mation should not be considered exhaustive. An agency which is assisted by the Office of Economic Opportunity, or which is seeking such assistance, should make documents relating to such assistance available to the public to the maximum extent possible. Except in cases where disclosure of documents would involve an invasion of privacy, would impose an undue administrative burden on the agency, or would interfere with the internal decision-making processes of the agency, the agency should permit examination and inspection of all such documents requested by any person.

(c) Requirement of public hearing— (1) Hearing requested by any person or group. Any agency which has received a grant under section 204 or section 205 of the Economic Opportunity Act shall hold a public hearing in response to a written request for such a hearing by any person or group in the community served. The hearing shall be held within 30 days of the receipt of the request by the agency. A request for a hearing shall include a statement of the basic issue or issues which the requesting party particularly wishes aired at the hearing. A request may be denied only if the governing body of the agency, by a vote of at least three-fourths of the members present at a lawful meeting, determines either that the request raises only frivolous issues or that the proposed hearing would merely be repetitive of previous hearings.

(2) Hearing prior to submission of application. In addition to any hearings held at the request of the public under subparagraph (1) of this paragraph, every agency shall hold a public hearing prior to the submission of an application for assistance under section 204 or section 205 of the Economic Opportunity Act to OEO. The hearing shall take place after the agency staff recommends submission of an application and before the governing body of the agency makes its final determination of whether to submit the application to OEO. This requirement of a hearing prior to submission of an application shall not apply to:

(i) Any application received by OEO prior to April 15, 1966; or

(ii) Such categories of applications as the Director may from time to time exempt from the requirement.

(3) Notice of hearing. Any public hearing shall be held at a time and place convenient to the public. In appropriate

cases hearings should be held at neighborhood locations. Public notice of each hearing shall state the time and place at which the hearing shall be held, and shall be given not less than 10 days before the day of the hearing. Notice of a hearing shall be given by:

(i) Submitting formal notice of the hearing to at least one newspaper of general circulation within the geographical area to be served by the agency for inclusion as a legal notice.

(ii) Posting a formal notice of the hearing in a prominent place at the principal office of the agency, at the county court house, at the city hall of any major city within the area, and at any other place where official notices are regularly posted.

(iii) Forwarding a formal notice of the hearing (a) to every newspaper with a daily or weekly circulation of more than 5,000 copies in the geographical area for which the agency has been recognized as a community action agency or in which the agency expends or seeks to expend funds granted by the Office of Economic Opportunity, (b) to every radio and television station which regularly broadcasts local news of, or announcements of meetings in, the geographical area described above, (c) to any community newspaper or journal primarily serving a neighborhood or area in which the agency runs or is preparing to run a program under the Economic Opportunity Act, (d) to each agency in the community which has submitted a proposal, as a delegate or grantee agency, for assistance under section 204 or section 205 of the Economic Opportunity Act within 1 year prior to the scheduled date of the hearing, (e) to each person who has submitted a written request for copies of such notices, (f) to the technical assistance agency for the state in which the agency is located, and (g) to the appropriate regional office of the Office of Economic Opportunity: Provided, That an agency required by this section to hold a public hearing which serves an area larger than a single county shall consult with OEO concerning the place or places where hearings shall be held and what notice shall be required. Procedures approved by OEO shall, to the extent specified by OEO, substitute for the requirements of this paragraph.

(4) Information to be made public. Beginning with the date on which notice of hearing is given, an agency proposing to submit an application to the Office

of Economic Opportunity shall be treated as an "applicant" for the purposes of paragraph (b) (1) (i) and (iii) of this section, and is thus subject to the disclosure requirements contained therein.

(5) Conduct of the hearing. Each hearing shall be held before the governing body, or a committee thereof, of the agency required to hold the hearing. It shall be held at the time and place set forth in the notice of hearing. In the event the hearing cannot be completed on that date, it may be continued at the same time and place from day-to-day or adjourned to a later day or different place without notice other than the announcement thereof by the presiding officer. Each hearing shall be open to all members of the public. Every person desiring an opportunity to speak shall be heard, although the presiding officer may establish reasonable limits on the length of the Should statement of any one person.

the presiding officer determine that the opportunity to be heard is being utilized for purposes of delay, he may exclude statements which are essentially repetitive of

statements already heard. Although hearings may be conducted in an informal manner, minutes shall be kept which fairly and accurately reflect the business of the hearing, and the basic sides of any disputed questions or issues which arise. Written statements and affidavits shall be accepted for the record of hearing and shall be made public at the office of the applicant in accordance with paragraph (b) (2) (ii) of this section. Copies of all such minutes, written statements, and affidavits shall be sent to the Office of Economic Opportunity together with the application if the hearing was held under subparagraph (2) of this paragraph, or promptly after the conclusion of the hearing if the hearing was held under subparagraph (1) of this paragraph.

(6) Notice to OEO. Each application for a grant which is submitted to OEO shall include a statement to the effect that public hearings were held as required in subparagraph (2) of this paragraph and that notice of such hearings was given in conformity with the regulations in this section. The application shall also state the respect in which the application submitted to OEO differs from the application which was made available for public inspection prior to the public hearing. In the case of each such change the application shall also state whether or not the change was

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responsive to the material adduced at the hearing, and, if so, the nature of the material adduced.

(Sec. 202, 78 Stat. 516; 42 U.S.C. 2782) [31 F.R. 4454, Mar. 16, 1966]

§ 1030.10

Regulations governing requirement of increase in non-Federal share.

(a) Purpose. (1) A 1966 amendment to section 208(a) (42 U.S.C. 2788(a)) of the Economic Opportunity Act increased the basic non-Federal share requirement applicable to community action (CAP) grants under sections 204 and 205 (a) (42 U.S.C. 2784, 2785(a)) of Title II-A of the Act from 10 to 20 percent, effective July 1, 1967. However, section 208(a) permits OEO to exercise discretion in making the transition to the stricter requirement and in allowing relief from the non-Federal share requirement to ease the burden on communities where real hardship would be felt.

(2) This section explains non-Federal share requirements with regard to future grant actions under sections 204 and 205(a). Paragraph (b) of this section describes general non-Federal share rules applicable to most communities. The major provision in paragraph (b) of this section is the adoption of a so-called “32 month rule". In essence, all community action agencies (CAA's) and single-purpose grantees with the exception of 1967 Summer Head Start and Upward Bound will have a 32-month operation period under the 10 percent requirement prior to meeting the 20 percent non-Federal share requirement as set out in section 208 of the Economic Opportunity Act. The rule set forth in paragraph (b) of this section is intended to insure fair treatment as between grantees which have been funded by OEO for a substantial period of time and those initially funded in more recent months. (NOTE: Paragraph (d) of this section explains the special steps to be followed by grantees which will reach their 33d month of CAP funding during a current program year or grant period.)

1 For information concerning non-Federal share requirements in the projects under the Community Betterment and Employment Program under sec. 205 (d) of the Act (42 U.S.C. 2785(d)) and the New Careers Program under sec. 205(e) of the Act (42 U.S.C. 2785(e)) administered by the Department of Labor, see 29 CFR 51.4(c) (1), 32 F.R. 6440, 6443 (Apr. 16, 1967).

(3) Paragraph (c) of this section explains special exemption rules applicable to communities with per capita incomes below $1,000 per year. These rules are intended to provide lower non-Federal share requirements for communities and counties which have the most serious overall poverty.

(b) Basic non-Federal share requirements.-(1) General rule. (i) Grantees that are not eligible for exemption under paragraph (c) of this section will be required to provide a 20 percent non-Federal share for any portion of their program which will be conducted after the grantee has been funded by OEO for 32 months. The original groups of CAP grantees funded in November 1964 will reach their 33d month on July 1, 1967. Those funded originally in December 1964 will reach their 33d month on August 1, 1967, and so on.

(ii) All grantees not eligible for total or partial exemption under paragraph (c) of this section reaching their 33d month during a program year or grant period will thus be required to furnish a non-Federal share of at least 10 percent but not more than 20 percent of their total program costs during that program year. Those grantees affected during their current program year, should consult paragraph (d) of this section.

(iii) For purposes of computing the non-Federal share required under this rule, it will be assumed that monthly program expenditures are made evenly throughout a grant program. The nonFederal share required under the rule therefore depends on the number of program months which will occur following the 32d anniversary of a grantee's original OEO grant. The resulting percentage is to be rounded to the nearest whole number, i.e., upward if five-tenths of 1 percent or more, downward if four-tenths of 1 percent or less. The formula for computing this is shown below:

Non-Federal=10% (basic) + (×10%).

A=Number of months of current program year occurring after end of 32-month grace period.

B Total number of months in program year.

Example: A community action agency which received its first OEO grant in March 1965, requests OEO assistance for a new component project to run from August 1, 1967, through March 31, 1968.

Number of months of grant participation as of July 31, 1967 is 29.

A. Number of months occurring after 32d (1.e. Nov. 1, 1967, to Mar. 31, 1968) 5 months. B. Inclusive dates of new grant action (i.e. Aug. 1, 1967, to Mar. 31, 1968)=8 months.

Non-Federal contribution=10% (basic) + 5% X 10% 10% +6.25% = 16%.

Exhibit I is attached to serve as a ready guide to the non-Federal share percentage to be approved. Ir. all instances when the new grant is on a 12-month basis, the attached table can be used to determine the overall non-Federal percentage contribution. The table is to be used as follows:

Read down Column A until the date of initial grant from OEO.

Read across the row for that date to the column for the ending month of new grant (under D).

The number where the latter column intersects the proper row is the non-Federal percentage contribution.

When the new grant period covers less or more than 12 months, the above formula should be used.

(2) Reorganized grantees and transferred grants. Where a program has been transferred from a previous grantee to the present one or where the original grantee has been reorganized or dissolved in favor of the present one, the 32 months will be counted from the date of the original grant to the original grantee.

(3) Single-purpose agencies. (i) The non-Federal share of an established single-purpose grantee in a community where there is also a CAA will be determined on the basis of the single-purpose grantee's own history. The same will be true for applicants for independent funding of new programs.

(ii) However. the non-Federal share required of an agency which seeks independent or direct funding for a program which it previously ran as a delegate agency of a CAA will be determined on the basis of the history of the CAA.

(iii) See subparagraphs (5) and (6) of this paragraph for rules specially applicable to Summer Head Start programs and Upward Bound programs.

(4) Rule for multicounty CAA's resulting from merger. Where two or more CAA's for different counties (or other political jurisdiction) have merged into a multicounty CAA, the status of each CAA (prior to merger) will be considered in developing the overall rate of the new CAA. As a point of practical application, each prior CAA will be considered separately and then totaled in arriving at an overall non-Federal cost and rate of the newly formed CAA. However, should any

grams which will be operating at the same time.

(6) Special rule for Upward Bound programs. (i) The round of Project Upward Bound grant actions effective April 1, 1967, will all be funded on a 90 percent-10 percent basis. This will be true even when the grantee is a CAA which will be required to contribute a 20 percent local share for its other component programs which are being conducted simultaneously.

(ii) Commencing in 1968, all Upward Bound grant actions will be funded on an 80 percent-20 percent basis, without regard to the 32-month rule.

(c) Exemptions from non-Federal share requirements for communities with per capita incomes below $1,000 per year (1) General rules. (i) The Economic Opportunity Act provides, in subsection 208 (a) (42 U.S.C. 2788(a)), that the Director of OEO may relieve grantees of all or part of the non-Federal share requirements. Previously, when the basic non-Federal share required for section 204/205 grants was 10 percent, an exemption was granted to communities with annual per capita incomes below $750 according to 1960 census data to the extent that they were unable to raise non-Federal share. This exemption will be continued.

(ii) Moreover, with the increase in basic non-Federal share requirements to 20 percent, OEO will extend a partial exemption to an additional group of about 500 counties with per capita incomes above $750 but below $1,000 per year according to 1960 census data. The exemption rules are as follows:

(A) As in the past, grantees serving communities with per capita incomes below $750 per year are expected to provide 10 percent of the program cost whenever possible. However, as in the past, such grantees may request exemption from that portion of the required non-Federal share which they are unable to provide.

(B) Grantees serving communities with per capita incomes in the $750-$999 range shall in all cases provide at least 10 percent non-Federal share but may request exemption from that portion of the non-Federal share above 10 percent which they are unable to provide.

(iii) For these purposes, community per capita incomes may be based on data from the 1960 U.S. Census of Population or any more recent reliable source of per capita income data submitted by the applicant agency.

(iv) The request for a waiver of the non-Federal share requirements under paragraph (A) or paragraph (B) above should be in the form of a letter accompanying the application for CAP grant and shall state clearly (a) the basis on which the community's per capita income was determined; (b) the amount of non-Federal share which the community can provide; and (c) that the applicant has made a reasonable effort to raise more non-Federal share and has been unsuccessful. OEO may require that additional evidence be submitted in support of these representations.

(2) Rule for multicounty programs. Generally, the waiver of part or all of the non-Federal share will be based on a showing that the per capita income of the entire community served by the community action programs is below $750 or $1,000 per year. However, if there are one or more counties in a multicounty area served by a single CAA having per capita incomes below $750 (or $1,000), even though the multicounty area, taken as a whole, does not, the CAA may request relief from its overall non-Federal share requirement for component projects designed to serve only the poorest counties. Note that this rule is not intended to either encourage or discourage the development or continuance of components to serve only one county in a multicounty CAA.

Example 4:

"G" a multicounty CAA, serves four counties, "W," "x," "Y," and "Z." Counties "W" and "X" have per capita incomes below $750. The other counties have per capita incomes in the $750-$999 range. The entire area served by "G" has a per capita income below $1,000 but not below $750. Its normal nonFederal share requirement is thus 10 percent, but for programs serving only county "W" or county "X" it is entitled to relief from that requirement if it cannot raise the non-Federal share.

The non-Federal share requirement on its grant may be calculated as follows: