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grams which will be operating at the same time.

(6) Special rule for Upward Bound programs. (1) 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.

(111) 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.

(lv) 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:

Component projects



required Non-Federal



Head Start in county "W".
Legal services in county “X.
Head Start in county "Y".
Neighborhood Center in

county "Z".
Program administration.


195, 000



12, 000

Note that the Program Administration component, which serves all four counties, is required to provide non-Federal share on the basis of 10 percent because the fourcounty area, taken as a whole, has a per capita income below $1,000 but not below $750.

OEO will permit pooling of the non-Federal share as between exempt and nonexempt counties served by the same CAA. See paragraph (e) (1) of this section.

(3) Special rule for programs serving reservation Indians and migrant groups. In cases where a CAA or other Title II-A grantee provides a specific component program solely for the benefit of Indians on Federal or State reservations within the community or for the benefit of groups of migrant farm workers who live, or earn their living, outside of the community 6 months or more a year, the CAA shall be entitled to seek a partial or total exemption of the non-Federal share requirements for the costs of those component programs in cases where the per capita income of the groups served is below $1,000. If the per capita income is below $750, the Regional Director is authorized to grant an exemption for that portion of the non-Federal share which the CAA is unable to provide. If the per capita income is in the $750– $999 range, the Regional Director is authorized to grant an exemption for the portion of the non-Federal share above 10 percent of program costs which the CAA is unable to provide. Exemptions granted under this paragraph will apply only to the particular component programs serving Indians or migrants, and shall not operate to reduce the nonFederal share requirements applicable to other component programs operated by the same CAA.

(d) Instructions to grantees reaching their 33d month during a current program year. (1) Grantees who, according to the rules in paragraph (b) of this section, will reach their 33d month of CAP funding during their present program years (or other grant periods) will be responsible for contributing the additional non-Federal share of costs called for according to the table in Ex

hibit I. They will be expected to submit revised CAP Form 25's for affected component projects identifying the value and kind of increased local share and showing a corresponding reduction in Federal funds.

(2) Note that no increase in a grantee's level of approved program will be permitted on account of the increase in the required non-Federal share. That increase will be offset by a corresponding decrease in Federal support for the component projects in question.

(3) Following receipt of the revised CAP Forms 25, the appropriate OEO/ CAP office will review the changes and, upon approval, will issue a supplemental CAP Form 14 together with copies of the CAP Form 25's showing the approved changes.

(4) Failure to take prompt action to provide the required increase in nonFederal share and to achieve a corresponding reduction in Federal funds may necessitate remedial action by OEO. Such action may include suspension or termination of the grant, and legal action to recover non-Federal share deficiencies and overexpenditures of Federal funds.

(e) General-(1) Pooling of non-Federal share during program years. (i) Grantees are reminded that the pooling of non-Federal share among all components of the same grant during a single program year is acceptable. The policy stated in CAP Guide, Volume II (Part I, par. 4 (page 20)) with reference to pooling in terms of the Federal fiscal year is obsolete and under revision.

(ii) The pooling provision should be utilized to lessen the burden of the increased non-Federal share requirement for component programs which will have the greatest difficulty in providing increased non-Federal share.

(2) For further information. Applicants are advised to communicate with the appropriate OEO Regional Office for any further specific information they may need with regard to non-Federal share requirements.


(B) (C) Months Months

com- of grace pleted after as of

June 30, June 30, 1967


(D) Last full month of funding period after June 30, 1967










32 31


12 11


12 12


13 12


14 13


15 14


30 29 28

10 10 10 10 10 10 10 10 10 10 10 10

11 10 10 10 10 10 10 10 10 10 10 10

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[blocks in formation]



20 19



[blocks in formation]


Month of initial grant

10 10 10 10 10 10 10 10 10 10 10 10

13 12 12 11 10 10 10 10 10 10

1964: November.

December 1965:


December 1966:




10 10 10 10 10

10 10 10 10 10

10 10 10 10 10

10 10 10 10 10

10 10 10 10 10

19 20 21 22 23 24 25

27 28 29 30 31 32

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§ 1030.15 Criteria for waiving require (c) Activities undertaken with tempo

ment that prior level of expenditures rary financial support. (1) When assistor contributions be increased.

ance is sought for the continuance or (a) Purpose. Under section 208(c) of

expansion of an activity for which tempothe Economic Opportunity Act of 1964,

rary non-Federal support has been as amended, the expenditures or contri

received, the prior level of non-Federal butions made from non-Federal sources

support for the activity will not be refor a community action program or com

quired to be continued as a condition of ponent thereoef are required to be in

Federal assistance. Nevertheless, if only addition to the aggregate expenditures or

a portion of the previous non-Federal contributions from non-Federal sources

support was temporary, the level of other which were being made for similar pur

non-Federal support for the activity will poses prior to the extension of Federal

be required to be continued. assistance. Consequently, an activity

(2) Support will be considered to have which has previously been carried on

been temporary only if the person or without Federal support will generally

organization providing the support inreceive Federal assistance under sec

tended, at the time of the initial decision tion 204 or 205 only on condition that

to provide support, that the support the prior level of non-Federal support

would be terminated (or reduced) after for the activity be continued, and that

a limited, defined period of time, and any amounts claimed as non-Federal

not continued or renewed indefinitely. share represent an increase in the non

Support will not be considered tempoFederal effort over such prior level of

rary merely because it has been provided support. The 1965 amendments to the

through annual, biennial, or other peEconomic Opportunity Act made this

riodic appropriations, budgets, or grants, requirement “subject to such regulations

or because the project supported has as the Director may adopt and promul

been denominated a pilot or demonstragate establishing objective criteria for

tion project. Examples of temporary determinations covering situations where

support are a grant given with the fixed a literal application of such requirement

intention that the grantor's support terwould result in unnecessary hardship or

minate at the end of 3 years, a commitotherwise be inconsistent with the pur

ment of support made with the fixed poses sought to be achieved.” The pur

intention that it last only until a Federal pose of this section is to establish criteria

grant is received, and a grant of $50,000 for such determinations.

to be available until spent, made on the (b) Activities undertaken for less than

understanding that there would be no 6 months. (1) When assistance is sought

renewal. Support will not be considered for the continuation or expansion of

to have been temporary in any case in an activity which was initiated less

which a source of support for a limited, than 6 months before the application to

defined period of time has replaced & the Office of Economic Opportunity, con

source of support which was not tempotinuation of non-Federal support for the

rary. activity will not be required as a condi

(3) To qualify for relief under this tion of Federal assistance.

paragraph, an applicant must demon(2) For the purpose of this paragraph,

strate that the requisite intention existed an activity will be treated as having been

at the time of the initial decision to proinitiated at the time at which non-Fed

vide financial support for the activity. eral resources were first committed in

Where possible, contemporaneous written furtherance of that activity. The sign

evidence of that intention should be subing of a lease for a facility to be used in

mitted. Such evidence may include an activity, the beginning of renovation

correspondence, minutes of meetings of work on a facility already owned, and

the directors of the organizations pro

viding financial support, writt recomthe hiring of personnel are examples of

mendations made to the directors, and commitments that would indicate initia

any other relevant material. Where tion of an activity within the meaning of

documentary evidence of this type is not the paragraph.

available, the applicant should submit (3) The date of application to the Of signed statements evidencing the existfice of Economic Opportunity will be the ence of the intention, such as reports of date on which a bona fide application for verbal understandings, agreements, or support of the activity is received in the commitments reached at the time of the appropriate OEO regional office.

decision to provide financial support. A

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