Page images
PDF
EPUB

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.

EXHIBIT I-TABLE TO DETERMINE NON-FEDERAL CONTRIBUTION PERCENTAGE FOR 12-MONTH GRANTS

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][ocr errors][subsumed][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][subsumed][merged small]
[merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors]

§ 1030.15 Criteria for waiving requirement that prior level of expenditures or contributions be increased.

(a) Purpose. Under section 208 (c) of the Economic Opportunity Act of 1964, as amended, the expenditures or contributions made from non-Federal sources for a community action program or component thereoef are required to be in addition to the aggregate expenditures or contributions from non-Federal sources which were being made for similar purposes prior to the extension of Federal assistance. Consequently, an activity which has previously been carried on without Federal support will generally receive Federal assistance under section 204 or 205 only on condition that the prior level of non-Federal support for the activity be continued, and that any amounts claimed as non-Federal share represent an increase in the nonFederal effort over such prior level of support. The 1965 amendments to the Economic Opportunity Act made this requirement "subject to such regulations as the Director may adopt and promulgate establishing objective criteria for determinations covering situations where a literal application of such requirement would result in unnecessary hardship or otherwise be inconsistent with the purposes sought to be achieved." The purpose of this section is to establish criteria for such determinations.

(b) Activities undertaken for less than 6 months. (1) When assistance is sought for the continuation or expansion of an activity which was initiated less than 6 months before the application to the Office of Economic Opportunity, continuation of non-Federal support for the activity will not be required as a condition of Federal assistance.

(2) For the purpose of this paragraph, an activity will be treated as having been initiated at the time at which non-Federal resources were first committed in furtherance of that activity. The signing of a lease for a facility to be used in an activity, the beginning of renovation work on a facility already owned, and the hiring of personnel are examples of commitments that would indicate initiation of an activity within the meaning of the paragraph.

(3) The date of application to the Office of Economic Opportunity will be the date on which a bona fide application for support of the activity is received in the appropriate OEO regional office.

(c) Activities undertaken with temporary financial support. (1) When assistance is sought for the continuance or expansion of an activity for which temporary non-Federal support has been received, the prior level of non-Federal support for the activity will not be required to be continued as a condition of Federal assistance. Nevertheless, if only a portion of the previous non-Federal support was temporary, the level of other non-Federal support for the activity will be required to be continued.

(2) Support will be considered to have been temporary only if the person or organization providing the support intended, at the time of the initial decision to provide support, that the support would be terminated (or reduced) after a limited, defined period of time, and not continued or renewed indefinitely. Support will not be considered temporary merely because it has been provided through annual, biennial, or other periodic appropriations, budgets, or grants, or because the project supported has been denominated a pilot or demonstration project. Examples of temporary support are a grant given with the fixed intention that the grantor's support terminate at the end of 3 years, a commitment of support made with the fixed intention that it last only until a Federal grant is received, and a grant of $50,000 to be available until spent, made on the understanding that there would be no renewal. Support will not be considered to have been temporary in any case in which a source of support for a limited, defined period of time has replaced a source of support which was not temporary.

(3) To qualify for relief under this paragraph, an applicant must demonstrate that the requisite intention existed at the time of the initial decision to provide financial support for the activity. Where possible, contemporaneous written evidence of that intention should be submitted. Such evidence may include correspondence, minutes of meetings of the directors of the organizations providing financial support, written recommendations made to the directors, and any other relevant material. Where documentary evidence of this type is not available, the applicant should submit signed statements evidencing the existence of the intention, such as reports of verbal understandings, agreements, or commitments reached at the time of the 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]

« PreviousContinue »