[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR570.416]

[Page 86-91]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 570_COMMUNITY DEVELOPMENT BLOCK GRANTS--Table of Contents
 
                    Subpart E_Special Purpose Grants
 
Sec. 570.416  Hispanic-serving institutions work study program.

    (a) Applicability and objectives. HUD makes grants under the 
Hispanic-serving Institutions Work Study Program (HSI-WSP) to public and 
private non-profit Hispanic-serving Institutions (HSI's) of higher 
education for the purpose of providing assistance to economically 
disadvantaged and minority students who participate in a work study 
program while enrolled in full-time community college programs in 
community building, and to provide entry to pre-professional careers in 
these fields.
    (b) Definitions. The following definitions apply to HSI-WSP:

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    Applicant means a public or private non-profit Hispanic-serving 
institution of higher education that offers only two-year degree 
programs, including at least one community building academic degree 
program, and that applies for funding under HSI-WSP.
    Community building means community and economic development, 
community planning, community management, public policy, urban 
economics, urban management, urban planning, land use planning, housing, 
and related fields. Related fields include, but are not limited to, 
administration of justice, child development, and human services.
    Community building academic program or academic program means an 
undergraduate associate degree program whose purpose and focus is to 
educate students in community building. The terms ``community building 
academic program'' or ``academic program'' refer to the types of 
academic programs encompassed in the statutory phrase ``community or 
economic development, community planning or community management.'' For 
purposes of HSI-WSP, such programs include, but are not limited to, 
associate degree programs in community and economic development, 
community planning, community management, public administration, public 
policy, urban economics, urban management, urban planning, land use 
planning, housing, and related fields of study. Related fields of study 
that promote community building, such as administration of justice, 
child development, and human services are eligible, while fields such as 
natural sciences, computer sciences, mathematics, accounting, 
electronics, engineering, and the humanities (such as English or 
history) would not be eligible. A transfer program (i.e., one that leads 
to transfer to a four-year institution of higher education for the 
student's junior year) in a community building academic discipline is 
eligible only if the student is required to declare his/her major in 
this discipline while at the community college.
    Community building field means any of the fields of study eligible 
under a community building academic program.
    Economically disadvantaged and minority students means students who 
satisfy all the applicable guidelines established at the participating 
institution of higher education to measure financial need for academic 
scholarship or loan assistance, including, but not limited to, students 
with disabilities and students who are Black, American Indian/Alaska 
Native, Hispanic, Asian/Pacific Islanders, where such students satisfy 
the financial needs guidelines defined above.
    Hispanic-serving institution is an institution of higher education 
that certifies to the satisfaction of the Secretary that it meets the 
criteria set out at 20 U.S.C. 1059c(b)(1), including the following: An 
institution that has an enrollment of undergraduate full-time students 
that is at least 25 percent Hispanic; in which not less than 50 percent 
of the Hispanic students are low-income individuals (i.e., their 
families' taxable income for the preceding year did not exceed 150 
percent of the poverty level) who are first generation college students; 
and in which another 25 percent are either low-income individuals or 
first generation college students.
    HSI-WSP or HSI-WSP program means the Hispanic-serving Institutions 
Work Study program.
    Institution of higher education means a public or private 
educational institution that offers two-year associate degrees in a 
community building academic program and that is accredited by an 
accrediting agency or association recognized by the Secretary of 
Education. Institutions offering BOTH four-year and two-year degrees are 
not eligible for HSI-WSP.
    Recipient means an approved applicant that executes a grant 
agreement with HUD.
    Student means a person attending the institution of higher education 
on a full-time basis, as defined by that institution and pursuing an 
eligible community building degree. Students must have attained no more 
than half of the credits required for their degree at the time they 
first receive assistance under HSI-WSP.
    Student with disabilities means a student who meets the definition 
of a

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``person with disabilities'' in the Americans with Disabilities Act of 
1990.
    (c) Assistance provided--(1) Types of assistance available. HUD 
provides funding in the form of grants to recipients who make assistance 
available to eligible students. Grants are provided to cover the costs 
of student assistance and for an administrative allowance.
    (2) Maximum amount of assistance. The maximum amount that can be 
provided to a student is $13,200 a year, including $1,000 for an 
administrative allowance, subject to the 20% limitation described at 
570.416(c)(4) below. HUD will not set maximums on how much should be 
spent to each eligible expenditure, other than for administrative costs. 
The institution must be able to document that the amounts paid are 
customary for that institution and that it has actually paid that amount 
to the students. If a student is receiving a Pell grant, he/she may not 
receive funding for the same educational support through HSI-WSP. 
However, HSI-WSP can substitute for all or part of the Pell grant.
    (3) Student assistance. Grants are provided in the form of student 
stipends, tuition support, and additional support.
    (i) Student stipend. The amount of the student stipend should be 
based on the hourly rate for initial entry positions in the community 
building field and the number of hours worked by the student at the work 
placement assignment. The stipend should be sufficiently high to allow 
the student to earn the full stipend, as determined by the recipient, 
without working over 20 hours per week during the school year and 40 
hours per week during the summer.
    (ii) Tuition support. The amount of tuition support may not exceed 
the tuition and required fees charged at the participating institution 
of higher education.
    (iii) Additional support. The recipient may provide additional 
support for books, tutoring, and travel related to the academic program 
or work placement assignment. Costs associated with reasonable 
accommodations for students with disabilities including, but not limited 
to, interpreters for the deaf/hard of hearing, special equipment, and 
braille materials are eligible under this category.
    (4) Administrative allowance. HUD provides an allowance to 
recipients to cover the administrative costs of the program. The 
administrative allowance is $1,000 per year for each student 
participating in the program; however, no more than 20 percent of the 
grant may be used for planning and program administrative costs.
    (5) Number of students assisted. The minimum number of students that 
may be assisted is three students per participating institution of 
higher education. The maximum number of students that may be assisted is 
ten students per participating institution of higher education; however, 
a lower maximum or higher minimum may be established for a particular 
funding round by the NOFA announcing the availability of the funds.
    (d) Recipient eligibility and responsibilities--(1) Recipient 
eligibility. Public or private Hispanic-serving institutions of higher 
education offering only undergraduate two-year degrees, including 
degrees in at least one community building academic program, are 
eligible for assistance under HSI-WSP. HSIs that offer BOTH two-year and 
four-year degrees are not eligible for HSI-WSP assistance.
    (2) Recipient responsibilities. The recipient is responsible for 
administering the program, for compliance with all program requirements, 
and for coordination of program activities carried out by the work 
placement agencies. The recipient must:
    (i) Recruit students for participation in HSI-WSP. The recipient 
shall establish recruitment procedures that identify eligible 
economically disadvantaged and minority students pursuing careers in 
community building, and make them aware of the availability of 
assistance opportunities. While the program is restricted to HSIs, the 
recipient may neither restrict the program to any particular minority 
group or groups, nor provide any preferential treatment in the selection 
process based on race or ethnicity. Only economically disadvantaged 
students, as defined herein, may be assisted.

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    (ii) Select students for participation in HSI-WSP. In selecting 
among the eligible students, the recipient must consider the extent to 
which each student has demonstrated financial need under the applicable 
guidelines established at the institution of higher education; an 
interest in, and commitment to, a career in community building; and the 
ability to satisfactorily complete the academic and work placement 
responsibilities under HSI-WSP. Students must be selected before the 
beginning of the semester for which funding is being provided. If a 
student's participation terminates, the student may not be replaced; the 
grant will be reduced by the amount of unused funds allotted for that 
student.
    (iii) Provide the educational component for participating students.
    (iv) Recruit and select work placement agencies, and negotiate and 
execute an agreement covering each work placement assignment.
    (v) Refer participating students to work placement agencies and 
assist students in the selection of work placement assignments.
    (vi) Assign sufficient staff to administer and supervise the program 
on a day-to-day basis.
    (vii) Encourage participating students to either: obtain post-
graduation employment with a unit of State or local government, an 
areawide planning organization (APO), Indian tribe or nonprofit 
organization engaged in community building; or transfer to a four-year 
institution of higher education to obtain a bachelor's degree in a 
community building academic discipline.
    (viii) Maintain records by racial and ethnic categories for each 
economically disadvantaged and minority student participating in HSI-
WSP.
    (ix) Keep records and make such reports as HUD may require.
    (x) Comply with all other applicable Federal requirements.
    (e) Work placement agencies eligibility and responsibilities--(1) 
Eligibility. To be eligible to participate in HSI-WSP, the work 
placement agency must be an agency of a State or local government, an 
APO, an Indian tribe, or a private nonprofit organization involved in 
community building activities. A work placement site that is part of the 
institution of higher education (e.g., a child care center) can only be 
an eligible site if the services provided by that site are offered to 
people in the broader community outside the institution.
    (2) Responsibilities. Work placement agencies must:
    (i) Provide practical experience and training in the community 
building field to participating students through work placement 
assignments.
    (ii) Consult with the institution of higher education to ensure that 
the student's work placement assignment provides the requisite 
experience and training to meet the required number of work hours 
specified in the student work placement agreement.
    (iii) Provide a sufficient number and variety of work assignments to 
provide participating students with a wide choice of work experience.
    (iv) Require each student to devote 12-20 hours per week during the 
regular school year, and 35-40 hours a week during the summer, to the 
work placement assignment. Work placement agencies may provide 
flexibility in the work period, if such a schedule is consistent with 
the requirements of the student's academic program. However, a 
participating student may receive a stipend payment only during the 
period when the student is placed with the work placement agency.
    (v) Comply with all other applicable Federal requirements.
    (vi) Maintain such records as HUD may require.
    (f) Student eligibility and responsibilities. Students apply 
directly to recipients receiving grants under HSI-WSP.
    (1) Eligibility. To be eligible for HSI-WSP, the student:
    (i) Must satisfy all applicable guidelines established at the 
participating institution of higher education to measure financial need 
for academic scholarship or loan assistance.
    (ii) Must be a full-time student enrolled in a community building 
associate degree program at the participating institution of higher 
education. The student must have attained no more than 50 percent of the 
credits required for his/her degree at the time the student first 
receives assistance under this program.

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    (iii) Must demonstrate an ability to maintain a satisfactory level 
of performance in community building academic program (i.e., maintain a 
B average, as defined by the institution) and in work placement 
assignments, and comply with the professional standards set by the 
recipient and the work placement agencies.
    (iv) May not have previously participated in HSI-WSP.
    (2) Student responsibilities. Participating students must:
    (i) Enroll or be enrolled in a two-year community building associate 
degree program. A student's academic and work placement responsibilities 
include: Full-time enrollment in an approved academic program; 
maintenance of a satisfactory level of performance in the community 
building academic program and in work placement assignments; and 
compliance with the professional conduct standards set by the recipient 
and by the work placement agency. A satisfactory level of academic 
performance consists of maintaining a B average, as defined by the 
institution. A student's participation in HSI-WSP shall be terminated 
for failure to meet these responsibilities and standards. If the 
student's participation is terminated, the student is ineligible for 
further HSI-WSP assistance.
    (ii) Devote 12-20 hours per week during the regular school year, and 
35-40 hours a week during the summer, to the work placement assignment. 
Work placement agencies may provide flexibility in the work period, if 
such a schedule is consistent with the requirements of the student's 
academic program. However, a participating student may receive a stipend 
payment only during the period when the student is placed with the work 
placement agency.
    (iii) Agree to make a good-faith effort to either: obtain employment 
in community building with a unit of State or local government, an APO, 
an Indian tribe, or a non-profit organization; or to transfer to a four-
year institution of higher education to obtain a bachelor's degree in a 
community building academic discipline. However, if the student does not 
obtain such employment or transfer to a four-year institution, the 
student is not required to repay the assistance received.
    (g) Notice of funding availability. HUD will solicit grant 
applications from eligible institutions of higher education by 
publishing a notice of funding availability in the Federal Register. The 
notice will:
    (1) Explain how application kits providing specific application 
requirements and guidance may be obtained;
    (2) Specify the place for filing completed applications, and the 
date by which applications must be physically received at that location;
    (3) State the amount of funding available under the notice, which 
may include funds recaptured from previously awarded grants;
    (4) Provide other appropriate program information and guidance.
    (h) Agreements.--(1) Grant agreement. The responsibilities of the 
recipient under HSI-WSP will be incorporated in a grant agreement 
executed by HUD and the recipient.
    (2) Student agreement. The recipient and each participating student 
must execute a written agreement incorporating their mutual 
responsibilities under HSI-WSP. The agreement must be executed before 
the student can be enrolled in the program. The Recipient shall 
terminate a student's participation in HSI-WSP for failure to meet the 
responsibilities and standards in the agreement.
    (3) Work placement assignment agreement. The recipient, the student, 
and the work placement agency must execute a written agreement covering 
each work placement assignment. The agreement must address the 
responsibilities of each of the parties, the educational objectives, the 
nature of the supervision, the standards of evaluation, and the 
student's time commitments under the work placement assignment.
    (i) Grant administration--(1) Initial obligation of funds. When HUD 
selects an application for funding, HUD will obligate funds to cover the 
amount of the approved grant. The term of the award will be for two 
calendar years, unless subsequently altered by HUD at its discretion for 
good cause.
    (2) Disbursement. Recipients will receive grant payments by direct 
deposit

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on a reimbursement basis. If that is not possible, grant payments will 
be made by U.S. Treasury checks.
    (3) Deobligation. HUD may deobligate amounts for grants if proposed 
activities are not begun or completed within a reasonable period of time 
after selection.
    (j) Other Federal requirements--(1) Applicability of part 570. HSI-
WSP shall be subject to the policies and procedures set forth in 
subparts A, K, and O of 24 CFR part 570, as applicable, except as 
modified or limited under the provisions of this Notice. The provisions 
of subparts C and J of part 570 shall not apply to HSI-WSP.
    (2) Uniform Administrative requirements. Recipients under HSI-WSP 
shall comply with the requirements and standards of OMB Circular No. A-
22, ``Cost Principles for Educational Institutions.'' Recipients that 
are private institutions of higher education shall comply with OMB 
Circular A-133, ``Non-Federal Audit Requirements for Institutions of 
Higher Education and Other Nonprofit Institutions,'' which is 
implemented at 24 CFR part 45. Recipients that are public institutions 
of higher education shall comply with OMB Circular A-128, ``Non-Federal 
Audit Requirements for State and Local Governments,'' which is 
implemented at 24 CFR part 44. Audits shall be conducted annually. In 
addition, all recipients under HSI-WSP shall comply with the provisions 
of OMB Circular A-110, ``Uniform Administrative Requirements for Grants 
and Agreements With Institutions of Higher Education, Hospitals and 
Other Non-Profit Organizations,'' which is implemented at 24 CFR part 
84. OMB Circular A-110 shall apply to recipients in its entirety.

[62 FR 17493, Apr. 9, 1997, as amended at 63 FR 9683, Feb. 25, 1998]