SUBCHAPTER 19O ‑ EMERGENCY SHELTER GRANTS PROGRAM ADMINISTRATIVE RULES

 

SECTION .0100 ‑ GENERAL PROVISIONS

 

04 NCAC 19O .0101          PURPOSE AND OBJECTIVES

The purpose of the North Carolina Emergency Shelter Grants Program (hereinafter referred to as "ESGP") is to assist families and individuals who are homeless primarily due to their economic circumstances.  Consistent with this purpose, ESGP funds will assist local governments in improving the quality and availability of emergency shelters and services for the homeless in their community.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987 for a period of 180 days to expire on March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 143B‑276; P.L. 100‑77; 24 C.F.R. 575;

Eff. March 1, 1988.

04 NCAC 19O .0102          DEFINITIONS

The following terms shall apply to the rules of this Subchapter:

(1)           "Act" means the Stewart B. McKinney Homeless Assistance Act, P.L. 100‑77, as amended.

(2)           "Applicant" means a local government which makes an application pursuant to the provisions of this Subchapter.

(3)           "Chief Elected Official" means either the elected Mayor of a City or the Chairman of a County Board of Commissioners.

(4)           "ESGP" means the state‑administered Emergency Shelter Grants Program.

(5)           "Local Government" means any unit of general city or county government in the state.

(6)           "NRCD" means the North Carolina Department of Natural Resources and Community Development.

(7)           "Obligated" means that the recipient or subrecipient, as appropriate, has placed orders, awarded contracts, or entered similar transactions that require payment from the grant amount.

(8)           "Recipient" means a local government that has been awarded an ESGP grant and has executed a Grant Agreement with NRCD.

(9)           "Secretary" means the Secretary of the Department of Natural Resources and Community Development or his designee.

(10)         "Shelter" means an individual facility whose purpose is to assist homeless persons through activities funded under this Subchapter.

(11)         "State" means the state of North Carolina.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987 for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.3; P.L. 100‑77;

Eff. March 1, 1988.

 

04 NCAC 19O .0103          WAIVERS

The Secretary may waive any requirements of this Subchapter not required by law whenever he determines that undue hardship to applicants, recipients or beneficiaries will result from applying the requirements and where application of the requirements would adversely affect the purposes of the Act.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; P.L. 100‑77; 24 C.F.R. 575;

Eff. March 1, 1988.

 

04 NCAC 19O .0104          ELIGIBLE APPLICANTS

Eligible applicants are all local governments.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.23;

Eff. March 1, 1988.

 

SECTION .0200 ‑ ELIGIBLE AND INELIGIBLE ACTIVITIES

 

04 NCAC 19O .0201          ELIGIBLE ACTIVITIES

This Subchapter, in accordance with G.S. 150B‑14(c), adopts by reference as eligible activities those activities described as such in the Act and in 24 CFR 575.21(a), as amended.  Copies of these sections of federal law and regulation are available for public distribution from the Division of Community Assistance of NRCD.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 150B‑14; 24 C.F.R. 575.21;

Eff. March 1, 1988.

 

04 NCAC 19O .0202          INELIGIBLE ACTIVITIES

This Subchapter, in accordance with G.S. 150B‑14(c), adopts by reference as ineligible activities those activities described as such in the Act and in 24 CFR 575.21(b), as amended.  Copies of these sections of federal law and regulation are available for public distribution from the Division of Community Assistance of NRCD.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 150B‑14; 24 C.F.R. 575.21;

Eff. March 1, 1988.

 

SECTION .0300 ‑ DISTRIBUTION OF FUNDS

 

04 NCAC 19O .0301          APPLICATION REQUIREMENTS

(a)  Local governments are required to submit applications in a manner prescribed by NRCD in order to be considered for funding.  Selection of applications for funding will be based primarily on information contained in the application, thus applications must provide sufficient information for NRCD to evaluate them.

(b)  Applicants may apply for more than one grant and be awarded more than one grant, providing the total amount of funds awarded to a single shelter does not exceed the maximum limits described in Sections .0400 and .0500 of this Subchapter.

(c)  NRCD shall designate specific dates for submission of ESGP grant applications.  Grant application submission dates will be announced by NRCD a minimum of 20 days before the date applications are due.

(d)  Applications must be received by NRCD administrative offices in Raleigh before 5:00 p.m. on the submission date or, if sent by mail, must be postmarked on the submission date.

(e)  The applicant shall certify to NRCD that it will comply with all applicable federal and state laws, regulations, rules and executive orders.

(1)           Copies of these federal and state documents are available for public distribution from the Division of Community Assistance of NRCD.

(2)           Notwithstanding the provisions of Paragraph (d) above, certifications of compliance may be submitted up to two weeks after the date the application is due.  This provision applies only to certifications.

(f)  Applicants must comply with the Act, all applicable federal and state laws, regulations, rules, executive orders and guidelines issued by NRCD.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.61;

Eff. March 1, 1988.

 

04 NCAC 19O .0302          SIZE OF GRANTS

Grants are applied for and awarded in two categories: Operations/Services and Rehabilitation.

(1)           Operations/Services.  The maximum amount which may be applied for and awarded in the Operations/Services category depends on the size of the shelter on whose behalf the application is made.  Shelter size shall be determined by overnight lodging capacity.  Maximum awards per shelter are:

(a)           Ten thousand dollars ($10,000) for a shelter with a capacity of ten or fewer persons per night;

(b)           Twenty thousand dollars ($20,000) for a shelter with a capacity from 11 to 20 persons per night;

(c)           Forty thousand dollars ($40,000) for a shelter with a capacity of 21 or more persons per night.

(2)           Rehabilitation.  The maximum grant amount per shelter which may be applied for or awarded in the Rehabilitation Category is thirty‑five thousand dollars ($35,000).

(3)           The minimum grant which may be applied for or awarded in either of the above categories is one thousand five hundred dollars ($1,500).

(4)           Notwithstanding the provisions of Paragraphs (a) and (b) above, NRCD reserves the right to fund applications for less than the requested amount in the event that the total amount of funds requested exceeds the total amount of funds available; in this event, NRCD may consider local needs and shelter resources.  NRCD also reserves the right to award grants exceeding the above limits if the total amount of funds requested is less than the total amount of funds available.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575;

Eff. March 1, 1988.

 

04 NCAC 19O .0303          DISTRIBUTION OF FUNDS

A minimum of 30 percent of ESGP funds available will be awarded in each of the two categories:  Operations/Services and Rehabilitation.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575;

Eff. March 1, 1988.

 

04 NCAC 19O .0304          REALLOCATION

Any ESGP funds recaptured by NRCD, as provided for in Rule .0704 and Rule .0605 of this Subchapter, may be distributed to grant recipients in a manner to be prescribed by NRCD.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.41;

Eff. March 1, 1988.

 

SECTION .0400 ‑ OPERATIONS/SERVICES CATEGORY

 

04 NCAC 19O .0401          DEFINITION

This Section, in accordance with G.S. 150B‑14(c), adopts by reference as Operations/Services Category activities those activities described in 24 CFR 575.21(a)(2) and (3), as amended.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.21;

Eff. March 1, 1988.

 

04 NCAC 19O .0402          ELIGIBILITY REQUIREMENTS

Applications for Operations/Services funds must show that:

(1)           All funds received will be expended within 180 days of the date of the grant award;

(2)           Funds used for the provision of essential services:

(a)           Total 15 percent or less of the entire Operations/Services grant amount;

(b)           Are used to provide either a new service or a quantifiable increase in the level of service;

(3)           Matching resources required by the federal government will be available during the period of the grant;

(4)           Each shelter assisted with ESGP Operations/Services funds will remain in existence as a shelter for a period of at least three years from the date of occupancy as a shelter or from the date of the grant award, whichever is later, or longer if Rule .0502(c)(2) of this Subchapter applies;

(5)           The federal restrictions on the use of federal funds by primarily religious organizations will be met.  These include restrictions against religious discrimination and proselytizing.

Applications that do not meet these requirements will not be rated or funded.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575;

Eff. March 1, 1988.

 

04 NCAC 19O .0403          SELECTION CRITERIA

(a)  Applications will be selected for funding by NRCD based on overall project quality, geographic distribution of applicants, and the availability of ESGP funds.

(b)  Project quality will be determined by NRCD based on the following factors:

(1)           Benefits of proposed activities to homeless persons, including type and number of both current and new beneficiaries;

(2)           Feasibility of the proposed activities, including:

(A)          Local resources for sheltering the homeless;

(B)          Local commitment to continue the program to be assisted with ESGP Funds.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575;

Eff. March 1, 1988.

 

SECTION .0500 ‑ REHABILITATION CATEGORY

 

04 NCAC 19O .0501          DEFINITION

This Section, in accordance with G.S. 150B‑14(c), adopts by reference as Rehabilitation Category activities those activities described in 24 CFR 575.21(a)(1), as amended.  These include renovation, major rehabilitation, or conversion of a shelter.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.21;

Eff. March 1, 1988.

 

04 NCAC 19O .0502          ELIGIBILITY REQUIREMENTS

Applications for Rehabilitation funds must show that:

(1)           Matching resources required by the federal government will be available during the period of the grant;

(2)           All funds will be obligated within 180 days of the date of the grant award and expended within 360 days of the date of the grant award;

(3)           Federal requirements for continuation of service will be met.  These include:

(a)           Shelters renovated with ESGP funds shall remain in existence as shelters for three years after initial date of occupancy as a shelter or the date of the grant award, whichever is later;

(b)           Shelters on which major rehabilitation or conversion is undertaken with ESGP funds shall remain in use as shelters for ten years after initial occupancy as a shelter or the date of the grant award, whichever is later;

(4)           The federal restrictions on the use of federal funds by primarily religious organizations will be met.  These include restrictions on religious discrimination and proselytizing;

(5)           No building to be assisted with ESGP funds is owned by a primarily religious organization; and

(6)           The grantee will comply with all applicable state and federal laws, regulations, and guidelines pertaining to the use of federal funds in rehabilitation activities.

Applications that do not meet these requirements will not be rated or funded.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.33;

Eff. March 1, 1988.

 

04 NCAC 19O .0503          SELECTION CRITERIA

(a)  Applications will be selected for funding by NRCD based on overall project quality, geographic distribution of applicants, and the availability of ESGP funds.

(b)  Project quality will be determined by NRCD based on the following factors:

(1)           Benefits of proposed activities to homeless persons, including type and number of both current and new beneficiaries;

(2)           Feasibility of the proposed activities, including:

(A)          Local resources for sheltering the homeless;

(B)          Local commitment to continue the program to be assisted with ESGP Funds.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575;

Eff. March 1, 1988.

 

SECTION .0600 ‑ GRANT ADMINISTRATION

 

04 NCAC 19O .0601          GRANT AGREEMENT

(a)  Upon approval of the application by NRCD, a written grant agreement will be executed between the recipient and NRCD.  The Rules in this Subchapter, subsequent guidelines prepared by NRCD, the approved application, and any subsequent amendments to the approved application shall become a part of the grant agreement.

(b)  The grant agreement in its original form and all modifications thereto shall be kept on file in the office of the recipient in accordance with Rule .0604 of this Section.

(c)  ESGP Program amendments. Recipients shall request prior NRCD approval for all amendments to the grant agreement when:

(1)           The recipient proposes to change the approved project budget amount for any of the three types of eligible activities as described in 24 CFR 575.21(a).

(2)           The recipient proposes to distribute all or part of their grant(s) to programs, shelters, or agencies other than those originally approved in the application.

(d)  NRCD reserves the right to disallow any proposed amendment to the grant agreement.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.61;

Eff. March 1, 1988.

 

04 NCAC 19O .0602          METHOD OF ADMINISTRATION

(a)  Recipients may delegate to authorized subrecipients the responsibility of undertaking or carrying out ESGP activities pursuant to 24 CFR 575.3 and 24 CFR 575.23.  All entities so designated under this Subparagraph by recipients to undertake or carry out ESGP activities pursuant to this Subchapter shall be considered subrecipients.

(b)  NRCD shall make payments of ESGP funds to recipients on a cost‑reimbursement or cost‑incurred basis.  All requests for payment shall be for amounts of not less than one thousand five hundred dollars ($1,500).

(c)  All payments of ESGP funds to recipients must be for costs incurred during the period of the grant.  Recipients will not receive payment for costs incurred before the execution of the Grant Agreement.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575;

Eff. March 1, 1988.

 

04 NCAC 19O .0603          PROPERTY MANAGEMENT STANDARDS

(a)  Property acquired with ESGP grant funds shall be used to provide benefits to the homeless.

(b)  Recipients and subrecipients should use proceeds from the disposition of property acquired with ESGP funds in a manner which provides benefit to the homeless in their community.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.61;

Eff. March 1, 1988.

 

04 NCAC 19O .0604          RECORDKEEPING

(a)  NRCD, or any of NRCD's duly authorized representatives, shall have access to all books, accounts, records, reports, files, and other papers or property of recipients or their subrecipients and contractors pertaining to funds provided under this Subchapter for the purpose of making surveys, audits, examinations, excerpts and transcripts.

(b)  Financial records, supporting documents and all other reports and records required under this Subchapter, and all other records pertinent to the ESGP Program shall be retained by the recipient for a period of at least three years from the date of the closeout of the program, except:

(1)           Records documenting compliance with 24 CFR 575.53 shall be kept for the period of compliance;

(2)           Records shall be retained until all litigations, claims, or audit findings involving the records have been resolved.

(c)  All records shall be sufficient to determine compliance with the requirements and primary objectives of the ESGP Program and all other applicable laws and regulations.  All accounting records shall be supported by source documentation.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.67;

Eff. March 1, 1988.

 

04 NCAC 19O .0605          GRANT CLOSEOUTS

ESGP grants will be closed out by NRCD in the following circumstances:

(1)           NRCD will initiate closeout procedures after NRCD determines, in consultation with the recipient, that there are no impediments to closeout and that all ESGP funds have been expended.

(2)           Termination of grant for mutual convenience.  Grant assistance provided under this Subchapter may be cancelled, in whole or in part, by NRCD or the recipient, prior to the completion of the approved ESGP Program, when both parties agree that the continuation of the program no longer is feasible or would not produce beneficial results commensurate with the further expenditure of funds.

(3)           Termination for cause.  The Secretary may terminate the recipient's entire grant, or the remaining balance thereof, in accordance with Rule .0704 of this Subchapter.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 159‑34; 24 C.F.R. 575.61;

Eff. March 1, 1988.

 

SECTION .0700 ‑ COMPLIANCE AND REPORTING REQUIREMENTS

 

04 NCAC 19O .0701          COMPLIANCE

Recipients shall have responsibility for ensuring that ESGP funds are expended as stated in their grant agreement and in conformance with all applicable federal and state laws, regulations, and guidelines, regardless of whether activities are carried out by the recipient or a subrecipient.  NRCD may prescribe procedures for ensuring compliance with the provisions of this Rule.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.61;

Eff. March 1, 1988.

 

04 NCAC 19O .0702          REPORTING

(a)  NRCD may require recipients to provide an interim performance report in a form prescribed by NRCD.  Recipients will be notified a minimum of 20 days before the report will be due.

(b)  The recipient shall submit an Annual Performance Report to NRCD as part of closeout procedures.  For grants not closed out, recipients shall submit an annual performance report no later than 270 days after the date that NRCD makes the grant available to the recipient.  The annual performance report shall be in a form prescribed by NRCD.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.65;

Eff. March 1, 1988.

 

04 NCAC 19O .0703          MONITORING BY NRCD

(a)  The secretary may evaluate activities conducted under this Subchapter and their effectiveness in meeting the objectives of the ESGP program.

(b)  The secretary may conduct such evaluations using NRCD personnel, or by contract or other arrangement with public or private agencies.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.69;

Eff. March 1, 1988.

 

04 NCAC 19O .0704          REMEDIES

When the secretary determines on the basis of a review of a recipient's performance that the objectives of an ESGP program described in the grant agreement have not been met, NRCD may take one or more of the following actions as appropriate:

(1)           Issue a warning letter that further failure to comply with such requirements will result in a more serious sanction;

(2)           Condition a future grant;

(3)           Direct the recipient to stop the incurring of costs with grant amounts;

(4)           Require that some or all of the grant amounts be remitted to NRCD;

(5)           Reduce the level of funds the recipient would otherwise be entitled to receive; or

(6)           Elect not to provide future grant funds to the recipient until appropriate actions are taken to ensure compliance.

 

History Note:        Filed as a Temporary Rule Eff. October 1, 1987, for a period of 180 days to expire on

March 29, 1988;

Authority G.S. 143‑323; 143B‑10; 24 C.F.R. 575.69;

Eff. March 1, 1988.