of operations before the effective date of the Congregate Housing Services Program grant award; (vii) Emergency medical services and ongoing and regular care from doctors and nurses, including but not limited to administering medication, purchase of medical supplies, equipment and medications, overnight nursing services, and other institutional forms of service, care or support; (viii) Occupational therapy and vocational rehabilitation services; or (ix) The value of PAC members' time for any time period estimate related to the initial assessment of individuals before they are accepted into the CHSP; or (x) Other items defined as unallowable costs in the supportive services grant instrument and OMB Circular A-87 or 122. (c) Administrative cost limitation. A recipient of assistance under this section may not use more than 10 percent of the sum of the assistance and the contribution amounts required under Sec. ______.235(a) for administrative costs, and shall ensure that any entity to which the recipient distributes amounts may not expend more than a reasonable amount from distributed amounts for administrative costs. Administrative costs may not include any capital expenses. Sec. ______.435 Use of residents in providing services. Each housing project that receives assistance under this section shall, to the maximum extent practicable, utilize the elderly and persons with disabilities who are residents of the housing project, but who are not eligible project residents, to participate in providing congregate services under this part. These individuals shall be paid wages that shall not be less than the higher of: (a) The minimum wage that would be applicable to the employee under the Fair Labor Standards Act of 1938, if section 6(a)(1) of that Act applied to the resident, and if the resident were not exempt under section 13 of that Act; (b) The State or local minimum wage for the most nearly comparable covered employment; or (c) The prevailing rates of pay for persons employed in similar public occupations by the same employer. Sec. ______.440 Services provided not income. Except for wages paid under Sec. ______.435, services provided to a resident of an eligible housing project under a congregate services program shall not be considered as income for the purpose of determining eligibility for or the amount of assistance or aid furnished under, any federal, federally assisted, or state program based on need. Sec. ______.445 Consultation with the Department of Health and Human Services. The Secretary concerned shall consult with the Secretary of Health and Human Services regarding the availability of assistance from other Federal programs to support services under this part and shall make information available to applicants for assistance under this part. ______.500 Eligibility and priority for 1978 Act recipients. (a) Notwithstanding any other provision of this section, any public housing agency or nonprofit corporation assisted under section 202 of the Housing Act of 1959 that was receiving assistance under a grant under the Congregate Housing Services Act of 1978 on November 28, 1990 shall receive assistance under the Congregate Housing Services Act of 1978 for the remainder of the term of its grant, and shall receive priority for assistance under this section after the expiration of its grant. (b) For any congregate services program that was receiving assistance under a grant under the Congregate Housing Services Act of 1978 on November 28, 1990, the grantee, in coordinating with a local government with respect to that grantee's program, shall not be subject to the requirement to provide supplemental contributions under Sec. ______.235(a) (for that program) for the six-year period beginning on the expiration of the program's current assistance contract. Each such program recipient shall maintain, for the six-year period, the same dollar amount of annual contributions in support of the services eligible for assistance under this section as was contributed to the program during the year preceding November 28, 1990. This amount shall be equal to no less than the dollar amount of the annual contribution plus any inflationary increases allowed by HUD and FmHA. Sec. ______.505 Submission and approval of applications by grantees. The applicant shall submit an application as required by the Secretary concerned. Sec. ______.510 Submission and approval of applications by grantees funded initially under the 1978 Act, after the six-year transition period. Grantees funded initially under the 1978 Act shall be eligible to receive continued, non-competitive funding after the six-year transition period. These grantees will be eligible to receive priority funding under this part if they comply with these regulations and with the requirements of any Funding Notice issued in a particular fiscal year. Sec. ______.515 Waiver authority. The Secretary concerned may waive any requirement of these regulations that is not required by law, upon a determination of good cause. Each waiver will be in writing, supported by documentation of the pertinent facts and grounds, and signed by the Secretary concerned. The Secretary concerned will publish notice of granted waivers in the Federal Register. ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Adoption of the Final Common Rule The agency specific adoption of the final common rule, which appears at the end of the common preamble appears below: FARMERS HOME ADMINISTRATION 7 CFR Part 1944 List of Subjects in 7 CFR Part 1944 Farm labor housing, Migrant labor, Nonprofit organizations, Public housing, Rent subsidies, and Rural rental housing. Chapter XVIII of title 7 of the Code of Federal Regulations is amended by revising subpart F to part 1944 to read as set forth at the end of the common preamble. Dated: April 5, 1994. Bob J. Nash, Under Secretary, Small Community and Rural Development. PART 1944--HOUSING Subpart F--Congregate Housing Services Program Sec. 1944.251 (______.100) Authority and purpose. 1944.252 (______.105) Definitions. 1944.253 (______.200) Announcement of fund availability and selection criteria. 1944.254 (______.205) Grant agreement. 1944.255 (______.210) Eligible activities. 1944.256 (______.215) Service plan. 1944.257 (______.220) Service coordinator. 1944.258 (______.225) Professional Assessment Committee (PAC). 1944.259 (______.230) Eligibility. 1944.260 (______.235) Cost distribution. 1944.262 (______.240) Program participant fees. 1944.264 (______.245) Other Federal requirements. 1944.266 (______.300) Application. 1944.268 (______.305) Application evaluation and selection. 1944.270 (______.325) Monitoring of project sites by Governmental units. 1944.272 (______.330) Evaluation of provision of Congregate Services Programs. 1944.274 (______.335) Renewal of grants. 1944.276 (______.400) Participatory agreement. 1944.278 (______.405) Reserve for supplemental adjustment. 1944.282 (______.415) Recapture. 1944.284 (______.420) Reports. 1944.286 (______.425) Budget submissions. 1944.288 (______.430) Program costs. 1944.290 (______.435) Use of residents in providing services. 1944.292 (______.440) Services provided not income. 1944.294 (______.445) Consultation with the Department of Health and Human Services. 1944.296 (______.500) Eligibility and priority for 1978 Act recipients. 1944.298 (______.505) Submission and approval of applications by grantees. 1944.300 (______.510) Submission and approval of applications by grantees funded initially under the 1978 Act, after the six-year transition period. 1944.302 (______.515) Waiver authority. Authority: 42 U.S.C. 1480, 8011; 5 U.S.C. 301, 7 CFR 2.23 and 2.70. ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Part 700 List of Subjects in 24 CFR Part 700 Aged, Grant Programs--housing and community development, Individuals with disabilities, Low and moderate income housing, Nutrition, Public housing, Rent subsidies, Reporting and recordkeeping requirements, and Supportive Services. Title 24 of the Code of Federal Regulations is amended by revising part 700 to read as set forth at the end of the common preamble. Dated: April 14, 1994. Henry G. Cisneros, Secretary. Part 700 is revised to read as set forth at the end of the common preamble. PART 700--CONGREGATE HOUSING SERVICES PROGRAM Sec. 700.100 Authority and policy. 700.105 Definitions. 700.200 Announcement of fund availability and selection criteria. 700.205 Grant agreement. 700.210 Eligible activities. 700.215 Service plan. 700.220 Service coordinator. 700.225 Professional Assessment Committee (PAC). 700.230 Eligibility. 700.235 Cost distribution. 700.240 Program participant fees. 700.245 Other Federal requirements. 700.300 Application. 700.305 Application evaluation and selection. 700.325 Monitoring of Project Sites by Governmental Units. 700.330 Evaluation of provision of Congregate Services Programs. 700.335 Renewal of grants. 700.400 Participatory agreement. 700.405 Reserve for supplemental adjustment. 700.415 Recapture. 700.420 Reports. 700.425 Budget submissions. 700.430 Program costs. 700.435 Use of residents in providing services. 700.440 Services provided not income. 700.445 Consultation with the Department of Health and Human Services. 700.500 Eligibility and priority for 1978 Act recipients. 700.505 Submission and approval of applications by grantees. 700.510 Submission and approval of applications by grantees funded initially under the 1978 Act, after the six-year transition period. 700.515 Waiver authority. Authority: Sec. 802, National Affordable Housing Act (42 U.S.C. 8011) and Sec. 604, Housing and Community Development Act of 1992. [FR Doc. 94-9878 Filed 4-28-94; 8:45 am] BILLING CODE 4210-32-P