union in excess of the revised amount of loan approved must be returned immediately to OCS. Failure to return such funds to OCS upon demand shall result in the default of the entire loan. (3) Failure by a credit union to produce at least 25% of its proposed match may result in the requirement by OCS that immediate and full repayment of the loan be made.

(d) Terms and Repayment. (1) Assistance made available in this program is in the form of a loan and must be repaid to OCS. All loans will be scheduled for repayment within the shortest time compatible with sound business practices and with the objectives of the program, but in no case will the term exceed five years. The policy of OCS is to revolve these funds as often as practical, in order to gain maximum economic impact and improve the organizational capacity of participating CDCUS.

(2) Semi-annual interest payments (beginning six months after the granting of a loan) and semi-annual principal payments (beginning one year after the granting of a loan) will be required.

(e) Interest Rates. Loans made under this rule shall bear interest at a rate of four (4) percentage points below the average market rate for Treasury Notes of comparable duration as of the date the program recipients are selected by OCS for participation. However, in no case shall the rate be less than 5% per annum.

(f) Default, Collections and Adjustments. Conditions attached to each loan agreement will require immediate repayment for breach or default in the performance by the participating CDCU of the terms or conditions of the deposit. This will include misrepresentations, default in making interest/ principal payments, failure to report, insolvency, failure to maintain adequate match for the duration of the loan period, etc. Immediate repayment will be required of any balance of the funds for improper use.

(g) Reporting Requirements. OCS's monitoring procedures and covenants in the loan agreement will require regular financial and business status reports. The provision of such reports should ensure advance notice of a par

shelters, and transitional housing for the mentally ill):

(ii) An institution that provides a temporary residence for individuals intended to be institutionalized; or

(iii) A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

The term "homeless" or "homeless individual" does not include any individual imprisoned or otherwise detained pursuant to an Act of the Congress or a State law.

(b) "State" includes the fifty states, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Republic of Palau.

(c) "Indian tribe" means any tribe, band, nation, or other organized group or community of Indians, including any Alaska Native village or regional or village corporation (as defined in, or established pursuant to, the Alaska Native Claims Settlement Act), that is recognized by the Federal Government as eligible for special programs and services provided to Indians because of their status as Indians.

and income support services for homeless individuals; and

(c) Promotion of private sector and other assistance to homeless individuals.

§ 1080.5 Application procedures for States.

(a) Each State requesting funds under the Emergency Community Services Homeless Grant Program shall submit an application for funds for each fiscal year. For fiscal year 1988, the application shall be submitted no later than August 8, 1988. In succeeding fiscal years, the application shall be submitted at a time established by the Secretary.

(b) The application may be in any format, but must include a description of the agencies, organizations, and activities that the State intends to support with the amounts received. In addition, the application must include the following assurances:

(1) The State will award all of the amounts it receives to:

(i) Community action agencies that are eligible to receive amounts under section 675(c)(2)(A) of the Community Services Block Grant Act (42 U.S.C. 9904(c)(2)(A));

(ii) Organizations serving migrant and seasonal farmworkers; and

(iii) Any organization to which a State, that applied for and received a waiver from the Secretary under Pub. L. 98-139, made a grant under the Community Services Block Grant Act (42 U.S.C. 9901 et seq.) for fiscal year 1984;

(2) Not less than 90 percent of the amounts received shall be awarded to agencies and organizations meeting the requirements of paragraph (b)(1) of this section that, as of January 1, 1987, were providing services to meet the critically urgent needs of homeless individuals;

(3) No amount received will be used to supplant other programs for homeless individuals administered by the State; and

(4) No amount received will be used to defray State administrative costs.

§ 1080.6 Funding of alternative organizations.

(a) If a State does not apply for or submit an approvable application for a grant under the Emergency Community Services Homeless Grant Program, the Secretary shall use the amounts that would have been allocated to that State to make grants to agencies and organizations in the State that meet the requirements of § 1080.5(b) (1) and (2) of this chapter.

(b) The amounts allocated under this section in any fiscal year shall be awarded to eligible agencies and organizations in the same proportion as funds distributed to those agencies and organizations by the State for the previous fiscal year under the Community Services Block Grant Program (42 U.S.C. 9904(c)(2)(A)).

§ 1080.7 Funding of Indian tribes.

(a) Not less than 1.5 percent of the funds provided in each fiscal year for the Emergency Community Services Homeless Grant Program shall be allocated by the Secretary directly to Indian tribes that have applied for and received a direct grant award under section 674(c) of the Community Services Block Grant Act (42 U.S.C. 9903(c)) for that fiscal year.

(b) An Indian tribe funded under this section is not required to submit an application for Emergency Community Services Homeless Grant Program funds. A tribe's application for a direct grant award under section 674(c) of the Community Services Block Grant Act (42 U.S.C. 9903(c)) that is submitted by September 1 for the succeeding fiscal year will be considered as an application for Emergency Community Services Homeless Grant Program funds for that fiscal year. Acceptance of the Community Services Block Grant application will constitute approval of an award of funds under this section.

(c) Funds allocated under this section shall be allotted to an Indian tribe in an amount that bears the same ratio to all the funds allocated under this section as the tribe's poverty population bears to the total poverty population of all tribes funded under this section, except that no

tribe shall receive an amount of less than:

(1) $500, for those tribes whose allocation under this section would otherwise be at least $1 but no more than $500; or

(2) $1000, for those tribes whose allocation under this section would otherwise be at least $501 but less than $1000.

(d) For purposes of this section, an Indian tribe's poverty population shall be calculated by multiplying the tribe's overall population by the Indian rural poverty rate for the State in which it is located, using the population and rural poverty rate figures established for the purposes of making direct grants under section 674(c) of the Community Services Block Grant Act (42 U.S.C. 9903(c)).

§ 1080.8 Reporting requirements.

Each recipient of funds under the Emergency Community Services Homeless Grant Program shall submit an annual report to the Secretary, within 6 months of the end of the period covered by the report, on the expenditure of funds and the implementation of the program for that fiscal year. The report is to state the types of activities funded, the number of individuals served and any impediments, inlcluding statutory and regulatory restrictions to homeless individuals' use of the program and to their obtaining services or benefits under the programs.

EFFECTIVE DATE NOTE: The effectiveness of § 1080.8, added at 53 FR 23571, June 22, 1988, will be announced in the FEDERAL REGISTER at a later date.

§ 1080.9 Other requirements.

All recipients of grants under the Emergency Community Services Homeless Grant Program shall be subject to the following regulations applicable to the block grant programs in the Department of Health and Human Services:

(a) 45 CFR Part 96, Subpart B, § 96.12-Grant Payment, concerning the timing and method of disbursing grant awards;

(b) 45 CFR Part 96, Subpart B, § 96.14-Time Period for Obligation

and Expenditure of Grant Funds, as amended, concerning the availability of grant funds.

(c) 45 CFR Part 96, Subpart C-Financial Management, as amended, concerning the financial management and audit requirements;

(d) 45 CFR Part 96, Subpart E-Enforcement, as amended, concerning the enforcement and complaint procedures; and

(e) 45 CFR Part 96, Subpart FHearing Procedures, concerning the hearing procedures.