§ 600.120 Summary of substate planning and management assistance procedures.

The following describes procedures which States shall employ for managing substate planning and management assistance;

(a) Intent. It is HUD's intent to give States major responsibility and discretion, in consultation with substate applicants, for administering a program of planning and management assistance and services for substate applicants required under § 600.25, or electing to apply to the State under paragraph (j) of this section. HUD's main concern will be with the State's administration of substate assistance and services according to this Part and the State's OPD.

(b) Consultation process. States shall develop policies, strategies, administrative procedures and requirements to be employed in administering substate assistance, in carrying out State responsibilities under the A-95 procedure and in providing overall guidance to all substate applicants. These policies shall be developed in consultation with an advisory group representative of substate applicant categories. The State shall undertake consultations annually, prior to the submission of its application.

(c) Advisory group composition. The advisory group shall be composed of persons designated by the State and shall include appropriate representation from each of the following:

(i) Localities;

(ii) Large cities and urban counties; (iii) Metropolitan areawide planning organizations; and

(iv) Nonmetropolitan areawide planning organizations.

(d) Elected officials review. Elected officials representative of the categories identified in paragraph (c) of this section shall be afforded an opportunity for review and comment on the policies and strategies developed by the State in consultation with its advisory group. These comments shall be considered by the State prior to the inclusion of these policies in the applicable sections of the State Overall Program Design. The elected officials to be provided an opportunity to review and

comment on the State policies shall be designated by the State in consultation with its advisory group.

(e) OPD section copies. States shall provide each substate applicant eligible to apply directly to HUD a copy of the section of the State OPD applicable to it. (Substate applicants required by law to apply to the State shall be provided copies at the time they make inquiry for assistance.)

(f) Consultation records. The State shall maintain a record of all its actions taken pursuant to the consultation requirement and of the comments received from elected officials.

(g) Application submission. After the HUD Office has identified bench mark grant figures, the State may submit an application, based upon which lump sum amounts of assistance for substate categories will be negotiated with HUD.

(h) Annual grant budget. The grant amounts for substate categories will be included in the State annual grant and will appear as sub-totals in the annual grant budget (Form HUD 7026.3). Funds budgeted for assistance and services to localities may not be utilized by States or areawide planning organizations to provide services through their own staff exclusively. Reasonable opportunities shall be provided to localities to use local staff or to obtain the professional services of public or private consultants.

(i) Substate timing. Eligible substate applicants for which the State has responsibility shall request comprehensive planning and management assistance from the State at times and in the manner established by the State.

(j) Voluntary agreements. Substate applicants who are eligible to apply directly to HUD may decide voluntarily to enter into agreements with States providing for State administration of 701 grant funds. The Substate applicant's decision must be communicated to the State in writing and be endorsed by the Chief Executive Officer, or in the case of an areawide planning organization, the highest policy officer. Once a substate applicant has committed itself in the manner indicated above, it may not change its decision during the Federal fiscal year in

question. The State shall accept or reject substate requests for State administration and notify HUD by the date annually established by HUD. The State notification to HUD must identify the appucants to be assisted by the State and include copies of the substate applicant requests.

(1) Interstate voluntary agreements. Interstate recipients may voluntarily agree to administration by a single State provided that all affected States also agree to such an arrangement. Letters from the Governors of the affected States must accompany the administering State's notification HUD along with the interstate's request for State administration.

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(2) Agreement duration. State administration shall be on an annual basis and substate applicants must reaffirm their intentions to the State annually.

(k) Expenditure of funds. The grant will be available to the State only for the duration of the project period.

(1) Commitment of funds. After receiving from HUD the formal notification of grant approval, the State agency may commit and/or expend funds effective with the beginning of the project period and without further HUD concurrence. However, in the case of grants to counties having a population of 50,000 or more located within metropolitan areas, prior HUD concurrence is required.

(m) State notification. Each State shall notify its State central information reception agency of each subgrant that it awards within (7) days of the award, using Standard Form 240 (Notification of Grant-in-Aid Action), copies of which can be obtained from HUD. Three copies of the notification shall be submitted to HUD along with a copy of the annual work program summary and the organizational characteristics statement for areawide planning organizations, urban counties, and large cities, and a copy of the description of work or scope of services for localities. The Standard Form 240 (line 3) should indicate the Federal grantor (HUD) and the State grantor. Lines 13, 14 and 15 need not be completed. The State shall also indicate in line 16 (Remarks) the county

within which the subgrantee is located and, for areawide planning organizations, the counties of jurisdiction, and the population of the jurisdiction or organization being assisted.

§ 600.128 [Reserved]

§ 600.130 Negotiations with HUD.

Negotiations with HUD will focus

on:

(a) Relevance of the proposed program to the requirements of this Part and to specific statewide objectives and critical problems of substate applicants;

(b) Past State performance in managing the prograrı, and achieving objectives;

(c) Substate applicant performance and progress; and

(d) State capability for providing a variety of planning assistance and services.

§ 600.135 State review and evaluation.

The State shall review the planning activities of recipients on a continuing basis. The following specific items shall be reviewed:

(a) The quality of the planning work performed;

(b) The timeliness of the work performance;

(c) The recipient's coordination efforts:

(d) The quality of citizen involvement;

(e) The value of the planning work in improving the chief executive's management capability;

(f) The recipient's compliance with Equal Opportunity requirements; and (g) The recipient's progress toward meeting the housing and land use elements required in § 600.67.

Subpart E-Evaluation and Coordination Procedures

§ 600.140 Purpose.

This Subpart sets forth the procedures for evaluation of programs and the coordination of assisted planning among agencies and governmental levels which may enhance or be affected by such planning.

§ 600.145 Evaluation and review.

Evaluation and review procedures are established as follows:

(a) Evaluation. Required monitoring and reporting activities are defined in chapter 4 of HUD Handbook 6042.1A "Comprehensive Planning Assistance Handbook II" (July 1973). With the Annual Program Report described therein and required to be submitted, applicants shall include a brief evaluation statement endorsed by the Governor, chief executive officer, or highest policy officer of an areawide planning organization that relates the following:

(1) Overall benefit of the program to the recipient government or areawide planning organization;

(2) Anticipated or actual effects of the major planning and management activities undertaken by the applicant in terms of dollar savings, improved effectiveness, increased efficiency, etc.; and

(3) Progress of the recipient in implementing 701 funded planning and management recommendations.

(b) HUD review of recipient evaluation. HUD review of evaluations made by recipients will be discussed at the time of negotiations on new applications. The HUD review will cover the recipient's:

(1) Capability, performance and progress pursuant to the criteria of

§ 600.10(d); and

(2) Performance in administering grants to substate applicants, as applicable.

§ 600.150 Coordination and intergovernmental review procedures.

The procedures required by § 600.160 and 600.170 are established to assure intergovernmental coordination and 1eview of planning and management programs proposed for assistance.

§ 600.160 OMB Circular A-95 coordination procedures.

(a) General. In accordance with Office of Management and Budget Circular A-95, Part I, Project Notification and Review System, applicants (except Federally recognized Indian tribes) are required to notify the State and regional or metropolitan clearing

house of the intent to submit an application to HUD or to the State for comprehensive planning assistance. Federally recognized Indian tribes may voluntarily participate in the A-95 Project Notification and Review System and are encouraged to do so.

(b) Interstate applications. Interstate Regional Commissions submitting applications for a HUD Comprehensive Planning Assistance grant shall notify the Governors of the affected States and/or the designated State clearinghouse(s) of their intent to apply to HUD.

(c) Clearinghouse notification. Applicants must notify the appropriate State, regional, and metropolitan clearinghouses well in advance of the HUD negotiations conference. In no instance will applications be processed without having fulfilled the A-95 requirements.

(d) Clearinghouse comments. State clearinghouses, in addition to commenting on the basis of the criteria contained in OMB Circular No. A-95, are encouraged to provide HUD with comments on substate applications on the basis of the policies contained in the applicable section of the State OPD pursuant to § 600.115(d).

§ 600.165 [Reserved]

§ 600.170 Overall Program Design review. (a) In addition to the A-95 review, referred to in § 600.160, assisted agencies should submit a draft copy of the Overall Program Design to agencies likely to be asked to implement portions of the plans and programs or to agencies whose activities are likely to be substantially affected by the plans and programs; and to State, areawide, local, and Federal agencies and private agencies expected to contribute cash or services to the planning effort.

(b) Each nonmetropolitan areawide planning organization shall submit a copy of its Overall Program Design to the chairman of the State Rural Development Committee of the U.S. Department of Agriculture, in accordance with agreed upon procedures between the State planning agency and the State rural development committee.

(c) Each areawide planning organization designated as an economic devel

opment district (EDD) or adjacent to an EDD must submit a copy of its Overall Program Design to the region.al office of the Economic Development Administration, ".S. Department of Commerce.

(d) Each areawide planning organization designated as a local development district (LDD) must submit a copy of its Overall Program Design to

the central office of the Appalachian Regional Commission.

(e) Executive bodies of area wide planning organizations and the chief executive officials of cities and counties over 50,000 population within the areawide jurisdiction shall exchange draft Overall Program Designs or work programs for comment by the reciprocating office.