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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 a 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, written 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 ofice.

decision to provide financial support. A

statement will not be considered sufficient if it does no more than assert the existence of an intention or understanding that support for a particular activity would be temporary. Statements must relate the facts from which the existence of such an intention or understanding can be inferred.

(d) Impairment of a community's ability to support an activity. (1) When assistance is sought for the continuation of an activity which has been conducted with non-Federal support in a community whose per capita income is less than $750 per annum, and such non-Federal support is to be reduced or terminated as a reasonable consequence of an impairment of the community's ability to provide such support, the prior level of non-Federal support will not be required to be continued as a condition of Federal assistance. Continuation of non-Federal support will be required to the extent that such support is not affected by the impairment of the community's ability.

(2) The per capita income of a community will be determined from such evidence as may be available. Data on per capita incomes for 1959, as indicated by the 1960 census for counties and for many other areas, may be obtained from the Office of Economic Opportunity. In the absence of other evidence, this census data will be accepted as establishing the present level of per capita income for the areas for which it is available.

(3) A community's ability to provide support will be considered to be impaired

in any case in which the provision of support has become substantially more difficult, in the recent past, as a result of a decline in population, a decline in per capita income, an increase in other community needs, or other causes. However, a community's ability to provide support will not be considered to be impaired by a decision of any person or group, public or private, to discontinue or reduce financial assistance to the community or to any activity conducted in the community. The requirement that the prior level of non-Federal support be continued will thus not be waived simply because a source of support is withdrawn.

(4) A decision to discontinue or reduce non-Federal support for an activity will be treated as a reasonable consequence of an impairment of ability to support only if the decision was a reasonable reaction to the impairment of ability, considered without regard to the availability of Economic Opportunity Act funds as an alternative source of support. It will not be assumed that programs for the benefit of the poor should be the first to be sacrificed when available resources are reduced.

(5) In the event of recovery of ability to provide non-Federal support to an activity, the Office of Economic Opportunity may require, as a condition to continued Federal assistance, that the previous non-Federal support be resumed, in whole or in part. (Sec. 20, 78 Stat. 519, 42 U.S.C. 2788) (31 F.R. 4117, Mar. 9, 1966)

statement will not be considered sufficient if it does no more than assert the existence of an intention or understanding that support for particular activity would be temporary. Statements must relate the facts from which the existence of such an intention or understanding can be inferred.

(d) Impairment of a community's ability to support an activity. (1) When assistance is sought for the continuation of an activity which has been conducted with non-Federal support in a community whose per capita income is less than $750 per annum, and such non-Federal support is to be reduced or terminated as a reasonable consequence of an impairment of the community's ability to provide such support, the prior level of non-Federal support will not be required to be continued as a condition of Federal assistance. Continuation of non-Federal support will be required to the extent that such support is not affected by the impairment of the community's ability.

(2) The per capita income of a community will be determined from such evidence as may be available. Data on per capita incomes for 1959, as indicated by the 1960 census for counties and for many other areas, may be obtained from the Office of Economic Opportunity. In the absence of other evidence, this census data will be accepted as establishing the present level of per capita income for the areas for which it is available.

(3) A community's ability to provide support will be considered to be impaired

in any case in which the provision of support has become substantially more difficult, in the recent past, as a result of a decline in population, a decline in per capita income, an increase in other community needs, or other causes. However, a community's ability to provide support will not be considered to be impaired by a decision of any person or group, public or private, to discontinue or reduce financial assistance to the community or to any activity conducted in the community. The requirement that the prior level of non-Federal support be continued will thus not be waived simply because a source of support is withdrawn.

(4) A decision to discontinue or reduce non-Federal support for an activity will be treated as a reasonable consequence of an impairment of ability to support only if the decision was a reasonable reaction to the impairment of ability, considered without regard to the availability of Economic Opportunity Act funds as an alternative source of support. It will not be assumed that programs for the benefit of the poor should be the first to be sacrificed when available resources are reduced.

(5) In the event of recovery of ability to provide non-Federal support to an activity, the Office of Economic Opportunity may require, as a condition to continued Federal assistance, that the previous non-Federal support be resumed, in whole or in part. (Sec. 20, 78 Stat. 519, 42 U.S.C. 2788) (31 F.R. 4117, Mar. 9, 1966)

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