HPF Manual

Table of Contents
CHAPTER 1 - INTRODUCTION
A.
B.
C.
D.
E.
F.

PURPOSE.
LEGISLATIVE AUTHORITY.
ELIGIBLE APPLICANTS.
SHPO RESPONSIBILITIES.
APPORTIONMENT OF FUNDS.
AUDIT AND OVERSIGHT.

CHAPTER 2 - APPORTIONMENT OF FEDERAL FUNDS
A.
B.

C.
D.
E.
F.
G.
H.

PURPOSE.
APPORTIONMENT OF FUNDS TO STATE HISTORIC PRESERVATION OFFICE PROGRAMS.
1.FORMULA STRUCTURE:
2.WHEN HPF APPROPRIATIONS ARE LEVEL OR DECREASE.
3.SPECIAL SITUATIONS.
4.FREELY ASSOCIATED STATES OF MICRONESIA.
5.NOTIFICATION.
6.APPORTIONMENT OF RECAPTURED FUNDS.
APPORTIONMENT OF FUNDS TO CERTIFIED LOCAL GOVERNMENTS.
APPORTIONMENT OF FUNDS TO TRIBAL PRESERVATION PROGRAMS.
CONTINUING RESOLUTION APPROPRIATIONS.
APPORTIONMENT OF FUNDS TO OTHER GRANTEES.
TARGETED APPROPRIATIONS.
APPORTIONMENT CERTIFICATE.

CHAPTER 3 - BASIC PROGRAM REQUIREMENTS FOR HISTORIC PRESERVATION FUND GRANTS
PURPOSE.
STATE PROGRAM REQUIREMENTS.
1.DESIGNATION OF THE STATE HISTORIC PRESERVATION OFFICER.
2.RESPONSIBILITIES OF THE STATE HISTORIC PRESERVATION OFFICER.
3.STATE PROFESSIONAL STAFF AND STATE REVIEW BOARD. ERROR! BOOKMARK NOT DEFINED.
C. CONFLICT OF INTEREST.
1.POLICY.
2.DEFINITIONS.
3.DECLARING AND RESOLVING CONFLICT OF INTEREST.
4.WRITTEN PROCEDURES (CODE OF CONDUCT).
5.PROCUREMENT.
6.NEPOTISM.
7.OFFICIALS NOT TO BENEFIT.
8.CORRUPT PRACTICES.
9.ENFORCEMENT.
10.CONFLICT OF INTEREST INVOLVING CURRENT OR FORMER FEDERAL EMPLOYEES.
11.VIOLATIONS.
D. SPECIAL REQUIREMENTS.
1.FEDERAL ADMINISTRATIVE REQUIREMENTS.
2.ENVIRONMENTAL REQUIREMENTS.
3.USE AND DISCLOSURE OF INFORMATION.
4.AUTHORIZED SIGNATURES.

A.
B.

E.

NPS APPROVAL VIA GRANT AGREEMENT.
1.COVERAGE OF THE GRANT AGREEMENT.
2.FEDERAL SHARE.
3.NONFEDERAL SHARE.
4.TOTAL GRANT COSTS.
5.DURATION OF GRANT.
F. APPLICATION AND BUDGET CHANGES/SPECIAL CONDITIONS.
G. EFFECT OF GRANT AWARD.
H. AMENDMENTS AND OTHER PROGRAMMATIC CHANGES.
I.
GRANTEE ACCOUNTING RESPONSIBILITIES.
J.
EXPIRATION OF GRANT OBLIGATIONAL AUTHORITY.
K. USE OR LOSE POLICY.
CHAPTER 4 - INTERGOVERNMENTAL REVIEW OF FEDERAL PROGRAMS
A.
B.
C.
D.

PURPOSE.
GENERAL.
STATE PROCESS REVIEW SYSTEM.
FEDERAL RECEIPT OF AND RESPONSE TO STATE PROCESS RECOMMENDATIONS.

CHAPTER 5 - GENERAL CONDITIONS GOVERNING GRANTS
A.
B.

PURPOSE.
GENERAL CONDITIONS.
1.ALLOWABLE COSTS.
2.AUDIT
3.BUY AMERICAN REQUIREMENTS
4.CIVIL RIGHTS AND EQUAL OPPORTUNITY.
5.COASTAL BARRIER ISLANDS
6.COASTAL ZONE MANAGEMENT
7.CONFLICT OF INTEREST. SEE CHAPTER 3, SECTION C.
8.CONTINGENT FEES
9.CONVICT LABOR
10.COVENANT OR LETTER OF AGREEMENT REQUIREMENTS.
11.DISCLOSURE OF INFORMATION
12.DISABILITY NONDISCRIMINATION REQUIREMENTS.
13.DISCRIMINATION IN EMPLOYMENT PROHIBITED
14.DUAL COMPENSATION
15.ENERGY CONSERVATION
16.ENVIRONMENTAL IMPACT
17.EXAMINATION OF RECORDS
18.FLOOD INSURANCE
19.FLOODPLAIN MANAGEMENT
20.LEAD-BASED PAINT
21.LOBBYING WITH APPROPRIATED FUNDS
22.POLITICAL ACTIVITIES
23.RELIGIOUS INSTITUTIONS
24.RELOCATION ASSISTANCE
25.SAFETY PRECAUTIONS
26.SECTION 106 OF THE NATIONAL HISTORIC PRESERVATION ACT REQUIREMENTS
27.SPECIAL CONDITIONS
28.TIMELINESS OF PROJECT WORK

CHAPTER 6 - GRANT-ASSISTED PROGRAM ACTIVITIES
A.PURPOSE.
B.
C.

D.

E.

F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.

APPLICABILITY.
GENERAL REQUIREMENTS FOR GRANT-ASSISTED ACTIVITY.
1.IDENTIFICATION, EVALUATION, REGISTRATION, TREATMENT AND PROTECTION OF RESOURCES.
2.COST PRINCIPLES AND ALLOWABLE COSTS.
3.QUALIFIED STAFF.
4.ACTIVITIES PERFORMED OR REVIEWED BY QUALIFIED STAFF.
5.SECRETARY OF THE INTERIOR’S “STANDARDS” APPLIED.
6.NATIONAL REGISTER CRITERIA APPLIED.
7.TECHNICAL ASSISTANCE.
8.PUBLIC PARTICIPATION.
9.PUBLIC EDUCATION.
10.SECTION 106.
ELIGIBLE GRANT-ASSISTED ACTIVITIES.
1.TECHNICAL ASSISTANCE.
2.PUBLIC PARTICIPATION.
3.PUBLIC EDUCATION.
4.HABS/HAER DOCUMENTATION PROGRAMS. ERROR! BOOKMARK NOT DEFINED.
5.JOINT PROJECTS WITH OTHER STATE.
6.NONCONSTRUCTION GRANT ASSISTANCE TO CHURCHES AND CHURCH-OWNED PROPERTY.
7.CERTIFIED LOCAL GOVERNMENTS.
8.DEVELOPMENT, SELECTION, MONITORING, AND ADMINISTRATION OF SUBGRANTS.
9.COLLECTION AND TRACKING OF DATA.
10.FEASIBILITY AND OTHER PROPERTY-SPECIFIC STUDIES OR REPORTS.
INELIGIBLE GRANT-ASSISTED ACTIVITIES.
1.FEDERAL AGENCY RESPONSIBILITIES.
2.MITIGATION ACTIVITIES.
3.UNALLOWABLE GRANT ASSISTANCE TO CHURCHES AND CHURCH-OWNED PROPERTY.
4.FULFILLMENT OF COVENANT REQUIREMENTS.
5.UNALLOWABLE COSTS.
6.REIMBURSEMENT OF SERVICES BY FEDERAL AGENCIES.
7.HABS/HAER PROJECTS.
8.INTERPRETATION.
9.CURATION BEYOND PROJECT END DATE.
10.PROPERTY-SPECIFIC STUDIES AND REPORTS.
ADMINISTRATION PROGRAM AREA.
HISTORIC PRESERVATION PLANNING PROGRAM AREA.
SURVEY AND INVENTORY PROGRAM AREA.
NATIONAL REGISTER PROGRAM AREA.
DEVELOPMENT/ACQUISITION/COVENANTS PROGRAM AREA.
DEVELOPMENT.
ACQUISITION.
COVENANTS AND PRESERVATION AGREEMENTS.
PRESERVATION TAX INCENTIVES PROGRAM AREA.
REVIEW AND COMPLIANCE PROGRAM AREA.
LOCAL GOVERNMENT CERTIFICATION PROGRAM AREA.
OTHER ACTIVITIES PROGRAM AREA.
PROGRAM AREAS APPLICABLE TO THE NATIONAL TRUST FOR HISTORIC PRESERVATION.

CHAPTER 7 - APPLICATION FOR FEDERAL ASSISTANCE
PURPOSE.
GENERAL ANNUAL GRANT APPLICATION INFORMATION.
1.TWO-YEAR AVAILABILITY.
2.CONTINUING RESOLUTION GRANT AWARDS.
3.NONFEDERAL MATCHING SHARE RATIO.
4.PROGRAM AREAS.
5.USE AND DISCLOSURE OF INFORMATION.
6.AUTHORIZED SIGNATURES.
7.CERTIFICATIONS.
8.WAIVERS.
C. COMPLETING THE HISTORIC PRESERVATION FUND ANNUAL GRANT APPLICATION--.
1.COMPLETING THE APPLICATION.
2.SPECIAL REQUIREMENTS.
3.APPLICATION TRANSMITTAL.
4.AMENDMENTS AND OTHER PROGRAMMATIC CHANGES.
D. SEQUENCE OF GRANT AWARD ACTIONS.
E. GRANT APPLICATION INFORMATION AND REVIEW.
F. COMPLETING THE ANNUAL GRANT APPLICATION--NATIONAL TRUST FOR HISTORIC PRESERVATION.
EXHIBIT 7-A -- APPLICATION FOR FEDERAL ASSISTANCE
EXHIBIT 7-B BUDGET FORMS (SF424A AND SF424C)
EXHIBIT 7-C ASSURANCES (SF424B AND SF424D)
EXHIBIT 7-D CERTIFICATIONS REGARDING DEBARMENT
EXHIBIT 7-F SAMPLE ORGANIZATIONAL CHART
A.
B.

CHAPTER 8 - SUBGRANTS, CONTRACTS, AND THIRD-PARTY AGREEMENTS
A. PURPOSE.
B. ANNUAL ANNOUNCEMENT OF AVAILABILITY OF HPF FUNDS.
C. OPEN PROJECT SELECTION PROCESS.
D. STANDARDS APPLICABLE TO SUBGRANTEES.
E. WRITTEN SUBGRANT AGREEMENT
F. PROJECT PREREQUISITES.
G. REDUCED REVIEW STATUS.
EXHIBIT 8-A PROJECT NOTIFICATIONS
EXHIBIT 8-B SAMPLE PROJECT NOTIFICATION - NONCONSTRUCTION
EXHIBIT 8-C SAMPLE PROJECT NOTIFICATION -- DEVELOPMENT
EXHIBIT 8-D SAMPLE PROJECT NOTIFICATION -- ACQUISITION
CHAPTER 9 - CERTIFIED LOCAL GOVERNMENTS
A.
B.
C.
D.

E.
F.

PURPOSE.
EXEMPTIONS FROM CLG PROGRAM PARTICIPATION.
PARTICIPATION BY INDIAN TRIBES.
MINIMUM REQUIREMENTS FOR CERTIFICATION.
1. ENFORCE APPROPRIATE STATE OR LOCAL LEGISLATION.
2. ESTABLISH AN ADEQUATE AND QUALIFIED HISTORIC PRESERVATION REVIEW COMMISSION
3.MAINTAIN A SYSTEM FOR THE SURVEY AND INVENTORY OF PROPERTIES .
4.PROVIDE FOR ADEQUATE PUBLIC PARTICIPATION IN THE LOCAL HISTORIC PRESERVATION PROGRAM.
5.SATISFACTORILY PERFORM THE RESPONSIBILITIES DELEGATED TO IT UNDER THE ACT.ERROR! BOOKMARK NOT DEFINED.
STATE PROCEDURES FOR CERTIFICATION.
AMENDMENTS TO NPS APPROVED STATE PROCEDURES.

G.

CERTIFICATION OF LOCAL GOVERNMENTS.
1.APPLICATIONS FOR CERTIFICATION TO THE SHPO.
2.LIMITS ON DELEGATION OF AUTHORITY FROM SHPOS TO CLGS.
3.CERTIFICATION AGREEMENT
4.NPS REVIEW OF CLG APPLICATIONS.
5.RESULTS OF NPS REVIEW.
6.EFFECTIVE DATE OF CERTIFICATION AGREEMENT.
7.AMENDMENTS TO LOCAL GOVERNMENT CERTIFICATION AGREEMENTS.
H. PROCEDURES FOR LOCAL GOVERNMENT CERTIFICATION IF NO APPROVED STATE PROGRAM EXISTS.
I.
CLG IMPLEMENTATION OF THE SECRETARY’S STANDARDS
J.
ROLE OF CERTIFIED LOCAL GOVERNMENTS IN THE NATIONAL REGISTER NOMINATION PROCESS.
K. HPF PASS-THROUGH TO CERTIFIED LOCAL GOVERNMENTS.
L. STANDARDS AND PROCEDURES FOR MONITORING AND EVALUATING CLG PERFORMANCE.
M. DECERTIFICATION OF CERTIFIED LOCAL GOVERNMENTS.
N. REQUIRED RECORDKEEPING.
EXHIBIT 9-A MODEL LOCAL GOVERNMENT CERTIFICATION AGREEMENT
EXHIBIT 9-B MODEL CLG CERTIFICATION APPLICATION CHECKLIST
CHAPTER 10 - TITLE VI AND SECTION 504 COMPLIANCE REQUIREMENTS
A.
B.
C.
D.

PURPOSE.
COVERED EMPLOYMENT.
COMPLIANCE RESPONSIBILITIES.
TITLE VI, SECTION 504, AND AGE COMPLAINT PROCEDURES.

CHAPTER 11 - ENVIRONMENTAL COMPLIANCE REQUIREMENTS
A. NATIONAL ENVIRONMENTAL POLICY ACT (NEPA).
B. FLOODPLAIN AND WETLANDS MANAGEMENT.
EXHIBIT 11-A ENVIRONMENTAL CERTIFICATION
EXHIBIT 11-B FINDING OF NO SIGNIFICANT IMPACT
CHAPTER 12 - COST PRINCIPLES AND INDIRECT COSTS
A.
B.
C.
D.
E.
G.
H.

PURPOSE AND SCOPE.
APPLICATION OF COST PRINCIPLES.
BASIC GUIDELINES.
COMPOSITION OF COST.
DIRECT COSTS.
APPLICATION OF INDIRECT COST PRINCIPLES AND PROCEDURES.
COST ALLOCATION PLAN.

CHAPTER 13 - STANDARDS FOR ALLOWABILITY OF COSTS
A.
B.

PURPOSE AND APPLICABILITY.
ALLOWABLE COSTS.
1.ACCOUNTING COSTS.
2.ACQUISITION COSTS.
3.ADMINISTRATIVE COSTS.
4.ADVERTISING AND PUBLIC RELATIONS COSTS.
5.ADVISORY COUNCILS.
6.APPRAISALS.
7.AUDIT SERVICE.
8.AUTOMATIC ELECTRONIC DATA PROCESSING.
9.BONDING.

10.BUDGETING.
11.COMMUNICATIONS.
12.COMPENSATION FOR PERSONAL SERVICES (INCLUDING FRINGE BENEFITS).
13.DEPRECIATION AND USE ALLOWANCES.
14.DEVELOPMENT COSTS.
15.DISBURSING SERVICE.
16.EMPLOYEE MORALE, HEALTH, AND WELFARE COSTS.
17.EQUIPMENT AND OTHER CAPITAL EXPENDITURES.
18.EXHIBITS.
19.FURNISHINGS.
20.GENERAL CONDITIONS FOR CONSTRUCTION CONTRACTS.
21.INDIRECT COSTS.
22.INSURANCE AND INDEMNIFICATION.
23.INTEREST.
24.INTERPRETIVE SIGNS.
25.LABOR RELATIONS COSTS.
26.LANDSCAPING.
27.LEGAL EXPENSES.
28.MAINTENANCE, OPERATIONS, AND REPAIR.
29.MATERIALS AND SUPPLIES.
30.MEMBERSHIPS, SUBSCRIPTIONS, AND PROFESSIONAL ACTIVITIES.
31.MOTOR POOLS.
32.PAGE CHARGES IN SCIENTIFIC OR PROFESSIONAL JOURNALS.
33.PLANS AND SPECIFICATIONS.
34.PROFESSIONAL AND CONSULTANT SERVICE COSTS.
35.PROTECTIVE DEVICES.
36.PUBLIC INFORMATION SERVICES COSTS.
37.PUBLICATION AND PRINTING COSTS.
38.RECRUITING COSTS.
39.RELOCATION ASSISTANCE.
40.RENTAL COSTS.
41.RESEARCH.
42.REVIEW BOARDS.
43.ROYALTIES AND OTHER COSTS FOR USE OF PATENTS AND COPYRIGHTS.
44.SEVERANCE PAY.
45.SIGNS.
46.SPECIALIZED SERVICE FACILITIES.
47.TAXES.
48.TERMINATION COST.
49.TRAINING AND EDUCATION.
50.TRAVEL.
C. COSTS ALLOWABLE WITH APPROVAL OF NPS.
1.AUTOMATIC DATA PROCESSING.
2.EQUIPMENT AND OTHER CAPITAL EXPENDITURES.
3.EXTENDED TRAINING.
4.FOREIGN TRAVEL.
5.MOVING HISTORIC STRUCTURES OR OBJECTS.
6.OVERTIME.
7.PARTICIPANT SUPPORT COSTS.
8.PREAGREEMENT COSTS.
9.PROPOSAL COSTS.
10.REARRANGEMENTS AND ALTERATIONS.
11.REVOLVING FUND COSTS.
D. UNALLOWABLE COSTS.
1.ARCHIVAL RESEARCH.
2.ACQUISITION OF PREVIOUSLY ASSISTED PROPERTIES.
3.ALCOHOLIC BEVERAGES.
4.ARCHEOLOGICAL SALVAGE.
5.BAD DEBTS.

6.CERTIFIED HISTORIC STRUCTURES.
7.CHURCH-OWNED PROPERTY.
8.CONDITIONAL DONATIONS.
9.CONTINGENCIES.
10.CONTRIBUTIONS AND DONATIONS.
11.CURATION.
12.ENTERTAINMENT.
13.EQUIPMENT.
14.FEDERAL PROPERTIES.
15.FINES AND PENALTIES.
16.FUNDRAISING AND INVESTMENT MANAGEMENT COSTS.
17.GENERAL GOVERNMENT EXPENSES.
18.HABS/HAER COSTS FOR FEDERAL SUPERVISION.
19.HONORARIA.
20.IDLE FACILITIES AND IDLE CAPACITY.
21.INDIRECT COSTS TO INDIVIDUALS.
22.INSURANCE AND INDEMNIFICATION.
23.INTEREST AND OTHER FINANCIAL COSTS.
24.INTERPRETIVE EXPENSES.
25.LOBBYING.
26.MAINTENANCE AND ADMINISTRATION.
27.MEALS.
28.MITIGATION EXPENSES.
29.MUSEUMS.
30.NONCONFORMANCE WITH APPLICABLE SECRETARY OF THE INTERIOR'S STANDARDS.
31.ORGANIZATION COSTS.
32.PROFITS AND LOSSES ON DISPOSITION OF DEPRECIABLE PROPERTY OR OTHER CAPITAL ASSETS.
33.PROHIBITION ON COMPENSATING INTERVENORS.
34.PURCHASE PRICE.
35.TAXES.
36.UNDERRECOVERY OF COST UNDER GRANT AGREEMENTS.
CHAPTER 14 - MATCHING SHARE
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.

PURPOSE AND SCOPE.
DEFINITIONS.
BASIC GUIDELINES.
ALLOWABILITY.
TIMING OF CONTRIBUTIONS.
RELATIONSHIP OF COSTS TO GRANT PERIOD.
VALUATION OF IN-KIND CONTRIBUTIONS.
VALUATION OF IN-KIND CONTRIBUTIONS FROM NONFEDERAL THIRD PARTIES.
REQUIRED SUPPORTING DOCUMENTATION FOR VOLUNTEER SERVICES.
VALUATION OF DONATED EXPENDABLE PERSONAL PROPERTY.
VALUATION/USE OF DONATED NONEXPENDABLE PERSONAL PROPERTY, BUILDINGS AND LAND,
USE OF FEDERAL FUNDS.
EXCLUSIONS.
EXAMPLES OF FORMS.

CHAPTER 15 - APPLICATION AND BUDGET CHANGES
A.
B.
C.
D.
E.
F.

PURPOSE.
APPLICABILITY.
GENERAL.
PROGRAMMATIC GRANT OR BUDGET CHANGES.
SUBGRANT PROJECT OR BUDGET CHANGES.
REQUESTING PRIOR APPROVAL: GRANTS.

G. SUBGRANTEES REQUESTING PRIOR APPROVAL FROM THE GRANTEE.
H. PHASED PROJECTS.
I.
USE OR LOSE CARRYOVER LIMITATION.
J.
CLG PASS-THROUGH.
K. EXTENSIONS OF TIME FOR ANNUAL GRANTS.
L. NPS INITIATED REPROGRAMMING AND DEOBLIGATIONS.
EXHIBIT 15-A MODEL PROJECT BUDGET FORM
CHAPTER 16 - PROGRAM INCOME (GRANT-RELATED INCOME)
A.
B.

PURPOSE.
POLICY.

CHAPTER 17 - PROCUREMENT STANDARDS
A. APPLICABILITY.
B. GRANTEE/GRANTOR RESPONSIBILITY.
C. CODE OF CONDUCT.
D. PROCUREMENT PROCEDURES.
E. CONTRACTING WITH MINORITY BUSINESS ENTERPRISE AND WOMAN BUSINESS ENTERPRISE FIRMS.
F. TYPES OF CONTRACTS.
G. SELECTION PROCEDURES.
H. METHODS OF PROCUREMENT.
I.
COST OR PRICE ANALYSIS.
J.
GRANTEE PROCUREMENT RECORDS.
K. CONTRACT PROVISIONS.
L. BONDING AND INSURANCE.
M. RECORD KEEPING AND ACCESS TO CONTRACTOR RECORDS.
EXHIBIT 17-A MBE/WBE UTILIZATION UNDER FEDERAL GRANTS,
EXHIBIT 17-A MBE/WBE UTILIZATION UNDER FEDERAL GRANTS,
CHAPTER 18 - EQUAL EMPLOYMENT OPPORTUNITY CONSTRUCTION CONTRACT
COMPLIANCE
A. PURPOSE.
B. WOMEN AND MINORITY CONSTRUCTION HIRING GOALS.
C. GRANTEE RESPONSIBILITIES.
D. CONTRACTOR RESPONSIBILITIES.
E. SANCTIONS.
F. COMPLAINTS.
EXHIBIT 18-A NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION
EXHIBIT 18-B STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY
CONSTRUCTION CONTRACT SPECIFICATIONS
EXHIBIT 18-C EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
EXHIBIT 18-D CERTIFICATION OF NON-SEGREGATED FACILITIES
CHAPTER 19 - PROPERTY MANAGEMENT STANDARDS
A.
B.
C.
D.

PURPOSE.
SCOPE AND APPLICABILITY.
DEFINITIONS.
PROPERTY MANAGEMENT STANDARDS.

CHAPTER 20 - UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION
POLICIES
A. PURPOSE AND POLICY.
B. ACQUISITION INVOLVING NO FEDERAL ASSISTANCE.
C. ASSURANCES.
D. RESPONSIBILITY OF THE GRANTEE.
E. SERVICE ACTION ON RELOCATION AND ACQUISITION DOCUMENTS.
F. RELOCATION ASSISTANCE ADVISORY SERVICES.
G. APPEALS.
H. APPRAISALS.
I.
ACQUISITION AT LESS THAN APPRAISED MARKET VALUE.
J.
ANNUAL REPORT.
K. REGULATIONS OF THE DEPARTMENT OF THE INTERIOR.
L. TECHNICAL ASSISTANCE.
EXHIBIT 20-A ANNUAL REPORT ON RELOCATION AND REAL PROPERTY ACQUISITION
EXHIBIT 20-B RESIDENTIAL RELOCATION DISPLACEMENT STATISTICS
CHAPTER 21 - PAYMENTS, FINANCIAL MANAGEMENT AND REPORTING REQUIREMENTS
A. FINANCIAL MANAGEMENT SYSTEM REQUIREMENTS.
B. FINANCIAL PERSONNEL.
C. CASH DEPOSITORY PROCEDURES.
D. FINANCIAL REPORTING AND PAYMENT REQUIREMENTS.
E. QUALIFICATIONS.
F. REIMBURSEMENT BY THE SMARTLINK PAYMENT MANAGEMENT SYSTEM.
G. SIGNATURE CARDS.
H. REIMBURSEMENT BY TREASURY CHECK.
I.
ADVANCED PAYMENT REQUIREMENTS.
J.
ADVANCE BY TREASURY CHECK.
K. REVIEW OF DRAWDOWNS.
L. REQUESTS FOR FORMS.
EXHIBIT 21-A SAMPLE SMARTLINK PAYMENT SCREEN
EXHIBIT 21-B AUTHORIZED SIGNATURE CARD FOR PAYMENT VOUCHERS
EXHIBIT 21-C REQUEST FOR ADVANCE OR REIMBURSMENT FORM (SF270)
EXHIBIT 21-D FEDERAL CASH TRANSACTIONS REPORT (SF272)
CHAPTER 22 - GRANT CLOSEOUT, SANCTIONS, SUSPENSION, AND TERMINATION
A.
B.
C.
D.

PURPOSE.
CLOSEOUT PROCEDURES.
AMOUNTS PAYABLE TO THE FEDERAL GOVERNMENT.
SANCTIONS FOR NONCOMPLIANCE.

CHAPTER 23 - GRANTEE ACCOUNTING AND AUDIT RESPONSIBILITIES
A.
B.
C.
D.
E.
F.
G.
H.

PURPOSE.
APPLICABILITY.
DEFINITIONS.
POLICY.
AUDIT COSTS.
SCOPE OF AUDIT.
FREQUENCY OF AUDIT.
SANCTIONS.

I.
GRANTEE ACCOUNTING AND AUDIT RESPONSIBILITIES FOR SUBGRANTEES (SUBRECIPIENTS).
J.
AUDITOR SELECTION.
K. AUDIT DOCUMENTATION.
L. SUBMISSION OF SINGLE AUDIT REPORTS.
M. RESPONSE TO FEDERAL AUDIT FINDINGS.
N. SATISFACTION OF FINAL FEDERAL AUDIT DISALLOWANCES.
O. RECOVERY OF DISALLOWED COSTS.
P. COLLECTION PROCEDURES.
EXHIBIT 23-A OFFICE OF INSPECTOR GENERAL REGIONAL OFFICES
CHAPTER 24 - RETENTION OF RECORDS
A.
B.
C.
D.
E.
F.
G.
H.
I.

PURPOSE.
APPLICABILITY TO CONTRACTORS AND SUBCONTRACTORS.
RETENTION PERIOD.
MICROFILM COPIES.
ACCESS TO RECORDS.
INSPECTIONS.
DISCLOSURE OF INFORMATION.
REPORTS AND RECORDS.
SUPPORTING DOCUMENTATION.

CHAPTER 25 - MONITORING AND REPORTING PROGRAM PERFORMANCE
PURPOSE.
STANDARD FOR MONITORING BY GRANTEES.
REQUIRED PERFORMANCE REPORTS.
END-OF-YEAR REPORT -- STATES.
1.CUMULATIVE PRODUCTS TABLE.
2.PROJECT/ACTIVITY DATABASE REPORT.
3.UNEXPENDED CARRYOVER FUNDS TABLE AND CARRYOVER STATEMENT (USE OR LOSE POLICY).
4.SOURCES OF NONFEDERAL MATCHING SHARE REPORT.
5.SIGNIFICANT PRESERVATION ACCOMPLISHMENTS SUMMARY.
6.ACCOMPLISHMENTS NARRATIVE.
7.TRANSMITTAL OF THE END-OF-YEAR REPORT.
E. OVERDUE OR UNACCEPTABLE REPORTS.
F. NPS ON-SITE REVIEW.
G. END-OF-YEAR REPORT -- NATIONAL TRUST FOR HISTORIC PRESERVATION.
EXHIBIT 25-A SOURCES OF NONFEDERAL MATCHING SHARE REPORT
EXHIBIT 25-B PROJECT/ACTIVITY DATABASE REPORT
EXHIBIT 25-C PROJECT/ACTIVITY DATABASE CARRYOVER STATEMENT
EXHIBIT 25-D UNEXPENDED CARRYOVER FUNDS TABLE

A.
B.
C.
D.

CHAPTER 26 GLOSSARY

Historic Preservation Fund Grants Manual
Chapter 1 Introduction

1-1

Chapter 1 - Introduction
A. Purpose.
This Chapter describes the framework for the operation of the Historic Preservation Fund (HPF) grantsin-aid program authorized by the National Historic Preservation Act (hereafter referred to as the Act), as
amended.
B. Legislative Authority.
As stated in the Act, the Secretary of the Interior is authorized, among other things, to do the following:
1. Maintain a National Register of Historic Places. To expand and maintain a National Register of
Historic Places composed of districts, sites, buildings, structures, and objects significant in American
history, architecture, archeology, engineering, and culture.
2. Issue Regulations for State Historic Preservation Programs. In consultation with the National
Conference of State Historic Preservation Officers and the National Trust for Historic Preservation, to
promulgate or revise regulations for State Historic Preservation Programs. See 36 CFR 61. These
regulations state that the Secretary will approve a State program if he determines that the program: (a)
provides for the designation and appointment by the Governor of a "State Historic Preservation
Officer" to administer such program in accordance with Section 101(b)(3) of the Act and for the
employment or appointment by such officer of such professionally qualified staff as may be necessary
for such purposes; (b) provides for an adequate and qualified State historic preservation review board
designated by the State Historic Preservation Officer unless otherwise provided for by State law; and,
(c) provides for adequate public participation in the State Historic Preservation Program, including
the process of recommending properties for nomination to the National Register.
3. Award Matching Grants to States. To administer a program of matching grants to the States for the
purposes of carrying out the Act.
4. Award Matching Grants to the National Trust for Historic Preservation.
To administer a program of matching grants-in-aid to the National Trust for Historic Preservation in
the United States, chartered by Act of Congress approved October 26, 1949, P.L. 81-408 (63 Stat.
947), for the purposes of carrying out the responsibilities of the National Trust.
C. Eligible Applicants.
Eligible applicants are: 1) States (as defined in the Act) operating NPS- approved programs; 2) Indian
tribes and Native Hawaiian organizations; 3) the National Trust for Historic Preservation (the National
Trust); and 4) Certified Local Governments where there is no approved State program. Nonfederal
government units, private organizations, corporations and individuals may apply for financial assistance
as subgrantees of the States and/or the National Trust under procedures established by these grantees.
"State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the U.S. Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of
Palau.

November 2020 Release

Historic Preservation Fund Grants Manual
Chapter 1 Introduction

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Throughout this Manual the term "grantee" always refers to State Historic Preservation Offices and the
National Trust for Historic Preservation. The term "nonprofit organization" refers to the National Trust,
but not to State Historic Preservation Offices. Recipients of grants from the SHPO or National Trust are
“subgrantees.” The subgrantee is the entire legal entity even if a particular component of the entity is
designated in the subgrant award document.
D. SHPO Responsibilities.
Section 101(b)(3) specifies the specific responsibilities that the State Historic Preservation Officer must
address in administering the State’s preservation program (see also Chapter 3, Section B.2):
E. Apportionment of Funds.
1. The Secretary of the Interior apportions obligational authority to eligible States after funds are
appropriated by Congress. See Chapter 2.
2. The annual apportionment award to a grantee may be reduced by the amount of unobligated or
unexpended funds. Procedures for the adjustment of obligational authority are detailed in Chapter 3,
Sections J and K. The Federal funds awarded must be matched by amounts of cash or integral and
necessary in-kind contributions. The matching contribution required is 40 percent of the aggregate
costs of carrying out projects and programs. Matching fund requirements for Insular areas and the
Micronesian States have been legislatively waived (see Chapter 14, Section D.4.).
3. The Secretary shall make funding available to individual States and the National Trust for Historic
Preservation as soon as practicable after execution of a grant agreement. For purposes of
administration, grants to individual States and the National Trust each shall be considered to be one
grant and shall be administered by the National Park Service as such. Awards of assistance shall be
made subject to the terms of availability established in Appropriations Acts, the Secretary of the
Interior's Apportionment Certificate, and/or further prescribed by terms and conditions of grant
awards (generally 24 months). See Chapter 3, Section E.
F. Audit and Oversight.
Each State or direct grantee will execute audits of grant expenditure records in accordance with the single
audit requirements of OMB Circular A-133; and 43 CFR 12, Subpart B. See also Chapters 23 and 24.
In accordance with Section 101(b)(2) of the Act, the Secretary shall conduct such periodic program audits
as may be deemed necessary or appropriate to ensure that such programs meet applicable accountability
standards. The Secretary, in consultation with State Historic Preservation Officers, shall establish
oversight methods to ensure State program consistency and quality without imposing undue burdens on
State Historic Preservation Officers.
If, at any time, the Secretary determines that a major aspect of a State program is not consistent with the
Act, the Secretary shall disapprove the program and suspend in whole or in part any contracts or
cooperative agreements with the State and the State Historic Preservation Officer, until the program is
consistent with the Act, unless the Secretary determines that the program will be made consistent with the
Act within a reasonable period of time

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Chapter 2 - Apportionment of Federal Funds
A. Purpose.
This Chapter sets forth the basis for recommendations that the National Park Service (NPS) makes to the
Secretary for apportioning funds appropriated from the Historic Preservation Fund (HPF) to States,
Tribes, Certified Local Governments, and other grantees. The methods set forth in this Chapter conform
to Sections 101(e) and 103 of the National Historic Preservation Act, as amended, and the regulations for
historic preservation programs (36 CFR 61). The methods that this Chapter sets forth apply to all
appropriations from the Historic Preservation Fund to the extent that specific Congressional directions do
not indicate otherwise.
B. Apportionment of Funds to State Historic Preservation Office Programs.
The National Park Service shall use the following formula to calculate its recommended apportionment of
HPF funds to States.
1. Formula Structure:
a. Three-Tiered Apportionment Formula.
The formula will use three sequential tiers as follows below, subject to adjustment for inflation.
See Sections B.1.b, c., d., and e. below for details.
1) For annual appropriations up to $20 million (excluding the Freely Associated States of
Micronesia – see Section B.4, below), NPS will allocate all funds to Tier 1 (the Base Award –
see Section B.1.c. below).
2) For annual appropriations from $20 million to $50 million, NPS will allocate $20 million to
Tier 1 (the Base Award) and the balance (i.e. up to $30 million) to Tier 2 (Noncompetitive
Factors – see Section B.1.d.below).
3) For annual appropriations higher than $50 million, NPS will allocate $20 million to Tier 1
(the Base Award), $30 million to Tier 2 (Noncompetitive Factors), and the balance to Tier 3
(Preservation Initiatives – see Section B.1.e. below).
b. Inflation Adjustment.
NPS may adjust the maximum dollar amount that it allocates to Tier 1 (or to Tiers 1 and 2
combined) in response to the effects of inflation when warranted and after consultation with the
President, National Conference of State Historic Preservation Officers. NPS will base its
inflation calculations on the Consumer Price Index that the U.S. Department of Commerce
supplies.
c. Tier 1 -- Base Award.
Each State will receive an equal share of Tier 1. Assuming $20 million in Tier 1, this amounts to
approximately $357,000 each State per annum subject to inflation.
d. Tier 2 -- Noncompetitive Factors.
NPS will allocate the funds available for Tier 2 equally among three factors.

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1) Population. NPS will divide one-third of the funds available for Tier 2 based upon each
State’s share of the 2000 population of the United States. NPS will use U.S. Census data to
make the calculations. NPS will use square roots to control extreme values.
2) Area. NPS will divide one-third of the funds available for Tier 2 based upon each State’s
share of the total area of the United States. NPS will use U.S. Census/United States
Geological Survey (U.S.G.S.) data to make the calculations. For the purposes of this
apportionment formula, a State's area includes water boundaries out to the three-mile limit.
NPS will use square roots to control extreme values.
3) Historic Resources. NPS will divide one-third of the funds available for Tier 2 based upon
each State’s share of the total number of residences over 50 years old as defined and
identified in the 2000 U.S. Census. NPS will use square roots to control extreme values.
e. Tier 3 – Preservation Initiatives.
1) NPS will base its Tier 3 calculations upon predetermined competitive factors that it develops
in consultation with State Historic Preservation Officers and makes known to them no later
than the beginning of the fiscal year preceding that of the grant period in which the formula is
to be applied.
2) The factor(s) for at least one-half of the funds in Tier 3 will relate directly to local level
a) historic preservation program capacity building and/or
b) identification, evaluation, registration, or treatment of historic and/or prehistoric
properties.
3) NPS will put Tier 3 will be in effect only when appropriations are sufficiently more than the
Tier 3 threshold to warrant use. If appropriations are only slightly greater than the tier
threshold and NPS determines that using Tier 3 would have only a marginal or negligible
effect on individual awards would be realized, then NPS will not put the tier into effect. NPS
will make this determination after consultation with the President, National Conference of
State Historic Preservation Officers.
4) If Tier 3 uses products from the Cumulative Products Table (see Chapter 7) as factors:
a) NPS will select proposed products from among those that NPS can easily verify, and,
b) NPS will require no additional State record keeping solely for apportionment purposes.
5)

If a State cannot document performance results that NPS used to apportion Historic
Preservation Fund monies under Tier 3 (also see Chapter 25), NPS will, on a case-by-case
basis, carry out steps that may include, but are not limited to, the following:
a) adjustment of current award,
b) adjustment of subsequent award,

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c) loss of eligibility to participate in subsequent reapportionment(s),
d) loss of eligibility to participate in the apportionment of a particular performance factor(s)
in Tier 3,
e) loss of the entire performance-based (Tier 3) allocation,
f) loss of eligibility to participate in a subsequent apportionment, and/or,
g) loss of Approved State Program status.
2. When HPF Appropriations are Level or Decrease.
Each year’s total appropriation amount will determine the amount that NPS allocates to Tier 1, Tier 2,
and Tier 3. Yearly changes in total appropriation amounts do not change the process except for the
amount that NPS has available to allocate to each tier.
This approach will have the following impact on each State’s award. If the total appropriation is
identical to the previous year's appropriation, each State’s award will be identical to the award for the
previous year’s award unless the data for calculating Tier 3 have changed, the data for calculating
Tier 2 have changed, NPS has made an inflation adjustment, etc.
If the total appropriation is less than the previous year's appropriation, each State’s award will lose
from its Tier 3 component before it loses anything from its Tier 2 component and will lose from its
Tier 2 component before it loses anything from its Tier 1 component.
3. Special Situations.
The National Park Service may adjust awards to individual States to meet specific emergency
situations or other special situations on a case-by-case basis and after consultation with the President,
National Conference of State Historic Preservation Officers.
4. Freely Associated States of Micronesia.
NPS will apportion funds to the Federated States of Micronesia, the Republic of the Marshall Islands,
and the Republic of Palau from HPF appropriations to States in a manner separate from the formula in
this section and in a manner to be determined by NPS in consultation with the historic preservation
officers of the three jurisdictions and the President, National Conference of State Historic
Preservation Officers.
5. Notification.
By law, the Secretary will notify each State (with an approved State program) in writing of its
apportioned obligational authority within 30 days of the enactment of the regular Department of the
Interior fiscal year appropriation. See Section H, below. The 30-day time period for completing the
apportionment of funds to the States begins on the date that the President signs the appropriations bill
into law.
6. Apportionment of Recaptured Funds.
a. NPS will determine when sufficient funds have been recaptured to warrant reapportionment.
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b. The criteria and method of reapportionment will vary depending on the amount and type of funds
recaptured and national or specific needs or issues at the time.
c. NPS will determine the appropriate level of consultation based on the amount and type of
recaptured funds.
d. Reapportionment does not change the eligible uses of targeted funds (e.g., CLG minimum passthrough). States must us those reapportioned recaptured funds for the general purposes for which
Congress targeted them.
e. States from which NPS has recaptured funds are not eligible to receive any of the
reapportionment of those funds.
C. Apportionment of Funds to Certified Local Governments.
Each approved State that has a Certified Local Government (CLG) program apportions funds to its CLGs
in accordance with the State’s approved process for Transfer of Funds to Certified Local Governments.
See 36 CFR 61 and Chapter 9.
Where there is no approved State program, the National Park Service will act in place of the State. See 36
CFR 61 and Chapter 9.
D. Apportionment of Funds to Tribal Preservation Programs.
[Reserved]
E. Continuing Resolution Appropriations.
1. Single Continuing Resolution Covering Less Than a Year. If Congress provides Historic Preservation
Fund obligational authority through a Continuing Resolution covering less than a year and absent
Congressional instruction to the contrary, NPS will distribute funds among the grantees using the
regular apportionment formula. NPS will subtract this amount shall from any subsequent
apportionment of obligational authority from subsequent Continuing Resolutions or the regular fullyear Interior appropriation.
2. Multiple Continuing Resolutions Covering Less Than a Year. If Congress provides Historic
Preservation Fund obligational authority through a series of Continuing Resolution covering in total
less than a year and absent Congressional instruction to the contrary, NPS will distribute funds among
the grantees using the regular apportionment formula. NPS will apply the formula to the cumulative
amount appropriated for the year to date and then subtract the amount of the obligational authority
previously awarded. NPS will subtract this amount from any subsequent apportionment of
obligational authority from subsequent Continuing Resolutions or the regular full-year appropriation.
3. Continuing Resolution(s) Covering a Full Year: Absent Congressional instructions to the contrary,
for apportionment purposes NPS will treat a year-long Continuing Resolution appropriation as if it
were a regular appropriation.

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F. Apportionment of Funds to Other Grantees.
Should Congress designate other entities to receive HPF funding, NPS will prepare necessary instructions
or procedures based on circumstances at that time.
G. Targeted Appropriations.
Occasionally Congress provides instructions for all or part of a regular or special appropriation as to the
use of funds or as to how NPS must apportion the funds.
1. Congress Specifies Apportionment Factors. If Congress mandates specific apportionment factors,
NPS will use them in lieu of the standard apportionment formula.
2. Special Purpose Appropriation. In the case of a special purpose appropriation and in the absence of
specific apportionment instructions, NPS will consult with the affected grantees on an appropriate
method of apportionment.
3. Regular Appropriation, But Congress Specifies the Use of Part of the Money. Occasionally Congress
provides instructions as to the use (as opposed to the apportionment) of part of the regular
appropriation. In this situation, NPS will consult with the affected grantees as to whether to develop a
special factor to add to the apportionment formula and/or whether NPS should handle the
Congressional targeting by grant conditions.
H. Apportionment Certificate.
After the Secretary apportions the funds, NPS by means of an Apportionment Certificate, will notify
officially each grantee of the amount of funds (obligational authority) for which the State may apply.
NPS will complete this notification before it considers any grantee’s grant application (see Chapter 7).
For States, NPS will send the Apportionment Certificate to the Governor and to the State Historic
Preservation Officer. The Apportionment Certificate will stipulate the amount of obligational authority
apportioned and the major terms and conditions of the apportionment. Among these conditions is the
stipulation that NPS will obligate the apportioned funds only upon submission of an acceptable grant
application, and the stipulation that NPS may reduce the amount apportioned by the amount of
unobligated balance at the end of the fiscal year (see Chapter 3, Section K for NPS’ “Use or Lose”
policy).
The Apportionment Certificate is a notice of fund availability and shall not be treated as an award of grant
assistance. NPS will subsequently award grants pursuant to NPS-approved written applications. The
Apportionment Certificate and the subsequent NPS grant agreement will specify the time of obligational
authority (up to 24 months).

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Chapter 3 - Basic Program Requirements for Historic
Preservation Fund Grants
A.

Purpose.
This Chapter sets forth the fundamental requirements governing annual programmatic Historic
Preservation Fund (HPF) grants. (Also see Chapter 6, which describes the eligible activities, ineligible
activities, and minimum requirements for conducting HPF grant-assisted activities.)

B. State Program Requirements.
1. Designation of the State Historic Preservation Officer.
The State Historic Preservation Officer (SHPO) is the appointed representative of the Chief
Governing Official of the State and must be authorized to assume, on behalf of the State, the
obligations imposed by the Act, by the applicable regulations implementing the Act, and by the terms
and conditions of the grant. Designation of the State Historic Preservation Officer requires the
following procedures:
a. The State Governor or Chief Governing Official designates in writing a State Historic
Preservation Officer with authority to represent the State and to be responsible for carrying out
the purposes of the Act (see 36 CFR 61).
This written designation requirement is also met when a State Governor or Chief Governing
Official appoints an individual to a position whose duties specified by law automatically include
the position of State Historic Preservation Officer; e.g., in State X, the Chief of the Historic
Preservation Division, Department of Housing is by State law automatically the SHPO.
b. Whenever a new SHPO is designated, or appointed, or an incumbent reconfirmed by the
Governor, notification by the Governor shall be mailed to the Associate Director, Cultural
Resources, National Park Service, Attention: Historic Preservation Grants Division (also
see Section D.4., below, for signature authority to a subordinate) . The notice of designation
shall include, at a minimum, the following or substantially similar statement to make clear
the State Historic Preservation Officer's authority and responsibilities:
In accordance with the National Historic Preservation Act, (16 U.S.C. 470a), as
amended, I hereby designate [name, title, organization,] as the State Historic
Preservation Officer. He/She has been delegated authority to represent the State in
carrying out the responsibilities specified in the Act, and in the regulations and
administrative requirements established for implementation of that Act.
c. Additionally, a courtesy copy (cc) of the written designation shall be sent (via surface mail,
fax or electronically) to the Chief, National Register and National Historic Landmarks
Division, and the Chief, Heritage Preservation Services.
2. Responsibilities of the State Historic Preservation Officer.

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a. The responsibilities of the State Historic Preservation Officer are specified in Section 101(b)(3)
of the Act and include:
1) Directing and conducting a comprehensive survey of historic properties and maintaining
inventories of such properties.
2) Nominating eligible properties to the National Register.
3) Preparing and implementing a Comprehensive Statewide Historic Preservation Plan.
4) Administering the program of Federal grant assistance for historic preservation within the
State.
5) Advising and assisting Federal and State agencies and local governments in carrying out their
historic preservation responsibilities.
6) Cooperating with the Secretary of the Interior, the Advisory Council on Historic Preservation,
and other Federal, State, and local governments, organizations, and individuals to ensure that
historic properties are taken into consideration at all levels of planning and development.
7) Providing public information, education, training, and technical assistance relating to historic
preservation.
8) Cooperating with local governments in the development of local historic preservation
programs, and certifying these programs, pursuant to the Act and related regulations. (See
Chapter 9)
9) Consulting with the appropriate Federal agencies in accordance with the Act on: Federal
undertakings that may affect historic properties, and the content and sufficiency of any plans
developed to protect, manage, or to reduce or mitigate harm to such properties.
10) Provide advice and assistance in the evaluation of proposals for rehabilitation projects that
may qualify for Federal assistance (e.g., preservation tax incentives).
b. Accountability. NPS considers the State Historic Preservation Officer to be the State official
acting for the State's Governor and responsible for the professional, organizational, and fiscal
conduct of the HPF grant program in the State. The transfer of funds to other agencies within the
State, to Certified Local Governments, to public or private organizations, or to individuals for the
purpose of carrying out grant-supported subgrants, cooperative agreements, or contracts shall not
in any respect relieve the State Historic Preservation Officer of his/her responsibility to ensure
that HPF funds are disbursed only for activities, programs, and projects which are accomplished
in accordance with program standards, regulations, policies, terms, and conditions of grant
awards; for ensuring that funds are accounted for in accordance with generally accepted
accounting principles; and in keeping with the requirements of the Historic Preservation Fund
Grants Manual.
The State Historic Preservation Officer shall ensure that the State Historic Preservation Office has

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adequate internal program and accounting controls, personnel standards, property management
standards, evaluation procedures, availability of in-service training and technical assistance
programs, and other policies as may be required by the terms of the grant, the Historic
Preservation Fund Grants Manual, or other NPS regulations, that are necessary for program
efficiency and effective, proper use of HPF funds.
c. Grant monitoring by grantees and NPS. Grantees must employ sound management practices to
ensure that HPF program regulations and grant objectives are met, whether conducted by staff or
by subgrantees or subcontractors, and that grant funds are expended for eligible activities under
proper fiscal, professional, and management controls. To the extent possible, NPS places reliance
on the policies and management controls established by grantees. NPS monitors grantees'
performance to ensure accountability for HPF grant funds and conformance with the Secretary's
"Standards" and other legislative and administrative requirements and standards. NPS also
monitors grantee performance to identify and respond to major grantee technical assistance needs.
The following provisions place maximum reliance on grantee responsibility and accountability
for program and project level decisions, while grantees work with NPS to attain national program
results.
Responsibility in certain areas extends beyond the term of a particular grant award, whether or
not NPS continues to provide active grant support. This includes the continuing grantee
obligation to account for property or equipment acquired as part of an NPS-assisted program or
project (Chapter 19) and to monitor preservation covenant requirements (Chapter 6, Section M).
The principal means of ongoing NPS monitoring are the State Program Review process, the
Comprehensive Statewide Historic Preservation Plan (see Chapter 6, Section G), grant
applications (see Chapter 7), Project Notifications (see Chapter 8, Section F), the End-of-Year
Report (see Chapter 25), and Final Project Reports (see Chapter Exhibit 8-E). Ineligible or
improper payments issued by a grantee will not be paid by NPS. Disallowances based upon
audits of grantees' (or subgrantees') financial records must be repaid to NPS. See Chapter 23,
Section O and P.
3. State Professional Staff and State Review Board.
State Staff. The SHPO is responsible for maintaining a staff that meets the professional
qualifications requirements of 36 CFR 61. At a minimum, a State must have full-time access to a
historian, architectural historian, and archeologist who meet these professional qualifications.
State Review Board. Each State shall maintain a State Review Board whose qualifications,
responsibilities in the administration of the program, and composition are in accordance with those
defined in 36 CFR 61. In accordance with 36 CFR 61, the SHPO shall designate members of the
State Review Board unless otherwise provided for by State law. Where State law establishes entities,
such as a State Historical Commission, that do not or cannot assume all of the Review Board
responsibilities specified in 36 CFR 61, a separate complementary State Review Board must be
established. The roles and responsibilities of each entity should be clearly delineated to prevent
duplication. See Chapter 6, Subsections C.4 through C.6, for responsibilities of professional staff.
The maximum number of Review Board members is not prescribed, but each Review Board must

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contain at least 5 members. The majority of members must meet the professional qualification

requirements described in the Secretary of the Interior’s Historic Preservation Professional
Qualification Standards. At a minimum, the Review Board must contain an historian, archeologist,
and architectural historian.
a. Meetings and Rules of Procedure. The State Review Board shall meet as often as is necessary to
complete its work in a timely fashion but no less often than once a year and must adopt written
procedures governing its operation consistent with the provisions of 36 CFR 61, and the Historic
Preservation Fund Grants Manual, particularly conflict of interest (see Section C.4., below). The
Review Board may make some decisions without face-to-face meetings when there is unanimous
agreement on a particular nomination.
b. Waivers, Alternative Review Board or Staffing Solutions, and Equivalency. In exceptional cases,
NPS may extend a waiver or alternative solution to a State not having a fully qualified Staff or
Review Board in conformance with 36 CFR 61. If the State does not have a qualified Staff or
Review Board, it must request a waiver or an alternative solution pursuant to 36 CFR 61.
Waivers (rather than alternative solutions) should be requested whenever the standard Staff or
Review Board requirement of 36 CFR 61 is appropriate to the range of cultural resources of the
State, but there is some temporary circumstance which prevents the requirement from being met.
This is the usual situation when there is a Review Board vacancy. NPS approval of Alternative
Solutions should be sought only if the standard Staff or Review Board composition does not meet
the State's cultural resource needs on a long-term basis. Equivalency should be sought only in
exceptional circumstances.
1) Waivers. Waiver requests are made in writing to NPS and signed by the SHPO or his/her
designee. The written request for a waiver shall specify the special circumstances that exist
and explain why the waiver is in the best interest of the State program. Waivers, when
granted by NPS, shall be in writing and shall extend for as short a time as is reasonable in the
circumstances, but in no case longer than the end of the following fiscal year. If a State needs
to renew a waiver, it must send a written request that documents efforts to remedy the
circumstances and justifies the need for continuing the waiver.
2) Alternative Solutions. NPS will consider proposals for alternative staffing or Review Board
solutions pursuant to 36 CFR 61 only for States with resources and needs which cannot be
served or met by the standard Staff or Review Board requirements. Such solutions must
ensure access to adequate professional expertise comparable to that required by 36 CFR 61.
These proposals should be sent, in writing, to NPS. Proposals will be responded to in writing
and, if approved, will remain in effect until they are reviewed at NPS' discretion or at the
request of the State.
3) Equivalency. Professional qualification standards were established by NPS so that
individuals meeting them would have the expertise necessary to carry out historic
preservation activities in accordance with professional standards. In rare instances, NPS
will certify that an individual has expertise equivalent to the Secretary’s Professional
Qualification Standards (and thus fulfills the purpose of the Professional Qualification

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Standards) though the individual does not meet the technical requirements. States
should send requests for certification of equivalency to NPS. Requests will be
responded to in writing and, if approved, will remain in effect as long as the individual
holds his/her position or until the certification is reviewed at NPS' discretion or at the
request of the State.
c. Continuation or Extension Provision (State staff, State Review Board members and CLG
commission members). Whenever the mandatory historic preservation professional qualification
standards change, an individual officially qualified under the former Standards and still serving
on a State’s staff, a State Review Board, or a CLG commission may be considered to be
professionally qualified as long as he/she continues to hold that position.
C. Conflict of Interest.
1. Policy.
No person (see definition in subsection 2.a., below) shall participate in the selection, award, or
administration of any HPF-assisted program activity, subgrant, contract, or subcontract if a conflict of
interest, real or apparent, exists. Nor shall any person participate through approval, disapproval,
recommendation, or other decision concerning any Federal Preservation Tax Incentive Certification,
National Register Nomination, or Review and Compliance case if such a conflict, real or apparent,
exists.
No person shall engage in outside employment or have any direct or indirect financial interest that
conflicts or would appear to conflict with the fair, impartial, and objective performance of officially
assigned duties and responsibilities for administration of the HPF program. Employees or agents
(i.e., persons authorized to represent the SHPO organization or to perform any official capacity for it)
shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors,
potential contractors, or parties to potential or actual HPF grant awards.
2. Definitions.
a. " Person" means:
1) The State Historic Preservation Officer,
2) State Historic Preservation Office staff,
3) President of the National Trust for Historic Preservation,
4) Staff of the National Trust for Historic Preservation,
5) Trustees and Advisory Board Members of the National Trust for Historic Preservation,
6) Subgrantees or contractors paid in whole or part, by HPF funds or whose time or salaries are
used as allowable matching share,
7) Members of a State Review Board(s) and/or separate Commission(s) which share 36 CFR 61

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or HPF grant oversight responsibilities,
8) CLG commission members, agents, or staff, and
9) Employees, agents, partners, associates, or family members of those cited in this definition.
b. A “conflict of interest” exists when a person may benefit (either through financial or personal
gain) from the position he/she holds with respect to the HPF-assisted program or may be unable
to make impartial decisions or render impartial advice due to outside relationships or other
activities with other persons as defined above. This applies to those persons who participate in or
influence the grant award decision-making process, gain information not available to the general
public, or provide oversight or administration of any aspect of the HPF grant program.
c. An “apparent conflict of interest” exists whenever circumstances are such that a person may
appear to be in a position to benefit (either through financial or personal gain) from the position
he/she holds with respect to the HPF-assisted program or may be unable to make impartial
decisions or render impartial advice due to outside relationships or other activities with other
persons as defined above. This applies to those persons who participate in or influence the grant
award decision-making process, gain information not available to the general public, or provide
oversight or administration of any aspect of the HPF grant program whether or not such a conflict
actually exists. An apparent conflict of interest also exists when a person may appear to have an
unfair competitive advantage because of his/her relationship with the SHPO organization.
Accordingly, Review Board members should not be included on any lists of qualified consultants
distributed to the public by the SHPO.
3. Declaring and Resolving Conflict of Interest.
a. Nonvoting. When any person, as defined in subsection 2.a., above, is involved in nonvoting
situations such as Tax Act Certification or Review and Compliance decisions, and a real or
apparent conflict of interest situation exists, the person involved must disclose the possible
conflict and physically absent and recuse himself/herself from the decision-making process. The
conflict shall be declared and documented in writing (by providing the name, date, and nature of
the conflict) as soon as the situation becomes apparent but, at a minimum, before the issue or
action for which the conflict exists is acted upon or brought to resolution. Those in a position to
make a decision must be fully informed as to the possible interest of the persons involved. See
Subsection 4.i., below, regarding persons with a pattern of conflicts.
b. Voting (Review Board/Commission Meetings). When a real or apparent conflict of interest
situation arises in the context of a voting situation, the person must disclose the possible conflict
and physically absent and recuse himself/herself from the decision-making process (including
presentations and discussion) and neither vote directly, in absentia, nor by proxy in that matter.
The recusal and the reasons therefore must be recorded in the meeting minutes. Those in a
position to make a decision must be fully informed as to the possible interest of the person
abstaining and recusing him/her self. See Subsection 9., below, regarding persons with a pattern
of conflicts.
4. Written Procedures (Code of Conduct).

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Each SHPO organization and the National Trust must maintain a written code with standards of
conduct governing the performance of their employees engaged in the award and administration of
contracts. This code must, at a minimum, comply with the requirements of this section, and is
binding on all persons listed in subsection 2.a., above.
The grantee may adopt more stringent requirements than those specified by NPS. The standards
established in this section shall be considered the minimum. In those situations where existing State
procedures are more stringent, those shall apply. However, in situations where Statewide conflict of
interest requirements are less stringent (e.g., may not apply to the Review Board or a separate
Commission), the standards in this section shall apply for administration of the HPF program in its
entirety.
5. Procurement.
Contract awards shall not be made to any person or firm who has developed or has drafted bid
specifications, requirements, a statement of work, an invitation for bids, and/or a request for proposals
for a particular grant-related procurement.
6. Nepotism.
State grantees will follow State laws and administering regulations governing nepotism in relation to
employment, contracting, and the award of HPF grant assistance.
7. Officials Not to Benefit.
No member of or delegate to Congress or Resident Commissioner shall be admitted to any share or
part of a grant, or to any financial benefit that may arise therefrom; but this provision shall not be
construed to extend to a grant if made with a corporation for its general benefit.
8. Corrupt Practices.
The award and administration of NPS grants and of sub-agreements awarded by State grantees under
those grants must be accomplished free from bribery, graft, kickbacks, and other corrupt practices.
The grantee bears the primary responsibility for the prevention, detection, and cooperation in
prosecution of any such conduct. Federal administrative or other legally available remedies will be
pursued to the extent appropriate.
No person, agency, or other organization may be employed or retained to solicit or secure a grant or
contract upon agreement or understanding for commission, percentage, brokerage, or contingent fee.
For breach or violation of this prohibition the Federal Government shall have the right to annul the
grant without liability or, at its discretion, to deduct from the grant or otherwise recover the full
amount of such commission, percentage, brokerage, or contingent fee, or to seek such other remedies
as may be legally available.
9. Enforcement.
The grantee organization must enforce and document that it enforces its conflict of interest
procedures or code of conduct whenever applicable. At a minimum, there must be written records of
abstentions from the decision-making process in conflict of interest situations. The records of
abstentions and recusals shall, at a minimum, document who was absent from the decision and for
what reason.

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Individuals who have a pattern of conflicts of interest and consequent abstentions, ought to be
removed from the Board, commission, etc., or assigned other responsibilities because their function of
offering advice cannot be fulfilled. In addition, the grantee organization must ensure that those on
whom these procedures are binding (subsection 2.a., above) are fully knowledgeable of these conflict
of interest requirements and agree to abide by them in the execution of their HPF program
responsibilities. Documentation of these requirements is fulfilled by a signed and dated statement
from each person attesting to that fact.
State Ethics Officers are authorized to determine the applicability of these requirements to individual
situations in regard to State employees and to resolve employee conflict of interest situations (see also
subsection 11., below).
10. Conflict of Interest Involving Current or Former Federal Employees.
The grantee will not use any Federal funds or funds from other sources applied as matching share to
pay a fee to, or travel expense of, current employees of the Federal Government for consultant
services, lectures, attending program functions, including HABS/HAER participation, or any other
activities in connection with the grant or any subagreement awarded under this grant. Grantees are to
consult with NPS when the appearance of such conflicts of interest arises. This prohibition is in
accordance with 18 U.S.C. 209 which stipulates that Federal employees whose employment has not
terminated shall not receive supplemental compensation for their services in their capacity as Federal
Government employees. (However, see exception for temporary limited employees in Chapter 6,
Section E.7).
It is NPS policy that personal or organizational conflict of interest, or the appearance of conflict of
interest, be prevented in the award and implementation of grants, including subgrants and
subcontracts or other subagreements which involve former and current Federal employees in the
award and implementation of grants. A conflict of interest will appear to exist when grant assistance
is awarded to or by a grantee and a current or former NPS employee participated in the pre-award and
award process and benefits financially from the grant. Specific details are contained in 43 CFR 20.
11. Violations.
When there is a suspected violation of the conflict of interest policy or requirements, the SHPO
organization must advise NPS of the matter, pursue available State or local legal and administrative
remedies, take appropriate remedial action with respect to any allegations or evidence coming to its
attention, and advise NPS of the ultimate disposition of any matter. Such violations may result in
cost disallowances or other sanctions.
D. Special Requirements.
This section highlights requirements with which grantees must comply for Historic Preservation Fund
grant assistance. Also see Chapter 5, Section B., for the General Conditions Governing Grants.
1. Federal Administrative Requirements.
The provisions of Office of Management and Budget Circulars A-87 and A-102, incorporated through
43 CFR 12 and throughout the Historic Preservation Fund Grants Manual, shall apply to all HPF
grants to States. All grants to the National Trust for Historic Preservation shall be governed by the
provisions of OMB Circulars A-110 and A-133. The appropriate Circular or implementing

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regulations shall be made applicable by States and the National Trust to all subgrants, contracts, or
other agreements executed by them which involve HPF or matching grant funds (see Chapter 12
concerning cost principles applicable to subgrants). Failure by a grantee to comply with these
Circulars may be the basis for withholding payments for proper charges made by the grantee,
recovery of such funds, and/or termination of financial support.
2. Environmental Requirements.
Activities funded under the Act shall be conducted in full accord with the policies and provisions of
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et. seq.) and the categorical
exclusions stipulated in Chapter 11.
3. Use and Disclosure of Information.
Grant applicants, grantees, and their contractors and subgrantees should be aware that information
provided to NPS, or required by NPS to be on file with the grantee, is considered to be a public record
and subject to disclosure under the Freedom of Information Act (5 U.S.C. 552), unless determined to
be exempt and not to be disclosed under that statute, or locational information that may be withheld
by NPS under Section 304 of the National Historic Preservation Act. In addition, NPS acquires the
right, unless otherwise specified in the grant agreement, to use and disclose program and project data.
However, there may be some information that a grantee or subgrantee wishes to remain confidential.
Those items must be clearly and prominently identified to NPS at the time the information is
presented. NPS will consider such requests on their merits and within the limits imposed by Federal
law and regulation on public disclosures (see also Chapter 24 and Chapter 5, General Condition
B.11.). Information received by NPS that is not accompanied by a claim for confidentiality in
accordance with this paragraph may be made available to other public agencies and the general public
without prior notice to the grantee.
4. Authorized Signatures.
Application SF 424 Face Sheets, Project Notifications, certifications, and reports must be signed by
the State Historic Preservation Officer (or President, National Trust for grants to that organization), or
by persons authorized by those officials' written designation to NPS to obligate the grantee to the
terms and conditions of the grant. Each grant application and each individual Project Notification, if
required (which becomes part of the application following NPS action) will be deemed to constitute
an offer by the grantee to accept the requirements of the Historic Preservation Fund Grants Manual.
Acceptance of the grant award by the grantee shall be deemed to constitute acceptance of the terms
and conditions affixed to each Grant Agreement by NPS.
While authority can be delegated, the SHPO or the President of the National Trust remains
responsible under the terms of the Act and State law for the grant program on behalf of the State.
However, he/she can assign program and/or signature authority to a subordinate. To be a proper
transfer of authority, the delegation must be in writing from the superior. Without such express
written delegation, signatures on grant applications, Project Notifications, National Register
nominations, etc., are not binding on the State or the National Trust and cannot be accepted by NPS
as representing official State actions.
5. Certifications.
A grantee may be prosecuted under Federal or State statutes for any false statement,
misrepresentation, or concealment made as part of a grant application or grant-related certification to

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NPS. The penalty for false statements in certifications is prescribed in 18 U.S.C. 1001.

6. Waivers.
When exceptional circumstances are involved, a grantee may submit a written request and
justification for a waiver from NPS requirements, procedures, or NPS policy, as defined below, prior
to submission of a grant application or Project Notification. In clearly exceptional cases, the NPS
Grant Awarding Official may determine in writing that a waiver of normal requirements is essential
to achieve NPS objectives. The written determination shall specify the reason(s) that special
circumstances support that a waiver is in the best interest of the Federal Government.
Waivers, when granted by NPS, shall be in writing and shall extend for as short a time as necessary in
the circumstances, but in no case longer than the end of the following fiscal year. If a State needs to
request to renew a waiver, it must send a written request that documents efforts to remedy the
circumstances and justifies the need for continuing the waiver.
Requirements imposed by legislation or Government-wide regulations promulgated in the Code of
Federal Regulations, such as Office of Management and Budget or Treasury Circulars, cannot be
waived. However, note that some regulations provide for situations where requirements can be
waived, e.g., 36 CFR 61.10.
NPS has authority to approve certain waivers, such as:
a. The imposition of greater or lesser limitations than those imposed by the Historic Preservation
Fund Grants Manual upon the use of a standard, procedure, form, requirement, or condition of
grant assistance that is not legislatively mandated or required without possibility of waiver by
Government wide regulations;
b. The waiver of any policy, procedure, method, or practice of administering or conducting grant
awards prescribed by the Historic Preservation Fund Grants Manual;
c. Omission of any mandatory NPS (but not Governmentwide) grant provision; or
d. Use of different forms or alteration of prescribed forms.
A copy of the NPS written approval must be enclosed with the grant application or Project
Notification and the original retained by the grantee in the official project file.
7. Publications and Public Information.
a. Acknowledgment of support. An acknowledgment of NPS support must be made in connection
with the publication or dissemination of any printed, audio-visual, or electronic material based
on, or developed under, any activity supported by HPF grant funds. This acknowledgment shall
be in the form of the following statement:

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The activity that is the subject of this [type of publication] has been financed [in part/entirely]
with Federal funds from the National Park Service, U.S. Department of the Interior.
However, the contents and opinions do not necessarily reflect the views or policies of the
Department of the Interior, nor does the mention of trade names or commercial products
constitute endorsement or recommendation by the Department of the Interior.
(Note that only relevant portions of the required statement need to be applied, and should be used
as appropriate depending on the content of the publication; e.g., if there are no commercial
products, then that part of the statement can be omitted.)
b. Nondiscrimination Statement. Publications and audio-visual materials must also include the
following nondiscrimination statement:
This program receives Federal financial assistance for identification and protection of historic
properties. Under Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act
of 1973, and the Age Discrimination Act of 1975, as amended, the U.S. Department of the
Interior prohibits discrimination on the basis of race, color, national origin, disability, or age in its
federally assisted programs. If you believe you have been discriminated against in any program,
activity, or facility as described above, or if you desire further information, please write to:
Office of Equal Opportunity
National Park Service
1849 C Street, N.W.
Washington, D.C. 20240
c. Public information. Press releases, publications, and any other public dissemination of
information (including electronic materials such as World Wide Web pages) by a grantee made
possible by grant assistance shall acknowledge Department of the Interior, National Park Service
grant support by use of the above statements. See Section D.7.e., below, for publications
specifically excluded from these requirements.
d. Copies of publications. Upon publication, a minimum of three copies of the publication will be
furnished by the grantee to NPS, which will furnish one copy to the Department of the Interior's
Natural Resource Library for deposit. Publications covered by this section include any
publication produced as a result of research or any other work funded in whole or in part by HPF
grants. For copyright requirements for grant-assisted publications, see Chapter 19, Section D.6.
e. Exclusions. Specifically excluded from the requirements of Section D.7.a-d., above, are the
following types of publications:
1) Internal documents required for administrative or operational purposes which have no public
interest, or educational, scientific, or research value.
2) Classified publications and materials otherwise marked against unauthorized disclosure.
3) Tentative drafts such as preliminary planning reports that will appear later in revised or final
form.

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4) All disclosure materials containing any description, specification, data, plan, or drawing of
any unpatented invention upon which a patent application is likely to be filed unless an
opinion by the Solicitor of the Department, or his duly authorized designee, has been
rendered which finds that the interests of the Government will not be prejudiced by the action
called for in this section with regard to such disclosure materials. Accordingly, copies of
these materials must be provided to the National Park Service for forwarding to the
Department's Office of the Solicitor. The National Park Service will notify grantees in
writing of the Solicitor's opinion regarding disclosure of the material.
5) Grant applications, Final Project Reports, or End-of-Year Reports pertaining to grant
administrative or operational activities.
E. NPS Approval via Grant Agreement.
When a grant application has been judged adequate, a Grant Agreement is executed by the NPS Grant
Awarding Official. This is the NPS official whose name/title appears on the Grant Agreement. The
Grant Agreement is composed of three documents completed by NPS that together indicate the approval
of a grant application: the Grant Agreement Signature Page, which includes changes made by NPS in the
grant application or financial information as submitted; any special conditions accompanying approval;
and the completed Standard Form 424.
Obligation of funds occurs when the Grant Agreement is signed by the NPS authorized Grant Awarding
Official and notice forwarded to Congress and to the NPS Accounting Operations Center. The signature
of the NPS Grant Awarding Official on the Grant Agreement shall constitute the signer's certification that
the Grant Agreement is materially complete and that the grant application is in keeping with all applicable
laws, Federal and Department regulations, and NPS program requirements.
The signed Grant Agreement is the legal document constituting the assistance agreement between NPS
and the grantee. At a minimum, the Grant Agreement will include the information listed below. Cosignature by the grantee on the Grant Agreement is not required. The Grant Agreement incorporates the
general conditions applicable to all grants and special conditions applicable to the specific approved
grant. Subsequent amendments to the Grant Agreement, including subsequent Project Notifications, do
not affect general or special conditions unless expressly waived in writing by NPS.
1. Coverage of the Grant Agreement.
The Grant Agreement establishes the terms and conditions of the Grant Award, including:
a. Legal name and address of the grantee agency to which the grant is awarded.
b. Identifying grant number assigned by NPS.
c. Grant period, which specifies the length of time NPS intends to support the proposed effort, and
during which costs may be charged to the grant. See Section E.5., below.
d. Federal share awarded.
e. Minimum nonfederal share required.

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Setting forth the obligations assumed by the grantee through acceptance of the Federal assistance
award, including the applicability of the Federal cost principles and administrative requirements
incorporated in the Historic Preservation Fund Grants Manual. The Grant Agreement for the
National Trust shall specify OMB Circulars applicable to nonprofit organizations.

g. Other information or provisions deemed necessary by NPS to carry out its granting activities or to
accomplish the purpose of the grant. The Catalog of Federal Domestic Assistance Program Title
and Number appear in block 10 of the SF 424.
The Grant Agreement is the mechanism through which NPS accepts the work proposed to be
accomplished during the term of the grant. The Grant Agreement obligates NPS to provide
financial assistance up to the stipulated amount for eligible costs incurred for projects and
programs, on the basis of information and cost estimates contained in the application. Unless
specifically approved in the Grant Agreement or an NPS-approved grant amendment, no cost
(either federal or nonfederal share) incurred prior to the approved grant beginning date or
subsequent to the stipulated end date will be allowed.
If the submitted application is revised in any way by NPS, the revision will be noted on the
Application and Budget Changes/Special Conditions page(s). This additional page is considered
part of the Grant Agreement.
2. Federal Share.
The Federal share amount obligated by the grant award shall be set forth in the Grant Agreement.
The Federal share amount, not to exceed the maximum percentage specified by law will represent the
award ceiling. The grantee must exert its best efforts to perform, or cause to be performed, the work
as specified in the grant application within the approved cost ceiling. If at any time the grantee
becomes aware that the costs it expects to incur in the performance of the grant will be substantially
more or less than the then-approved estimated total cost, the grantee must notify the NPS Grant
Awarding Official promptly in writing, and request approval of an amendment. See Chapter 15.
If a State is unable to utilize or apply for the full amount of apportioned funds, the State Historic
Preservation Officer should notify NPS at the earliest possible date so that the funds can be
reallocated to other States. Funds not reallocated and used within the 24-month period of availability
are returned to the U.S. Treasury.
NPS will not share costs incurred in excess of any approved amounts. Grant payments will be made
in accordance with Chapter 21 up to the approved amount stipulated in the Grant Agreement.
3. Nonfederal share.
The nonfederal share amount must be contributed and documented in accordance with the criteria and
timing stated in Chapter 14 and elsewhere in the Historic Preservation Fund Grants Manual. Such
cash and in-kind contributions shall be limited to assisting eligible activities specified in the
application and subsequently submitted Project Notifications (and in the case of third party
agreements covered by Reduced Review Status, in subgrant agreements and files) and must be
directly related to and necessary for the conduct of activities specified in these documents.

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4. Total grant costs.
Both the Federal share and nonfederal share detailed in the application are subject to the provisions of
the Historic Preservation Fund Grants Manual upon execution of the Grant Agreement with NPS. In
particular:

a. Costs eligible for assistance shall be determined upon the basis of the criteria set forth in Chapters
6, 12, 13, and 14.
b. The Grant Agreement may include the use of the indirect cost rate approved for the grantee or
subgrantee by the cognizant Federal agency according to the provisions of Chapter 12.
5. Duration of grant.
Funds obligated by NPS shall be available to a State or the National Trust for expenditure during the
24-month grant period specified in the Grant Agreement and contingent upon compliance with NPS
Use or Lose procedures. Authorization to incur expenditures during the succeeding fiscal year (for
awarded subgrants plus an amount not to exceed 25 percent of the Federal share of the Annual Grant)
is specified in the Grant Agreement and requires that funds will be committed by the grantee in
accordance with NPS procedures (see Section K, below). No costs for programs or projects beyond
the term of the grant period specified in the Grant Agreement may be charged to the HPF grant.
F. Application and Budget Changes/Special Conditions.
The Application and Budget Changes/Special Conditions page(s) is used as an attachment to the Grant
Agreement to indicate special conditions and any changes made by NPS in the application submitted by
the grantee.
If a specific cost, work item, or other element in the application is reduced or eliminated by NPS, the
application will be approved with the revisions specifically identified on this page, and the grantee must
not use funds for that purpose without prior written NPS approval.
SPECIAL CONDITIONS are used to require the grantee to submit additional necessary documentation,
to execute certain specified actions, or to emphasize important requirements. The special conditions are
part of the Grant Agreement and must be complied with by the grantee. NPS determines whether a
grantee has achieved acceptable compliance with special conditions. Grantee noncompliance may cause
disallowance of incurred costs, withholding, suspension of funds, or other administrative remedies.
Special conditions are in addition to General Conditions Governing Grants (Chapter 5), which apply to all
grant awards, amendments, and subsequent subgrants or other agreements awarded by the grantee.
G. Effect of Grant Award.
The grant becomes effective upon execution of the Grant Agreement by the NPS Grant Awarding
Official. Grant approval authorizes the grantee to proceed with the activities specified, but does not by
reference make specific approval of those types of cost items which are allowable only by NPS prior
specific approval (see Chapter 13, Section C). These types of costs must be specifically identified by the
grantee in the Budget Form 424B (Section E, Other Budget Information) of the grant application, or by
subsequent correspondence.
All funds shall be expended solely for the purpose for which the funds are granted in accordance with the

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approved application and budget (including subsequent Project Notifications), and in accordance with the
regulations governing these grants, the Secretary of the Interior's "Standards," the terms and conditions of
the award, the applicable Federal cost principles, and the Historic Preservation Fund Grants Manual.

The award of any grant does not commit or oblige NPS to award any additional funds to cover cost
overruns, nor does the award of any grant constitute an obligation to fund any subsequent budget period.
In accepting the award, the grantee agrees that it will meet the terms and conditions of the Apportionment
Certificate and NPS Grant Agreement and that it will further impose these requirements upon any
subgrantee or subrecipient to which funds are transferred pursuant to the Grant Agreement. The grantee
also agrees that it shall be responsible for compliance with the terms of the Grant Agreement by any
subgrantee, and that failure by such subgrantee to so comply shall be deemed a failure by the grantee to
comply with the terms and conditions of the Grant Agreement.
The terms and conditions of the Annual Grant Agreement also apply to all subgrant and other third party
agreements including those covered by Reduced Review Status (see Chapter 8, Section G).
H. Amendments and Other Programmatic Changes.
The grantee shall submit an amendment describing any material change in the plan (grant application) or
in the proposed conduct of the approved program or grant before the change is executed. All requests for
changes shall be made in writing and described using the same forms as the original application; only the
changed forms need be submitted with the requested change clearly explained in the "Remarks" section of
the Standard Form 424 (see Chapter 15).
1. Project Notification.
The award of subgrants to a third party to perform substantive programmatic work proposed in the
SHPO's grant application is considered a substantive programmatic change unless the required
information is submitted concurrently with the Annual Grant Application. However, see Chapter 8,
Sections F. and G., for details on Project Notifications and Reduced Review Status (i.e., when Project
Notifications are not required).
Except for activities covered by Reduced Review Status (see Chapter 8, Section G), subsequent
substantial changes in subgrant objectives or scope of work described in Project Notifications shall be
requested in writing by the grantee prior to effecting such changes.
2. NPS-Initiated Amendments.
Grant amendments may be initiated by NPS if: a) on the basis of reports or adverse findings, it
appears that HPF funds are being used for purposes beyond the scope of the grant agreement (i.e., the
approved grant application or for unauthorized or ineligible purposes); or, b) if additional funds,
previously appropriated or apportioned but unreleased, become available.
I.

Grantee Accounting Responsibilities.
1. Grantee records of accounts are to be established on the 12-month budget period basis. HPF funds
disbursed and nonfederal share claimed must be charged to the correct grant budget period. This
applies to Federal share claimed and nonfederal share applied by the grantee organization itself and
by any of its subgrantees, including universities and Certified Local Governments. The Federal share

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of costs shall be charged to the fiscal year in which the costs were incurred (i.e., the fiscal year the
reimbursable work was performed). Similarly, the nonfederal costs claimed shall be charged to the
fiscal year the cash was disbursed or the goods or services were contributed. Therefore, each
subgrant or similar agreement with third parties that authorizes costs to be incurred during more than
one HPF grant period (i.e., "crosses" Federal fiscal years) should require that the subgrantee provide
the grantee with appropriate documentation of the nonfederal share claimed during the fiscal year
promptly after the close of the fiscal year. This not only will allow the grantee to maintain its
accounts as intended by the Act, but can also serve as an early warning to the grantee of insufficient
nonfederal share.
Costs incurred prior to the effective date of the grant award, whether or not these costs would have
been allowable after that date, are allowable only with the prior approval of NPS, or when
specifically provided for in the NPS grant agreement (see Chapter 13, Section C).
2. Costs incurred through September 30 of each fiscal year must be billed no later than December 31 of
that year.
3. States must retain executed subgrant agreements and purchase orders verifying the information in the
Project/Activity Database Report and the Carryover Statement (see Chapter 25), and make these
available for on-site inspection by NPS or its designated representative.
4. During the 24-month period of availability, funds may be transferred among subgrants, contracts, and
cooperative agreements. Budget increases must be justified by an appropriate increase in the project
scope and/or an adequate explanation of the reason(s) for the increase. States not on Reduced Review
Status must send NPS a Project Notification Amendment for any Federal share increase to a subgrant,
contract, or cooperative agreement. States with Reduced Review Status must retain this information
in their files for State Program Review purposes.
5. Grantees are required to certify the accuracy of the January Financial Status Report (mailed to States
by NPS in February). Corrections will be made by NPS when justified.
J. Expiration of Grant Obligational Authority.
Costs incurred after the end date of the second budget period cannot be charged to the Annual Grant. Any
unexpended funds remaining after the end date of the grant will be returned to the U.S. Treasury. NPS
will evaluate the reasons for such returns and reserves the right to adjust future apportionments
accordingly. Because the period of obligational authority is usually 24 months, States should award funds
to subgrants or contracts with logical units of work that can be accomplished or completed within the
term of the grant.
K. Use or Lose Policy.
1. General.
The "Use or Lose" policy means that a grantee that does not "use" its grant award funds in a timely
fashion will “lose” a portion of those funds as described below. The purpose of this adjustment
action is to direct monies to those grantees most capable of making immediate productive use of
available monies, and to demonstrate that funds appropriated by Congress for the HPF in fact are
needed and being used promptly. The Use or Lose policy is intended to have these results:

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a. Continue the exemplary expenditure rate performance of the HPF grant program.
b. Authorize each grantee to carry over up to 25 percent of the Annual grant into the second year of
fund availability to maintain staff and "in house" program operations. The 25 percent reserve is
intended to provide up to 3 months of operating costs without disruption because of "late"
Congressional appropriations.
c. Allow each grantee to carry over unexpended funds in subgrants crossing Federal fiscal years.
d. Provide a framework for financial management and reporting that minimizes grantee accounting
problems related to the annual cost/matching share provisions of Section 102(a)(3) of the Act.
The Carryover Statement in the End-of-Year Report (see Chapter 25) closes out each fiscal year
and provides a bridge to the next, allowing up to 25% of the Annual Grant to be carried over,
uncommitted, to support continuing program operations for up to 12 additional months (i.e., the
second year of the 24-month grant period). The full 2 years of obligational authority provided by
Federal appropriations legislation is afforded to grantees demonstrating prompt use of the funds
apportioned to them.
As detailed below, NPS reserves the option to adjust grant awards to a grantee when the amount
of uncommitted funds exceeds 25 percent of the amount apportioned during the fiscal year. The
25 percent limitation does not apply to the amounts carried over in committed subgrants,
contracts, or cooperative agreements; these commitments must appear in the Project/Activity
Database Report and the Carryover Statement submitted with the End-of-Year Report (see
Chapter 25).
2. Limitation on Award of Obligational Authority.
a. The annual apportionment of obligational authority awarded to a grantee will not be reduced
when the grantee, in accordance with procedures detailed below, has either:
1) Submitted by December 31 acceptable Electronic Funds Transfer payment requests, or SF
270 reimbursement requests and/or liquidations of advances for all funds expended during the
fiscal year of the apportionment; and
2) Submitted acceptable grant applications (including amendments, if necessary) by August 31
to obligate all available obligational authority during the current fiscal year; and
3) Except for activities covered by Reduced Review Status (see Chapter 8, Section G),
submitted acceptable Project Notifications for all subgrants and contracts with entities outside
the administrative direction of the SHPO for projects which extend beyond the fiscal year
budget period; and
4) Confirmed by its Project/Activity Database Report and Carryover Statement (see Chapter 25)
that no more than 25 percent of the annual award will remain unexpended and uncommitted
at the beginning of the second year of grant availability.

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b. Calculating the Carryover amount for the second fiscal year. The amount of funds which may be
carried over into the second fiscal year of the grant is based on two factors:
!
!

Committed Subgrants and Contracts, and
Uncommitted Expenses

The following two examples illustrate the carryover calculation:
EXAMPLE 1
Total FY 1997 Unexpended Funds Carried Over into FY 1998
(Uncommitted expenses and committed subgrants and contracts)

$250,000

Minus Committed yet Unexpended Subgrant Funds

$150,000

Uncommitted SHPO Carryover

$100,000

FY 1997 Annual Award

$500,000

$100,000 represents 20 percent of the FY 1997 Annual Award of $500,000, and is,
therefore, under the 25 percent maximum uncommitted funds allowable.
EXAMPLE 2
Sample Description

Sample
Amount

Step 1. The FY 1997 Award

$500,000

---

$300,000

$500,000 - $300,000 =
$200,000

Step 2. Minus total FY 1997 dollars expended
during FY 1997.
Step 3. Minus total unexpended FY 1997 funds
that are committed to third-party agreements
that will be carried over into FY 1998.

$150,000

Step 4. Equals the uncommitted FY 1997 funds
that will be carried over into FY 1998.

$50,000

Step 5. Amount carried over divided by the
total award (must be less than 25%).

$50,000 or
10%

Sample Calculation

$200,000 - $150,000 =
$50,000
--$50,000/$500,000 =
10%

1) Committed Subgrants and Contracts.
i)

States may carry over all unexpended balances for subgrants or contracts if acceptable
Project Notifications have been forwarded to, and concurred with by, NPS (except for
projects covered by Reduced Review Status; see Chapter 8, Section G).

ii) Subgrants and contracts with entities outside the administrative control of the SHPO are
considered valid commitments for carryover purposes. A subgrant agreement between
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the grantee and subgrantee must be executed by September 30 to be a valid commitment.
iii) All continuing subgrants and contracts used in computing the amount of carryover must
be included in the Project/Activity Database Report and Carryover Statement submitted
with the End-of-Year Report. (See Chapter 25, Section D.)

iv) All such committed subgrants and contracts do not count against the 25 percent carryover
limitation.
The State is required to notify NPS if it has not been able to execute subgrants to CLGs
for at least 10 percent of its award. This notice can be by letter to NPS, or with the Endof-Year Report.
2) Operational “In-house” Expenses.
Up to 25 percent of the prior year's total apportionment may be carried over into the
following fiscal year for in-house expenses, including: SHPO salaries, equipment, other
administrative expenses, and "in-house" contracts and agreements.
"In-house" contracts or agreements with State Historic Preservation Office staff or with State
governmental units that are part of the same State government budgetary unit as the State
Historic Preservation Office are not considered contractual commitments.
Unexpended HPF grant funds for in-house expenses are not considered committed. NPS
reserves the right to adjust the State's current or subsequent Annual Grant Award if the State
has uncommitted carryover funds in excess of 25 percent.
States must notify NPS in writing if they expect to exceed the 25 percent carryover limitation
and request a waiver to exceed the limitation (see Section D.6). NPS should be informed that
the carryover limitation will be exceeded prior to the submission of the End-of-Year Report.
If this is not possible, then the State must explain that there is more than the allowable
amount of uncommitted funds in the End-of-Year Report (in the Carryover Statement
section).
Grantees must provide sufficient justification and sufficient time to allow objective review
and consideration. Waivers shall be approved only in compelling circumstances in which,
despite due diligence on the part of the grantee, the circumstances involved were beyond the
control of the grantee, and the grantee has indicated satisfactorily what steps will be taken to
avoid a recurrence of the situation.
c. Previous Year Consistency. The amount carried over into the second fiscal year must be
consistent with the expenditures for the previous year shown in the End-of-Year Report. The
amount carried over into the second fiscal year may not be larger than the original apportionment
minus the amount expended in the first year (as shown in the End-of-Year Report) and minus any
amounts recaptured or returned for other reasons.

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d. Reduction of Obligational Authority. Funds in excess of 25 percent of the total amount
apportioned via the Apportionment Certificate executed by the Secretary of the Interior which are
not committed by a grantee will revert to NPS through a reduction in the fiscal year's
apportionment to the grantee. In addition, if any committed funds are not used among the listed
subgrants, obligational authority may be revoked by NPS and funds reapportioned to other
eligible States whenever time constraints and administrative expenses permit.
e. Schedule. The following schedule shall be maintained:
1) Amendments affecting the Federal share must be postmarked by August 31.
2) The End-of-Year Report must be postmarked by December 31. Data supplied in the
Project/Activity Database Report and Carryover Statement submitted with the End-of-Year
Report must confirm that the State carries over, in uncommitted funds, no more than 25
percent of the prior year's apportionment.
3) Payment requests must be transmitted by December 31.

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Chapter 4 - Intergovernmental Review of Federal Programs
A. Purpose.
This Chapter sets forth the requirements governing grants under Executive Order 12372, Intergovernmental Review of Federal Grant Programs, as implemented by the Department of the Interior in
43 CFR 9. States may opt to include the HPF grant program under its Executive Order 12372 process. It
is the policy of the National Park Service to award grants in accordance with the process established by
each State. Grantees are responsible for coordinating grant applications with the procedures established
by its State and the official designated as the State Single Point of Contact.
B. General.
Under provisions of Executive Order 12372 and its implementing regulations, States, in consultation with
local and regional officials, are permitted to establish their own processes for review and comment on
proposed Federal actions within their boundaries. For the State process to be recognized, the Governor of
the State must inform the Office of Management and Budget (OMB) of the establishment of the State
process, identify the Single Point of Contact for the process within the State, and transmit a list of Federal
programs and activities that have been selected by the State’s Governor for review within the State.
Federal agencies are required to provide early notice of proposed actions so that State and local officials
have adequate time for review and comment under their designated State process. The framework for the
review may differ somewhat in each State as long as the role of the Single Point of Contact in channeling
comments about the proposed Federal action adheres to the provisions of Executive Order 12372 and its
implementing regulations. The Single Point of Contact may submit an official recommendation produced
through the State process to which the Federal agency or agencies involved must respond by
accommodating the recommendation, negotiating a mutually acceptable course of action, or explaining to
the Single Point of Contact why the official recommendation cannot be accommodated. If there are
differing views from the official recommendation, the Single Point of Contact must submit these along
with the official recommendation. However, there is no requirement that these other views be responded
to with an accommodation or explanation such as an official recommendation would receive.
C. State Process Review System.
The State process is the framework in which State and local officials conduct their reviews of HPF grant
programs. The Federal Government has no requirements for the State process other than those outlined
below. The State process can use organizational arrangements, assignments of responsibility, and day-today procedures that are compatible with or part of existing State and local practices.
1. Selection of Programs and Activities the State Wants Covered by its Process. A State may choose
from the list of programs determined by the Department of the Interior to be eligible for coverage (see
43 CFR 9). Each State must send a list of the programs and activities which it wishes to cover under
its process to OMB. OMB transmits that information to the appropriate Federal agency.
a. Following initial notification of a State's process and of the Department of the Interior programs
the State has selected for review, a State may notify the Department of the Interior or NPS of
changes in its selection of programs or activities at any time.

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b. NPS Intergovernmental Review Coordinators are responsible for ensuring that when a change is
made in program or activity selections by a State, the State submits an assurance that local elected
officials were consulted regarding the change.
2. The Single Point of Contact (SPOC).
a. The Single Point of Contact receives all items for review under selected programs. Only one
Single Point of Contact is designated in each State.
b. The Single Point of Contact is responsible for transmitting a State process recommendation to the
Department of the Interior. If a State fails to designate a Single Point of Contact, the Department
is not obligated to respond to other organizations or officials concerning a State process
recommendation.
c. NPS has designated bureau Intergovernmental Review Coordinators with responsibility for
liaison and communication on all matters between NPS and the State Single Point of Contact.
The contact for the HPF grant program is the Chief, Historic Preservation Grants Division,
National Park Service.
3. Use of the State process. The following requirements apply to the use of the State process.
a. Consistency with existing statutory requirements, including the following:
1) Consultation with the State Historic Preservation Officer in the case of investigations to
identify properties listed in or eligible for inclusion in the National Register of Historic Places
that are subject to adverse effects; or to comply with requirements pursuant to Section 106 of
the National Historic Preservation Act to avoid or mitigate adverse effects upon such
properties.
2) In the case of projects located in the coastal zone, as defined in the Coastal Zone
Management Act of 1972, as amended, consultation with the State agency responsible for
administration of the approved program for the management of the coastal zone to review the
project for its relationship to and consistency with the Coastal Zone Management Program
(see Chapter 5, General Condition B.6.).
3) Pursuant to Section 102(2)(C) of the National Environmental Policy Act of 1969, as
amended, consultation with the appropriate State, multi-state, area-wide, or local agencies
that are authorized to develop and enforce environmental standards to give the agencies an
opportunity to review and comment on the environmental significance and impact of the
proposed projects for which Federal assistance is sought (see Chapter 11).
4) Consultation with public agencies charged with enforcing or furthering the objectives of State
and local civil rights laws to provide such agencies an opportunity to review and comment on
the civil rights aspects of the project for which Federal assistance is sought (see Chapter 10,
Section C.3.b).
5) The appropriate amount of time for review is included.

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b. Assurance from a State to OMB that local elected officials were consulted during the adoption of
the State process.
c. Notification to NPS of the programs the State wants to cover under its process.
d. A requirement that area-wide entities are notified of a proposed action concerning a program or
activity which has been selected for the State process.
4. Notice for Selected Program and Activities. State Historic Preservation Officers shall develop and
maintain a cooperative relationship with the Single Point of Contact so that the review and comment
process is timely and appropriately conducted.
a. Rather than publicizing in the Federal Register, NPS requires that State Historic Preservation
Officers submit applications for review and comment to the Single Point of Contact. The Single
Point of Contact transmits to NPS comments from other State agencies, Regional planning
commissions/councils of government, local officials, or others. There is no Federal requirement
for direct submission to any entity other than the Single Point of Contact.
b. The State, through the State process, is responsible for notifying area-wide and regional agencies,
and local governments. NPS may also notify the affected sub-State organizations, but it need not
do so.
c. Comment period. HPF grant applications and State plans (if their submission to the Single Point
of Contact is required by State procedures) may be submitted concurrently to the State Single
Point of Contact and to NPS. NPS will allow State and local officials at least 30 days to review
and comment on the multi-purpose grant applications for the annual award of funds because these
applications are considered noncompetitive grants. The shorter period, 30 days rather than 60
days, is permissible because controversy is unlikely for these actions. If additional review time is
needed to review noncompetitive grants or State-selected subgrants not identified in the annual
grant application, the State Single Point of Contact should notify NPS.
5. Notice for Programs and Activities not Selected. If a State has not adopted a review process under
Executive Order 12372, or the HPF assistance activity has not been selected by the State for its
process, the Secretary's Apportionment Certificate, transmitted to the Governor, serves to notify
directly affected States, regional agencies, and local governments of proposed HPF grant actions. For
those States, it is expected that the State Historic Preservation Officer shall provide supplemental
notice to directly affected States, area-wide agencies, regional agencies, and local governments of
proposed HPF actions. Such notices shall include a description of the proposed grant, where
comments may be forwarded, and the deadline for comment. The review and comment period under
these circumstances need not be the same as the review period afforded selected programs and
activities in participating States (30 to 60 days), but should be as close to the same time period as is
feasible. When NPS fails to accommodate comments on non-selected programs or from nonparticipating States, there is no requirement to provide the States with an advance notice prior to
taking action on a proposal.

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6. Review and Comment.
a. State and local officials may send their comments on proposed HPF grant actions to the Single
Point of Contact for use in forming a State process recommendation, or directly to NPS, or to
both. NPS is only obligated to accommodate and explain actions taken on recommendations
forwarded by the Single Point of Contact, including comments from local officials. However,
NPS will take into consideration comments received from others.
b. In accordance with 43 CFR 9.9(c), State, area-wide, regional, and local officials and entities may
submit comments either to the applicant or to NPS if a State has not established a process, or is
unable to submit a consensus or State process recommendation. Before acceptance of such
comments, NPS procedures require verification that a State has no process or that notification
was given that a State process recommendation or consensus recommendation would not be
submitted.
c. Under 43 CFR 9.9(d), State, area-wide, regional and local officials and entities may also submit
comments either to the applicant or to NPS for a program or activity that was not selected for a
State process. Before acceptance of such comments, NPS shall require verification that the
program or activity has not been selected for the State's process.
d. The Single Point of Contact has the option to transmit a State process recommendation to NPS. If
a recommendation is transmitted, the Single Point of Contact must forward all comments from
State, area-wide, regional, and local officials and entities that differ. Comments that agree with
the Single Point of Contact recommendation need not be forwarded.
e. The State Single Point of Contact is not obligated to transmit comments from State, area-wide,
regional, or local officials and entities when there is no State process recommendation.
f.

If a State process recommendation is not transmitted, the Single Point of Contact may take one of
several actions: (1) forward the comments to NPS, (2) return them to the commenting parties, (3)
send them to the applicant, or (4) dispose of them.

7. The State Process Recommendation.
a. A State process recommendation is developed by the commenting State and local officials
participating in the State process. The recommendation can represent a consensus of all the
commenting parties, or it can represent one of various differing views among the parties. Further,
the recommendation can be formed even though all directly affected levels of government did not
comment on the proposed action. A State need not be a party to a State process recommendation.
b. A State process recommendation can also be developed on a proposed action when the program
or activity was not selected for coverage under the State process. State, area-wide, regional, and
local officials and entities may submit comments either to the applicant or to NPS.
c. Similarly, if a Single Point of Contact is unable to submit a State recommendation, State, areawide, regional, and local officials and entities may submit comments to the applicant or to NPS.

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d. In all instances, the State process recommendation must be transmitted by the Single Point of
Contact to ensure NPS responsiveness.
e. While a State process recommendation could potentially be prepared on each proposed HPF
action, it is expected that State and local officials will focus on those actions which have the
greatest interest or concern. This emphasis on priority matters will help raise the importance of
recommendations received by NPS and will commensurately reduce the paperwork at all levels of
government.
D. Federal Receipt of and Response to State Process Recommendations.
1. Comments. All views and comments received on a proposed action prior to reaching a final decision
will be considered by NPS. As detailed in Section C, above, these comments may be provided by the
Single Point of Contact, by an applicant (the SHPO), or directly to NPS by any of the commenting
parties.
2. NPS Response to State Process Recommendation.
a. When a State process recommendation is transmitted to NPS through the Single Point of Contact,
the NPS grant awarding official (the Intergovernmental Review Coordinator) can: (1) accept the
recommendation; (2) reach a mutually agreeable solution in the form of a compromise or
alternative with the State Process; or (3) provide the Single Point of Contact with a written
explanation of the decision not to accept the recommendation or not to reach an agreed upon
compromise or alternative.
b. The Intergovernmental Review Coordinator may supplement the written explanation to the Single
Point of Contact by telephone or other means.
c. If the State Process recommendation is not accommodated (under Section D.2.a., above), the
Intergovernmental Review Coordinator informs the Single Point of Contact that: (1) NPS will
not implement its decision for at least 10 working days after the Single Point of Contact receives
the explanation; or (2) the Intergovernmental Review Coordinator has reviewed the decision and
determined that, because of unusual circumstances, the waiting period of at least 10 days is not
feasible.
d. For purposes of computing the waiting period under Section D.2.c., above, a Single Point of
Contact is presumed to have received written notification 5 calendar days after the date of mailing
of the notification.
e. A copy of each written explanation of a nonaccommodation made shall be forwarded to the NPS
Intergovernmental Review Coordinator, and to the Department's Office of Acquisition and
Property Management at the time it is sent to the Single Point of Contact. The Office of
Acquisition and Property Management shall maintain a central file of all nonaccommodations.

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Chapter 5 - General Conditions Governing Grants
A. Purpose.
This Chapter summarizes the provisions of the Federal administrative and legal requirements which apply
to all Historic Preservation Fund grant awards.
1. Applicability. Federal assistance awarded under the Historic Preservation Fund grant program is
subject to the provisions of the National Historic Preservation Act, other Federal laws affecting grant
programs, Government-wide administrative requirements and cost principles, National Park Service
regulations and directives, the general conditions listed below, and amplified throughout this Manual,
and special conditions affixed to grant awards.
The principal Government-wide administrative requirements applicable to grants to States are OMB
Circular A-87, "Cost Principles applicable to Grants and Contracts with State and Local
Governments" (incorporated in Chapters 12 and 13), and A-102, "Uniform Administrative
Requirements for Grants-in-Aid to State and Local Governments." The administrative requirements
of Circular A-102 are incorporated in 43 CFR 12 and throughout this Manual.
For grants to the National Trust for Historic Preservation, comparable Governmentwide requirements
are OMB Circulars A-110, "Grants and Agreements with Institutions of Higher Education, Hospitals,
and other Nonprofit Organizations," and A-122, "Cost Principles for Nonprofit Organizations" (as
codified in 43 CFR 12.900).
2. Policy Intent. OMB Circulars stipulate that if the enabling legislation for a specific grant program
prescribes policies or requirements that differ from the standards provided in the Circular, the
provisions of the enabling legislation shall govern. Except where they are specifically excluded by
Federal legislation, the provisions of Circular A-102 as implemented through 43 CFR 12 shall be
applied to subgrantees or other third parties performing substantive work under grants that are passed
through or awarded by the grantee if the subgrantees are States, local governments or federally
recognized Indian tribal governments. The provisions of Circular A-110 shall be applied to
subgrantees that are institutions of higher education and public or private nonprofit corporations.
However, the HPF program-specific costs included in Chapter 13 shall be considered binding in
addition to the general costs specified in the applicable cost principles as allowable, unallowable, or
allowable with NPS approval. The submission of any grant application for HPF assistance will be
deemed by NPS to be the grantee's acceptance of the provisions of these Circulars and of the general
conditions listed in Section B, below.
In addition, the grantee agrees, as a recipient of this assistance, that it will meet the following specific
requirements and that it will further impose these requirements, and the terms of the grant agreement,
upon any subgrantee to which funds are transferred pursuant to the grant agreement. The grantee also
agrees that it shall be responsible for compliance with the terms of the grant agreement by its
subgrantees, including local governments, private organizations, or individuals; and that failure by
such government, private agency or individual to so comply shall be deemed a failure by the grantee
to comply with the terms of the grant agreement.

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3. Exceptions. The grantee is expected to inform NPS promptly if it has reason to believe it has failed to
receive any NPS directives or any attachments to the grant awards. Several of these provisions do not
represent invariable policies of NPS, and grantees may request exceptions when compliance would
cause unnecessary difficulties in carrying out the approved program. However, requirements found in
NPS-imposed grant conditions or directives may be waived only by a written notification signed by
the NPS grant awarding official. Any such waiver must be explicit. No waiver may be inferred from
the fact that the grant agreement is responsive to a grant application which may have contained
material inconsistent with one or more of these conditions.
4. Compliance. The States and National Trust for Historic Preservation, as grantees, are responsible for
administering and monitoring their own HPF-assisted activities as well as activities performed under
their subgrants and contractual agreements, including those of Certified Local Governments, to
ensure performance under the provisions of this Manual. HPF grant funds shall not be paid for any
work or activity that does not conform to the terms and conditions of the NPS Grant Agreement,
including the appropriate Secretary's Standards and the approved plans and specifications or other
specified scope of work. This prohibition also applies to costs of goods and services claimed as
matching share. Failure by any third party to comply with grant requirements shall be deemed a
failure by the grantee to comply with the conditions of grant assistance, and such grant funds are
subject to recovery. While the contractual agreement between the grantee and any third party should
include enforceable provisions allowing the grantee to recover such misapplied funds as may have
been disbursed, the grantee is responsible to NPS for repayment of such misapplied funds. Grantees
may, with NPS approval of an appropriate amendment request, reprogram and expend such funds for
other eligible program purposes if the 24-month term of appropriation availability has not expired.
5. Consequences of Noncompliance with Grant Conditions. In addition to such other remedies as may
be provided by law, in the event of noncompliance with any grant conditions, a) a grant may be
terminated or annulled pursuant to 43 CFR 12.83 for States, or to 43 CFR 12.962, for the National
Trust; b) grant-assisted work may be suspended; c) payment otherwise due to the grantee may be
withheld; d) an injunction may be entered or other equitable relief afforded on behalf of the United
States by a court of appropriate jurisdiction; or e) such other administrative or judicial action may be
instituted as may be legally available and appropriate. See Chapter 22.
6. Certification. A grantee may be prosecuted under Federal or State statutes for any false statement,
misrepresentation, or concealment made as part of a grant application or any grant-related
certification required by NPS. The penalty for false certification is prescribed in 18 U.S.C. 1001.
B. General Conditions.
1. Allowable Costs. Expenditures of the grantee may be charged to this grant only if they: a) are in
payment of an obligation incurred during the grant period, b) are necessary to the accomplishment of
approved grant objectives, and c) conform to appropriate Federal cost principles (see Chapter 12; also
see Chapter 13 which details allowable costs).
2. Audit. Each State will execute audits of grant expenditure records in accordance with the single audit
requirements of OMB Circular A-133 and 43 CFR 12.56, and Chapter 23 of this Manual.
Noncompliance may result in withholding of payments or other appropriate sanctions. Similar audit
provisions expressed in OMB Circular A-133 apply to the National Trust.

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3. Buy American Requirements. Congress believes that grant recipients should, in expending Federal
grant assistance, purchase only American-made equipment and products. The purchase of supplies,
equipment, and construction materials with HPF grant assistance must comply, to the greatest extent
practicable, with the requirements of 43 CFR 12, Subpart E (43 CFR 12.700-12.830). The grantee’s
designated awarding official is responsible for determining whether items are available from domestic
sources and that costs would be reasonable. When the State uses the exceptions specified in 43 CFR
12.710(d) and (e), and 43 CFR 12.715, it must document the situation in its files, but does not have to
obtain approval for an exception from NPS.
4. Civil Rights and Equal Opportunity. NPS grant-assisted programs and projects must be administered
in conformance with the Civil Rights Act of 1964, as amended, (42 U.S.C. 2000d-1); 43 CFR 17,
issued by the Department of the Interior; and Section 504 of the Rehabilitation Act of 1973, as
amended, (29 U.S.C. 794), which prohibits discrimination against the disabled. Title VI of the Civil
Rights Act of 1964 states that no person will, on the grounds of race, color, or national origin, be
excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination
under any program or activity receiving Federal financial assistance.
Department guidelines for Title VI compliance responsibility for grants and contracts are detailed in
Chapter 10. Every grantee is required to submit the SF 424B and/or SF 424D Assurances (see
Chapter 7, Exhibit 7-C) with its annual grant application. No grant awards may be made without an
Assurance of Compliance on file. If any real property or structure thereon is provided or improved
with the aid of Federal financial assistance, this assurance will obligate the grantee, or in the case of
any transfer of such property, any transferee, for the period during which the real property or structure
is used for a purpose for which the Federal financial assistance is extended (i.e., the period of the
preservation agreement or covenant). See also Discrimination in Employment Prohibited, Section
B.13, below.
Equal Opportunity Requirements. All activities assisted under the HPF grant program, whether
operated by the grantee or any of its subgrantees, or contractors are subject to the provisions below
(also see Chapter 10).
a. Title VI of the Civil Rights Act of 1964, 78 Stat. 241, as amended, which provides that no person
on the grounds of race, color, or national origin shall be excluded from participation in, be denied
the benefits of, or be subject to discrimination under any program or activity receiving Federal
financial assistance.
b. Real property acquired or developed with HPF assistance shall be accessible to all persons,
regardless of race, color, religion, sex, or national origin, who are otherwise eligible.
Discrimination on the basis of residence, including preferential reservation or membership
systems, is prohibited, except to the extent that reasonable differences in admission or other fees
may be maintained on the basis of residence.
c. All grant-assisted program literature must include the nondiscrimination statement prescribed in
Chapter 10, Section C.5.b.

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5. Coastal Barrier Islands. The Coastal Barrier Resources Act (16 U.S.C. 3501) prohibits any form of
direct or indirect Federal assistance for projects located on a coastal barrier island. HPF grant
assistance for construction (including predevelopment work) or acquisition purposes is prohibited on
any coastal barrier island under the Coastal Barrier Resources Act. Flood insurance for new
construction or for substantial improvements in coastal barrier islands is prohibited. See 47 Federal
Register 52388 for further information, including availability of maps identifying the Coastal Barrier
Resource System, which applies to Atlantic and Gulf Coast States. Note that the Secretary of the
Interior approved a general exclusion for HPF-assisted nonconstruction activities from being subject
to the funding restriction of the Coastal Barriers Act. This exclusion, dated March 24, 1983, was
made on the basis of Section 6, Part (6)(D) of that Act (see 16 U.S.C. 3605). The authority to review
and approve requests for exceptions under Section 6 for each proposed grant-assisted activity has
been delegated to the Assistant Regional Directors for Fish and Wildlife Enhancement of the U.S.
Fish and Wildlife Service.
6. Coastal Zone Management. The Coastal Zone Management Act of 1972, as amended, (16 U.S.C.
1451) prohibits Federal financial assistance to State or local governments which is inconsistent with
the requirements of an approved coastal zone management plan. Grantees of coastal States (including
Great Lake States) submitting HPF grant applications must certify consistency with the appropriate
State Coastal Zone Management Plan when proposed work is in a designated coastal zone (also see
Chapter 4, Section C.3.a.2). Further information may be obtained from the Office of Ocean and
Coastal Resource Management, National Oceanic and Atmospheric Administration, Department of
Commerce, 1305 East-West Highway, Silver Spring, Maryland 20910. Telephone: 301-713-3102.
(Also see 15 CFR 930.)
7. Conflict of Interest. See Chapter 3, Section C.
8. Contingent Fees. No person, agency, or other organization may be employed or retained to solicit or
secure a grant or contract upon agreement or understanding for commission, percentage, brokerage,
or contingent fee. For breach or violation of this prohibition the Federal Government shall have the
right to annul the grant without liability or, at its discretion, to deduct from the grant or otherwise
recover the full amount of such commission, percentage, brokerage, or contingent fee, or to seek such
other remedies as may be legally available.
9. Convict Labor. In accordance with Executive Order 11755, as amended by Executive Order 121608,
no person undergoing a sentence of imprisonment at hard labor shall be employed on any HPFassisted grant work. However, voluntary paid labor performed by prisoners who are on work-release,
parole, or probation does not fall under this prohibition. If the Attorney General of the United States
has certified that the work-release laws or regulations of the jurisdiction involved are in conformity
with the requirements of Executive Order 11755, as amended by Executive Order 12608, then
grantees and their contractors are not restricted from employing prison labor as long as any
exploitation of convict labor or any unfair competition between convict labor and free labor in the
production of goods or services is avoided.
10. Covenant or Letter of Agreement Requirements. Grantees are responsible for ensuring that covenants
and preservation agreements are executed prior to disbursement of funds to subgrantees for
Acquisition or Development projects. Covenants and preservation agreements must be written in
such a manner that they will be legally enforceable by the grantee (see Chapter 6, Section M).

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11. Disclosure of Information. Financial records, supporting documents, statistical records, and all other
records pertinent to a grant provided by NPS are subject to disclosure under the Freedom of
Information Act, 5 U.S.C. 552 (see Chapter 3, Section D.3.), as limited by Section 304 of the
National Historic Preservation Act.
12. Disability Nondiscrimination Requirements.
a. Nondiscrimination on the Basis of Disability. Section 504 of the Rehabilitation Act of 1973 as
amended, (29 U.S.C. 794 et seq.) requires that no qualified disabled individual is solely, by
reason of disability, excluded from participation in, denied the benefits of, or subjected to
discrimination under any program or activity receiving Federal financial assistance. HPF
grantees must operate their HPF-assisted program so that the program, when viewed in its
entirety, is readily accessible to and usable by qualified disabled persons. However, this
requirement for program accessibility does not necessarily require a grantee or subgrantee to
make each of its existing historic properties or every part of a particular historic property
accessible to and usable by qualified disabled persons. Methods of achieving program
accessibility for the HPF grant program are listed in 43 CFR 17.260, as well as a waiver
procedure. In addition, no qualified disabled person shall, on the basis of disability, be subjected
to discrimination in employment under the HPF program. For definitions and further guidance,
see 43 CFR 17.200 et seq. (Also see Chapter 10.)
b. Physical Accessibility for the Disabled. The Architectural Barriers Act of 1968, as amended (42
U.S.C. 4151 et seq.), and Section 502 of the Rehabilitation Act of 1973 as amended, (29 U.S.C.
792), require that buildings designed, constructed, or altered with Federal assistance be made
accessible to the physically disabled. These Acts also require that public conveyances, including
rolling stock, procured with the assistance of Federal funds be readily accessible to, and usable
by, physically disabled persons. While these provisions are usually not applicable to private
residences, all buildings or facilities owned or occupied by SHPO offices, which are intended to
be accessible to the general public, and which receive HPF grant assistance must comply with the
Architectural Barriers Act and the standards issued pursuant to that Act. (Refer to 36 CFR 1150
and 36 CFR 1190, and see Chapter 10, Section C.8-10.)
Minimum standards for public facilities are contained in "Specifications for Making Buildings
and Facilities Accessible to, and Usable by, the Physically Disabled" published by the American
National Standards Institute (see Appendix A to 41 CFR 101-19.6). Alternatively, State and local
governments may choose to follow the standards contained in Appendix A to 28 CFR 36 (the
Americans with Disabilities Act Accessibility Guidelines). These minimum standards must be
included in the specifications for any HPF-funded construction grant to the maximum extent
possible (consistent with the Secretary's Standards for the Treatment of Historic Properties). The
grantee is responsible for conducting on-site inspections to ensure compliance with these
specifications by any contractor performing construction work under the grant, and must address
compliance with these standards (when applicable) in the completion report submitted to NPS.
13. Discrimination in Employment Prohibited. In all hiring or employment made possible by or resulting
from grant awards, each employer a) will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, age, or national origin, and b) will take affirmative

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action to ensure that applicants are employed, and that employees are treated during employment
without regard to their race, color, religion, sex, age, or national origin. This requirement applies to,
but is not limited to, the following: employment, promotion, demotion, or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. (See Chapter 10.)
The grantee and its subgrantees will comply with all applicable statutes and Executive Orders on
equal employment opportunity, and grant awards will be governed by the provisions of all such
statutes and Executive Orders, including enforcement provisions, as implemented by, but not limited
to, Department of the Interior Policies, published in 43 CFR 17. (Also see Chapter 18.)
14. Dual Compensation. If an HPF grantee or subgrantee staff member or consultant is involved
simultaneously in two or more projects supported by any Federal funds, and compensation on either
project is based upon percentage of time spent, he or she may not be compensated for more than 100
percent of his/her time from any Federal funds during any part of the period of dual involvement.
15. Energy Conservation. Grantees must promote and achieve energy conservation in their HPF grant
operations. Grantees must utilize to the maximum extent practicable the most energy-efficient
equipment, materials, and construction and operating procedures available.
16. Environmental Impact. The National Environmental Policy Act of 1969, Public Law 91-190, as
amended, 42 U.S.C. 4321 et seq., established national policy goals and objectives for protecting and
enhancing the environment. The provisions of this law are applicable to activities supported in whole
or in part through HPF grants (refer to 40 CFR 6 and Chapter 11).
17. Examination of Records. The Secretary of the Interior and the Comptroller General of the United
States, or any of their duly authorized representatives, shall have access for the purpose of financial or
programmatic audit and examination to any books, documents, papers, and records of the grantee that
are pertinent to the grant at all reasonable times during the period of retention provided for in 43 CFR
12.82, or until all claims or audit findings have been resolved. OMB Circular A-110, as codified in
43 CFR 12.953, applies to the National Trust. (See Chapter 24)
18. Flood Insurance. The purchase of Flood Insurance required by Section 102(a) of the Flood Disaster
Protection Act of 1973 (28 U.S.C. 1400), as amended by the National Flood Insurance Reform Act of
1994, is applicable to acquisition or development projects. The amount of insurance required is the
total cost of the insurable improvement (excluding uninsurable facilities, such as bridges, dams,
underground structures, and excluding the cost of the land), or the maximum limit of coverage made
available under the National Flood Insurance Act, whichever is less. The required insurance premium
during the grant period is an allowable cost. The term of the insurance coverage will be for the length
of the economic or useful life of the property as defined, for the purposes of the HPF program, by the
term of the maintenance and administration covenant requirements. Whenever flood insurance is
available to cover a facility during construction the participant will obtain such coverage as soon as
the facility becomes insurable. Coverage is usually available as soon as construction progresses
beyond the excavation phase. Where a project includes an insurable improvement only as a small and
incidental portion of the total project, flood insurance is not required if the value of the insurable
improvement is less than $10,000. An example would be a combination project of which the total
project cost of $100,000 includes only $5,000 for insurable improvements. Flood insurance is not

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required on any State-owned property that is covered under an adequate State policy of self-insurance
satisfactory to the Federal Emergency Management Agency. The States currently approved for selfinsurance on State-owned properties are listed in 44 CFR 75.14.
Information concerning the applicability of this law to specific projects is obtainable from the Federal
Emergency Management Agency, Federal Insurance Administration, Office of Flood Insurance, 500
C Street, S.W., Washington, D.C. 20472 (telephone 1-800-638-6620). Refer to program guidelines in
44 CFR 59 et seq.
19. Floodplain Management. The grantee will comply with the provisions of Executive Order 11988,
relating to evaluation of flood hazards; Executive Order 11288, relating to the prevention, control,
and abatement of water pollution; and Executive Order 11990 relating to protection of wetlands (see
Chapter 11).
20. Lead-Based Paint. Section 401 of the Lead-Based Paint Poisoning Prevention Act as amended, (48
U.S.C. 4801 et seq.) prohibits the use of lead-based paint in residential structures constructed or
rehabilitated with Federal assistance. Grantees shall include provisions in all contracts and subgrant
agreements for construction work prohibiting the use of lead-based paint. Such paint is defined in 24
CFR 35.63 as "any paint containing more than six one-hundredths of one percent lead by weight in
the total nonvolatile content of the paint or the equivalent measure of lead in the dried film of paint
already applied."
21. Lobbying with Appropriated Funds. Historic Preservation Fund grants must conform to provisions of
18 U.S.C. 1913: "No part of the money appropriated by any enactment of Congress shall, in the
absence of express authorization by Congress, be used directly or indirectly to pay for any personal
service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended
or designed to influence in any manner a Member of Congress, to favor or oppose, by vote or
otherwise, any legislation or appropriation by Congress, whether before or after the introduction of
any bill or resolution proposing such legislation or appropriation; but this shall not prevent officers or
employees of the United States or its Departments or agencies from communicating to Members of
Congress at the request of any Member, or to Congress through the proper official channels, requests
for legislation or appropriations which they deem necessary for the efficient conduct of the public
business." Thus, costs associated with activities to influence legislation pending before the Congress,
commonly referred to as "lobbying," are unallowable as charges to HPF-assisted grants, either on a
direct or indirect cost basis. For nonprofit organizations, see Chapter 13, item D.25.
The cost of membership in the National Conference of State Historic Preservation Officers
(NCSHPO) is an allowable cost (see Chapter 13, Section B.30).
22. Political Activities. No expenditure of grant funds may be made for the use of equipment or premises
for political purposes, sponsoring or conducting candidate's meeting(s), engaging in voter registration
activity or voter transportation activity, or other partisan political activities. No officer or employee
of the State whose principal employment is in connection with any activity which is financed in
whole or in part with grant assistance shall take part in any of the political activity proscribed in the
Hatch Political Activity Act, 5 U.S.C. 1501, et seq., as amended, with its stated exceptions.

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23. Religious Institutions. Direct financial assistance for construction work on a church-owned property
is not allowable, nor are acquisition costs. For eligible grant-assisted activities such as National
Register nominations or architectural advice to religious institutions, see Chapter 6, Section E.3.
24. Relocation Assistance. Grantees must comply with the requirements of Title II and Title III of the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by
Title IV of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (42 U.S.C.
4601 et. seq.) which provide for fair and equitable treatment of persons displaced as a result of
Federal and federally assisted programs (see Chapter 20 of this Manual).
25. Safety Precautions. NPS assumes no responsibility with respect to accidents, illnesses, or claims
arising out of any work performed under a grant-supported project. The grantee is expected to take
necessary steps to insure itself and its personnel and to comply with the applicable local, State, or
Federal safety standards, including those issued pursuant to the National Occupational Safety and
Health Act of 1970 (see 20 CFR 1910).
26. Section 106 of the National Historic Preservation Act Requirements. Grantees will cooperate with
NPS and the Advisory Council on Historic Preservation to carry out provisions of Section 106 of the
Act and 36 CFR 800.
27. Special Conditions. The terms of the grant award may include standard and special provisions,
appearing on each Grant Agreement, that are considered necessary to obtain the objectives of the
grant, facilitate post-award administration of the grant, conserve grant funds, or otherwise protect the
interest of the Federal Government. Grantee noncompliance may cause disallowance of incurred
costs.
28. Timeliness of Project Work. Costs may not be incurred beyond the end date specified in the HPF
grant agreement approved by NPS. Once HPF funds are disbursed for a project, grantees will
complete the project according to the proposed scope of work, unless a scope of work amendment is
approved, in writing, by the NPS grant awarding official. (See 43 CFR 12.70(d) for States and 43
CFR 12.928 for the National Trust.)

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Chapter 6 - Grant-Assisted Program Activities
A. Purpose.
This Chapter describes program activities eligible for Historic Preservation Fund (HPF) grant assistance
to States, organized by " Program Areas," in accordance with the State Historic Preservation Officer's
(SHPO) responsibilities specified in Section 101(b)(3) of the National Historic Preservation Act, as
amended. The Program Areas are: 1) Administration; 2) Historic Preservation Planning; 3) Survey and
Inventory; 4) National Register; 5) Development, Acquisition, and Covenants; 6) Preservation Tax
Incentives; 7) Review and Compliance; 8) Local Government Certification; and 9) Other Program
Activities. Functional categories of assistance to the National Trust are described in Section R of this
Chapter. Chapter 6 should be used in conjunction with Chapter 7 which relates the Program Areas to the
annual grant application.
Sections F. through Q., below, describe for each Program Area: overall objectives, minimum
requirements, activities eligible for HPF grant assistance, and activities not eligible for HPF grant
assistance. These sections are to be read in conjunction with Sections C, D, and E, below. Section C
describes general minimum requirements for grant-assisted activity. Section D describes eligible grantassisted activities. Section E describes activities that are not eligible for HPF grant assistance. In
addition, refer to the Secretary of the Interior's "Standards for Archeology and Historic Preservation";
allowable costs (see Chapter 13); matching share requirements (see Chapter 14); amendment
requirements and procedures (see Chapter 15), and reporting requirements (see Chapter 25). Refer to the
Glossary for definition of terms.
B. Applicability.
An activity is either eligible or not eligible for HPF grant assistance regardless of whether it is conducted
by personnel under the supervision of the State Historic Preservation Officer, or delegated by contract,
subgrant, or cooperative agreement to other State agencies, local governments, public or private
organizations, or individuals.
C. General Requirements for Grant-Assisted Activity.
This section details requirements that must be met by HPF grant-assisted State programs. This section in
conjunction with Sections F through Q contains the requirements for each Program Area.
1. Activities Directly Related to the Identification, Evaluation, Registration, Treatment and Protection of
Resources.
As a general rule, eligible HPF-assisted State activities must directly relate to the identification,
evaluation, or protection of historic and archeological resources. More specifically, eligible activities
must help achieve the responsibilities of the State Historic Preservation Officer described in the Act
(see Chapter 3) and defined in this Chapter.
2. Cost Principles and Allowable Costs.
Eligible activities must be allowable in accordance with applicable Cost Principles (Chapter 12) and
Standards for Allowability of Costs (Chapter 13). Activities that are otherwise eligible must be
conducted in accordance with Federal fiscal, program, and project standards stipulated in the Historic
Preservation Fund Grants Manual and the grant agreement in order to remain allowable.

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3. Qualified Staff.
The State Historic Preservation Office must maintain a staff that meets the pertinent professional
qualification requirements described in 36 CFR 61. See Chapter 3, Section B.3.
4. Activities Performed or Reviewed by Qualified Staff.
Identification, evaluation, and treatment activities supported by HPF or matching funds must be
conducted, or supervised, or reviewed by an appropriately qualified professional.
"Appropriately qualified professional" refers to the historic preservation professional who meets the
Secretary’s “ Professional Qualification Standards” for the relevant discipline. States may meet this
requirement in one of two ways:
a. those staff members (or subgrantees) conducting or reviewing the work and making final
recommendations meet the professional qualification standards, or,
b. a staff member meeting the professional qualification standards for the appropriate discipline
reviews the recommendations of the staff reviewer of record and certifies the recommendation.
When the work affects more than one type of resource, separate reviews by appropriately
qualified staff members are required and must be separately documented (e.g., an archeologist
must review work involving archeological resources).
Note: Other professionals with preservation expertise not possessed by staff may also be needed
to successfully review, evaluate, conduct, or supervise planned work (for example, seismic
retrofitting would logically require consulting a structural engineer).
5. Secretary of the Interior’s “Standards” Applied.
As a general rule, work supported by HPF or matching share, or reported in the End-of-Year Report
must meet the Secretary's “Standards.” These include: 1) Standards and Guidelines for Preservation
Planning, 2) Standards and Guidelines for Identification, 3) Standards and Guidelines for Evaluation,
4) Standards and Guidelines for Registration, 5) Standards and Guidelines for Historical
Documentation, 6) Standards and Guidelines for Architectural and Engineering Documentation, 7)
Standards and Guidelines for Archeological Documentation, 8) Standards for the Treatment of
Historic Properties, 9) Standards and Guidelines for the Rehabilitation of Historic Buildings, and 10)
Historic Preservation Professional Qualification Standards. See the Appendices.
States must document that grant-assisted work meets the Secretary’s “Standards” and other Historic
Preservation Fund Grants Manual requirements. Adequate documentation for this requirement is an
official written record verifying who on the staff conducted the review, and/or wrote the opinion or
recommendation; what the final opinion or recommendation was; and the date of the review, opinion,
and/or recommendation. When an opinion pertains to more than one type of resource, and if staff
members meeting the professional qualifications in different disciplines review the eligibility of the
resource, each review must be documented. When individual reviewer opinions differ, the final
decision must be clearly apparent. State offices may include this information in the appropriate
project files or maintain a central file or logging system which references the project file. This
documentation may take the form of written notes, use of a pre-printed stamp or review sheet,
memoranda to files, or copies of letters.

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6. National Register Criteria Applied.
National Register Criteria for Evaluation must be applied consistently. See Section I (National
Register Program Area), Section O (Review and Compliance Program Area), and Section N
(Preservation Tax Incentives Program Area) for specific details of applicability. See National
Register Bulletin 15, "Guidelines for Applying the National Register Criteria for Evaluation." For
further guidance in assessing the eligibility of less than 50-year-old properties, see National Register
Bulletin 22, "Guidelines for Evaluating and Nominating Properties That Have Achieved Significance
Within the Last Fifty Years." See National Register Bulletin 16 for a general discussion of historic
contexts, and other Bulletins such as 13, 18, and 32 for information about contexts related to
particular property types or National Register Criteria.
a. The Eligibility Review Must Be Adequately Documented. See Section C.5 above.
It must be clear from the file what the State's opinion/recommendation was. States must make
one of the following determinations for each resource, in response to Federal agency requests for
opinions on National Register Eligibility:
1) The property (or properties) meets one or more National Register Criteria for Evaluation; or
2) The property (or properties) meets none of the National Register Criteria for Evaluation; or,
3) There is not enough information on which to base an opinion on whether or not the property
(or properties) meets any of the National Register Criteria for Evaluation.
b. Opinions Must Be Based On Minimum Documentation. States shall ensure that at least the
minimum level of documentation listed below is the basis for all responses to Federal agency
requests (i.e., opinions that the property is eligible, that it is not eligible, or that there is not
sufficient information to determine National Register eligibility). The necessary amount of
documentation for an evaluation will vary depending upon the situation. At a minimum,
however, each decision must be based on:
1) A pictorial or written description sufficient to convey accurately the current appearance and
condition of the property, in order to permit an assessment of integrity to be made; and
2) A statement of significance or non-significance with sufficient historic context to make an
evaluation of National Register eligibility.
If there is not enough information to determine a property's National Register eligibility, the
file documentation should explain what is missing that prevents the evaluation of National
Register eligibility. State files must include (or cross reference) the information that was the
basis for the evaluation.
7. Technical Assistance.
It is a requirement under the Act that each State provide technical assistance. The amount of
technical assistance provided and in what Program Area(s) is left up to the State. Each State office
should make its best efforts at providing technical assistance to the public given its available
resources. See Section D.1., below, for a brief discussion of eligible technical assistance activities.

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8. Public Participation.
It is a requirement under the Act that each State involve the public in its preservation program. The
amount of public participation involved is left up to the State, as long as NPS program requirements
are met (see Sections G and I, below). Each State office should make its best efforts to involve the
public in all aspects of its preservation program given its available resources. See Section D.2.,
below, for a brief discussion of eligible public participation activities.
9. Public Education.
It is a requirement under the Act that each State provide public education. The amount of public
education provided and in what Program Area(s) is left up to the State. Each State office should
make its best efforts to provide public education given its available resources. See Section D.3.,
below, for a brief discussion of eligible public education activities.
10. Section 106.
All grant-assisted historic preservation projects must be carried out in accordance with the
Programmatic Agreement between the Advisory Council on Historic Preservation and the National
Park Service to ensure each State's compliance with Section 106 of the National Historic Preservation
Act, and with the applicable Secretary of the Interior's Standards.
D. Eligible Grant-Assisted Activities.
This section describes activities which may be accomplished with HPF grant assistance.
1. Technical Assistance.
Technical assistance is an eligible activity for any Program Area. See Section C.7., above. Technical
assistance means the development of skills or the provision of knowledge of the background,
meaning, operation, or implications of some aspect of historic preservation. This includes the SHPO
staff providing assistance to anyone who is not a part of the SHPO staff; such as, subgrantees, CLGs
and other local governments, State or Federal agencies, the public, etc. Issuance of previously
prepared material, by itself, does not constitute technical assistance; there must be some significant
action added. For example, mailings of brochures, forms, or publications would not count as
technical assistance, because they do not ensure that recipients have an understanding of what was
sent out. On the other hand, answering an inquiry on how to fill out a survey form or a discussion on
mortar analysis would constitute technical assistance. For subgrantees, assistance that strengthens
their capacity to plan, implement, evaluate, and manage their subgrants would qualify as technical
assistance as long as the assistance is substantive as described above.
2. Public Participation.
Public participation is an eligible activity in any Program Area. See Section C.8., above. Public
participation includes, but is not limited to: (1) encouragement of broad participation in the State's
implementation of the Act, (2) public participation in the grantee's open project selection process, and
(3) organizing and participating in public meetings or workshops on developing the State Plan. (See
Chapter 8, Section C, and Chapter 13, Section B.36.)
3. Public Education.
Public education is an eligible activity in any Program Area. See Section C.9., above. Public
education includes, but is not limited to: (1) activities to increase overall public awareness of
technical preservation methods and techniques having application to historic and archeological
properties, (2) dissemination of information to promote working relationships with the public and
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private sectors to achieve HPF grant objectives, (3) explanation of historic preservation planning
and/or the goals of the State Plan to State and local governments and to public or private audiences
throughout the State; and (4) dissemination of the results of grant-funded work, including explanation
of accomplishments, problems, and issues directly related to grant-assisted activities to the State
preservation constituency. In addition, refer to Chapter 13, items B.36, B.37, and B.49 for applicable
allowable costs.
4. HABS/HAER Documentation Programs.
See Glossary for definition. See also the documentation standards in the Secretary of Interior's
"Standards for Archeology and Historic Preservation," in the Appendices. Grantees may provide
HPF assistance for conducting historical research and developing documentation for the
HABS/HAER programs in the same manner as any other subgrant awarded in accordance with the
grantees' annual grant for Federal Assistance. Grantees may also enter into agreements for
HABS/HAER projects, but, as with any subgrant, grantees must ensure that costs charged to the
project are eligible for payment. (Some ineligible costs are listed in Section E below.) The model
Memorandum of Agreement in Exhibit 6-D may be used as a framework. Article V provides for
documentation that will allow the grantee to assess whether claimed costs are eligible for payment.
The Memorandum of Agreement does not substitute for the Project Notification or any other
requirements involving grant funds to third parties. The asterisked items in Exhibit 6-D must be used
in all MOAs. See Exhibit 6-C for Historic Structure and Historic Landscape Report Format. Most
often HABS/HAER documentation will occur in the Survey, Development, or National Register
Program Areas.
The standards for HABS/HAER documentation appear in the Secretary of the Interior's “Standards
and Guidelines for Archeology and Historic Preservation.” Additional guidelines for documentation
can be found in "Guidelines for Inventories of Historic Buildings and Engineering and Industrial
Structures," "Photograph Specifications for Contract Photographers," "Field Instructions," Field
Instructions for Measured Drawings," and the "Historian's Procedural Manual," all available from the
HABS/HAER Division in Washington, D.C.
5. Joint Projects with Other State.
Joint projects with other States are eligible for grant assistance if they meet all of the requirements for
grants in the Historic Preservation Fund Grants Manual.
6. Nonconstruction Grant Assistance to Churches and Church-owned Property.
Non-monetary, technical, or nonconstruction assistance to a church that is carried out in the same
manner as it would be for a secular property is allowable. See Ineligible Construction Costs on
Churches and Church-owned property in Section E.3., below.
7. Certified Local Governments.
See Glossary for definition. Technical and financial assistance to Certified Local Governments
(CLGs) to carry out historic preservation activities is an eligible activity in most program areas. The
Certified Local Government Program Area is limited to the certification of local governments and
CLG quality control; activities performed with CLG subgrants will usually appear in the applicable
Program Area (e.g., Survey and Inventory)..

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8. Development, Selection, Monitoring, and Administration of Subgrants.
The development, selection, monitoring, and administration of subgrants are eligible activities in
most program areas.
9. Collection and Tracking of Data.
The collection and tracking of data is an eligible activity in any program area.
10. Feasibility and Other Property-Specific Studies or Reports.
Feasibility studies and other property-specific reports may be funded only if the property is listed in
the National Register, or considered eligible for listing in the National Register. The study or report
project must include a significant element that fosters the identification, evaluation, or treatment of
National Register properties.
E. Ineligible Grant-Assisted Activities.
This section describes activities which are ineligible for HPF grant assistance.
1. Federal Agency Responsibilities.
Neither HPF nor matching share shall be used, either through contract, subcontract, or State staff
effort, to undertake planning related activities of Federal agencies or their designees, or activities
associated with mitigation responsibilities of Federal, State, or local agencies which are the
responsibility by law under Section 110(a) of the Act of the Federal agency. See Chapter 13, Section
D.14. and D.28.
2. Mitigation Activities.
Mitigation activities performed as a condition or precondition for obtaining a Federal permit, license,
or funding by other Federal programs are not eligible activities. See Chapter 13, Section D.28.
3. Unallowable Grant Assistance to Churches and Church-owned Property.
Because of the Justice Department’s policy concerning the Constitutional issue of separation of
Church and State, construction repair costs, or real property acquisition costs are not allowable costs
or matching share for HPF grants. Predevelopment costs such as architectural plans and
specifications or condition assessments are allowable.
4. Fulfillment of Covenant Requirements.
Grant funds may not be used for fulfillment of the covenant requirements (maintenance and public
access). Responsibility for enforcement of a covenant lies with the grantee as a requirement and
condition of having received HPF grant assistance. After completion of the project work and closeout
of the grant, the only continuing relationship connected to the grant is the responsibility of covenant
enforcement. See Section M, below, for more information on covenants and preservation agreements.
5. Unallowable Costs.
Activities whose costs are cited as unallowable in Chapters 12 and 13 are ineligible, as are those
requiring prior NPS approval if that approval is not secured. See Chapter 13.
6. Reimbursement of Services by Federal Agencies.
Section 110(g) of the Act authorizes Federal agencies to reimburse SHPOs for their services. If a
Federal agency and a SHPO agree that the SHPO will undertake preservation activity on the agency's
behalf, such services must be paid for using funds provided by the agency and not HPF funds or
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allowable matching share. Federal mitigation money cannot be used to match other Federal money
(e.g., HPF funds), but the results may be reported in the Cumulative Products Table. (See Chapter 7,
Exhibit 7-E.)
Note: If a contractual arrangement is made between the State and a Federal agency, care must be
taken to ensure that no conflict of interest arises (either as an individual or as part of the office)
between the persons actually performing the work and the person, persons, or office reviewing and
approving it.
7. HABS/HAER Projects.
Costs incurred by Federal officials supervising or otherwise administering an eligible HABS/HAER
project (see Section D.4, above) are not allowable for HPF grant assistance. However, salaries and
expenses incurred by Federal employees who are considered to be "temporary limited employees" are
allowable. See also Chapter 13, Section D.18.
8. Interpretation.
The cost associated with developing or carrying out an interpretive program for a grant-assisted
historic property is not an allowable Development cost (but see Public Education, Section D.3,
above). This restriction does not include Project Signs, which are required. (See subsection
K.2.b.(3), below, and Chapter 13, Section D.24.)
The HPF grant program will not pay for on-going Public Education efforts such as the operation of a
house museum. Thus, HPF funds could be used for a development project to rehabilitate a house
museum, or for a grant to prepare a videotape to educate the public on the historical or architectural
significance of the house museum, but may not be used to pay the utility costs of, or staff costs for,
operating the house museum.
9. Curation Beyond Project End Date.
Costs of curation after the end date of the HPF grant which funded the survey work that discovered
the artifacts is not an allowable HPF grant cost. See Chapter 13, Section D.11.
10. Property-Specific Studies and Reports.
Feasibility studies or other property-specific studies or reports are not eligible for HPF or matching
share funding unless the property is National Register listed, National Register eligible (and the
requirements of Section K.2.a. are met), or the study or report project includes a significant element
fostering the identification, evaluation, or treatment of National Register eligible properties
elsewhere.
F. Administration Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the Administration Program Area.
The Administration Program Area contains activities pertinent to budget formulation and execution,
personnel management, finance, property management, equal opportunity, and other "overhead"
functions not directly attributable to the Program Areas described below. Administration costs
charged to the HPF grant or nonfederal matching share must be directly related to managing the HPF
activities of the SHPO. See Chapter 13 for allowable costs.
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2. Requirements. See the General Requirements for Grant-Assisted Activities in Section C, above.
3. Eligible Activities. In addition to the activities discussed in Section D, above, eligible activities for
the Administration Program Area include:
a. Preparation of personnel payroll,
b. Audits,
c. Collection, storage, and retrieval of management information when such activities are not part of
a specific project, but are a means of central administrative control,
d. Administrative and support services (parallel to those listed above) not directly related to the
functioning of the State Review Board, and
e. Other eligible services or activities that are required by Federal or State law or regulation which
are pertinent to central direction, monitoring, reporting, and management support of the Program
Area activities described in this Chapter.
4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E, above,
the following limitations apply to the Administration Program Area:
In accordance with Section 102(e) of the Act, HPF funding in this Program Area may not exceed 25%
of the annual award. See Chapter 13, Section B.3, for further explanation of this limitation.
G. Historic Preservation Planning Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the Historic Preservation Planning Program Area and specifically the Comprehensive
Statewide Historic Preservation Plan required by Section 101(b)(3)(c) of the Act.
Comprehensive Statewide Historic Preservation Planning (hereafter Preservation Planning) is the
rational, systematic process by which the State Historic Preservation Office develops a vision and
goals for historic preservation throughout the State. The SHPO seeks to achieve that vision through
its own actions and through influencing the actions of others. The vision and goals are based on
analyses of resource data and user needs.
The SHPO's statutory planning responsibility entails the organization of preservation activities
(identification, evaluation, registration, and treatment of historic properties) into a logical interrelated
sequence so that effective and efficient decisions and/or recommendations can be made concerning
preservation in the State. The Secretary of the Interior's "Standards for Archeology and Historic
Preservation," which include the "Standards for Preservation Planning," (see the Appendices) provide
additional explanation on how SHPO responsibilities for Historic Preservation Planning can, in part,
be carried out.
In contrast to the Statewide Historic Preservation Planning activities discussed in this section, SHPO
office administrative or management planning is carried out under the Administration Program Area.

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2. Requirements. In addition to the General Requirements for Grant-Assisted Activity discussed in
Section C, above, the following requirements apply to the Historic Preservation Planning Program
Area:
a. Each SHPO shall develop a Comprehensive Statewide Historic Preservation Planning Process
that: (1) meets the circumstances of each State; (2) achieves broad-based public and professional
involvement throughout the State; (3) takes into consideration issues affecting the broad spectrum
of historic and cultural resources within the State; (4) is based on the analyses of resource data
and user needs; (5) encourages the consideration of historic preservation concerns within broader
planning environments at the Federal, State, and local levels; and (6) is implemented by SHPO
operations.
b. Each SHPO shall develop and update (as necessary) a written Comprehensive Statewide Historic
Preservation Plan (hereafter State Plan) which describes a vision for historic preservation in the
State as a whole and outlines future direction for the State Historic Preservation Office.
The State Plan is used by the State Historic Preservation Office and others throughout the State
for guiding effective decision-making on a general level, for coordinating Statewide preservation
activities, and for communicating Statewide preservation policy, goals, and values to the
preservation constituency, decision-makers, and interested and affected parties across the State.
As such, the State Plan is not an office management plan for the SHPO office. The State Plan
provides direction and guidance for general-level decision-making, rather than serving as a
detailed blueprint for making place-specific or resource-specific decisions. This level of detail is
typically found in other documents, such as historic context documents, research designs, survey
reports, etc.
1) The State Plan shall be a single, concise, printed document. The State Plan may be a
component of a larger plan. The length or format of the State Plan is not prescribed. (Note:
A "concise" State Plan contains the appropriate level of detail to communicate the major
findings and conclusions, but not the raw data or technical analyses that led to those
conclusions.) If the State is experiencing financial limitations such that hard copy printing is
not feasible, “printing” the State Plan only on the SHPO’s web site is acceptible provided that
the following conditions are also met:
a) The Plan’s availability on the web must be announced and/or advertised widely and
provisions made for those without web access to request and receive hard copies of the
Plan. This announcement or advertisement should include the web URL for the Plan and
contact information for requesting a hard copy. Examples of an announcement might
include an advertising card, conspicuous notice in the SHPO’s newsletter, brochure with
Plan highlights, or poster with Plan highlights.
b) It must be easy for the web visitor to find the Plan on the web site, to navigate through it
(e.g., no large image files), and to download and print it.
c) It must be easy for those without web access (as well as the web visitor) to request and
receive a hard copy of the State Plan.

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2) The State Plan shall be developed in such a way as to encourage Statewide public and
professional involvement, and be distributed to a wide range of public, private, and
professional organizations and groups throughout the State, as well as to other potential users.
To be effective and achievable, the State Plan must be developed, implemented, and revised
with the active involvement of a wide range of public, private, and professional
organizations. It is not sufficient to consult only with preservation professionals and
Statewide or local preservation organizations. The State must consult as widely and broadly
as necessary to meet this requirement and to encourage broad-based acceptance or familiarity
of the State Plan throughout the State, particularly by those groups, constituents, and
organizations that have the greatest potential to affect historic and cultural resources.
A specific list of public and professional groups or organizations is not prescribed; whatever
meets this standard and the circumstances of each State's planning environment, as
determined by the State, meets the requirements. However, not requiring the involvement of
specific public groups does not relieve the SHPO from complying with other Federal and
State regulations or requirements for public participation.
States are encouraged to consider the following groups, but this is not a requirement:
preservation professionals and others who have interest or expertise in historic preservation;
Federal, State, and local government planners who may be the primary users of the State
Plan; elected officials and others whose decisions affect or have the potential to affect historic
resources; individuals and groups who may be affected by the planning process and Plan;
American Indians, Alaska Natives, and/or Native Hawaiians; Certified Local Governments;
minority groups and the disabled; and, others, such as those who play key roles in shaping
public opinion.
3) The State Plan shall address, at a general level, the full range of historic resources within the
State, including buildings, structures, objects, districts, and sites, including prehistoric
archeology and historical archeology.
Data on historic resources that are used to develop and revise the State Plan are derived from
a variety of sources. Specific data sources are not prescribed. At a minimum, however, the
SHPO must use historic resource data and information that have been identified and assessed
in accordance with the Secretary of the Interior's "Standards for Preservation Planning" in
developing and revising the State Plan. The SHPO will determine the balance between
different data sources most useful to the unique planning environment in which it must
operate.
The SHPO must continue developing and/or updating historic resource data and information
to provide up-to-date information for use during plan development, implementation, and
revision.
A State may have any number of supporting resource-specific plans, such as separate plans
for archeology, for historic buildings, for anthropology and ethnographic resources, and for
maritime resources. Nonetheless, the State Plan must be a single document that addresses all
historic resources in the State. It is not required, however, that the State Plan address every
individual historic property type within the State. SHPOs have the discretion to determine
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what specific property types (if any, and whether that level of detail is desired) will be
addressed in the State Plan based on the needs and circumstances in each State.
4) The State Plan shall contain, at a minimum, the following elements or sections:
a) a summary of how the State Plan was developed, including a brief description of how the
public participated;
b) a summary assessment of the full range of historic and cultural resources throughout the
State; including current important issues facing historic preservation, threats and
opportunities, and the current state of knowledge about historic and cultural resources or
classes of historic resources throughout the State;
c) guidance for the management of historic and cultural resources throughout the State, such
as is typically expressed in policies, strategies, goals, and objectives, that provide a vision
for the State as a whole, and a direction for the SHPO office;
d) the time frame of the State Plan (or "planning cycle"), including when the State Plan is
next scheduled for revision or review; and,
e) a bibliography of special studies and other support documents used in preparing the State
Plan.
5) A SHPO that is required by State law or gubernatorial directive to produce a statewide
historic preservation plan covering the responsibilities of the office will not be required to
produce another, separate plan specifically for NPS approval, provided that the minimum
requirements for this program area are met. The SHPO is encouraged to incorporate, to the
extent possible, the minimum requirements for this program area into the plan prepared under
State requirements. The SHPO must submit this State-required plan for approval in
accordance with Section G.2.c., below. If State planning requirements omit one or more
requirements of this section, the SHPO is still expected to meet the minimum requirements of
this section. In this case, the SHPO must contact NPS to discuss alternative approaches for
ensuring these requirements are met.
c. NPS Approval of the State Plan.
1) A completed final draft State Plan must be submitted to NPS for approval.
2) The SHPO will mail the final draft State Plan, to NPS, accompanied by a transmittal letter
signed by the State Historic Preservation Officer, or his/her written designee, requesting
approval in conformance with the requirements of this section.
3) The final draft State Plan will be reviewed for conformance with this section, with the Act,
and with the Secretary of the Interior's "Standards for Archeology and Historic Preservation."
4) No later than 45 calendar days after the receipt of the final draft State Plan, NPS must provide
a written response to the SHPO. The response may be an approval, an identification of the
requirement(s) not met, or a denial of approval. A denial of approval may only be issued
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after NPS has made good-faith efforts to identify the requirement(s) not met and to discuss
differences with the SHPO without a satisfactory conclusion. If the response identifies
requirements that have not been met, the SHPO must address it (them) and resubmit a revised
final draft State Plan for approval (unless an appeal process is under way), initiating a
separate 45-day review period.
5) If the SHPO does not receive a written response from NPS within 60 days, the SHPO and
NPS will consider the State Plan approved.
6) In addition to the requirements above, after the approved State Plan has been produced in
final, SHPOs must send two (2) copies of the Plan to NPS. When the State Plan is “printed”
only on the SHPO’s web site, this requirement can be satisfied by providing two copies of the
Plan announcement(s) or advertisment(s) and the web URL. The NPS Planning Program web
site will link to the SHPO web page concerning the State Plan.
d. NPS approval of the revision of an approved State Plan.
1) When the State Plan approved under these requirements is revised at the conclusion of its
planning cycle, NPS views this revised State Plan as a new document that must meet the
requirements of this section and be approved by NPS according to the procedure outlined in
this section.
2) An approved revised State Plan must be in place at the expiration of the original Plan's
planning cycle, or at a minimum, prior to the SHPO's submission of the HPF Annual Grant
application for the next fiscal year following the expiration of the planning cycle. The
Annual Grant application must cross-reference an approved State Plan. See Chapter 7,
Section C.1.k., on the annual application narrative, and Chapter 25, Section D.1.b., on the
Project/Activity Database.
3) If a State Plan's planning cycle ends without an approved revised State Plan, the
consequences will be the same as if the revised State Plan was denied approval.
e. Appeals. SHPOs may appeal any decision of NPS regarding approval or denial of approval of
State Plans directly to the Director, National Park Service. Appeals must be in writing and signed
by the State Historic Preservation Officer or his/her written designee. NPS will act on all
complete appeal requests within 30 calendar days of receipt, and will respond in writing.
f.

Implementing the Approved State Plan. Each SHPO shall ensure that, in general, HPF
expenditures and matching share are used to implement the State Plan. One of the major
purposes of the State Plan is to guide decision-making about HPF expenditures. In general, there
must be a significant and demonstrable correlation between State Plan goals, objectives, and tasks
and SHPO expenditures of HPF funds, as reflected in the documents of the SHPO's Annual Grant
cycle (see Chapter 7). There is no fixed ratio between HPF-funded activities undertaken to
achieve goals in the State Plan and other related SHPO activities. SHPO operations (specifically
those funded by the HPF or used as allowable matching share) should, when viewed in the
aggregate, move towards achieving the goals and objectives of the State Plan.

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There need not be a complete one-to-one correlation between every activity or project undertaken
with HPF assistance and the State Plan. Many activities may be exclusively State-funded, and
emergency and unanticipated situations will always arise. The SHPO has the latitude to handle
these situations, even if they are not a key element of the State Plan. If unforeseen circumstances
result in a low correlation between State Plan goals and objectives and SHPO expenditures of
HPF funds (as reflected in the documents of the SHPO's Annual Grant cycle) over a prolonged
period of time (generally more than one year), the SHPO will be expected to take action to
resolve this discrepancy. NPS is willing to work with the State to identify strategies to resolve
the problem.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, eligible activities in the Historic Preservation Planning Program Area include:
a. Planning Process Design and State and Local Plans. Developing, conducting research on,
designing or carrying out a planning process, or providing support for the development of a
planning process design, the State Plan, or other historic preservation or cultural resource
management plans at a regional or local level.
b. Planning Studies, Historic Contexts, etc. Developing, gathering, and analyzing data used to
develop planning studies, including historic contexts, theme studies, issues analyses,
questionnaires, forecasts of social, economic, political, legal, environmental, and other factors
that may affect historic preservation in the State.
c. Ordinances, Regulations, Standards, etc. Developing, or providing support for the development
of, ordinances, regulations, standards, and guidelines that support State, regional, or local plan
goals.
d. Advanced Planning Technologies. Developing, purchasing, adapting, or implementing advanced
planning/computer technologies and applications to further comprehensive statewide historic
preservation planning program goals [e.g., computer mapping and analysis technology such as
Geographic Information Systems (GIS)].
e. Printing of Plans. Printing and distributing plans, planning studies, ordinances, regulations,
guidelines, or similar documents.
f.

Reviews. Reviewing or commenting on State, local, Federal, or private-sector historic
preservation plans or historic preservation components of plans for compatibility with the State
Plan or with State law. See Chapter 7, Exhibit 7-E for how to report reviews of plans made
pursuant to Review and Compliance activities. See Section O.3, below, on eligible Review and
Compliance activities.

g. Compliance with State or Local Planning Laws. Activities undertaken pursuant to State or local
planning laws, regulations, or ordinances, provided that the laws, regulations, and ordinances are
not inconsistent with the Secretary's "Standards for Archeology and Historic Preservation." For
instance, activities are eligible when undertaken in conformance with a State planning law that
requires State Office review of local comprehensive plans for protection of historic resources.
4. Ineligible Activities. See the Ineligible Grant-Assisted Activities listed in Section E, above.
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H. Survey and Inventory Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the Survey and Inventory Program Area. Survey is activity directly pertinent to the
location, identification, and evaluation of historic and archeological resources. Inventory activity
relates to the maintenance and use of previously gathered information on the absence, presence, and
(c) of historic and archaeological resources within the State.
2. Requirements. In addition to the General Requirements for Grant-Assisted Activities discussed in
Section C, above, the following requirements apply to the Survey and Inventory Program Area.
a. All surveys funded by HPF grant monies or used as allowable matching share must meet the
Secretary of the Interior's "Standards for Identification," that is:
1) Be undertaken to the degree necessary to make decisions (Standard I).
2) Be conducted according to research designs, which specify the objectives, methods, and
expected results of the survey (Standard II).
3) Produce final survey reports, which summarize the design and methods of the survey, provide
a basis for others to review the results, and state where information on identified properties is
located (Standard III).
b. HPF assisted surveys, or any survey whose costs are contributed as nonfederal matching share,
must be designed to lead to nominations of significant properties to the National Register (or to a
determination of eligibility if the owner objects).
c. Assisted activity must produce data to the State Historic Preservation Office that can be readily
integrated into the State's Comprehensive Statewide Historic Planning Process.
d. States must maintain an inventory of properties surveyed including survey reports, inventory
forms, and research designs.
e. State inventory activities funded by HPF grant monies or used as allowable matching share must
meet the Secretary of the Interior's "Standards for Evaluation." Each State must be able to
document that these inventoried properties are:
1) Evaluated against established criteria, which, for the purpose of the National Register
Programs, means the National Register criteria (Standard I).
2) Evaluated within an appropriate historic context (Standard II).
3) Accompanied by sufficient information on which to base decisions about subsequent
preservation actions (Standard III).
4) Recorded in a manner that is accessible to the public (Standard IV).

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Additional Reports and other Documentation for Archaeological Resources.
1) Appropriate site inventory forms, maps, sketches, profiles, and field notes must be completed
to record information about the archeological site(s) being investigated and the methods and
techniques being employed.
2) Copies of the site inventory forms must be provided to (and maintained by) the SHPO.
3) A written report (of all results of the investigation) that meets contemporary professional
standards, the Secretary’s Standards for Identification, and the requirements of Chapter 25
must be prepared, and copies provided to (and maintained by) the SHPO and made available
to other potential users, subject to Section 304 of the Act.
4) For any subsequent phase involving development work on the site, the grantee will briefly
summarize in the subsequent subgrant file (and Project Notification, if applicable) pertinent
archeological information developed as a result of the investigation or testing of the site.

g.

Curation.
1) Archeological collections and accompanying data and records must be curated in a repository
meeting contemporary professional standards, the Secretary's "Standards for Archeology and
Historic Preservation," and 36 CFR 79 except when other disposition is required by 43 CFR
10, the regulations for the Native American Graves Protection and Repatriation Act (25
U.S.C. 3001). However, the costs of ongoing curation are not allowable for HPF grant
assistance (see Chapter 13, item D.11.)
2) When archeological collections are to be removed from State, county, municipal, or private
property, negotiated arrangements must be made for permanent curation of the collection, or
for disposition in accordance with the requirements of the Native American Graves
Protection and Repatriation Act (36 CFR 79 and 43 CFR 10). Such arrangements are to be
negotiated among the property owner, the SHPO, and the principal investigator prior to
reimbursement by the grantee.

h. Access. Archeological collections and accompanying data and records resulting from grantassisted work must be made available for scholarly research by qualified professionals for use in
research, interpretation, preservation, and resource management needs. If appropriate, collections
should be made available to the public through museum display or other means (see Chapter 13,
items B.18 and D.29). This access requirement is subject to the provisions of the Native American
Graves Protection and Repatriation Act (see 43 CFR 10), Section 304 of the National Historic
Preservation Act, and 36 CFR 79.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, eligible activities in the Survey and Inventory Program Area include:
a. Intensive Level Survey. Intensive level survey is the systematic, detailed field (and archival)
inspection of an area designed to identify fully architectural, archeological, and historic
properties; and calculated to produce a level of documentation sufficient, without any further
data, to evaluate National Register eligibility.
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b. Reconnaissance Level Survey. Reconnaissance survey entails archival research and a field visit
to determine the identity and location of resources present in an area. Such surveys should be
designed so that a determination can be made from the results as to when it is worthwhile to
obtain the additional level of documentation (through an Intensive Level Survey) necessary for a
National Register nomination.
c. Limited Archeological Testing. During Reconnaissance or Intensive level survey, limited
subsurface archeological testing is allowable only to the extent that is needed to collect sufficient
information to identify a resource and to assess its eligibility for listing in the National Register of
Historic Places.
d. Resurvey. Resurvey is eligible if its purpose is:
1) to modify previously documented boundaries;
2) to identify resources not a part of the property's earlier eligibility determination (e.g.,
archeological survey in a historic district); or
3) to establish a property's relationship with other resources as part of the development or
refinement of historic contexts. See Section G (Planning), above, and the Secretary of the
Interior's "Standards for Archeology and Historic Preservation;" or
4) resurveying in the field to upgrade existing inventory data for use in revising the
comprehensive statewide historic preservation plan.
e. Automating the State Inventory. Automating the State historic resources inventory to conduct
analyses of inventory data for planning purposes or to make it more accessible to the broader
planning arena in the State is an eligible activity.
f.

Advanced Survey and Inventory Technologies. Developing, purchasing, adapting, or
implementing advanced planning/computer technologies and applications to further
comprehensive statewide historic preservation planning and other program goals [e.g., computer
mapping and analysis technology such as Geographic Information Systems (GIS)] are all eligible
activities.

g. Archeological Survey Activity on Development Projects. Eligible archeological survey activity
may be associated with or be a prerequisite for a development project in the following
circumstances (see Section K.2., below):
1) If it is necessary in a development project to determine the presence and nature of subsurface
features of an above-ground structure or site listed in the National Register, archeological
survey using non-destructive remote-sensing techniques or limited archeological testing may
be conducted.
2) If the proposed treatment of a non-archeological property will disturb the earth, and if nothing
is known about the presence or nature of any archeological resources, a survey is required to
identify and locate any archeological resources and to collect information sufficient to
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evaluate National Register eligibility prior to finalizing the plans for treatment of the
property.
3) If the preservation treatment is site stabilization or another preservation technique requiring
accurate and up-to-date resource data, a resurvey of the site may be needed to confirm site
boundaries, location, and condition prior to finalizing plans and specifications for the
treatment project.
h. Processing Survey Data. Activity directly associated with processing survey data from all
(including non-HPF assisted) sources for inclusion in the State inventory is an eligible activity.
This includes properties surveyed at a minimum level of documentation and properties surveyed
at a National Register level of documentation.
i.

Survey on Federal Land. Survey on Federal land may be paid for with HPF or matching funds
only under the following conditions:
1) The survey is not a mitigation activity performed as a condition or precondition for obtaining
a Federal permit or license or funding by other Federal programs.
2) Prior written permission must first be obtained from the Federal agency land manager(s)/or
his/her designee. Obtaining a permit under the Archaeological Resources Protection Act
constitutes proper written permission as long as the requirements of the Historic Preservation
Fund Grants Manual are met.
3) For HPF subgrants, Project Notifications must contain a certification signed by the State
Historic Preservation Officer that the requisite permission has been obtained, or include a
copy of the certification of permission. For State in-house survey projects or for projects
covered by Reduced Review Status (see Chapter 8, Section G), a copy of the signed written
permission must be made available in the State office for inspection upon request.
4) The Federal land manager(s) must be sent a copy of the survey report/Final Project Report.
5) The SHPO must consult with the Federal land manager(s) on release of locational
information related to resources vulnerable to damage or destruction should its location be
released pursuant to Section 304 of the National Historic Preservation Act, as amended, prior
to the release of the survey report/Final Project Report.

4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E, above,
the following are ineligible activities in the Survey and Inventory Program Area:
a. More extensive survey, testing, and data recovery than what is necessary to determine National
Register eligibility. However, it may be eligible under other program areas; see Section K.3.,
Development/Acquisition/Covenants, below.
b. Resurvey that does not meet criteria in Section H.3.d., above.
c. Archeological survey that does not meet criteria in Section H.3., above.
d. Survey on Federal Lands that does not meet criteria in Section H.3.i., above.
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National Register Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the National Register Program Area. This Program Area is involved with activity
directly pertinent to the documentation and evaluation of a historic or archeological resource for its
potential eligibility for listing in the National Register of Historic Places.
2. Requirements. In addition to the General Requirements for Grant-Assisted Activity discussed in
Section C, above, the following requirements apply to the National Register Program Area:
a. All activities in the Program Area must meet the Secretary's Standards for Evaluation and
Registration.
b. Annually, the State must nominate eligible resources to the National Register of Historic Places.
c. A reasonable percentage of nominations must be derived from State-conducted surveys.
d. Nominated properties must meet the National Register Criteria for Evaluation, and must be
documented according to National Register standards: (1) for substantive documentation and
analysis in the description of properties and in the justification of the properties’ (c) and (2)
technical documentation. A State must demonstrate a comprehensiveness of resources in its
nomination of properties.
e. The State's nomination procedures must comply with the requirements of the National Historic
Preservation Act and with National Register regulations (36 CFR 60). See the Appendices and
the National Register Bulletins series for the 36 CFR 60 requirements that apply to this Program
Area.
f.

Each State must assist the public and private sector in nominating historic properties to the
National Register of Historic Places. States must document that HPF-funded projects and
products used as nonfederal matching share (survey, nominations, Tax Act Applications, etc.)
must be conducted, prepared, reviewed, or verified by persons from the appropriate disciplines
who meet the requirements for the “Secretary of the Interior’s Historic Preservation
Qualifications.”

3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, eligible activities in the National Register Program Area include, but are not limited to:
a. Preparation and Editing of National Register Nominations.
b. Processing Data for National Register Eligibility. Any activity described in 36 CFR 60 related to
processing of resource data for National Register eligibility. This includes Review Board
activities related to evaluation of properties. This does not include Federal National Register
eligibility opinions which are eligible Review and Compliance activities. See Section O.3,
below.

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c. Public Notice. Any activity related to public understanding of and participation in the nomination
process.
d. NHL designation. Participation in the process for the nomination and designation of a property as
a National Historic Landmark is an eligible activity.
4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E, above,
the following is an ineligible activity in the National Register Program Area:
Federal National Register eligibility opinions rendered pursuant to Section 106 of the Act are eligible
in the Review and Compliance Program Area, not the National Register Program Area. See Section
O, below.
J. Development/Acquisition/Covenants Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the Development, Acquisition, and Covenants Program Area. Additional information
related specifically to Development, Acquisition and Covenants is discussed in Sections K, L, and M,
respectively.
The Development/Acquisition/Covenants Program Area describes State activities that assist the
material conservation, protection, and preservation (both physical and legal) of properties listed in the
National Register of Historic Places. They include activities to acquire, preserve, stabilize,
rehabilitate, restore, and reconstruct historic resources. This program area also includes
"nonconstruction" activities such as technical assistance and monitoring of existing covenants
relating to Development or Acquisition.
2. General Requirements. In addition to the General Requirements for Grant-Assisted Activities in
Section C, the following requirements apply generally to the Development/Acquisition/Covenants
Program Area. See Sections K.2, L.2., and M.2. for specific requirements for Development,
Acquisition, and Covenant activities.
a. National Register Listing. The property for which the Development project is proposed must be
listed in the National Register of Historic Places either individually or identified in the
nomination as contributing to a listing in the National Register. If the property is not so identified
in the National Register nomination, it must be certified by the State Historic Preservation Officer
to be contributing to a National Register listing. When the State Historic Preservation Officer
certifies on the Project Notification (or in its files for States with Reduced Review Status) that a
property is contributing, the Project Notification (and the State's files) must contain sufficient
information to allow NPS to understand the property's significance and how it was evaluated.
Note that adding properties as contributing to existing National Register listings requires
consultation with the State Review Board and must result in a supplemental listing form being
transmitted to the Keeper of the National Register (see 36 CFR 60). Also see Section C.6., above.
b. Integrity of the Resource. Only National Register-listed properties that have retained sufficient
integrity to maintain their National Register eligibility are eligible for grant-assisted development
or Acquisition projects.

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c. Restrictions on Moving Historic Structures. If a structure is not listed in the National Register at
the time of relocation, HPF assistance may not be used to finance the cost of moving the property.
In addition, if the property is removed from the National Register as the result of an unapproved
relocation of the structure, the cost of the move would not be an eligible cost for HPF grant
assistance.
Historic structures selected for HPF assistance should not be relocated. If a structure listed in the
National Register must be moved, the State must provide NPS with advance written notification
of the property owner's intention to move the building or structure and must request prior written
approval from the National Register to confirm that the property will not be removed from the
National Register as a result of the relocation. The State must send the Keeper of the National
Register all information relating to how the move will affect the property's integrity and
significance. Criteria for moving historic structures and procedures required by NPS are
specified in 36 CFR 60.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, the following are Eligible Activities for Development/Acquisition/Covenants (see also
Sections K.3., L.3., and M.3. respectively for activities eligible specifically for Development,
Acquisition, or Covenants):
a. Furnishings. The cost of historically documented original furnishings is allowable if in
accordance with Chapter 13, item B.19.
b. Landscaping. The restoration, rehabilitation, stabilization, preservation, or protection of a
documented historic landscape listed in the National Register, either individually or as a
contributing element to a National Register property is an eligible grant activity. Additionally,
the use of revegetation as a stabilization technique is an eligible activity.
c. State (as opposed to Federal) Grant Programs. A State may use HPF or matching funds to
administer acquisition or development grant programs funded with non-HPF monies (such as
State-appropriated funds) as long as the programs require compliance with the Secretary’s
Standards.
d. Archeological Site Protection and Stabilization. The protection and stabilization of an
archeological site listed in the National Register, either individually or as a contributing element
to a National Register property, is an eligible grant activity.
4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E, above,
the following are ineligible activities for Development and Acquisition. See also Sections K.4., L.4.,
and M.4. for specific ineligible Development, Acquisition, and Covenant activities.
a. A property that has not been individually listed on the National Register of Historic Places, or is
not identified by the SHPO as contributing to the significance of a National Register District or
property, is not eligible for a development or acquisition grant. The National Register status of
the property must be documented in the State’s subgrant selection files prior to awarding HPF
assistance.

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b. A National Register property that has lost its integrity (sufficient to lose its National Register
eligibility) is not eligible to receive development or acquisition grants--regardless of whether or
not it has been delisted from the National Register.
c. A property that has received a Determination of Eligibility (D.O.E.) by the Keeper of the
National Register, but is not formally listed in the National Register, is not eligible for HPF grant
assistance to acquire or to repair the property.
d. A property listed only in a locally certified historic district is not eligible for HPF development or
acquisition grant assistance.
K. Development.
1. General. Buildings, structures, sites, and objects listed in the National Register of Historic Places
deteriorate over time; therefore, these properties require periodic work to preserve and protect their
historic significance and integrity. The Secretary of the Interior's "Standards for the Treatment of
Historic Properties" (see Appendices) define appropriate treatments for historic properties.
2. Requirements. In addition to the General Requirements for Grant-Assisted Activity discussed in
Section C and general Development/Acquisition/Covenants Requirements in Section J.2., above, the
following requirements apply to Development:
a. Predevelopment. In order to properly determine the appropriate treatment(s) to preserve a
particular property, predevelopment preparation is required. Predevelopment is the historical,
architectural, and/or archeological research necessary to properly and adequately document the
historic significance and the existing physical condition of the materials and features of a property
or site; it must be performed prior to the commencement of development work.
1) Assess all Resources Present. Decisions to proceed with any proposed work are based on an
analysis of the significance and integrity of all the resources present in an area, including
architecture, historic landscape, and archeology. These decisions should not be based on
information about only one type of resource.
2) Consideration of Archeological Resources. All archeological work must conform to the
Secretary’s “ Standards for Archeological Documentation,” including the preparation of a
research design and a documentation report on the results of the work.
a) If the preservation treatment is archeological stabilization, a resurvey of the site may be
needed to confirm site boundaries, location, and condition prior to finalizing plans and
specifications for the treatment project.
b) If the proposed treatment will disturb the earth, and if very little or nothing is known
about the presence, absence, or significance of any archeological resources, a survey is
required to identify and locate any archeological resources and to collect information
sufficient to evaluate National Register eligibility prior to finalizing the development
proposal.
c) If the proposed treatment depends upon information that can only be gained through
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archeological investigation on the property, the area may be tested, but only to the extent
required to collect the information needed for this project. The research design must
clearly justify the need for this information and why it must be obtained from this site.
3) Reports of Predevelopment Studies Must be Prepared. Historic Structure Reports,
Engineering Reports, Landscape Studies , Archeological Documentation Reports, and other
required documentation must present an assessment of potential impacts on the proposed
work on the resources and must clearly illustrate how the work will be carried out in
conformance with the Secretary’s “Treatment Standards,” with the “Archeological
Documentation Standards” if applicable, and with other accepted professional standards or
technical guidance for resource preservation, when relevant.
These reports must define the project so that all aspects of the proposed grant-assisted work
can be understood by objective reviewers familiar with the applicable Secretary of the
Interior’s “Standards for the Treatment of Historic Properties.” The scale and complexity of
the proposed work will determine the amount of research required to carry out work in a
manner consistent with the Secretary’s “Standards.” Such predevelopment reports are not a
substitute for detailed working plans and specifications. (See also Chapter 13, Section C.8. if
preagreement costs are involved).
4) Working Drawings/Architectural or Archeological Plans and Specifications Must be
Prepared. These required documents must detail the exact scope of development work to be
carried out, and must be accurately drawn to scale so that measurements can be verified at the
project site. Plans and specifications must define the project so that all aspects of work can
be understood by objective reviewers familiar with the applicable Secretary of the Interior’s
“Standards for the Treatment of Historic Properties.” The plans and specifications must
demonstrate conformity with those “Standards” and specify the treatment proposed. If the
treatment is the stabilization of an archeological site, the particular technique selected must
be one that protects the site and its contents from further damage. Archeological stabilization
plans and specifications must be prepared and/or reviewed by professionals who have
technical expertise in such work.
b. Development.
1) Consideration of Archeological Resources. If treatment plans require the disturbance of the
earth, and it is not feasible to avoid and protect significant archeological resources, the
archeological resources will be excavated and the data recovered. These excavations will be
limited to the area which will be disturbed.
2) Curation of Archeological Materials. Archeological collections and accompanying data and
records generated during the archeological development project must be curated in a
repository meeting contemporary professional standards, the Secretary’s “Standards for
Archeology and Historic Preservation,” and 36 CFR 79, except when other disposition is
required by the Native American Graves Protection and Repatriation Act (25 U.S.C. 3001)
and its regulations (43 CFR 10).
a) When archeological collections are to be removed from State, county, municipal, or
private property, negotiated arrangements must be made for permanent curation of the
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collection or for disposition in accordance with the requirements of the Native American
Graves Protection and Repatriation Act. Such arrangements are to be negotiated among
the property owner, the SHPO, and the principal investigator prior to reimbursement by
the grantee.
b) Archeological collections and accompanying data and records resulting from grantassisted work must be accessible for scholarly research by qualified professionals for
research, interpretation, preservation, and resource management purposes. If appropriate,
collections should be accessible to the public through museum display or other means
(see Chapter 13, items B.18 and D.29). This access requirement is subject to the
provisions of the Native American Graves Protection and Repatriation Act, Section 304
of the National Historic Preservation Act, as amended, and 36 CFR 79.
3) Project Sign. The State must ensure that a project sign is displayed in a prominent location at
each project site while project work is in progress. The sign must identify the project and
Department of the Interior, National Park Service grant support. This provision may be
waived by prior written NPS approval if NPS determines that, in accordance with Section 304
of the Act, this requirement would create a risk of harm to the site.
4) Force Account. Construction by force account is generally subject to the same requirements
that apply to work performed under contract. Note that if the subgrantee is acting as his/her
own contractor, the reasonableness of proposed charges must be supported by at least one
independent estimate from an experienced source.
5) Uniform Federal Accessibility Standards. The Uniform Federal Accessibility Standards are
contained in 41 CFR 101-19.600 through 19.607. When new construction is involved to
create physical accessibility to individual historic buildings and facilities, the standards must
be used.
c. Preservation Tax Incentives. Where appropriate, States shall inform grant recipients that HPF
development or acquisition grant assistance applied to any portion of a building by an owner
and/or lessee precludes that owner and/or lessee from the preservation tax incentives for that
portion of the building under 26 U.S.C. 47. In other words, a grant recipient cannot claim Federal
tax incentives for the same work that was performed with HPF grant assistance.
d. Other Requirements. See Chapter 5 regarding Civil Rights, Coastal Barrier Islands, Coastal Zone
Management, Flood Plains, Flood Insurance, Lead Based Paint, and Relocation Assistance.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D and in
Section J.3., above, eligible Development activities include:
a. In-house Development. Many SHPO offices are located in historic buildings. A State may use
HPF funds to rehabilitate (for example) its own historic building (or other State-owned
properties).
b. Predevelopment. The preparation of predevelopment reports, plans, specifications, and other
predevelopment costs are considered "nonconstruction" work. See the predevelopment activities
listed in Section K.2., Requirements for Development, above.
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c. Archeology. An eligible archeological development project must have as its objective the
protection, stabilization, or preservation of specific archeological resources. The archeological
resources may be the primary focus for the development project or they may be one component of
a development project that focuses on a building, structure, or landscape. Survey and testing to
the extent necessary to determine National Register eligibility and resurvey to confirm site
location, boundaries, and condition are likely to be important elements of a development project.
Testing that is more intensive than is allowable under the Survey and Inventory Program Area
may only be carried out as part of a development project. Eligible archeological activities
include:
1) Stabilization projects, such as site burial, revegetation, or repair of the site’s
physical/structural integrity to reduce or eliminate such damaging forces as erosion are
eligible costs. If the treatment technique is revegetation to protect the site by stabilizing the
soil, this “landscaping” is considered an essential component of the treatment technique, and
is an allowable cost.
2) Archeological testing or excavation to collect information needed to carry out a treatment
project or to mitigate the effects of treatment work, provided that the scope of the
investigation is limited to the area affected, and the National Register eligibility of the HPFassisted site is not destroyed.
3) Curation or exhibition of archeological artifacts or materials recovered during the project,
within certain limits (see Chapter 13, Section D.11.).
d. Force Account. The cost of obtaining the independent estimate required by Section K.2.b.4) for
force account work is an eligible grant cost.
4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E and in
Section J.4., ineligible Development activities include:
a. Routine Maintenance. Proposed grant projects that involve solely routine or cyclical minor
maintenance, such as painting window sash, brush clearance at a site, etc., are not eligible for
grant assistance. These may be performed as part of a larger preservation treatment.
b. Major Reconstruction. Note that for HPF Development grant purposes, reconstruction is limited
to portions of a historic property which still retain (prior to reconstruction) sufficient significance
and integrity to remain listed in the National Register. While reconstruction is defined as an
appropriate treatment in the Secretary's "Standards," total reconstructions are not eligible for HPF
grant assistance. If specific features or elements of a building or landscape are missing and thus
need to be recreated, this work is potentially eligible for funding (provided adequate historical
documentation is available).
Major reconstruction projects, such as recreating a building or landscape that has been completely
destroyed at some earlier time, are not eligible activities because such prior destruction would
have resulted in the property losing its National Register eligibility. Vanished structures, by
definition, have lost their integrity and therefore are no longer eligible for the National Register,
or for HPF grant assistance, as structures.
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c. Landscaping. Landscaping as a part of general site improvements, including parking lots,
sidewalks, repaving streets, and street fixtures (such as street lamps and benches) is not eligible
project work. (See Sections J.3.b. and K.3.c.(1) above, for eligible landscaping costs.)
d. Archeology. Archeological investigation that is not directly related to the preservation of a
National Register property, or that results in loss of National Register significance and integrity,
is not an allowable development cost. An investigation that destroys or impairs the site to the
extent that its National Register Eligibility is compromised is not eligible for HPF grant
assistance.
e. Curation. The costs of curation or exhibition of artifacts or materials after the end date of the
HPF-assisted project are not eligible for grant assistance. (See Chapter 13, Section D.11.)
L. Acquisition.
1. General. While it is a fundamental goal of the HPF Grant program to protect historic resources
through encouraging owners, managers, and lessees to care for and maintain these historic resources,
there are occasions when acquisition is the only practical method of ensuring the protection and
preservation of an historic property for future generations.
While acquisition may be the most appropriate preservation tool, fee-simple acquisitions may not
always be necessary. It is often possible (and desirable) to adequately protect a historic property
through the purchase of a facade or an open space easement. The purchase or transfer of
development rights can also be an effective tool in preserving historic properties without taking on the
requirements of ownership such as debt service, maintenance, and administration. The purchase of
less-than-fee simple interests, such as open space or facade easements, shall be undertaken only
when a limited interest achieves the preservation objective.
Every reasonable effort must be made to acquire sufficient property to protect the historical,
archeological, architectural or cultural significance of the National Register-listed property. Also see
Chapter 13, Section D.2.
2. Requirements. In addition to the General Requirements for Grant-Assisted Activities discussed in
Section C, and general Development/Acquisition/Covenants Requirements in Section J.2., above, the
requirements for HPF-assisted Acquisition are discussed below.
a. Property Title. Acquisition projects must acquire title to the property; either full fee-simple title
or a less-than-fee title interest. Such lesser interests include, but are not limited to, easements and
rights-of-way. In providing HPF assistance for such acquisitions, the State must assume
responsibility for meeting the same covenant and public access requirements as with fee-simple
acquisition.
b. Uniform Relocation Assistance and Real Property Acquisition Policies. Acquisition projects
must be accomplished in compliance with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended by Title IV of the Surface Transportation and
Uniform Relocation Assistance Act of 1987 (42 U.S.C. 4601 et seq.). The State and its HPF
subgrantees must adopt and implement procedures for the acquisition of real property that are fair
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and consistent, and that provide that the property owner promptly obtains the full measure of
compensation authorized by law with a minimum of inconvenience. (See Chapter 20.)
c. Waiver of Right to Just Compensation. If real property is acquired at less than the estimate of
fair market value determined by a certified independent professional appraiser(s), there must be
documentation that the owner was first provided with a written offer to purchase for the full
amount established as just compensation (equal to the approved appraisal of the fair market
value).
The grantee must submit in the project application a signed statement by the owner waiving the
Right to Just Compensation and indicating that he or she:
1) Has been informed of all of his or her rights and benefits under the Uniform Relocation
Assistance and Real Properties Acquisition Policies Act;
2) Has been provided with a statement of just compensation and a written offer to purchase for
the amount appraised as full market value (the amount should be shown in the owner's
statement);
3) Is satisfied with the price to be paid even though it is less than the appraisal of fair market
value; and
4) The reasons why he or she has elected to accept the lesser amount. (When a partial donation
of property (less than appraised fair market value) is to be applied as matching share for an
acquisition project, the seller-owner's signed waiver of just compensation and statement of
intention to donate the remainder value for historic preservation purposes must be specified.)
d. Independent Relationship. There must be an independent relationship between the seller and the
buyer so that unjust enrichment and/or the appearance of unjust enrichment is avoided. For
example, a sale of property between relatives or business partners is not eligible for HPF grant
assistance.
e. Appraisals must be performed prior to (but not more than 6 months before) the acquisition of real
property. The State is responsible for reviewing, evaluating, and certifying that appraisals
comply with professional appraisal requirements and State law or regulation. Appraisal and
appraisal report requirements are discussed in Exhibit 6-B.
Two current appraisals are required if the first appraisal obtained results in an appraised value
exceeding $100,000. The cost of obtaining an appraisal is an allowable cost. Appraisals must be
performed by licensed members of the appraiser’s profession. The second appraisal may be
performed by a professional State Government appraiser.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D, and
in Section J.3. above, the following are eligible Acquisition activities:
a. HPF assistance may be used to acquire a property only when it is threatened with demolition,
impairment, or other controllable damage from natural or human sources such as erosion,
vandalism, or relic collecting; or when grant assistance is essential to ensure the preservation of
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the property for at least the term of the covenant or preservation agreement (see Section L.4.d.,
below).
b. Activities directly pertinent to eligible property title acquisition are allowable.
c. Costs associated with conducting an appraisal and preparing appraisal documents are allowable.
(See Exhibit 6-B for Appraisal Standards.)
4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E, and in
Section J.4., above, the following are ineligible Acquisition activities:
a. Acquisition projects that do not acquire title to the property. Using HPF grant assistance to pay a
mortgage installment(s), or an option to purchase, does not acquire title and does not adequately
protect the property, and is therefore not eligible for HPF grant assistance. Phased acquisition
projects are not allowable for HPF grant assistance--each acquisition project must give title to the
buyer. Options to purchase are not allowable for HPF grant assistance.
b. Sales of property between relatives or business partners. There must be an independent
relationship between the seller and the buyer.
c. The boundary of the HPF Acquisition project cannot exceed the boundaries as listed on the
National Register nomination. If additional property is essential to protect the integrity and
setting of a historic resource, the National Register boundaries must be expanded before an
Acquisition project is initiated. (See the National Register publication, How to Establish
Boundaries for National Register Properties.)
d. The acquisition of a National Register property which has previously received HPF development
(or acquisition) grant assistance is not eligible for additional HPF assistance for acquisition costs
while the associated covenant or preservation agreement protecting the property is in effect. (See
Chapter 13, Section D.2.)
e. The cost of borrowing funds for acquisition. (See Chapter 13, Section D.23.)
f.

The acquisition of a property that is not threatened with demolition, impairment, or other
controllable damage from natural or human sources.

M. Covenants and Preservation Agreements.
1. General. Section 102(a)(5) of the National Historic Preservation Act, as amended, stipulates: "No
grant may be made under this Act unless the grantee has agreed to assume, after completion of the
project, the total cost of the continued maintenance, repair, and administration of the property in a
manner satisfactory to the Secretary." Covenants and preservation agreements have been instituted
administratively as a means to ensure compliance with this requirement of the Act.
When properly monitored and enforced, a preservation agreement ensures the property's protection
from unsympathetic changes and, in the event the property is sold, a covenant recorded with the deed
passes these requirements along to the new owner. Note: While the Historic Preservation Fund
Grants Manual specifies language that minimally must be in every covenant or preservation
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agreement, each covenant and preservation agreement can and should be individually tailored to fit
the particular situation.
2. Requirements.
a. Covenants and preservation agreements on grant-assisted historic properties must be executed to
ensure that after the grant-assisted work is completed the owner(s) will maintain the premises for
a minimum term of years so as to preserve the historical significance and integrity of the features,
materials, appearance, workmanship, and environment which made the property eligible for
listing in the National Register of Historic Places;
1) Preservation Agreement. A preservation agreement is a legal document executed between the
State and the public or private property owner. This agreement is not recorded with the deed
and therefore is not enforceable on future owners. If a publicly-owned property does not
have a deed, then a Preservation Agreement, instead of a covenant, must be executed for the
duration required by Subsection M.2.b., below.
2) Covenant. A covenant is a legal document executed between the State and the property
owner in which the property owner of record encumbers the title of the property with a
covenant running with the land, in favor of and legally enforceable by the State. The
property owner of record (and, if applicable, the holder of the mortgage) must be the
executors of the covenant whether or not the owner is the subgrantee.
b. Type and Duration of Agreement. The minimum responsibility to maintain and to provide
public access to properties acquired or developed with HPF assistance is linked to a specific
period of time and type of document that is determined by the amount of Federal assistance.
Where there are several phases of development assistance, the term of the covenant or
preservation agreement must be commensurate with the total (aggregate) Federal assistance
received. In such instances, the covenant period is computed from the date the Federal funds
transferred from the State to the subgrantee (or property owner) exceed $10,000. When HPF
assistance involves more than one National Register listed property or structure, the covenant (or
preservation agreement) period for each property will be determined by the amount of HPF
assistance awarded to each individual property. The following chart indicates the appropriate
type and duration of agreement.

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Federal Assistance ($
Amount)

Time Requirement/Type of
Document

1 -- 10,000

5-year minimum preservation
agreement. A covenant amending
the deed is not required.

10,001 -- 25,000

5-year minimum covenant (recorded
on the property deed).

25,001 -- 50,000

10-year minimum covenant.

50,001 -- 100,000

15-year minimum covenant.

100,001 and above

20-year minimum covenant.

c. Characteristics and Mandatory Provisions.
1) Legally Enforceable. Covenants and preservation agreements must be written in such a
manner that they are legally enforceable by the State through specific performance by the
owner, and for covenants, subsequent owner(s). The standard provisions listed in this
Chapter are all legally enforceable. States must obtain a legal opinion from the State
Attorney General for any additional provisions. A model preservation agreement is
presented as Exhibit 6-A of this Chapter.
2) Subgrantee is not the owner of record. For a lessee to receive grant assistance, there must be
a binding written agreement between the lessee and the owner for, at a minimum, the period
of the covenant or preservation agreement, and the following provisions must be satisfied:
a) Mortgaged property. The covenant or preservation agreement must be executed between
the State and the property owner of record. If the property has been financed through a
mortgage lender, the holder of the mortgage must also sign the covenant or preservation
agreement.
b) Building and the land are in different ownership. When the building and the land are in
different ownership, the owner of the land must also be a party to the covenant or the
preservation agreement.
The covenant runs with the land and must be executed by the owner of record for the
term of years specified above. (A lease of the land does not convey title or transfer
ownership.) The owner, the State, and the subgrantee must execute a maintenance and
administration covenant for the period required.

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3) Provisions in Covenants and Preservation Agreements. See Exhibit 6-A for required
language.
a) Site Protection. The owner must agree to take appropriate measures to protect the site
against willful damage or vandalism, i.e., whatever is necessary to maintain the National
Register eligibility of the property. Nothing in this agreement prohibits the owner from
developing the site in a manner that will not threaten or damage the National Register
eligibility of the resource.
b) Recovered Data Protection. The owner must agree to ensure that any data and material
recovered will be placed in a repository that will care for the data in the manner
prescribed in the Secretary of the Interior's "Standards for Archeology and Historic
Preservation," or will comply with the requirements of the Native American Graves
Protection and Repatriation Act, and with 36 CFR 79 and 43 CFR 10.
c) Maintenance. The owner must agree to assume the cost of continued maintenance and
repair of the property so as to preserve the architectural, historical, and/or archeological
integrity of the property and its materials for the number of years specified above in order
to protect those qualities that made the property eligible for listing in the National
Register of Historic Places (or a property contributing to the significance of a National
Register listed Historic District). Nothing in this agreement shall prohibit the owner from
seeking financial assistance from any source (including HPF Development grants) for
additional preservation treatment work available to him/her.
d) Public Access. "Public Access" means that the general public can see the results of the
HPF investment of public funds.
(1) As long as all the HPF-assisted work is clearly visible from a public right-of-way,
public access to the property is not required. Public access is also not required when
interior development work (such as electrical or plumbing repairs) would not be
visible if general access to property were to be provided. (However, the interior of a
property acquired with grant assistance must be open to the public at least 12 days a
year if the interior has any architecturally or historically significant features.)
(2) When the grant-assisted work (interior or exterior), or property acquired with grant
assistance, is not clearly visible from the public right-of-way, clauses 4 and 5 of the
Model Preservation Agreement must be inserted (see Exhibit 6-A).
(3) For compliance with the Americans with Disabilities Act, see clause 5 of
Exhibit 6-A.
(4) Exceptions to Public Access Requirement. In accordance with Section 304 of the
National Historic Preservation Act, NPS may allow the State to withhold from
disclosure to the public information relating the location or character of a historic
resource whenever the disclosure of such information may incur substantial risk of
harm, theft, or destruction to the resource. The State shall request written approval
from NPS to withhold information from the public prior to recordation of the
covenant or execution of the preservation agreement.
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If an archeological site is not left in an excavated state and interpreted for the public,
there are usually no visible features above the ground. Accordingly, public access to
archeological sites may be restricted. However, public access may not be restricted if
the site is being interpreted, the site is not fragile, or access needs to be provided to
serious researchers.
(5) Notification to the General Public of Access. For properties that are not open to the
public except for the required 12 days per year, and where the improvements assisted
by HPF grant funds are not visible from the public way, or the property was acquired
with HPF grant funds, owners must agree as part of the covenant or preservation
agreement to provide public notification by advertising in newspapers of general
circulation in the community or area in which the property is located, giving the dates
and times when the property will be open to the public.
The covenant or preservation agreement must include a statement that the owner will
annually publish dates and times when the property will be open to the public
(specific dates and times are not to be included in the preservation agreement).
However, the owner must agree that documentation of such notice being published
will be furnished annually to the State during the term of the covenant or preservation
agreement.
d. Effective Date. The covenant or preservation agreement is effective upon execution of the
document, which for both Acquisition and for Development projects, must be done prior to the
disbursement of HPF funds. In addition, for properties acquired with HPF assistance, the
covenant period will commence no later than on the date the title of record transfers from the
seller to the buyer.
NOTE: No funds shall be disbursed for Acquisition or Development projects prior to the
execution of a covenant or preservation agreement.
e. Monitoring Covenants and Preservation Agreements. The State must maintain an up-to-date list
of covenants and/or preservation agreements, including the addresses, names of property owners,
expiration dates of the agreements, and dates of any on-site visit. Occasional site visits and
correspondence to owners reminding them of their responsibilities under the covenant or
preservation agreement must be documented in the State's files, as well as newspaper notices by
owners for any properties requiring public access.
f.

Covenant and Preservation Agreement Violations. In the event of the non-performance or
violation of the maintenance provision of the covenant or preservation agreement by the owner
(or any successor-in-interest) during the term of the covenant, the State must initiate legal action
to require the owner to restore the property to the condition existing at the time HPF-assisted
work was completed. If the State fails to initiate legal action, the State is in breach of contract
and NPS may exercise any legal remedies available. Documentation of such State legal action, if
any has occurred, must be included or referenced in the project file.

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Consequences when a property has been DAMAGED or DESTROYED.
1) DAMAGED. If an HPF-assisted property is damaged by accidental or natural causes, or is
damaged deliberately or through gross negligence during the covenant or preservation
agreement period, the State will inform NPS in writing of the damage to the property,
including: (1) an assessment of the nature and extent of the damage; and (2) an estimate of
the cost of restoration work necessary to return the property to the condition existing at the
time of the grant-assisted project's completion. The State or subgrantee shall, without direct
HPF grant assistance, take all necessary steps, including legal action, if necessary, to restore,
reconstruct, or stabilize the damaged property.
2) DESTROYED: ACCIDENTAL OR NATURAL CAUSES. If an HPF-assisted property has
been destroyed or irreparably damaged by accidental or natural causes, that is, if the historical
integrity of the features, materials, appearance, workmanship, and environment which made
the property eligible for listing in the National Register of Historic Places has been lost or so
damaged that its continued National Register listing is in question, the State will notify the
Keeper of the National Register in writing of the loss. The Keeper of the National Register
will evaluate the findings and notify the State in writing of any decision to remove the
property from the National Register. If the property were to be so removed, the State will
then notify the owner that the covenant or preservation agreement is null and void.
3) DESTROYED: DELIBERATE ACTION OR THROUGH GROSS NEGLIGENCE. If an
HPF-assisted property has been severely damaged or destroyed deliberately or through gross
negligence by a owner, that is, if the historical integrity of the features, materials, appearance,
workmanship, and environment which made the property eligible for listing in the National
Register of Historic Places has been lost or so damaged that its continued listing in the
National Register is in question, the State will notify the Keeper of the National Register in
writing of the loss. The Keeper will evaluate the findings and notify the State in writing of
any decision to remove the property from listing in the National Register. If the property
were to be so removed, the State will initiate requisite legal action to recover, at a minimum,
grant funds. Such legal expenses related to National Register properties would be an eligible
grant program cost.
g. Procedures for Seeking Covenant Revision. If the revision is eligible (see Section M.3., below):
1) The State Historic Preservation Officer must request in writing that NPS concur with the
proposed revision to the covenant or preservation agreement. The State request must specify
that a thorough analysis has been performed and the eligibility conditions have been met (see
Section M.3.c. below). Acceptable documentation, including the original covenant or
preservation agreement and the proposed revision(s), to support the above determination must
be included with the State's request.
2) Upon receipt of the items stipulated above, (prior to making a decision) NPS will obtain the
written concurrence of the Keeper of the National Register with the State's opinion
concerning continued listing in the National Register; and, consult with the Advisory
Council on Historic Preservation if any of the provisions of Section 106 of the Act are
applicable, in accordance with the Programmatic Agreement between the Advisory Council
and the National Park Service.
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3) In exceptional cases where revised covenants are permitted, it will continue to be the
responsibility of the State Historic Preservation Officer to monitor, hold, and enforce the
amended covenants.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D, and
in Section J.3. above, the following are eligible Covenant activities:
a. Activities associated with preparing, executing, monitoring, and enforcing covenants and
preservation agreements are eligible for HPF grant assistance.
b. Activities associated with revising covenants or preservation agreements to extend the duration or
the protection provided by the agreement are eligible.
c. Activities associated with revising covenants or preservation agreements to lessen the protection
provided by the agreement are eligible only if prior written NPS concurrence is obtained (see
Section M.2.g. above). Amendments will be approved only in exceptional circumstances, where
both administrative and technical or economic circumstances justify consideration of a revision to
a covenant or preservation agreement. NPS may authorize revisions (amendments) to
preservation covenants or preservation agreements only if all of the following circumstances and
conditions exist: (1) continuation of the covenant or preservation agreement as written is
technically or economically infeasible; and, (2) the proposed revision would still leave the
property with sufficient integrity and significance to merit continued listing in the National
Register.
4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E, and in
Section J.4., above, the following is an ineligible Covenant activity:
Under no circumstances shall the procedures for revision (described above) be used to nullify the
covenant or preservation agreement. Covenants cannot be “bought out” by repaying the HPF grant
funds.
N. Preservation Tax Incentives Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the Preservation Tax Incentives Program Area. The U.S. Internal Revenue Code
provides incentives for historic preservation. These incentives include a tax credit for any
rehabilitation project which the Secretary of the Interior designates as a "certified rehabilitation" of a
"certified historic structure."
2. Requirements. In addition to the General Requirements for Grant-Assisted Activities discussed in
Section C, above, the following requirements apply to the Preservation Tax Incentives Program Area.
a. All activities under this Program Area must meet the Secretary's "Standards for Rehabilitation."
See the Appendices.
b. Reviews shall be undertaken or approved by appropriately qualified State staff as prescribed in 36
CFR 61, who are familiar with 36 CFR 67 (see Appendices). Reviews must be undertaken by
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qualified professionals who have a knowledge of preservation technology, methodologies,
building materials and their deterioration, and rehabilitation practices (such as raining/education
in preservation and rehabilitation techniques, including NPS-sponsored workshops); experience
in rehabilitation/restoration projects; knowledge of building trades and practices as shown in
education or experience; and/or membership in professional and/or trade organizations.
c. Certification recommendations shall meet and be consistent with criteria identified in 36 CFR 67.
d. Recommendations shall be based on an adequately documented request as defined in 36 CFR 67.
e. Reviews generally shall be concluded, excluding exceptional situations, within 30 calendar days
of receipt of adequately documented requests.
f.

States are expected to forward comments on all applications to NPS, in accordance with
instructions of Historic Preservation Certification Application forms 10-168d and e. In the few
instances where applications are forwarded without comment, the reason(s) for the State's failure
to comment should be conveyed to the National Park Service.

3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, eligible activities for the Preservation Tax Incentive Program Area include the following:
a. Activities related to State or local preservation tax incentives are eligible activities. States may
provide assistance to local governments, nonprofit organizations, and individuals regarding the
use of State and local incentives to bring about the preservation of cultural resources.
b. The certification of State and local statutes, pursuant to 36 CFR 67.8.
c. The certification of State and local districts, pursuant to 36 CFR 67.9.
d. Evaluations of Significance (Part 1 of the Historic Preservation Certification Application).
e. Evaluations of Proposed Rehabilitation Work (Part 2 of the Historic Preservation Certification
Application).
f.

4.

Certifications of Completed Rehabilitation (Requests for Certification of Completed Work--Part
3).

Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E,
above, the following is an ineligible activity in the Preservation Tax Incentives Program Area:
Work performed with HPF grant assistance via acquisition or development subgrants may not be
used to qualify a property for Federal preservation tax incentives.

O. Review and Compliance Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the Review and Compliance Program Area.

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Review and Compliance refers to State activities that advise and assist public (Federal, State, and
local government) agencies in carrying out their historic preservation responsibilities broadly
described and established under Sections 106 and 110 of the National Historic Preservation Act, as
amended, and implemented through 36 CFR 60, 61, 63, and 800; as well as in other Federal historic
preservation-related law. State and local government responsibilities are those established in specific
State or local legal and regulatory mandates which parallel in intent and objective the Federal laws
cited above.
2. Requirements. In addition to the General Requirements for Grant-Assisted Activities discussed in
Section C, above, the following requirements apply to the Review and Compliance Program Area.
The requirements all relate to the State’s participation in the process of Section 106 of the National
Historic Preservation Act, as amended. See Appendices for the full text of the Act.
a. Federal Agency Requests must be Reviewed, Monitored, and Responded to Within a Prescribed
Review Period (generally within 30 days).
1) "Federal agency requests" refers to Section 106-related activities and pursuant to 36 CFR
800.
2) The State shall ensure that, in general, Federal agency requests are reviewed and responded to
within the time period stipulated by regulation or agreement. In order to prevent situations in
which delays in processing are a continuing, ongoing, or recurring problem leading to the fact
or the perception that the process is an unreasonable obstacle, the State shall track Federal
agency requests from the date of receipt to final action and shall ensure that requests are
reviewed and responded to within the prescribed time frame. The tracking system shall
contain at a minimum the following: (1) the name of the undertaking or contain an identifier
code which references the project/undertaking or resource name; (2) the date the request was
received by the State; (3) the result or outcome of the review; and (4) the date the State's
written opinion was sent to the requesting Federal Agency, or the date the case was closed
without a letter.
The prescribed time frame for review is calculated from the date of the receipt of a
substantially complete package (i.e., enough information has been provided to allow the State
to make whatever evaluation has been requested). In the absence of a substantially complete
package, it is an appropriate response for the State to inform the Federal agency (within the
prescribed time period) that an evaluation cannot be made until more information is provided.
b. Federal Agency Requests must be Reviewed and Final Recommendations Made and Approved by
Qualified Staff. See Section C, above, for more information on professional qualifications and
documentation requirements.
c. The National Register Criteria for Evaluation are Consistently Applied in Responding to Federal
Agency Requests. See Section C above.
It is the responsibility of the Federal agencies to submit the data necessary for an opinion on
National Register eligibility. However, the State may supply or supplement it if the State chooses
to do so. Either is acceptable, but see Section E, "Ineligible Activities," for the prohibition on

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using HPF funds to undertake the mitigation responsibilities of Federal agencies. The State shall
not issue an opinion until minimum documentation requirements are met.
d. The Secretary of the Interior's "Standards for Archeology and Historic Preservation" must be
Consistently Applied by States in Evaluating Products Sent To States Pursuant to Agreements
with Federal Agencies. When States review and certify their concurrence of specific products of
Federal agencies as meeting the stipulated Secretary's "Standards," the State must ensure, and file
documentation must support, that the certification is consistent with applicable NPS policy and
guidelines. Similarly, file documentation should explain a State's decision that the products do
not meet the stipulated Secretary's "Standards." See Section C, above, and the Appendices.
This requirement applies only to reviews undertaken pursuant to those agreements:
1) which specify in writing that some or all of the Secretary of the Interior's "Standards for
Archeology and Historic Preservation" must be met; and,
2) to which the State has been signatory as part of a formal two or three party agreement
pursuant to 36 CFR 800; and,
3) under which Federal agencies have produced specific products that the State has certified in
writing meet (or, conversely, do not meet) the stipulations of the agreement by meeting the
applicable Secretary's "Standards."
e. Inventory Data Resulting From Section 106 Activities must be Incorporated into the State's
Inventory Information System or cross-referenced with the files. This will reduce or eliminate
the need for resurvey, and provide data which can be useful for planning and future activities in
all program areas.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, eligible activities in the Review and Compliance Program Area include:
a. Section 106 Activities. The review of, and comment on, proposed Federal or federally funded,
licensed, permitted, or approved undertakings, pursuant to Section 106 of the National Historic
Preservation Act, as amended, that may have an effect on properties listed on, or eligible for
listing on, the National Register of Historic Places. These activities also include actions taken by
a State under a 36 CFR 800.7 agreement. 36 CFR 800.7 allows for the substitution of a State
review process for the standard Section 106 approval process.
b. Section 110 Activities. Technical assistance provided to Federal agencies which assists them in
fulfilling their responsibilities under Section 110 and other provisions of the National Historic
Preservation Act.
c. Activities Pursuant to other Federal Historic Preservation Laws and Regulations. Activities of a
State office, involving Federal government agencies, provided that the laws and activities are in
conformity with Federal historic preservation law, regulation, or requirements (especially the
Secretary’s “Standards”).

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d. E.O. 12372 Intergovernmental Review of Federal Programs. Participation in the process of
Federal--State Intergovernmental Review pursuant to E.O. 12372 for programs and projects other
than HPF grants. See Chapter 4 for a detailed explanation of how the process works for the HPF
grant program.
e. State and Local Laws. Activities of a State office, or of a local government or Certified Local
Government, undertaken to implement or administer State and local historic preservation laws,
regulations, or ordinances, provided that the laws and activities are in conformity with Federal
historic preservation law, regulation, or requirements (especially the Secretary's "Standards").
These activities typically include State and local equivalents of the Section 106 process: local
review of proposals for demolition, alterations, and new construction projects; design review; and
the review of applications for Certificates of Appropriateness.
4. Ineligible Activities. See the Ineligible Grant-Assisted Activities listed in Section E, above.
P.

Local Government Certification Program Area.
1. General. This section describes objectives, minimum requirements, eligible activities, and ineligible
activities for the Local Government Certification/Pass-Through Program Area. Activity in this
program area is that which is directly pertinent to certifying local governments as eligible under
Section 101(c) of the Act, monitoring/evaluating implementation of Certified Local Government
(CLG) program delivery, and monitoring/evaluating CLG performance under subgrants. See Chapter
9 for minimum program requirements of Certified Local Governments.
The State Historic Preservation Officer must cooperate with local governments in the development of
local historic preservation programs and assist local governments in becoming certified pursuant to
Section 101(c) of the Act. States must provide mechanisms for the certification of local governments
to carry out the purposes of the Act, and to provide for the transfer of a portion of their annual HPF
grant to local governments that have been certified. Regulations governing procedures for local
government historic preservation programs are published in 36 CFR 61. See the Glossary for the
definitions of local government and Certified Local Government.
2. Requirements. In addition to the General Requirements for Grant-Assisted Activities discussed in
Section C, above, the following requirements apply to the Local Government Certification Program
Area:
a. All requirements specified in Chapter 9.
b. If there is no approved State program, the NPS will act in place of the State with regard to a CLG.
NOTE: The SHPO activities listed above do not satisfy the requirement that at least 10 percent of
each State's annual apportionment must be subgranted to Certified Local Governments. Such Passthrough subgrants may be used for any HPF eligible activity, but see Chapter 7, Exhibit 7-E for
guidelines on properly reporting the results in the End-of-Year Report.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, eligible activities in the Local Government Certification Program Area include:

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a. Eligible activities discussed in Chapter 9.
b. Planning, organizing, and assisting the creation of Certified Local Governments.
c. Processing applications for certification or amendments to certification agreements.
d. Monitoring and amending, if necessary, the State CLG process.
e. Developing, submitting, amending, or otherwise revising the official State processes for the
certification of local governments and for funds transferred to CLGs.
4. Ineligible Activities. In addition to the Ineligible Grant-Assisted Activities listed in Section E, above,
the following is an ineligible activity in the Local Government Certification Program Area:
Pass-Through funds may not be awarded to a local government that is not yet certified or has lost its
certification. CLG subgrant projects must be reported in the applicable Program Area (e.g., a local
survey of a section of a CLG community should be shown in the Survey and Inventory Program Area;
see Exhibit 7-E).
Q. Other Activities Program Area.
1. General. Activities in this program area include any activity that is eligible for HPF assistance but
that does not readily fall within one of the Program Areas described above, or involves Multiple
Program Areas and the activity cannot reasonably be divided among the specific Program Areas (see
Section D, above).
2. Requirements. See the General Requirements for Grant-Assisted Activities discussed in Section C,
above.
3. Eligible Activities. In addition to the Eligible Grant-Assisted Activities discussed in Section D,
above, the eligible activities in the Other Activities Program Area include (subject to the provisions of
Chapters 12 and 13):
a. General outreach programs that directly pertain to HPF grant-assisted preservation programs and
projects.
b. General purpose public education activities, including brochures, newsletters, conferences, etc.
c. HABS/HAER documentation projects.
d. Assistance for salaries and operating expenses for Statewide or local preservation organizations
conducting activities in more than one Program Area.
4. Ineligible Activities. See the Ineligible Grant-Assisted Activities listed in Section E, above.
R. Program Areas Applicable to the National Trust for Historic Preservation.
Section 101(d)(2) of the Act provides for grants to the National Trust "for the purpose of carrying out the
responsibilities of the National Trust." The following are the general categories of functions which
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describe the activities for which HPF assistance may be provided to the National Trust:
1. General and Administration. Includes the functions necessary to maintain an adequate working
environment; provide general management, coordination and articulation of the National Trust’s
program and operations; including functioning of the Board of Trustees and Board of Advisors; legal
counsel, information technology and the financial and budgetary responsibilities of the National
Trust.
2. Historic Properties. Preserve and manage for public benefit the National Trust’s historic sites and
administer a program to foster the preservation of other historic sites nationwide.

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EXHIBIT 6-A SAMPLE CONSERVATION EASEMENT AGREEMENT
For a Save America’s Treasures Grant (Historic Building)
INTRODUCTION. This conservation easement agreement is made the
day of
, 20 , between
Organization, as GRANTOR of a conservation easement (hereafter referred to as the “Grantor”), and the
SHPO/Covenant Holder, as GRANTEE of the conservation easement (hereafter referred to ask the “Grantee”). This
conservation easement agreement is entered under State Law/Regulation for the purpose of preserving the Name of
Property, a building that is important culturally, historically, and architecturally.
1. The Subject Property. This agreement creates a conservation easement in real estate legally described as
____Property Description ___________________________________________________. The Subject Property is
__________ (hereafter
the site of the Name of Property, located at __Street Address, City, County, & State
referred to as the “Property”).
2. Grant of conservation easement. In consideration of the sum of $______________ received in grant-in-aid
financial assistance from the National Park Service of the United States Department of the Interior, the Grantor hereby
grants to the Grantee a conservation easement in the Subject Property for the purpose of assuring preservation of the
Property.
3. Easement required for Federal grant. This conservation easement is granted as a condition of the eligibility of the
Grantor for the financial assistance from the National Park Service of the United States Department of the Interior
appropriated from the Historic Preservation Fund for the Save America’s Treasures Grant Program.
4. Conditions of easement:
a. Duration. This conservation easement is granted for a period of fifty (50) years commencing on the date when it is
filed with the ___County _____________ County Recorder.
b. Documentation of condition of the Property Name at time of grant of this easement. In order to make more certain
the full extent of Grantor’s obligations and the restrictions on the Subject Property, and in order to document the
nature and condition of the Property, including significant interior elements in spatial context, a list of characterdefining materials, features and spaces is incorporated as Exhibit “A” at the end of this agreement. The Grantor has
provided to the Grantee architectural drawings of the floor plans. To complement Exhibit “A”, Grantee personnel
have compiled a photographic record, including photographer’s affidavit, black and white photographs and negatives,
color digital prints, photograph logs, and a keyed location map. The Grantor agrees that the nature and condition of
the Property on the date of execution of this easement is accurately documented by the architectural drawings and
photographic record, which shall be maintained for the life of this easement in the Grantee’s conservation easement
file for the Property.
c. Restrictions on activities that would affect historically significant components of the Property. The Grantor agrees
that no construction, alteration, or remodeling or any other activity shall be undertaken or permitted to be undertaken
on the Subject Property which would affect historically significant interior spaces and features identified in Exhibit
”A”, exterior construction materials, architectural details, form, fenestration, height of the Property, or adversely
affect its structural soundness without prior written permission of the Grantee affirming that such reconstruction,
repair, repainting, refinishing, rehabilitation, preservation, or restoration will meet The Secretary of the Interior’s
Standards for the Treatment of Historic Properties (hereinafter referred to as the “Standards”).
d. Restrictions on activities that would affect archeological resources. The Grantor agrees that no ground disturbing
activity shall be undertaken or permitted to be undertaken on the Subject Property which would affect historically
significant archeological resources identified in Exhibit ”A” without prior written permission of the Grantee
affirming that such work will meet The Secretary of the Interior’s "Standards for Archeology and Historic
Preservation".

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e. Maintenance of recovered materials. The Grantor agrees to ensure that any data and material recovered will be
placed in a repository that will care for the data in the manner prescribed in the Standards for Archeology and
Historic Preservation or will comply with the requirements of the Native American Graves Protection and
Repatriation Act, and with 36 CFR 79 and 43 CFR 10.
f. Duty to maintain the Property. The Grantor agrees at all times to maintain the Property in a good and sound state of
repair and to maintain the subject Property, including the Other structures or features of the site, according to the
Standards so as to prevent deterioration and preserve the architectural and historical integrity of the Property in ways
that protect and enhance those qualities that make the Property eligible for listing in the National Register of Historic
Places.
g. Public access. The Grantor agrees to provide public access to view the grant-assisted work or features no less than
12 days a year on an equitably spaced basis. The dates and times when the property will be open to the public must
be annually published and provided to the Grantee. At the option of the Grantor, the relevant portions of the Property
may also be open at other times by appointment, in addition to the scheduled 12 days a year. Nothing in this
agreement will prohibit a reasonably nondiscriminatory admission fee, comparable to fees charged at similar
facilities in the area.
h. Right to inspect. The Grantor agrees that the Grantee, its employees, agents and designees shall have the right to
inspect the Property at all reasonable times, with twenty-four hours written notice, in order to ascertain whether the
conditions of this easement agreement are being observed.
i. Anti-discrimination. The Grantor agrees to comply with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d,
the Americans with Disabilities Act (42 U.S.C. 12204), and with Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794). These laws prohibit discrimination on the basis of race, religion, national origin, or disability. In
implementing public access, reasonable accommodation to qualified disabled persons shall be made in consultation
with the Grantee (or State Historic Preservation Office if another organization is holding the easement).
j. Easement shall run with the land; conditions on conveyance. This conservation easement shall run with the land and
be binding on the Grantor, its successors and assigns. The Grantor agrees to insert an appropriate reference to this
easement agreement in any deed or other legal instrument by which it divests itself of either the fee simple title or
other lesser estate in the Property, the Subject Property, or any part thereof.
k. Casualty Damage or Destruction. In the event that the Property or any part of it shall be damaged or destroyed by
fire, flood, windstorm, earth movement, or other casualty, the Grantor shall notify the Grantee in writing within 14
days of the damage or destruction, such notification including what, if any, emergency work has already been
completed. No repairs or reconstruction of any type, other than temporary emergency work to prevent further
damage to the Property and to protect public safety, shall be undertaken by the Grantor without the Grantee’s prior
written approval indicating that the proposed work will meet the Standards. The Grantee shall give its written
approval, if any, of any proposed work within 60 days of receiving the request from the Grantor. If after reviewing
the condition of the property, the Grantee determines that the features, materials, appearance, workmanship, and
environment which made the property eligible for listing in the National Register of Historic Places has been lost or
so damaged that its continued National Register listing is in question, the Grantee will notify the Keeper of the
National Register (or the SHPO if the Grantee is not the State) in writing of the loss. The Keeper of the National
Register will evaluate the findings and notify the Grantee in writing of any decision to remove the property from the
National Register. If the property is removed, the Grantee will then notify the Grantor that the agreement is null and
void. If the damage or destruction that warrants the properties removal from the National Register is deliberately
caused by the gross negligence of the Grantor or future owner, then the Grantee will initiate requisite legal action to
recover, at a minimum, the Federal grant funds applied to the property which will then be returned to the U.S.
Treasury.

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l. Enforcement. The Grantee shall have the right to prevent and correct violations of the terms of this easement. If the
Grantee, upon inspection of the property, finds what appears to be a violation, it may exercise its discretion to seek
injunctive relief in a court having jurisdiction. Except when an ongoing or imminent violation will irreversibly
diminish or impair the cultural, historical and architectural importance of the Property, the Grantee shall give the
Grantor written notice of the violation and allow thirty (30) days to correct the violation before taking any formal
action, including, but not limited to, legal action. If a court, having jurisdiction, determines that a violation exists or
has occurred, the Grantee may obtain an injunction to stop the violation, temporarily or permanently. A court may
also issue a mandatory injunction requiring the Grantor to restore the Property to a condition that would be consistent
with preservation purposes of the grant from the National Park Service. In any case where a court finds that a
violation has occurred, the court may require the Property to reimburse the Grantee and the State Attorney General
for all the State’s expenses incurred in stopping, preventing and correcting the violation, including but not limited to
reasonable attorney’s fees. The failure of the Grantee to discover a violation or to take immediate action to correct a
violation shall not bar it from doing so at a later time.
m. Amendments. The parties may by mutual written agreement jointly amend this easement, provided the amendment
shall be consistent with preservation purpose of this easement and shall not reduce its term of duration. Any such
amendment shall not be effective unless it is executed in the same manner as this easement, refers expressly to this
easement, and is filed with the __county__ County Recorder.
n. Effective date; severability. This conservation easement shall become effective when the Grantor files it in the Office
of the Recorder of ___County____ County, State , with a copy of the recorded instrument provided to the
Grantee for its conservation easement file. If any part of this conservation easement agreement is held to be illegal
by a court, the validity of the remaining parts shall not be affected, and the rights and obligations of the parties shall
be construed and enforced as if the conservation agreement does not contain the particular part held to be invalid.

GRANTOR: __________________________________________

By: ________________________________________
Name and Title

STATE OF ______, _______________ COUNTY, ss: On this
day of
, 2006, before me the
undersigned, a Notary Public for said State, personally appeared Name of Person, to me personally known, who stated
that he is Title and Organization, that no seal has been procured by said corporation, and that the foregoing instrument
was signed on behalf of said corporation by authority of its Board of Directors, and that as such officer, he acknowledged
that he executed the foregoing instrument as his voluntary act and the voluntary act of the corporation.
________________________________________
NOTARY PUBLIC

GRANTEE: __________________________________________
By: ________________________________________
Name and Title
STATE OF ________, __________ COUNTY, ss: On the _______ day of __________, 2006, before me, a Notary
Public for said State, personally appeared Name of Person, who stated that he is the duly appointed and actively serving

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Title and Organization, and that he executed the foregoing conservation easement agreement as his voluntary act and as
the voluntary act of the State Department of Cultural Affairs.

________________________________
NOTARY PUBLIC

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EXHIBIT “A” TO CONSERVATION EASEMENT AGREEMENT

Property Name, City, State
To remain eligible for listing on the National Register of Historic Places, a property must be able to convey its
significance. The following character-defining materials, spaces, and features have been identified as those that help
convey the significance of the Property Name, photo documentation is attached.

Significant Interior Spaces and Features
•
•
•
•
Significant Exterior Spaces and Features
•
•
•
•

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EXHIBIT 6-B REAL PROPERTY APPRAISAL REQUIREMENTS
The allowable cost of acquired or donated property must be based on appraisals by independent licensed
professional appraisers. For property valued at $100,000 and above, two appraisals (with one State
Government appraiser permissible) must be obtained; for property valued at less than $100,000, one
independent appraisal must be obtained.
Real property must be appraised prior to the purchase and the property owner must indicate that he/she has
been informed of the appraised value of the property (see Chapter 20). Appraisal reports must conform to
"Data Documentation and Appraisal Reporting Standards," Uniform Appraisal Standards for Federal Land
Acquisition, 1973. The appraisal must be an analytical narrative report following the format established by
the "Uniform Appraisal Standards for Federal Land Acquisitions" (see the required format, below). Each
appraisal must be independently prepared by appraisers, and not based on any previous appraisal of the same
property.
Appraisal certification. The State Historic Preservation Officer certifies, by his/her action in forwarding
appraisal information with the Project Notification, that the appraisal used as a basis for establishing the
purchase price is an accurate and reasonable reflection of the current market value.
In accordance with the Uniform Appraisal Standards for Federal Land Acquisition, the value of a historic
property will be calculated after consideration of the results derived from the methods contained in the format
stipulated below in "Part III--Analyses and Conclusions".
Establishment of fair market value by court proceedings. If a historic property is acquired through judicial
proceedings, the price determined by the court will be accepted.
Statement of differences in value. Appraisals prepared by a licensed professional appraiser should result in an
acceptable estimate of property value; however, the estimate cannot be assumed to be an absolute statement of
value. The approved appraisal value will ordinarily be the maximum allowable amount representing just
compensation to be offered to the owner (seller). In exceptional circumstances the negotiation between a
willing seller and a willing buyer will set a price that is higher than the appraisal, and this market value may
be considered with the appraisal in establishing the reasonable limits of Historic Preservation Fund assistance.
When the grantee believes that the negotiated price is an adequate indication of market value, yet is higher
than the appraised value, a justification of this difference, with appraisal documents, must be submitted as
part of the Project Notification. This statement must explain why the selling price does not reflect the
appraised fair market value, the steps the grantee took to establish the fair market value, and its reasons for
accepting the higher value. If the NPS agrees that the circumstances and the negotiated price represent a
reasonable estimate of the worth of the property, that amount may be eligible for assistance; if not, the HPF
Federal share of the purchase price will be limited to one-half of the appraised market value.
NPS Approval of Acquisition Cost in Excess of Appraised Value. Even States on Reduced Review Status
must obtain written NPS approval of a proposed acquisition cost that exceeds the appraised value.
Required Appraisal Report format. Grantees must obtain appraisal reports that include the documentation
required by the "Uniform Appraisal Standards for Federal Land Acquisitions," published in 1973 by the
Interagency Land Acquisition Conference. Grantees must secure, and maintain on file, property appraisals
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completed as follows:
PART I -- INTRODUCTION
1.

TITLE PAGE. This shall include (a) the name and street address of the specified location of the
property, (b) the name of the individual making the report and the effective date of the appraisal.

2.

TABLE OF CONTENTS.

3.

LETTER OF TRANSMITTAL.

4.

PHOTOGRAPHS. Pictures shall show at least the front elevation of the major improvements, plus any
unusual architectural features. There should also be views of the abutting properties on either side and
the property directly opposite. When a large number of buildings are involved, one picture may be used
for each type. Views of the best comparable properties should be included whenever possible. Except
for the overall view, photographs may be bound as pages facing the discussion or description which the
photographs concern. All graphic material shall include captions. Photographs for archeological sites
should attempt to document the areas to be affected by archeological investigation, as well as any
above-ground features.

5.

STATEMENT OF LIMITING CONDITIONS AND ASSUMPTIONS.

6.

REFERENCES. If preferred, may be shown with applicable approach.

PART II -- FACTUAL DATA
7.

PURPOSE OF THE APPRAISAL. This shall include the reason for the appraisal, definition of all
values required, and property rights appraised.

8.

LEGAL DESCRIPTION. This description shall be so complete as to properly identify the property
appraised. If lengthy, it should be referenced and included in Part IV of these Standards. If furnished
by the Federal Government, and it would require lengthy reproduction, incorporate references only.

9.

AREA, CITY, AND NEIGHBORHOOD DATA. This data (mostly social and economic) should be
kept to a minimum and should include only such information as directly affects the appraised property
together with the appraiser's conclusions as to significant trends.

10.

PROPERTY DATA.
a.

Site. Describe the soil, topography, mineral deposits, easements, etc. A statement must be
made concerning the existence or nonexistence of mineral deposits having a commercial value.
In the case of a partial taking, discuss access both before and after to the remaining tract. Also
discuss the detrimental and hazardous factors inherent in the location of the property.

b.

Improvements. This description may be by narrative or schedule form, and shall include
dimensions, cubic and/or square foot measurements, and where appropriate, a statement of the
method of measurement used in determining rentable areas as full floor, multi-tenancy, etc.

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Equipment. This shall be described by narrative or schedule form, and shall include all items
of equipment, including a statement of the type and purpose of the equipment and its present
state. The current physical condition and relative use and obsolescence shall be stated for
each item or group appraised, and, whenever applicable, the repair or replacement
requirements to bring the property to useable conditions.
Any related personal property or equipment, such as tenant trade fixtures, which are not
attached or considered part of the realty, shall be separately inventoried. Where applicable,
these detachable, individually owned items shall be separately valued.

d.

History. State briefly the purpose for which the improvements were designed, dates of
original construction, and major renovation and/or additions. Include, for privately owned
property, a 10-year record as to each parcel, of all sales and, if possible, offers to buy or sell,
and recent lease(s); if there has been no sale in the past 10 years, include a report of the last
sale.

e.

Assessed value and annual tax load. Include the current assessment and dollar amount of real
estate taxes. If the property is not taxed, the appraiser shall estimate the assessment in case it
is placed upon the tax roll, state the rate, and give the dollar amount of the tax estimate.

f.

Zoning. Describe the zoning for subject and comparable properties. Where Governmentowned, state what the zoning probably will be under private ownership. If rezoning is
imminent, discuss further under item 11.

PART III __ ANALYSES AND CONCLUSIONS
11.

ANALYSIS OF HIGHEST AND BEST USE. The report shall state the highest and best use that can
be made of the property (land and improvement and where applicable, machinery and equipment) for
which there is a current market. The valuation shall be based on this use.

12.

LAND USE. The appraiser's opinion of the value of the land shall be supported by confirmed sales of
comparable, or nearly comparable lands having like optimum uses. Differences shall be weighed and
explained to show how they indicate the value of the land being appraised.

13.

VALUE ESTIMATE BY COMPARATIVE (MARKET) APPROACH. All comparable sales used
shall be confirmed by the buyer, seller, broker, or other person having knowledge of the price, terms,
and conditions of sale. Each comparable sale shall be weighed and explained in relation to the subject
property to indicate the reasoning behind the appraiser's final value estimate from this approach.

14.

VALUE ESTIMATE BY COST APPROACH, if applicable. This section shall be in the form of
computative data arranged in sequence, beginning with reproduction or replacement cost, and shall state
the source (book and page if a national service) of all figures used. The dollar amount of physical
deterioration and functional and economic obsolescence, or the omission of same, shall be explained in
narrative form. This procedure may be omitted on improvements, both real and personal, for which
only a salvage or scrap value is estimated.

15.

VALUE ESTIMATE BY INCOME APPROACH, if applicable. This shall include adequate factual
data to support each figure and factor used and shall be arranged in detailed form to show at least (a)

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estimated gross economic rent or income; (b) allowance for vacancy and credit losses; and (c) an
itemized estimate of total expenses including reserves for replacements.
Capitalization of net income shall be at the rate prevailing for this type of property and location. The
capitalization technique, method, and rate used shall be explained in narrative form supported by a
statement of sources of rates and factors.
16.

INTERPRETATION AND CORRELATION OF ESTIMATES. The appraiser shall interpret the
foregoing estimates and shall state his reasons why one or more of the conclusions reached in items 13,
14, and 15 are indicative of the market value of the property.

17.

CERTIFICATION. This shall include the statement that the appraiser has no undisclosed interest in the
property, and that he has personally inspected the premises, date, and amount of value estimate, etc.

PART IV __ EXHIBITS AND ADDENDA
18.

LOCATION MAP. (Within the city or area.)

19.

COMPARATIVE MAP DATA. Show geographic location of the appraised property and the
comparative parcels analyzed.

20.

DETAIL OF THE COMPARATIVE DATA.

21.

PLOT PLAN.

22.

FLOOR PLANS. (When needed to explain the value estimate.)

23.

OTHER PERTINENT EXHIBITS.

24.

QUALIFICATIONS. (For all appraisers and/or technicians contributing to the report.)

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EXHIBIT 6-C HISTORIC STRUCTURE AND HISTORIC LANDSCAPE REPORT FORMAT
The Historic Structure Report or Historic Landscape Report format is required when a grant-assisted
rehabilitation, restoration, or reconstruction project involves fabricating significant missing architectural or
landscape features, recapturing the appearance of a property at one particular period of its history, or
removing later additions. The Historic Structure Report or Historic Landscape Report must be completed
prior to the preparation of an application by a subgrantee requesting HPF assistance for such development
work. The treatment implementation phase of planned development work will not be approved until the
required documentation has been satisfactorily completed.
The following is the recommended format for a Historic Structures Report or Historic Landscape Report:
Table of Contents.
Foreword or Introduction.
!
!

Purpose of the Report
Preservation Objectives (proposed preservation treatment)

History of the Property.
!
!
!

Significance of the property's structure or landscape and setting (historic events, persons associated,
ownership history, etc.)
The appearance, occupation, and use of the property and its setting from original construction to the
present time (including a chronology)
Historical documentation (letters, builder records, photographs, etc.)

Architectural Description and Assessment.
!
!
!
!
!
!

A description and record of the existing condition (narrative and illustrations)
Identification of the important structural or landscape features and distinctive qualities of the
property
An evaluation of the impact of the proposed use of the property
Identification and analysis of the significant factors affecting the preservation of the property
Recommended steps for preservation treatment, the basis for such recommendations, and, where
applicable, preliminary design drawings
Steps to minimize the potential impact of the proposed work on the property's historic character

Supplemental Material (when appropriate).
!
!
!
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Estimates of the cost to carry out the recommendations
Recommendations for further study
Materials analysis (e.g., paint)
Bibliography

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Agreement No. _____________
EXHIBIT 6-D MEMORANDUM OF AGREEMENT
Between the
[insert the name of organization]
and the
HABS/HAER
NATIONAL PARK SERVICE
U.S. DEPARTMENT OF THE INTERIOR
Article I.

Background and Objectives

This Memorandum of Agreement is between the [insert name of SHPO] (hereinafter referred to as the
Grantee), the National Park Service (hereinafter referred to as the "Service"), and the [insert name of
organization] (hereinafter referred to as the Subgrantee), WITNESSETH THAT:
WHEREAS, the Grantee desires to undertake this work and recognizes that a Federal grant of the Department
of the Interior has been awarded for the undertaking, and therefore agrees to mutually administer this grant
with the Service and comply with all requirements established by the National Historic Preservation Act of
1966, as amended, OMB Circular A-102, "Uniform Administrative Requirements for Grants-in-Aid to State
and Local Governments," or A-110, "Grants and Agreements with Institutions of Higher Education,
Hospitals, and other Nonprofit Organizations," applicable Department of the Interior regulations, and the
Historic Preservation Fund Grants Manual.
The Grantee shall comply with Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d, et seq.; Executive
Order 11764; and Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794 et. seq.).
Title VI of the Civil Rights Act of 1964 provides that no person in the United States shall on the grounds of
race, color, national origin, be excluded from participation in, be denied the benefits of, or otherwise
subjected to discrimination under any program or activity receiving Federal financial assistance from the
Department of the Interior. Section 504 of the Rehabilitation Act of 1973 is designed to eliminate
discrimination on the basis of disability in any program or activity receiving Federal financial assistance. If
any persons believing that they have been discriminated against in any program, activity or facility, or if you
desire further information regarding Title VI or Section 504, write to: Director, Equal Opportunity Program,
National Park Service, 1849 C Street, N.W., Washington, D.C. 20240.
Article II.

Statement of Work

[Identify respective responsibilities of participants. "Agree to" clauses can be used.]
Article III.

Term of Agreement

[Identify minimum time required to meet objectives of the agreement but not to exceed [enter specified
months], at which time they will be reviewed to determine whether they should be renewed, modified or
terminated. Agreement will expire at the end of the specified time unless formally reaffirmed or rewritten if
necessary. In certain instances where it can be shown that the time could not be negotiated or that it would
jeopardize an agreement relationship, a longer term might be appropriate. Written justification must be
attached to the agreement.]

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Key Officials (NPS and other Party)

[Identify all key officials involved.]
[ Costs incurred by Federal officials supervising or otherwise administering this project are not allowable for
HPF grant assistance. However, salaries and expenses incurred by Federal employees who are considered to
be "temporary limited employees" are allowable.]
Article V.

Payment

[State when or at what payment will be made (e.g., payments will be made according to the following
schedule). Requests for payment from the Grantee must include copies of contracts, bidding documentation,
bills and copies of canceled checks (front and back), or bank statements documenting payment(s).
Documentation for donated services must clearly show the tasks performed, when performed, and the actual
amount of time spent on each task, in relation to the grant project. The Grantee reserves the right to modify or
withhold payment until project conditions are met or until it is satisfied with the documentation that has been
received. Billings will be made by [insert date]. Include address and accounting information for billing
purposes, if applicable.]
Article VI.

Property Management and Disposition [if applicable]

[List all pertinent information regarding property management and disposition.]
Article VII.

Prior Approval [if applicable]

[List the date prior approval was received from the National Park Service.]
Article VIII. Reports
[List dates, quantity, and address of receipt point for any required reports.]
Article IX.

Termination

[Provide that any party may terminate the agreement by providing 60 days (or whatever time frame is
appropriate) written notice to the other(s).]
Signatures (at least 2)
[List titles of signing officials and dates of signatures.]
Enclosures
[Attach special provisions (if required)]
[Attach budget breakdown that shows Federal and nonfederal shares.]

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Chapter 7 - Application for Federal Assistance
A. Purpose.
This Chapter describes the procedures, requirements, and standard forms that comprise the annual
application process for Historic Preservation Fund (HPF) grants. These are discussed below. NPS will
develop procedures, as needed, for special purpose appropriations, within 45 days of enactment.
B. General Annual Grant Application Information.
1. Two-Year Availability.
The Annual Grant is derived from a regular, continuing resolution, or special purpose appropriation
of new funds to the Department of the Interior authorized by Section 108 of the Act.
Limitations on availability have been stipulated in appropriations legislation. This resulted in U.S.
Comptroller General Opinion B-15187, issued September 15, 1981, which ruled that obligational
authority for Historic Preservation Fund grants is limited to the term stipulated in annual
appropriations. The maximum term of availability is the year of appropriation plus one additional
year. Accordingly, any funds not obligated during, or funds that have been deobligated after, that (2year) period must be returned to the U.S. Treasury.
2. Continuing Resolution Grant Awards.
Occasionally, funds are apportioned by the Secretary based on a Continuing Resolution of Congress.
A continuing resolution is legislation that provides funds to maintain ongoing activities when the
regular fiscal year appropriation for such activities has not yet been made available. The conditions
are set by the legislation. An HPF grant application under a Continuing Resolution requests
obligation only of the funds authorized under the Continuing Resolution.
3. Nonfederal Matching Share Ratio.
Section 102(a)(3) authorizes the Secretary to provide up to "60 percent of the aggregate costs of
carrying out projects and programs under the administrative control of the State Historic Preservation
Officer as specified in Section 101(b)(3) in any one fiscal year." Therefore the HPF grant is
composed of 60 percent Federal and 40 percent nonfederal share. The matching share is calculated
by multiplying the Federal share by 100/60 and then multiplying the resulting cost by 40/100. (For
example: $10,000 of Federal share must be matched by $6,667 of nonfederal share. A shortcut is to
calculate the required nonfederal share by multiplying the Federal share by 2/3, or by a factor of
0.6667.)
4. Program Areas.
Activities eligible for HPF assistance under the Act and related legislation, such as the Economic
Recovery Tax Act of 1986, are organized around Program Areas. Program Areas for grantees are
detailed in Chapter 6.
5. Use and Disclosure of Information.
Grant applicants, grantees, and their contractors and subgrantees should be aware that information
provided to NPS, or required by NPS to be on file with the grantee, is considered to be a public record
and subject to disclosure under the Freedom of Information Act, (5 U.S.C. 552), unless determined to
be exempt and not to be disclosed under that statute, or under Section 304 of the National Historic
Preservation Act. In addition, NPS acquires the right, unless otherwise specified in the grant
agreement, to use and disclose program and project data. However, there may be some information

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that a grantee or subgrantee wishes to remain confidential. Those items must be clearly and
prominently identified to NPS at the time the information is presented. NPS will consider such
requests on their merits and within the limits imposed by Federal law and regulation on public
disclosures (see also Chapter 24 and Chapter 5, General Condition 15). Information received by NPS
that is not accompanied by a claim for confidentiality in accordance with this paragraph may be made
available to other public agencies and the general public without prior notice to the grantee. Unless a
special condition in the grant provides otherwise, information submitted with an application, or other
submission without a restrictive marking, will be subject to disclosure according to the Freedom of
Information Act, and to the Government's rights to utilize data obtained under Federal grants.
6. Authorized Signatures.
Application SF 424 Face Sheets, Project Notifications, certifications, and reports must be signed by
the State Historic Preservation Officer (or President, National Trust for grants to that organization), or
by persons authorized by those officials' written designation to NPS to obligate the grantee to the
terms and conditions of the grant. Each grant application and each individual Project Notification, if
required (which becomes part of the application following NPS action) will be deemed to constitute
an offer by the grantee to accept the requirements of the Historic Preservation Fund Grants Manual.
Acceptance of the grant award by the grantee shall be deemed to constitute acceptance of the terms
and conditions affixed to each Grant Agreement by NPS.
While SHPO authority can be delegated, the SHPO remains responsible under the terms of the Act
and State law for the grant program on behalf of the State. However, he/she can assign program
and/or signature authority to a subordinate. To be a proper transfer of authority, the delegation must
be in writing from the superior. Without such express written delegation, signatures on grant
applications, Project Notifications, National Register nominations, etc., are not binding on the State
and cannot be accepted by NPS as representing official State actions.
7. Certifications.
A grantee may be prosecuted under Federal or State statutes for any false statement,
misrepresentation, or concealment made as part of a grant application or grant-related certification to
NPS. The penalty for false statements in certifications is prescribed in 18 U.S.C. 1001.
8. Waivers.
When exceptional circumstances are involved, a grantee may submit a written request and
justification for a waiver from NPS requirements, procedures, or NPS policy, as defined below, prior
to submission of a grant application or Project Notification. In clearly exceptional cases, the NPS
Grant Awarding Official may, upon concurrence of the Associate Director, Cultural Resources,
determine in writing that a waiver of normal requirements is essential to achieve NPS objectives. The
written determination shall specify the reason(s) that special circumstances support that a waiver is in
the best interest of the Federal Government.
Waivers, when granted by NPS, shall be in writing and shall extend for as short a time as necessary in
the circumstances, but in no case longer than the end of the following fiscal year. If a State needs to
request to renew a waiver, it must send a written request that documents efforts to remedy the
circumstances and justifies the need for continuing the waiver.
Requirements imposed by legislation or governmentwide regulations promulgated in the Code of
Federal Regulations, such as Office of Management and Budget or Treasury Circulars, cannot be
waived. However, note that some regulations provide for situations where requirements can be
waived, e.g., 36 CFR 61.9.

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NPS has authority to approve certain waivers, such as:
a. The imposition of greater or lesser limitations than those imposed by the Historic Preservation
Fund Grants Manual upon the use of a standard, procedure, form, requirement, or condition of
grant assistance that is not legislatively mandated or required without possibility of waiver by
governmentwide regulations;
b. The waiver of any policy, procedure, method, or practice of administering or conducting grant
awards prescribed by the Historic Preservation Fund Grants Manual;
c. Omission of any mandatory NPS (but not governmentwide) grant provision; or
d. Use of different forms or alteration of prescribed forms.
A copy of the NPS written approval must be enclosed with the grant application or Project
Notification and the original retained by the grantee in the official project file.
C. Completing the Historic Preservation Fund Annual Grant Application--State Historic Preservation
Offices.
1. Completing the Application.
Annual grant application requirements are fewer for States with NPS-approved Comprehensive
Statewide Historic Preservation Plans (see Chapter 6, Section G for State Plan requirements). The
additional requirements for States without an NPS-approved State Plan are listed below the standard
requirements for all States (i.e., a Program Overview and an Action Plan Narrative must be submitted
if a State does not have an approved State Plan). A complete set of the forms and certifications listed
below must be submitted for the annual grant application. Each of the forms described below can be
found in this chapter; however, original copies of all of these forms can be obtained by contacting the
Historic Preservation Grants Division.
All Annual Grant Applications must contain the following Standard Forms and Certifications (each
item is discussed separately below, see Sections C.1.a.-j.):
!
!
!
!
!
!
!
!
!
!
!

Application for Federal Assistance Form (SF 424) (Exhibit 7-A)
Nonconstruction Budget Form (SF 424A) and, if applicable, Construction Budget Form (SF
424C) (Exhibit 7-B)
Nonconstruction Assurances (SF 424B) and, if applicable, Construction Assurances (SF 424D)
(Exhibit 7-C)
Certifications Regarding Suspension, Debarment, Drug-Free Workplace, and Lobbying
(DI-2010) (Exhibit 7-D)
Cumulative Products Table (Exhibit 7-E)
Organization Chart and Staffing Summary (Exhibit 7-F)
Environmental Certification (See Chapter 11, Exhibit 11-A)
State Staff and Review Board Certification
Anticipated Activities List (see Section C.1.h., below)
Comments obtained through the E.O. 12372 review process established by the State
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States without an NPS-approved State Plan must also submit the following (these items are discussed
in Sections C.1.j. and C.1.k., below):
!
!

Program Overview (see Section C.1.j., below).
Action Plan Narrative (see Section C.1.k., below).

a. Application for Federal Assistance (SF 424).
Completed in accordance with Exhibit 7-A. If a Continuing Resolution Grant Application has
been previously sent, a SF 424 is used to obligate additional funds made available through a
subsequent appropriation, or a subsequent continuing resolution.
b. Budget Information Form (SF 424A).
See Exhibit 7-B. This includes only current fiscal year HPF grant funds (not funds carried over
from prior years). If the State will fund construction work, a Construction Budget Information
Form (SF 424C) must also be submitted.
c. Nonconstruction Assurances (SF 424B).
See Exhibit 7-C. If the State will fund construction work, the Construction Assurances (SF
424D) must also be submitted.
d. Certifications Regarding Debarment, Suspension, Drug-Free Workplace, and Lobbying (DI2010). See Exhibit 7-D.
e. Cumulative Products Table.
The Cumulative Products Table is a cumulative numerical projection of selected activities that
will be performed by the State during the fiscal year.
1) The Cumulative Products Table is sent first with the Annual Grant Application (though it also
includes estimates of products to be accomplished with the previous year's funds carried over
into the current fiscal year), then additional projections are updated as part of any subsequent
grant for that Federal fiscal year.
2) Use the Guidelines for Completing the Cumulative Products Table and the forms contained in
this Chapter (Exhibit 7-E).
f.

Organization Chart and Staffing Summary Statement.
An accurate organization chart reflecting the State's current organization and a Staffing Summary
which describes the employees paid for by HPF or matching share must be submitted with the
annual grant application. With each Annual Grant Application, States must send a new, fully
revised and complete Organization Chart and Staffing Summary. It is not sufficient to provide
only a notice of the staffing changes.
1) The Organization Chart shall detail all positions associated with work that is charged in full
or in part to the HPF Federal or matching share as State staff effort (i.e., not subgrants). See
Exhibit 7-F. The Organization Chart must include the following components:
a) All positions by title, noting which positions fulfill 36 CFR 61 staff requirements;

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b) Names of incumbents of all positions paid in full or part by HPF funds, or claimed as
nonfederal share costs;
c) Reporting relationships;
d) Assigned Program Areas for each staff person;
e) Which staff person has primary responsibility for HPF Grants Management (both grantassisted internal operations and subgrants); and
f) Which staff person has responsibility for Title VI and Section 504 compliance (see
Chapter 10, Section C.5.f.).
2) The Staffing Summary shall express State staffing in terms of full-time equivalents (FTEs:
one FTE equals 1 person working a full-time work week as defined by Statewide personnel
regulations for 1 year). Part-time or temporary employees should be included as fractions of
full-time. The Staffing Summary must show:
a) Number of FTEs charged to HPF Federal share; and
b) Number of FTEs charged to HPF matching share.
Include only "in-house" personnel. "In-house" personnel means full or part-time
employees or consultants/contractors who are under the administration of the SHPO and
are paid directly by the State. Do not include subgrantee personnel. For b), convert the
estimated number of volunteer hours to FTE terms if volunteers will be a major item of
nonfederal share.
The Staffing Summary may be combined with the Organization Chart if the requirements
of the Staffing Summary are clearly indicated on the Organization Chart.
3) Certification of Staff and Review Board Qualifications must be able to document that persons
from the appropriate disciplines who meet the professional qualification specified in the
Secretary’s Professional Qualification Standards, in accordance with 36 CFR 61.4(e) and (c);
36 CFR 60.6(k) and (o); as well as Chapter 6.
g. Environmental Certification.
States must submit either an Environmental Certification listing the Categorical Exclusions that
allow the State’s activities to be excluded from the NEPA process or an Environmental
Assessment. See Chapter 11 for details.
h. Anticipated Activities List.
The Anticipated Activities List is the means by which the Annual Grant Application identifies
the activities which the State will carry out that will, in part, help achieve the goals and objectives
in the State’s NPS-approved Comprehensive Statewide Historic Preservation Plan. The list
(along with the Cumulative Products Table) provides a brief indication of how the State intends
to use its HPF grant for this purpose.
1) For each Program Area, the State must list by brief descriptive title each major (in the State's
view) project or activity and reference the State Plan goal(s) and objective(s) to which the
project/activity helps achieve, if any. See Chapter 6, Section G. There need not be a

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complete one-to-one correlation between every activity or project undertaken with HPF
assistance and the State Plan. The project title must be descriptive rather than numeric. For
example, use "Inventory Computerization" or "Doe County Archeological Survey," but not
"14-BAL-42B10." Projects with multiple phases must include the phase number in the title.
There must be enough information in the descriptive title to indicate the tangible nature of the
project or activity. Multiple goals and objectives may be referenced for an activity, if that
activity helps achieve more than one goal or objective.
For example:
Survey and Inventory Program Area
1. Western Counties Mining Resources Survey (Phase III)--Goal VI, Objective 4
2. Test software for possible automation of State inventory--Goal II, Objective 1
2) Each Program Area must be listed, even if only to indicate that no major projects/activities
are planned. For example, if a State plans only routine Review and Compliance activity, it
should state this in the List.
3) Both subgrant and in-house projects and activities must be included.
4) If the Goals or Objectives of the State Plan are not numbered or lettered, some other means,
such as a short title or description must be used.
5) The Project/Activity Database Form may be used (see Chapter 25).
6) Each anticipated activity listed in the annual application must be reported on in the End-ofYear Report through the Project/Activity Database Report. (See Chapter 25, Section D.2.)
i.

Compliance with State Intergovernmental Review Process (E.O. 12372 Review).
State applications must be forwarded to the State Single Point of Contact in compliance with the
States' Intergovernmental Review process unless one has not been established under Executive
Order 12372, Intergovernmental Review of Federal Programs. Under Executive Order 12372,
each State establishes its own procedures and programs to be covered by its review. Refer to
Chapter 4 and 43 CFR 9 (see the Appendices). The SHPO must transmit to NPS all
clearinghouse comments as part of its application(s) or provide a statement that no comments
have been received. States must attach comments received through the State's E.0. 12372 review
process or, if applicable, include a certification and the date that the application was transmitted
to the E.0. 12372 Single Point of Contact. See Chapter 4, Section B.3.
Only States without an NPS-approved Comprehensive Statewide Historic Preservation Plan are
required to submit additional items C.1.j. and C.1.k (the Program Overview and Action Plan
Narrative).

j.

Program Overview.
The Program Overview should be a 1-2 page summary of the broad issues facing the State office
during the upcoming grant cycle. It provides NPS and, more importantly, the State's
constituency, with a framework for understanding specific objectives and tasks outlined in the
Action Plan Narrative (see Section C.1.k., below). The Overview may be a written narrative, a

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listing in "bullet" form, or a mixture of the two.
The Program Overview briefly addresses the following issues:
!

What are the most pressing preservation problems and highest priorities?

!

Where are the most demanding and pressing threats and dangers to cultural resources in the
State?

!

What are the most urgent constituent demands?

!

Where are developmental pressures greatest?

!

What are the State’s greatest internal needs and what actions will meet them?

k. Action Plan Narrative.
The Narrative should outline, in not more than 10-15 pages, the major tasks (including both
subgrant and in-house activities) to be undertaken in the upcoming grant cycle, and indicate how
these relate to the broad issues described in the Program Overview. Projects must be organized
by the Chapter 6 Program Areas. Each task statement should briefly describe the major services
to be provided, results to be obtained, and/or problems to be solved. The Narrative may take the
form of short statements or be presented in "bullet" form.
Tasks should not be described in such general terms that results cannot be measured. Detailed
descriptions, however, are not expected. For example, explain that the Office will complete and
forward to the Keeper of the National Register, five multiple property documentation forms, or
that it will conduct five workshops on completing National Register nomination forms.
Each task must be derived either from the State's historic context-based goals and priorities or
from the State's "other preservation goals and priorities." Some goals and priorities are developed
from the historic contexts in the State. (See Standard II of the Secretary's Standards for
Preservation Planning.)
"Other goals and priorities" are derived from objectives not directly related to historic context
based planning. These might include promoting certification of local governments, responding to
constituent requests or emergencies, or entering into Programmatic Agreements with Federal
agencies. Historic context based tasks must be indicated in some way, such as with an asterisk
(*). There may be some tasks that address both context based and non context based issues.
Each task must be described in terms of the broad issues discussed in the Program Overview. For
example, a task to identify, evaluate, and nominate lithic scatter sites in the San Juan Valley oil
fields might address the issue of mitigating the damage to such sites when drilling takes place on
privately owned land. Similarly, a proposed survey of Monroe, Jefferson, and Adams Counties
might fulfill a priority of identifying, evaluating, and nominating properties associated with 18th
century French immigrants into the State, as expressed in the historic context "French
Immigration into the Mississippi River Valley 1722-1846."
Each required Chapter 6 Program Area must be addressed even if only to indicate that no major
tasks are planned. Each subgrant and major in-house activity must be reported on in the End-of-

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Year Report, Project/Activity Database Report. See Chapter 25, Section D.

2. Special Requirements.
States will be notified when there are supplemental requirements applicable to individual
appropriations/apportionments.
3. Application Transmittal.
Transmit one complete application package to NPS. The package must include original signatures.
Photocopied signatures are not acceptable.
States are encouraged to submit their applications early in the Federal Fiscal Year to expedite the
obligation of their funds. Failure to send an application promptly may result in the loss of funds due
to Congressional rescissions. If the State's E.0.12372 review process prevents submission of the
application within this time frame, (see Chapter 4, Section C.3.). If an acceptable grant application
has not been received by NPS, the amount stated in the Apportionment Certificate may be reduced
following written notice to the grantee.
4. Amendments and Other Programmatic Changes.
For discussion of conditions requiring amendments and instructions for amendments, see Chapter 15.
D. Sequence of Grant Award Actions.
Note that in any fiscal year, there are two Annual grant agreements: one if unexpended funds are carried
over from the previous fiscal year, and a second Annual grant for the current fiscal year. The following
describes the sequence of grant award actions and grant spend-out:
!

December 31. Final billing for expired Annual Grant funds and for Annual Grant funds not carried
over (i.e., expended for work done during the first year of the grant).

!

December 31. End-of-Year Report and "Use or Lose" information sent to NPS. NPS may ask for
selected portions of the End-of-Year Report prior to December 31 in order to calculate performancebased apportionments. See Chapter 2, Section B.4.

!

February 28. Certification of NPS prepared Financial Status Report.

!

Before September 30. All second year Annual Grant costs must be incurred (prior to the end date of
the 24-month grant period).

E. Grant Application Information and Review.
Each grant application will be reviewed by NPS to determine the completeness of the application,
compliance with application instructions, and a cost evaluation to determine whether proposed costs
appear reasonable.
1. Application information. The information provided or referenced in the application serves as the
contractual basis for the NPS grant agreement(s) during the term of the award. All significant data
and information must be disclosed in the grant application and applicable Project Notifications (see
Chapter 8, Section F). Failure by a grantee to consider or reveal information that might have a
significant bearing on the eligibility of a program or project may be cause for refusal, cancellation, or
recoupment of Federal Assistance.

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2. Supplemental information. The grantee may, at any stage during the review process, be requested by
telephone or in writing to furnish additional documentation clarifying information required by the
Historic Preservation Fund Grants Manual or otherwise necessary, in the judgment of NPS, in order
for NPS to fulfill its grant review and monitoring responsibilities. The review may be suspended
until the additional information or documentation is received or the application returned if such
documentation is not readily available or promptly obtainable.
3. Review period. Generally, within 30 calendar days after receipt of a complete grant application
(excluding any periods needed for submission of supplemental information), the NPS Grant
Awarding Official will approve or disapprove the application in writing.
4. Disapproval. The grantee will be notified in writing of the reasons for disapproval or for inability to
act on a submitted application. Disapproval of an application will not preclude its reconsideration as
a revised reapplication. Disapproval or return of the application may result in an adjustment of
uncommitted funds according to established procedures.
5. Required Reports. Successful submission of the previous year's required reports is a condition of the
Annual Grant Agreement, and NPS may withhold approval of the current year's grant until an
acceptable End-of-Year Report is received.
F. Completing the Historic Preservation Fund Annual Grant Application--National Trust for Historic
Preservation.
1. Completing the Application. The annual grant application consists of four parts, assembled in the
following order: a) Standard Forms and Certifications; b) Program Overview; c) Cumulative
Products Table for the National Trust; and d) Special Requirements for current fiscal year
appropriated funds.
a. The following Standard Forms and Certifications must be submitted as part of the Annual Grant
application:
1) Federal Assistance Forms (SF 424).
Completed in accordance with Exhibit 7-A of Chapter 7. (If a Continuing Resolution grant
application has been previously submitted, an SF 424 Amendment for the additional funds
should be submitted.)
2) SF 424A and SF 424C Budget Forms. See Instructions for completing SF 424A and SF
424C, if applicable, Budget Forms (Exhibit 7-B). The Budget Form for the annual
application includes all apportioned fiscal year grant funds (but not funds carried over from
prior fiscal years).
3) Assurances. See Chapter 7, Exhibit 7-C, except that Assurance number 4 is to be revised by
substituting compliance with OMB Circular A-110 rather than with Circular A-102. The
Trust must also submit the Form DI-2010 Certifications.
4) Environmental Compliance. An Environmental Certification listing the Categorical
Exclusions that allow the Trust’s activities to be excluded from the NEPA process or an
Environmental Assessment. (See Chapter 11.)
b. Program Overview. The Program Overview must include Attachment A for the National Trust.

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The Attachment A form provides cumulative objectives and major supporting activities by
Program Areas and cost centers that are necessary to carry out each objective supported by HPF
funds (see Chapter 6, Section R, “Program Areas Applicable to the National Trust for Historic
Preservation”). Only the objectives and activities eligible for HPF grant assistance are to be listed
on Attachment A. The completion of objectives is reported in the End-of-Year Report column
(see Chapter 25 for instructions).
c. Attachment A for the National Trust. This form provides cumulative objectives and major
supporting activities by Program Areas and cost centers that are necessary to carry out each
objective supported by HPF funds (see Chapter 6, Section R, “Program Areas Applicable to the
National Trust for Historic Preservation"). Only the objectives and activities eligible for HPF
grant assistance are to be listed on the Attachment A. The completion of objectives is reported in
the End-of-Year Report column. (See Chapter 25 for instructions).
d. Special Requirements for Annual Appropriated Funds. Information will be provided in writing to
the National Trust to comply with legislatively or NPS administratively imposed requirements for
a particular appropriation.
2. Submitting the Application. Send two complete application packages to NPS, Attention: Historic
Preservation Grants Division. One copy must include original signatures. The Application must be
signed by the President, National Trust, or a person authorized by that official's written designation to
NPS to obligate the grantee to the terms and conditions of the grant.
3. Amendments and Other Programmatic Changes. (See Chapter 15)
a. The National Trust may not, without written concurrence from NPS, make changes that would
substantively alter the program objectives in approved grants. NPS concurrence must be sought
in the following circumstances:
1) Providing financial assistance to a third party by subgrant.
2) Transferring to a third party by contract or any other means, the actual performance of
substantive programmatic work. The term "substantive programmatic work" means activities
that are central to carrying out the purpose of the grant or a specific project, and not merely
incidental. This term does not include purchase of supplies, materials, or equipment,
acquisition of general or incidental support services, obtaining advice, or activities whose
cost is treated as an indirect cost.
3) Costs requiring prior NPS approval (see Chapter 13, Section C.). Additional program
application and project amendments may be initiated by NPS if: 1) on the basis of reports or
adverse findings, it appears that HPF funds are being used for unauthorized purposes; or 2) if
additional funds, previously appropriated or apportioned but unreleased, become available.
b. Request(s) for changes to the annual grant shall be submitted using the same form(s) as in the
original application. Only the pages affected by the amendment shall be submitted with the SF
424 facesheet (refer to Chapter 15 for NPS amendment procedures).

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EXHIBIT 7-A -- APPLICATION FOR FEDERAL ASSISTANCE

For up to date copies of the necessary SF 424 -- Application for Federal Assistance,
go to:
http://www.whitehouse.gov/omb/grants/grants_forms.html
For current version (as of November 2020), see forms section in the
back of the Manual

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Additional Instructions for Completing the Multiple-Purpose SF 424
The Standard Form (SF) 424 is the required facesheet for applications, amendments, or budget revisions
submitted in accordance with OMB Circulars A-102 and A-110. The following instructions, to be used in
conjunction with the instructions on the back of the printed SF 424, are applicable when applying for HPF grant
assistance through an Annual Appropriation, a Continuing Resolution appropriation, or a special purpose
appropriation. In addition, these instructions apply when requesting approval for any amendments or budget
revisions to approved HPF grant awards.
In addition to the special information required when applying for HPF assistance, instructions are also provided
for completing the SF 424 for compliance with the Federal Assistance Award Data System (FAADS). A
precoded 424 is enclosed (see Exhibit 7-A). Information collected from the FAADS is used in the Consolidated
Federal Funds Report, to provide data on Federal expenditures or obligations to the congress, the Executive
Branch, and other political and private interest groups.
Grantees are responsible for completing the entire form; any exceptions will be further detailed in this exhibit. If
an item is not applicable write "N/A." If additional space is needed, a separate sheet should be attached.
The revised SF 424 does not afford additional space for funding changes. At the bottom of the form there is only
one section for the funding information, if the estimated funding is to be corrected, cross through the original
figures and write in the change.
The instructions for completing a SF 424 are outlined in the columns headed HPF REQUIREMENTS and FAADS
REQUIREMENTS; each line item has been keyed to the Standard Form 424.
HPF REQUIREMENTS

FAADS REQUIREMENTS

1. Type of Submission

Mark the appropriate box. For
amendments--leave blank.

Not Applicable.

2. Date Submitted

State should enter date
application is transmitted to
Federal Agency.

Not Applicable.

Applicant Identifier

State should enter its control
number, if any.

Not Applicable.

3. Date Received by
State

Enter date application is
received in State.

Not Applicable.

State Application
Identifier

See FAADS/ requirements.

Enter the number assigned by a state
clearinghouse. The 13 character format
established by OMB should be used. The
standard format is: State, Year, Month, day,
Sequential Number (Sample: ID960101-00001).
For awards under covered programs for which no
SAI number was supplied enter "SAI NOT
AVAILABLE." Programs not covered by E.O.
12372 compliance should enter the number if
reported, otherwise, the entry should be "SAI
EXEMPT."

4. Date Received by
Federal Agency

Enter date application is
received by the Federal Agency
(if for a new grant, leave blank).

Not Applicable.

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Federal Identifier
5. Applicant
Information

HPF REQUIREMENTS

FAADS REQUIREMENTS

For annual grants--leave blank.
Legal name: Enter the name of
the primary organizational unit
which will undertake the
financial assistance activity.
.
State of
Organizational DUNS: Enter
the primary organizational unit’s
DUNS number as assigned by
Dun and Broadstreet.
Organizational Unit: Enter
appropriate name.
Address: Enter complete
address of applicant.
Name/Telephone
Number/Email address: Enter
information for person to be
contacted (give area code).

Not Applicable.
Enter the name of organization. Identify the
specific organizational element (subdivision) as
well as parent organization. Do not abbreviate
the first word of a recipient. Abbreviations
should be used only when the recipient name
exceeds the field length, which is 45 characters.
When abbreviations are necessary, the following
guidelines should be used: a) Abbreviate from
the right side of the name. b) Abbreviate only
one word, if possible. c) Abbreviate the most
commonly used word. Address. Enter the
specific name and the appropriate code for the
city or township in which the recipient is located.
The code used should be the 4 character number
GSA code. County name. Enter the specific
name and appropriate code for the county in
which the recipient is located. The 3 character
numeric FIPS code should be used. State Code.
Enter the Appropriate 2 character numeric FIPS
code for the State in which the recipient is
located. Zip Code. Enter the 5 (or 9) character
numeric code from the U.S. Postal Service
manual.

6. Employer
Identification Number

Enter number assigned by the
Internal Revenue Service.

7. Type of Applicant

Enter "A" for all applications or
amendments.

Enter the 2 character numeric code which
represents the recipient in the space to the right
of "Enter appropriate letter in box." In this case
the specific numeric code is "00."

8. Type of Application

Check appropriate box. If
revision, enter appropriate
letter(s) in box(es).

Enter "04" code, representing the type of grant or
financial, in the lower right corner of the box.

9. Name of Federal
Agency

Enter "National Park Service."

Enter 1443.

10. Catalog of Federal
Domestic Assistance
Number

Enter 6 character number from
Catalog of Federal Domestic
Assistance.

Enter: 15-904

Title

Enter program, title "Historic
Preservation."

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11. Descriptive Title of
Applicant's Project

HPF REQUIREMENTS

FAADS REQUIREMENTS

Identify type of Grant.

Enter brief description of the project or purpose
for which funds are being requested. Only the
first 145 characters will be recorded. Therefore,
begin the description with the most relevant
information.

a) Annual
b) Special
Identify the fiscal year for which
these funds will be applied to
program objectives and for
which NPS approval of
obligational authority is
requested.
Correction or Late
Indicator

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Not Applicable.

This section will be used by NPS only. Enter the
appropriate code at the lower left hand side
indicating the award is being reported either as a
correction, a late record which was omitted from
a previous quarter's submission, or a current
financial award. Fiscal year and quarter of
corrected or late record: enter at the lower right
hand side the appropriate numeric designation of
the fiscal year and quarter to which the
corrections apply, or in which the record should
have been submitted.

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12. Areas Affected By
Project

HPF REQUIREMENTS

FAADS REQUIREMENTS

Enter Statewide.

Enter the location of the project being funded.
Provide a 7 character code as follows:
a. The State, District of Columbia, or territory
should be entered in the first 2 positions. The 2
character numeric FIPS code should be used.
For multistate projects, a "00" should be entered,
in which case the remaining positions should
contain asterisks (*).
b. If the principal place of performance is in a
particular city, township, or place, the 5 character
numeric FIPS code should be entered in
positions three through seven. (The GSA place
code should not be used here).
c. If the principal place of performance is a
particular county (or more than one county),
enter the 3 character numeric FIPS code for the
county (or county of principal performance) in
positions five, six, and seven, preceded by 2
asterisks (*) in positions three and four.
d. For pass-through grants or other statewide
projects, the State should be designated in the
first two positions, with the remainder of the
field containing asterisks (*).
e. For awards to domestic recipients where the
final place of performance is in a foreign
country, the place of performance will be two
zeros followed by FORGN (00FORGN).

13. Proposed Project

Enter the start and ending dates
in the appropriate boxes.

14. Congressional
Districts Of

Applicant: Enter the applicant's
congressional district.

Project: Enter any district(s)
affected by the program or
project.

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Enter the 2-position numeric code for the
congressional district at large, enter a "00." For
jurisdictions with a nonvoting delegate, enter
"98." For jurisdictions with no representative,
enter "99." If a look-up table is being used to
generate the congressional districts, and more
than one district falls within the boundaries of
the city, a code "90" should be used.

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15. Estimated Funding

16. Is Application
Subject to Review by
State Executive Order
12372 Process?

HPF REQUIREMENTS

FAADS REQUIREMENTS

Enter the amount requested or to
be contributed during the
funding period by each
contributor. If the action is a
change in dollar amount,
indicate only the amount of the
change.

If funding amount is positive, no positive sign
(+) is necessary. If funding amount is negative
(such as for a decrease in the obligation), sign in
the space below "FEDERAL."

Enter date application was made
available to the State Executive
Order 12372 process.

Enter the bureau's or office's internal award
number which uniquely identifies the grant or
award transaction. Omit hyphens and other
special characters. The number cannot exceed
16 characters. Put entry in space below "or
Program has not been selected by State for
Review" on left side. a) Core Number: Enter
core number for each award in accordance with
each agency's internal code format. b)
Modification Number: Enter NPS' internal
number which represents each modification to a
grant or award of financial assistance as
applicable. The entry cannot exceed 4 characters
in length. Put entry in space below "or
PROGRAM HAS NOT BEEN SELECTED BY
STATE FOR REVIEW" or right side.

Check appropriate box under
16b.

17. Is the Applicant
Delinquent on any
Federal Debt?

Check appropriate box.

Enter in space below "State," as follows: If
funding amount is positive, no positive sign (+)
entry is necessary. If funding amount is negative
(such as for a decrease in the obligation) enter a
minus (-) sign.

Action/Obligation date. Enter the year, month,
and day funds were obligated or committed for
this action in left corner. The numeric entry
should be in the form of yy/mm/dd.
Starting date. Enter the year, month, and day
that funds will become/became available for
actual beginning of the project in the middle.
The numeric entry should be in the form of
yy/mm/dd.
Ending date. Provide the year, month, and day
of scheduled completion date of the project or
activity related to the action in right corner. The
numeric entry should be in the form of
yy/mm/dd.

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18. To the Best of my
Knowledge and Belief...

HPF REQUIREMENTS

FAADS REQUIREMENTS

To be signed by the authorized
representative of the State.

Record Type. Next to the word "AWARDED,"
enter a numeric "2" for individual action
reporting.
NOTE: If occasions arise where after the
ending date an audit is conducted and a
change in the dollar amount results, the
ending and action date should both be
changed to reflect the day the change was
made. In addition, Item #11 on the SF 424
"Descriptive Title of Applicant's Project" should
indicate that the dollar change is because of the
findings of the audit conducted.

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EXHIBIT 7-B BUDGET FORMS (SF424A AND SF424C)

For up to date copies of the necessary SF 424A and SF 424C – Budget Forms, go to:
http://www.whitehouse.gov/omb/grants/grants_forms.html
For current version (as of November 2020), see forms section in the back of the
Manual

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ADDITIONAL INSTRUCTIONS FOR THE SF 424-A (Budget Form)
Section A, B, and C provide budget estimates for the entire HPF grant award (the combined Federal and nonfederal
shares). All applications must contain a breakdown by the object class categories shown in lines a.--k. of Section B.
Unless supplemental instructions from NPS state otherwise, these budget forms are to be used when applying for all HPF
grant funds (nonconstruction, development, or acquisition). The amounts appearing on the Budget Form must agree with
the amounts appearing on the SF 424.
SECTION A - Budget Summary

DO NOT USE SHADED AREAS

1.e.

Enter the total current year Federal share request to be approved in the Grant Award. The amount entered in
1.e. will equal the amount in Item 15a. on the SF 424.

1.f.

Enter the total current year nonfederal share request to be approved in the Grant Award. The amount entered in
1.f. will equal the amount in Item 15b. on the SF 424. (Insular areas are not required to provide matching share).

SECTION B - Budget Categories

DO NOT USE SHADED AREAS

For each column, total the amounts entered on lines 6.i. and 6.j. and enter the total on line 6.k.
The total of Column 1 (Administrative), Column 2 (Internal Operating/Staff), and Column 3 (External Subgrants and
Contracts) will equal the amount shown in Item 15.f. of the SF 424.
Total columns 1 through 3 across and enter the figures in column 5. The figure in column 5, line 6.k. will equal the
amount entered in Section A.1.g.
ADMINISTRATIVE AND OPERATING COST INSTRUCTIONS
SECTION B
In order to establish the amount of administrative costs applied in support of operational HPF activities, administrative
costs must be listed separately in Section B, column (1) of the SF 424A Budget Form. Section B, column (2) must list
operational costs for activities.
A. Definition.
1. Administrative costs. Costs incurred when accomplishing activity directly pertinent to budget formulation and
execution, personnel management, finance, property management, equal opportunity and other "overhead"
functions not directly attributable to specific program areas. Refer to Chapter 6, Section F for additional activities
which support all program areas and should be charged to this program area.
2. Operating Costs. The costs applied to specific Program Area activities described in Chapter 6. Operating
programs and projects are those that directly contribute to the accomplishments of the SHPO responsibilities.
The following are examples of operating costs:
a. Personnel and nonpersonnel costs allocable to specific program areas.
b. Payment to any trainees (such as work-study participants) including salaries, wages, and employer's share of
fringe benefits.
c. Administration or management directly linked to program areas; these costs are included under the
appropriate program area.

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B. Procedures.
1.

Identify the expenses for the 24-month period for the general executive offices and other overhead expenses.
Refer to the Administrative Program Area, Chapter 6, Section F for examples of these costs.
Administrative costs chargeable to all budget categories must be included: personnel, fringe benefits, travel,
equipment, supplies, contractual, construction, and other. (Refer to SF 424A, Budget Information Instructions.)

2. Where personnel, such as the State Historic Preservation Officer and the fiscal officer, accomplish both
administrative work and operational work, the approximate percentage of time spent on administration should be
translated into projected costs.
SECTION C

DO NOT USE SHADED AREAS

8.b.

Enter the nonfederal share supplied by the grantee.

8.d.

Enter the nonfederal share supplied by other sources (including other State agencies) for the HPF grant
(excluding pass-through funds for CLGs).

9.c.,d.

Enter the nonfederal share for the pass-through funds.

9.e.

Enter the total nonfederal share for the pass-through funds.

Note: The amount in 8.e. plus the amount in 9.e. will equal the amount in Item 15b of the SF 424.
Note: Should a State choose to " overmatch" program costs, the amounts must be included in Section A, B, and C.
Nonfederal share above the percentage required by law (overmatch) is subject is subject to audit and adequate
documentation must be maintained on file for audit purposes.
Program Income (see Chapter 16) to be approved by NPS as nonfederal share must be shown in line 7. If such Program
Income is not listed, written NPS prior approval must be sought by the grantee through submission of a subsequent letter.
SECTION F - Other Budget Information
21. Direct Charges: Attach, if applicable, a list of proposed equipment to be purchased and the cost of each item.
Equipment exceeding a cost of $5,000 per item must be listed. Equipment costing more than $5,000 not listed as
part of the grant application will require a separate letter from the grantee and written NPS approval prior to
purchase.
22. Indirect Charges: Provide the date of approval for the most recent Federally-approved Indirect Cost Rate. Attach a
copy of the document from the cognizant Federal Agency that approved the Rate.
23. Administrative Costs: Provide the percent of Administrative Costs. If Administrative Costs (Section B, Column 1,
line 6.k.) plus the State's indirect costs (Section B, column 5, line 6.j.) exceed 25 percent of total program costs
(Section B, Column 5, line 6.k.), attach a written explanation.
Note:

Costs requiring prior NPS approval (see Chapter 13, Section C) should be listed in an attachment to Section F
of the SF 424A Budget Form. If such costs are not listed, written NPS prior approval must be sought by the
grantee through submission of a subsequent letter or amendment request.

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EXHIBIT 7-C ASSURANCES (SF424B and SF424D)

For up to date copies of the necessary SF 424B and SF 424D – Construction and
Nonconstruction Assurances, go to:
http://www.whitehouse.gov/omb/grants/grants_forms.html
For current version (as of November 2020), see forms section in the back of the
Manual

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EXHIBIT 7-D CERTIFICATIONS REGARDING DEBARMENT

For up to date copies of the necessary – Certifications Regarding Debarment,
Suspension, Drug-Free Workplace, and Lobbying (DI-2010), go to:
http://www.whitehouse.gov/omb/grants/grants_forms.html
For current version (as of November 2020), see forms section in the back of the
Manual

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Exhibit 7-E

OMB Control Number 1024-0038
Expiration Date: November 30, 2007
CUMULATIVE PRODUCTS TABLE
Annual Grant

End-of-Year Report

Amendment

State:

Fiscal Year:

Date:

Instructions
1. Refer to both the Glossary and the Guidelines for Completing the Cumulative Products Table, below.
2. Application: Fill in all blanks in the “Cumulative Projection” columns.
3. Enter “N.A.” if the category is not applicable. Use “0" if the category is applicable, but no action is anticipated or
has occurred during the reporting period.
Program Area and Products
Review and Compliance
Federal
Properties Meeting National Register Criteria
For Which a Written Eligibility Opinion is
Provided
Properties Not Meeting National Register
Criteria For Which a Written Eligibility
Opinion is Provided
Findings of “No Properties” And/Or “No
Effect” On Which Written Opinions Are
Provided
Other Findings of “Effect” On Which Written
Opinions Are Provided
Memoranda of Agreement Signed
Programmatic Agreements Signed

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Actual

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OMB Control Number 1024-0038
Expiration Date: November 30, 2007
CUMULATIVE PRODUCTS TABLE
Annual Grant

End-of-Year Report

Amendment

State:

Fiscal Year:

Date:

Program Area and Products

Cumulative Projection

Actual

National Register
A. State Nominations:
Number of New Nominations Sent to the National Register:
Districts

NPS DATA

Buildings

NPS DATA

Sites

NPS DATA

Structures

NPS DATA

Objects

NPS DATA

B. Federal Nominations:
Number of Federal Nominations Commented On
Preservation Tax Incentives
NUMBER OF CERTIFICATION REQUESTS
COMMENTED ON AND FORWARDED TO
NPS:
Certification Requests For:
Evaluations of Significance (Part 1s)

NPS DATA

Descriptions of Rehabilitation (Part 2s)

NPS DATA

Requests for Certification of Completed Work
(Part 3s)

NPS DATA

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OMB Control Number 1024-0038
Expiration Date: November 30, 2007
CUMULATIVE PRODUCTS TABLE
Annual Grant

End-of-Year Report

Amendment

State:

Fiscal Year:

Date:

Program Area and Products

Cumulative Projection

Actual

Survey and Inventory
A. NUMBER OF PROPERTIES
NEWLY ADDED TO THE
STATE INVENTORY:

FROM HPF
SURVEYS

OTHER

FROM
HPF
SURVEYS

OTHER

Architecture/History
Archeology
B. AREA SURVEYED (in Hectares: 1 hectare = 2.5 acres = .004 square miles):
Reconnaissance Level Survey:
Architecture/History
Archeology
Intensive Level Survey:
Architecture/History
Archeology
Planning
Reporting Products in the Planning Program Area is optional. The effect of undertaking a Comprehensive Statewide
Historic Preservation Plan results in activities and products usually reported in other Program Areas.
Specify Products (Optional):

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OMB Control Number 1024-0038
Expiration Date: November 2007
CUMULATIVE PRODUCTS TABLE
Annual Grant

End-of-Year Report

Amendment

State:

Fiscal Year:

Date:

Program Area and Products

Cumulative Projection

Actual

Local Government Certification/
Pass-Through
Number of Local Governments Newly
Certified During Fiscal Year

NPS DATA

Number of CLGs Evaluated
Number of CLGs Decertified

NPS DATA

Development, Acquisition, and Covenants
Number of Predevelopment Projects For
Which Plans and Specifications Are
Reviewed
Number of Predevelopment Projects For
Which Historic Structure Reports Are
Reviewed
Number of Development Projects
Completed
Number of HPF-Funded Covenants and
Preservation Agreements Monitored
Other Activities
Reporting Products in this Program Area is optional. (Be specific when reporting activities completed).

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Guidelines for Completing the Cumulative Products Table
The following guidelines are to be used in completing Cumulative Products Table. Except where
specifically stated, the guidelines apply to all Cumulative Products Tables sent by States.
A. General Guidelines.
1.

Fill in all blanks. Do not combine data unless requested to do so.

2.

Only activities funded or administered with HPF grant monies or used as allowable matching
share should be reported on the Cumulative Products Table.

3.

In the Heading, list the date of the current submission. That is, the date on an amended page
should not be the same as on the original submission. This will help NPS ensure that only
current data will be used for review and reports.

4.

General purpose definitions may be found in the Glossary and Chapters 3 and 6 of the Historic
Preservation Fund Grants Manual. Chapter 6 also provides further details on which activities
belong in which program areas and what the minimum requirements are for those program
areas.

5.

When additional funds are added to the grant, the appropriate pages of the Cumulative Products
Table must be revised and sent to NPS. For example, when a State receives additional funds,
revised Cumulative Products Table pages are normally required to show the additional
cumulative products that will be accomplished with the new funding.

6.

In the End-of-Year Report, report activity in each program area unless exempted by law or in
writing by the National Park Service. If there has been no activity for particular blanks, enter 0.

7.

There may be some situations in which double counting of Products is appropriate. For
example, the area of a survey for both architectural/historical and archeological resources
should be counted twice.

8.

The blanks in the "Cumulative Projection" column are completed for the Annual Grant
Application (and any subsequent amendments), and the blanks in the "Actual" column are
completed for the End-of-Year Report (see Chapter 25). If there is no activity, enter 0.

9.

The Cumulative Products Table is sent first with the Annual Grant Application but includes
estimates on the products to be carried out with the funds carried over from the previous year
and any approved preagreement costs. After the Annual Grant Application, the Cumulative
Products Table projections are updated cumulatively as part of any subsequent award. For
example, if a State plans to fund a reconnaissance level survey of 800 hectares for archeological
resources with the funds carried over from the prior year and an additional 700 hectares with
the current Annual Grant, the Cumulative Products Table for the Annual Grant Application will
have the total of 1,500 hectares entered under "Reconnaissance Level Survey, Archeology." If
the State then decides to use recaptured funds, for example, to survey an additional 500
hectares, the total would become 2,000 hectares.

10.

A common method of making "cumulative projections" is to use the actual numbers from the
previous year as the projection base for the upcoming year, modified to reflect any special
circumstances, emphasis, and/or funding changes anticipated by the State.

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11.

Planned Products are results to be achieved, reviews to be performed, etc. For the End-of-Year
Report, “Actual” Products are those actions and results that were produced during the reporting
period. It does not refer to the number of items received during the reporting period, or to
activities undertaken but not completed. For example, an item that is received during FY
"1996" but upon which action is not completed until FY "1997" should be counted in the FY
1997 Annual Grant Application Cumulative Products Table and the FY 1997 End-of-Year
Report, not in the FY 1996 End-of-Year Report.

12.

In the Products Section, some "Actual" blanks are marked "NPS DATA." These are elements
for which States need not report data in the End-of-Year Report; the National Park Service
maintains its own records for these elements.

13.

There are two types of multipurpose subgrants, i.e., those generating products for two or more
program areas:
a.

A subgrant for which both the activities (and resulting products) and the costs are easily
separable (such as printing a brochure on survey techniques and a brochure on preparing a
nomination) into separate program areas.

b. A subgrant for which neither the activities nor the costs are easily separable should be
reported in the Other Activities Program Area.
B. General Guidelines (For Individual Appropriations Only). Supplemental requirements applicable to
individual appropriations/apportionments will be supplied by NPS as needed.
C. Guidelines for Specific Program Areas.
1.

Administration Program Area. Include the preparation of Grant Applications and End-of-Year
Reports in this program area. Monitoring of activities in a specific program area, however,
should be included in that program area. Refer to the Glossary and to Exhibit 7-B, "Additional
Instructions for the SF 424A Budget Form," for further explanation of administrative costs.

2.

Review and Compliance Program Area.
a. Report Products on the review of Federal compliance with Section 106 of the National
Historic Preservation Act, as amended, and 36 CFR 800 only.
b. Do not include reviews of Federal activity performed for compliance with other laws (e.g.,
the Archeological Resources Protection Act, the National Environmental Protection Act,
etc.) or reviews of State or local undertakings carried out pursuant to State or local
regulations in the Cumulative Products Table (this includes project or design review
conducted by local preservation commissions). These remain eligible activities (see
Chapter 6, Section O). A summary of these reviews may be included in a Cumulative
Products Table continuation sheet or as a narrative elsewhere in the Application or End-ofYear Report, if desired. See Chapters 7
and 25.
c.

Products completed pursuant to a Programmatic Agreement, a Memorandum of
Agreement, a "Conditional" No Adverse Effect Agreement, or other agreement is reported
in the same way as any other product. For example, a National Register eligibility opinion
provided pursuant to a Programmatic Agreement is reported with other eligibility opinions,
and a survey performed pursuant to a "Conditional" No Effect agreement is reported in the
Survey and Inventory Program Area.

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d. For both the "Properties Meeting National Register Criteria for which a Written Eligibility
Opinion Is provided" figure and the "Properties Not Meeting National Register Criteria for
which a Written Eligibility Opinion is provided" figure, States must count individual
properties and each property of a group whose eligibility is specifically and individually
addressed. The written opinion must enable the Federal agency to identify, locate, and
understand the significance of each property to which the State refers. See Chapter 6,
Section O.
For the purposes of Cumulative Products Table, include opinions that there is not enough
information to determine National Register eligibility in the "Properties Not Meeting
National Register Criteria for which a Written Eligibility Opinion is Provided.” See
Exhibit 7-E-1, above.
The rule of thumb for counting previously evaluated properties is whether or not the State
Office reevaluates the property's eligibility. Many properties change from eligible to
ineligible (and vice versa) over time. If the State evaluates or reevaluates a property's
eligibility because there is some reason to believe its standing might have changed, it is
reported; otherwise, previously evaluated properties are not reported.
e.

"Findings of 'No Properties' and/or 'No Effect' On Which Written Opinions Are Provided,"
refers to written opinions provided to a Federal agency as to whether or not the State agrees
with (or believes that there should be) a Federal agency's finding that there are no National
Register eligible or listed properties within the Federal undertaking's area of impact (i.e.,
"No properties;" see 36 CFR 800.4(d)) or that the Federal undertaking will have no effect
on National Register eligible or listed properties (i.e., "No Effect;" see 36 CFR 800.5.(b)).
Include in this category those instances in which there will be "No Properties" or "No
Effect" because the Federal agency has agreed to alter its original plans.

f.

"Other Findings of Effect On Which Written Opinions Are Provided" refers to written
opinions provided to a Federal agency as to whether or not the State agrees with (or
believes that there should be) a Federal agency finding that its Federal undertaking would
have "No Adverse Effect" (see 36 CFR 800.5(d)) or an "Adverse Effect" (see 36 CFR
800.5(e)) on National Register eligible properties.
Include in this category instances in which the State has negotiated the steps which the
Federal agency agrees to take in order for an "Effect" to be determined a "No Adverse
Effect."

g. The unit of measure for all of the "Effect" determinations is the number of undertakings for
which the State provides a written opinion. Only one finding per undertaking per Federal
fiscal year is to be reported. In other words, the reviews of multiple drafts of a proposed
undertaking must not be reported within a single Federal fiscal year. However, if the State
has provided its written opinion on an undertaking's effect and the Federal agency submits
a completely new proposal that would change the effect of the undertaking and the State
provides its written opinion of the new effect, then the second written opinion is reported.
The most common example of this would be where the planned path of a new highway has
been changed.
Findings must be reported at their greatest level of effect. For example, if a States provides
its written opinion that a single undertaking has "No Effect" on seven National Register
eligible properties and an "Adverse Effect" on three properties,
count the undertaking as one "Adverse Effect" and report it in the "Other Effects" blanks in
the Cumulative Products Table.

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If a single undertaking ends with multiple Federal agency findings for the properties
included within its scope, the State must not count its comments more than once on the
Cumulative Products Table. If, in addition, a State wishes to report all of the findings
within an undertaking it may do so, but only on a continuation sheet or in a narrative
accompanying the Cumulative Products Table.
h. "Memoranda of Agreement" (MOAs) pertain to specific Federal undertakings rather than a
type of activity (e.g., a project to renovate a specific Post Office building, rather than a
program to remove asbestos from schools).
"Memoranda of Agreement Signed" includes both new and revised MOAs and is reported
when MOAs are signed by the SHPO. Only one MOA per undertaking per Federal fiscal
year should be reported unless there has been a substantive revision made to an executed
MOA within that time. The SHPO's signature will be taken by NPS as assurance that the
State has made a substantive contribution to the MOA.
i.

Reviews reported in this area must be substantive (i.e., involving examination of project
documents) to be counted. For example, merely extending an MOA without review should
not be counted.

j.

"Programmatic Agreements Signed" (PAs) include PAs, new and revised (but not just
renewed; there must be substantive changes), for which substantive work has been
performed. These products deal with types of activities, rather than specific undertakings,
and may be initiated by either the SHPO or a Federal agency. They are signed by the
Federal agency representative and the SHPO and are executed by the Advisory Council on
Historic Preservation. See 36 CFR 800.13 for further information on PAs. Because the
State's work is complete when the SHPO signs the PA, the product is reported at that point.
The SHPO's signature on the PA will be taken by NPS as assurance the substantive work
has been performed.
"Categorical No Effects" (a.k.a., "Categorical Exclusions") has been subsumed under the
Programmatic Agreements category. Under 36 CFR 800.13, a Federal agency may elect to
fulfill any part of its Section 106 responsibilities "for a particular program...or a class of
undertakings that would otherwise require numerous individual requests for comment,
through a Programmatic Agreement." PAs are not limited to treatment activities, and thus
"Categorical No Effects" is within the purview of this section of the regulations.
"Categorical No Effects" (and any other Section 106 compliance related programmatic
agreement with a Federal agency) must meet all of the procedural requirements of a
standard PA.

3.

National Register Program Area.
a.

Enter the number of nominations forwarded to the National Register by the State during the
fiscal year, not the number of nominations in preparation or received by the State.

b. Do not report resubmissions of nominations returned by the National Register for
additional action.
c.

Any change to the boundaries of a resource already listed on the National Register should
be reported as a new nomination.

d. Report nominations that the State forwards to the National Register, but that become
determinations of eligibility because of owner objection.
4.

Preservation Tax Incentives Program Area.

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a.

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Products in this Program Area refer to the number of complete Historic Preservation
Certification Applications to be forwarded to NPS, not to the number of applications
received by the State.

b. Do not report a resubmitted application that was returned by NPS for additional
information or reviewed a second time.
c.

"Evaluations of Significance" includes "Determinations of Significance," "Certifications of
Non-Significance," and "Decertifications of Significance."

d. Do not report applications forwarded to NPS without review or comment.
5.

Survey and Inventory Program Area.
a.

All Products reported, whether or not they are HPF-funded, must be designed and
conducted or supervised and reviewed, by those who meet the professional qualifications
for the appropriate discipline, specified in 36 CFR 61. Survey and Inventory Products
reported must meet the Secretary's "Standards for Identification and Evaluation."

b. "Properties Newly Added to the State Inventory" refers to the number of properties
evaluated using the National Register criteria. A property may be reported whether or not
it is eligible for listing in the National Register, or if there is insufficient information to
determine eligibility.
c.

Do not report inventory data on properties that already are part of the inventory but that are
being computerized or are otherwise part of an inventory reorganization; report newly
added properties only.

d. For "Area Surveyed," the unit of measure is hectares. One square mile equals 256 hectares.
One hectare equals 2.5 acres.
e.

Do not report areas surveyed at the "Intensive Level" of Survey in the "Reconnaissance
Level" of Survey section unless two separate surveys of the same area were undertaken
during the reporting period.

f.

Characterize all surveys as either archeology or architecture/history. As a general rule, any
survey referred to as prehistoric, underground, submerged, or similarly described should be
characterized as archeology; characterize all others as architecture/history.
If an area is examined for both archeological and architectural/historic resources in a single
survey, project, or task, include the area in both categories.

g. All surveys reported must be conducted in the field (i.e., not solely archival). For example,
in a thematic survey for county courthouses, if the presurvey archival research indicates the
location of the courthouses (as it should in most cases) report only the area of each
courthouse; do not report the area of the entire county. Only if the entire area of the county
was searched in the field for the courthouse, can the entire area of the county be counted.
h. Do not report distance traveled to get to the location being surveyed as part of "Area
Surveyed."
i.
6.

For resurvey of areas to upgrade data in the State inventory, count only the area that
actually will be, or was, surveyed again.

Planning Program Area. There are no prescribed Products that must be reported in the Planning
Program Area. States may, however, report major preservation planning products in this

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portion of Cumulative Products Table if they are not reported in other program areas. All
activities reported must meet the Secretary's Standards for Preservation Planning.
Typical activities might include:
a.

Staff or subgrant efforts to develop plans, historic context documentation, special planning
studies, ordinances or guidelines.

b. Planning subgrants awarded to local governments including Pass-Through allocation to
Certified Local Governments. Report activities associated with the certification of local
governments in the Local Government Certification/Pass-Through Program Area.
c.

Development and/or review of model or specific area planning documents such as area
management plans. Do not include preliminary certifications of rehabilitation in this
category. See the Preservation Tax Incentives Program Area.

Activities which should not be reported in this Program Area include:
d. Activities such as outreach, public education, and training unless they relate specifically to
preservation planning (instead, see the Other Activities Program Area).
e.

Preparation of office administrative, management, or staff work plans; grant applications,
End-of-Year Reports, etc., should be included in the Administration Program Area.

f.

MOAs and PAs. These should be reported in the Review and Compliance Program Area.

g. Predevelopment activity (including plans and specifications, historic structure reports,
feasibility studies, "Main Street" activities, etc.) and other site specific plans. See the
Development, Acquisition, and Covenant Program Area.
h. Activities carried out to implement plans and ordinances are reported in the relevant
Program Area.
7.

Local Government Certification/Pass-Through Program Area.
a. Report only activities related to the Local Government Certification program in this
program area. Report the Products of CLG Pass-Through subgrants in the appropriate
program area. For example, the products from a CLG survey subgrant should be reported
in the Survey and Inventory Program Area. Developing a preservation plan or preservation
element of the local master plan should be reported in the Preservation Planning Program
Area. The review of local zoning amendments, subdivision proposals, and development
projects should be reported in the Review and Compliance Program Area.
b. At least 10 percent of the State's total allocation for the year must be passed through as
subgrants to CLGs. Do not include the funds carried over from the prior year's Annual
grant, or any other awards using prior year funds to make the calculation for the current
fiscal year. See Chapter 9, Section K.6.

8.

Development, Acquisition, and Covenants Program Area. Certain activities in this program
area may, from time to time, be prohibited by Congress. When there are prohibitions, States
must be sure to report only permitted activities.
a.

Development. See Chapter 6, Section K for more detailed information on what constitutes
"Development" and "Predevelopment."
1) For "Number of Predevelopment Projects For Which Plans and Specifications Are

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Reviewed" and for "Number of Predevelopment Projects For Which Historic Structure
Reports Are Reviewed," the unit of measure is projects. Count projects only once, no
matter how many plans and specifications or historic structure reports are involved.
2) The review of a development or predevelopment project is eligible even if HPF or
matching funds are not used to pay for the project itself. For example, reviewing a sitespecific historic structure report, or giving advice on renovating a building in
accordance with the Secretary's Standards for Rehabilitation, would be an eligible
activity, even if paying for the renovation is not permitted with HPF Grant funds or
matching share.
b. Acquisition. The review of an acquisition project (i.e., a nonconstruction activity; see
Chapter 6, Section L) is eligible even if HPF or matching funds are not used to pay for the
project itself.
c.

9.

Covenants and Preservation Agreements. See Chapter 6, Section M for a detailed
description of requirements relating to Covenants and Preservation Agreements. For
purposes of the Cumulative Products Table, monitoring of covenants and preservation
agreements begins upon completion of an acquisition or development project.

Other Activities Program Area.
a.

States are not required to have activity in this program area. Multi-purpose activities such
as general outreach (which covers more than one program area and cannot be easily
separated), public education (brochures, etc.), newsletters, preservation conferences,
HABS/HAER documentation projects, etc., should be reported here. However, try to place
activities in the appropriate specific Program Area whenever possible. A workshop on
National Register forms, a publication of a survey, or other such single purpose products
should be reported in the applicable program area.
If you have questions about placing certain activities in this program area, consult NPS to
determine whether the activities are better suited to a more specific program area.

b. Report activity in this program area at the same scale or level of detail as the products listed
by NPS on Cumulative Products Table. For example, report the number of issues and
copies of a newsletter (e.g., 4 issues mailed to 2,500 constituents), not the number of pages.
D. Guidelines For Specific Program Areas (For Current Fiscal Year Appropriated Funds Only).
Supplemental requirements applicable to individual appropriations/apportionments will be supplied by
NPS if necessary.

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EXHIBIT 7-F SAMPLE ORGANIZATIONAL CHART
This is a sample organization chart only. States may use any format they wish as long as the information
stipulated in Section C.1.f. of this chapter is included. Please note that whatever format is used, it should
readily indicate what the reporting relationships are.
State Historic Preservation Officer:

Deputy State Historic Preservation Officer(s):

HPF Grants Manager:

36 CFR 61 Qualified Staff (please note discipline in parentheses):

Staff Responsible for Title VI and Section 504 Compliance:

The Organization chart must detail all positions associated with State staff work that is charged in full or in part to the
HPF or Matching share. The Organization Chart must include the following components: a) All positions by title,
noting which positions fulfill 36 CFR 61 staff requirements; b) Names of incumbents of all positions paid in full or part
by HPF funds, or claimed as nonfederal share costs; c) Which positions are supervisory; d) Reporting relationships; e)
Assigned Chapter 6 Program Areas for each staff person; f) Which staff person has primary responsibility for HPF
Grants Management (both grant-assisted internal operations and subgrants); and g) Which staff person has responsibility
for Title VI and Section 504 compliance (see Chapter 10, Section C.5.f.).
The staff person’s primary program area should be indicated in parentheses. Reporting relationships may be indicated
with arrows or lines between the relevant boxes. Please use the following abbreviations:
SUPERVISOR
36 CFR 61
HPF
MATCH

Supervisory Positions
Staff Meeting the professional qualification requirements in 36 CFR 61
Staff paid for with HPF funds
Staff paid for with Matching funds

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Chapter 8 - Subgrants, Contracts, and Third-Party Agreements
A. Purpose.
This chapter sets forth the requirements for HPF-funded subgrants, contracts, and third-party agreements
(such as cooperative agreements) administered by State Historic Preservation Offices. These
requirements also apply to contracts, and third-party agreements used solely as matching share.
B. Annual Announcement of Availability of HPF Funds.
States must notify public and private organizations and individuals throughout the State of the availability
of HPF funds. However, if States only fund Certified Local Governments, written notification of each
CLG of the availability of funds is sufficient.
1. Availability Announcement. The announcement of HPF funds must contain the following elements.
a. A brief summary statement of the State's priorities for funding for that year.
b. Brief examples of eligible activities for which funding is to be provided; or, a statement that brief
examples exist and a clear reference to where they can be found.
c. The total amount available, or expected to be available for subgrants.
d. A brief explanation of the project selection process, including selection criteria (or a statement
that the State has competitive selection criteria and a clear reference to where the criteria can be
found).
e. Whom to contact to receive application instructions.
f.

The deadline for submitting the completed application.

2. Application Instructions. State subgrant application instructions must include the following.
a. A full statement of the State's funding priorities.
b. Examples of eligible activities.
c. Full explanation of the project selection process, including selection criteria.
d. Directions to the applicant to include a detailed and specific list of the final products to be
accomplished with the subgrant.
e. Directions to the applicant to provide a detailed line-item budget that includes all major work
elements and the cost of each element.
f.

Directions to the applicant to identify the donor, source, kind, and amount of nonfederal matching
share to be contributed; how the matching share contributes to achieving the scope of work; and
the proposed valuation of the matching contribution.

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g. Directions to the applicant to provide documentation that, as applicable, professional
qualification standards, will be met prior to the start of project work. If the applicant's existing
staff members qualify, vitae should be made a required part of the initial application to allow time
for State review and approval of qualifications prior to the subgrant award. If the applicant plans
to obtain qualified professional services subsequently (either as staff, consultants, or pro bono
workers), the applicant should be required to acknowledge that the award is subject to acquiring
qualified professionals and that the State must review and approve qualifications before project
work begins. The State may waive this requirement in specific cases if it chooses to use qualified
State staff to provide the necessary expertise.
h. Includes and directs an applicant to sign an Equal Opportunity Statement or equivalent.
i.

Includes and directs an applicant to sign a debarment certification for "Lower Tier Covered
Transactions," Form DI-2010.

C. Open Project Selection Process.
1. Purpose. It is the policy of the NPS that the State grant-assisted program implementation processes
be open to maximum public scrutiny, review, and participation. Such an "opening" of the project
selection process is a logical extension of the public benefit requirement of the National Historic
Preservation Act. This policy is intended to ensure accessibility to Historic Preservation Fund
programs by all citizens, to ensure that national priorities are met, and particularly to ensure that all
subgrants, as well as all contracts, are selected for funding in an open manner.
2. Goals.
a. To have awareness on the part of all eligible program beneficiaries of the process for obtaining
HPF assistance.
b. To have public knowledge of and participation in the program area emphasis and in the subgrant
or contract project selection process utilized by the State in allocating HPF assistance.
c. To have an opportunity for all eligible public and private organizations and individuals to submit
project applications and have them considered on an equal basis by the grantee.
d. To have an equitable distribution of HPF assistance to all population segments in the State,
including minority populations (as defined in 43 CFR 17), the elderly, and the disabled.
3. Implementation.
Each grantee is responsible for implementing its own open project selection process in keeping with
its own unique circumstances. This is in addition to owner participation in the National Register
process and, in addition to public participation in the development of the Comprehensive Statewide
Historic Preservation Plan required by Sections 101(a)(6) and (b)(3)(g) of the Act. At a minimum,
each grantee must maintain and utilize a written rating system for objectively rating and ranking
project proposals for subgrants. Other elements could include general notice to the public when its
annual grant application is being developed; making copies of the annual grant application available
to the public sufficiently in advance of submission to NPS to allow for timely comment; and, where

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significant public interest is demonstrated, holding a public meeting for the benefit of interested or
affected citizens or groups.
4. Selection Criteria. The State must follow the selection criteria published in its subgrant application
instructions. No other criteria should be used.
5. Recordkeeping. Each grantee must maintain files and records documenting implementation of its
open project selection process for inspection by NPS.
D. Standards Applicable to Subgrantees.
The award of grants to subgrantees (and contractors) who are not responsible is a disservice to the public,
which is entitled to receive full benefit from the award of grants for the protection of cultural resources. It
frequently is inequitable to the subgrantees themselves, who may suffer financial or other hardships as a
result of inability to meet grant requirements. Such awards are unfair to other competing applicants
capable of performance, and may discourage them from applying for future grants. It is essential that
precautions be taken by grantees to award grants only to reliable and capable applicants who can
reasonably be expected to comply with grant requirements.
To qualify a subgrantee as responsible, the State Historic Preservation Officer must ensure that a
subgrantee will be provided with, or will have access to, appropriate technical and financial management
assistance in order to meet and maintain, for the period of the grant award, the following standards as they
relate to the scope of a particular project:
1. Have adequate financial resources for performance, the necessary experience, organization, technical
qualifications, and facilities; or a firm commitment, arrangement, or ability to obtain such (including
proposed subagreements);
2. Be able to comply with the proposed or required completion schedule for the project;
3. Have a satisfactory record of integrity, judgment, and performance, especially with prior performance
upon grants and contracts;
4. Have an adequate accounting system and auditing procedures to provide effective accountability and
control of property, funds, and assets sufficient to meet grantee needs and grantee audit requirements
(see Chapters 21 and 23);
5. Maintain Federal procurement standards which will comply with Chapter 17;
6. Maintain a property management system for the acquisition, maintenance, safeguarding, and
disposition of property (applicable standards are detailed in Chapter 19);
7. Conform with debarment requirements.
8. Conform with the civil rights, equal employment opportunity, and labor law requirements of Federal
grants; and

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9. Be otherwise qualified and eligible to receive a grant award under applicable laws and regulations.
NPS considers the submission of a Project Notification for a proposed subgrant a certification that the
SHPO has assured that these standards will be met. Similarly, NPS considers that State agreement to
be on Reduced Review Status (see Section G, below) constitutes a commitment by the SHPO to
ensure that the requirements of this Section are met for subgrants and other third party agreements for
which Project Notifications and Final Project Reports are not required.
E. Written Subgrant Agreement.
Each subgrant must be formalized by a written agreement between the grantee and the subgrantee. A
written agreement shall also be executed to include arrangements whereby third parties perform activities
without charge to the grantee when the value of these contributed services is to be counted towards
matching share requirements for any HPF grant assistance. The term "third party" means any
organization legally distinct from the grantee (whether or not affiliated with the grantee) or any individual
not employed by the grantee other than a consultant or volunteer acting directly under the grantee's
direction or control.
The written agreement shall at a minimum:
1. State or incorporate by reference all applicable requirements imposed by the terms of the grant on the
subgrantees, contractors, and other secondary recipients under the grant, including the applicable
Secretary's "Standards" (if any), retention of records, standards for grantee financial management
systems, property, procurement standards, and applicable cost principles to be applied.
2. State the grant-supported activities to be performed by the subgrantee, the time schedule for
conducting these activities, the policies and procedures to be followed in carrying out the agreement,
and the maximum amount of money for which the grantee may become liable to the subgrantee under
the agreement.
3. Contain suitable provisions for termination by the grantee, including the manner by which
termination will be effected and the basis for settlement. In addition, such agreements shall describe
conditions under which the agreement may be terminated for default as well as conditions where the
agreement may be terminated because of circumstances beyond the control of the subgrantee.
The written agreement shall not relieve the grantee of any part of its responsibility to the Federal
Government under a grant. The agreement shall therefore retain sufficient rights and control to the
grantee to enable it to fulfill this responsibility and accountability. (Refer to Chapter 24 for required
documentation.)
The term (project period) for subgrants, contracts, or projects should not exceed the term of the grant
under which the subgrant is made and for which the State has obligational authority. The State
should award funds to subgrants or contracts with logical units of work that can be accomplished or
completed within the term of the grant.
F. Project Prerequisites.
1. General. States must follow the requirements specified in Chapters 3, 5, 15, 21, 24 and 25 relating to
selecting and preparing for third party arrangements (subgrants, cooperative agreements, and

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contracts) to carry out eligible activities. These activities generally require concurrence from NPS
prior to implementing the subgrant or contract. The mechanism used to achieve this concurrence is
the Project Notification which summarizes information in the State's project file. See subsection 2.b.,
below, for requirements relating to Project Notifications.
NPS will waive these requirements for qualified States and for certain categories of subgrants and
contracts. States receiving this waiver will be in Reduced Review Status. See Section G., below, for
qualifications for, and consequences of, Reduced Review Status.
2. Project Notifications.
a. Purpose. The Project Notification provides specific information relevant to a State's approved
Annual Grant application, to assist NPS and States in monitoring the commitment of HPF monies
to subgrantees and full compliance with the Historic Preservation Fund Grants Manual and
applicable regulations.
The Project Notification is not used by NPS in the obligation of funds process and need not be
submitted concurrently with the Annual application. In addition, unless required by State
procedures, the Project Notification is not required by NPS to be submitted to the E.O. 12372
Intergovernmental Review process.
Unless covered by Reduced Review Status (see Section G., below), States may not proceed with
any subgrant activity until the period for NPS review of the Project Notification has elapsed (see
Subsection 2.d.(1), below).
b. Applicability and scope. Except as specified under Reduced Review Status, States are required to
submit Project Notifications to NPS in the following circumstances:
1) For each project or subgrant (including subgrants to Certified Local Governments) involving
HPF assistance to a third party;
2) For each project or third-party agreement whose costs are being used to meet matching share
requirements, even though no HPF assistance has been awarded to the third party;
3) When transferring the actual performance of substantial programmatic work to a third party
by contract or other means;
The term "substantial programmatic work" means any activity which is central to carrying out
the purpose of the grant as a whole or as a specific project.
4) For SHPO operated construction work.
5) Even if a State has Reduced Review Status, Project Notifications are required when:
i)

the subgrant, contract, or third-party agreement requires prior written approval from NPS,
including projects involving revolving funds or an equipment purchase greater than

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$5,000 which is not described in the approved Annual Grant, as specified in Chapter 13,
Section C; or
ii) the total Federal share of the subgrant, contract, or third-party agreement exceeds
$25,000; or,
iii) the subgrant, contract, or third-party agreement is part of an NPS competitive selection
process for a reapportionment or direct grant process; or,
iv) any project involving HPF grant assistance to a National Historic Landmark.
6) Project Notifications are not applicable to the purchase of supplies, materials, or equipment
for the SHPO office; the acquisition of general or incidental support services; or the transfer
of activities whose costs are treated solely as indirect costs.
c. Instructions. See Exhibit 8-A for instructions on how to complete Project Notifications.
d. Procedure. This subsection provides schedules and procedures for Project Notification review.
See subsection F.2.b., above, regarding when Project Notifications are required.
1) A Project Notification shall be submitted by the State to NPS at least 20 calendar days prior
to the State awarding the subgrant or contract. Incomplete or otherwise unacceptable Project
Notifications returned to a State by NPS within the 20-day review period must be completed
and resubmitted by the State, thereby initiating a new 20 calendar day review period, before
projects may proceed.
2) The NPS review shall include, to the extent allowed by the data required for the Project
Notification: i) a review to determine whether proposed work elements and associated costs
appear to be reasonable, applicable, and allowable, and to ensure completeness of the
submitted document; and, ii) a review of the proposed objectives and work elements for
eligible activities and for compliance with the applicable Secretary of the Interior's
"Standards."
3) States may proceed with subgrant activity 20 calendar days after submitting the acceptable
Project Notification, except as noted in subsection 4), below. However, absence of a
response from NPS during this period does not relieve the State of its responsibility to
comply with the terms and conditions of the grant under which the subgrant is awarded.
4) Exceptions.
(i) Written NPS concurrence on the Project Notification is required for all subgrants,
contracts, or projects affecting National Historic Landmarks; and
(ii) Written NPS approval must be obtained before incurring costs for proposed work
requiring prior NPS approval, including preagreement costs. See Chapter 13, Section C.

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5) Disagreement. NPS shall notify the State in writing within 20 calendar days after the
submission (postmarked date) of the Project Notification of any eligibility or compliance
issues identified during the review described in subsection d.2), above. States may then
either change the project to respond to the NPS comments, or proceed at their own risk.
6) An Environmental Certification or Environmental Assessment must be submitted with the
Project Notification, when applicable (see Chapter 11).
e. Archeological Sites. An appropriate plan of action to retrieve the archeological information or to
carry out the treatment activity, including the methods to be employed in the archeological
project must be part of the scope of work detailed in the Project Notification (if one is required)
and in the State's files. The comments of the State staff archeologist (or an archeologist
consultant for the State) must accompany the Project Notification and be documented in the
State's files. (See the Secretary's "Standards for Archeology and Historic Preservation.")
For any project involving archeological development or requiring ground disturbance, the State
must submit with the Project Notification (if one is required), and document in the State's files, a
statement by the staff archeologist (or contract archeologist) that if any scientific or cultural data
is recovered, it will be recovered and maintained in accordance with the requirements of the
Secretary of the Interior's "Standards for Archeology and Historic Preservation" and with 36 CFR
79. See Chapter 13, Section D.4 and D.11, and related unallowable costs.
f.

Scope of Work. The State's files must document the project scope of work, including explicitly
identifying and briefly describing the treatment(s) being planned; e.g., the project will involve the
restoration of a cornice, the stabilization of an archeological site by installation of twenty yards of
steel mesh rip-rap, etc. The existing condition of the property or site must also be briefly
described in the Project Notification sent to NPS by States not on Reduced Review Status, and in
the State's files, including States with Reduced Review Status. (See Exhibit 8-A for guidance and
sample Project Notifications.)
The Project Notification must specifically address areas of potential concern, e.g., that a masonry
analysis will be performed prior to tuckpointing masonry; that preliminary testing of chemical
cleaners will be performed on a small and inconspicuous area prior to initiating any masonry
cleaning; that only low pressure rinses will be used for masonry cleaning; whether historic fabric
will be replaced with the same type of materials as originally used (explain why if it will not be);
and whether other preliminary testing will be performed as appropriate--such as a paint analysis.
States with Reduced Review Status must retain documentation of applicable preliminary testing
in their files for State Program Review purposes.

g. Matching Share Ratio. Each project does not have to be fully matched. Subgrant matching ratio
is a State decision. The NPS requirement is that eligible activities are matched in aggregate for
the programmatic grant (the State’s total grant expenditures during the grant period).
If only nonfederal matching share is involved in development, predevelopment, or acquisition
work, that work must still meet all of the requirements of the Historic Preservation Fund Grants
Manual (except that only a Preservation Agreement rather than a Covenant recorded with the
deed is required if no grant funds are disbursed), and be adequately described by a Project

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Notification transmitted to NPS prior to the beginning of project work, in order to qualify as
eligible matching share for HPF grants. To provide an acceptable "audit trail," NPS recommends
that even Reduced Review States transmit a Project Notification (or a letter containing the same
information) to NPS so that NPS may reply with an acknowledgment that the proposed
nonfederal share is directly related and eligible as matching share for a particular year's Annual
grant.
h. Revolving Fund. The State must indicate on the Project Notification transmitted to NPS if the
property is to be sold after completion of the acquisition or development work as part of a
revolving fund mechanism. All program requirements governing acquisition or development
work projects apply to a revolving fund arrangement. Note: Prior NPS approval is required for
revolving funds, even if the State has Reduced Review Status. See Chapter 6, Section J.2.c. for
restrictions on moving historic properties.
i.

Compliance with Environmental Laws. An Environmental Certification must be transmitted
with every Project Notification for grant assistance. (See Chapter 11, Exhibit 11-A.) States with
Reduced Review Status must document which exclusion applies to the proposed project in their
files for State Program Review purposes.

G. Reduced Review Status.
"Reduced Review Status" refers to NPS oversight and State reporting requirements relating to subgrants
and other third-party agreements. States that meet specified criteria (see subsection G.2., below) are not
required to submit Project Notifications, Final Project Reports, and related amendments for most
subgrants. States that do not meet all of the criteria, must follow the standard reporting requirements.
1. Policy and Overview. NPS policy for administrative oversight of HPF State subgrant programs
seeks to achieve a management process that is based on: 1) an approved annual grant application;
2) an approved annual reporting of State activities; 3) periodic on-site review of each State's
program procedures and record-keeping; and, 4) an NPS capability to provide technical support
and training where needed. Given this policy, NPS will waive (for qualified States) the
requirement for advance approval or concurrence on individual subgrants, contracts, or other
third-party agreements funded by $25,000 or less in Historic Preservation Fund grant monies (i.e.,
Federal share).
Once a State qualifies, it retains Reduced Review Status until such time as the NPS' normal
review of documents indicates that a criterion (see below) is no longer met. Once a State is
notified of its Reduced Review Status, it will not hear further from NPS on the subject unless
there is a problem. There will not be an annual renewal of Reduced Review Status. However,
NPS will continue to review grant documents on an on-going basis as they are normally
scheduled for submittal each year. If, as part of the normal review, there is an indication that a
criterion is no longer met, NPS will inform the State. Only for the initial assessment will all the
criteria be examined at the same time and then based on the most recent documents available.
Once NPS determines that a State meets a criterion, that evaluation remains effective until
information to the contrary is received.
The Reduced Review Status policy is based on the following principles:

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a. Employ a management-by-exception approach (i.e., presume that States manage their HPF grants
accountably unless NPS oversight indicates otherwise);
b. Rely, to the maximum extent, on State systems of financial and program administration that meet
Federal standards;
c. Use direct NPS management procedures only when a State does not meet the criteria for reduced
review;
d. Employ management controls that are not redundant and that provide a reasonable assurance that
State grant administration is accountable;
e. Strengthen the Federal/State partnership; and,
f.

Rely on the State Program Review process as the primary means of management oversight.

2. Criteria for Certification. To be eligible for Reduced Review Status, a State must meet all of the
following five (5) criteria:
a. The State has an Approved Subgrant Administration System;
b. The State has an Approved Annual Grant Application with No Significant Special Grant
Conditions Relating to HPF Subgrants Management;
c. The State has Corrected all Significant Subgrant-Related Problems from its most recent Financial
Audit;
d. The State Obligates and Expends its Annual Grant Award in a Timely Manner; and,
e. The State Maintains a Qualified Professional Staff.
These criteria are described in detail below.
a. The State Has An Approved Subgrant Administration System.
Criterion: The State has met or successfully resolved all subgrant management-related
verification inquiries in the most recent State Program Review.
Objective: This criterion uses the State Program Review evaluation to ensure that, when viewed
on the whole, an adequate system for subgrant selection and management (that meets all
applicable criteria in the Historic Preservation Fund Grants Manual) is in place and is being used.
This is a system-related criterion and is not affected by single or occasional project-specific
problems or the occasional disallowed cost.
Application: If the State:

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1) Received a "yes" or "NA" on all applicable State Program Review verification inquiries in the
most recent State Program Review, it meets the criterion; or,
2) Received a "no" on one or more applicable verification inquiries in the most recent State
Program Review but has corrected the deficiency(ies), it meets the criterion.
Note: If the problem is with the State's subgrant system and the State corrects the system, the
State does not have to demonstrate (except through standard submittals or other means such
as State Program Review) that it will use the corrected system.
b. The State Has An Approved Annual Grant Application With No Significant Special Grant
Conditions Relating To HPF Subgrants Management.
Criterion: The State has an approved current Annual HPF Grant Application with no significant
special grant conditions related to subgrant administration, or it has met those special conditions.
Objective: This criterion examines the State's annual grant documents (and the information
normally provided therein) for indications of significant subgrant-related problems (e.g.,
ineligible subgrant activities or costs). Missing or unclear information in a grant document,
though it may warrant a special condition, would not cause a State to fail to meet this criterion.
Application: If the State's current programmatic grant:
1) Has no significant subgrant-related special grant conditions, the State meets the criterion
regardless of any other special conditions the grant might have; or,
2) Has special grant conditions related to significant problems with subgrant administration, but
has met those special conditions, the State meets the criterion regardless of any other special
condition the grant might have.
Note: If the problem is with the State's subgrant system and the State corrects the system, the
State does not have to demonstrate (except through standard submittals or other means such
as State Program Review) that it will use the corrected system.
c. The State Has Corrected All Significant Subgrant-Related Problems From Its Most Recent
Financial Audit.
Criterion: The State has no significant problems related to subgrant management in the most
recent financial audit (Single Agency Audit); or, if it did, the State has successfully corrected
them.
Objective: This criterion examines the State's most recent financial audit for indications of
significant problems either in the State's current subgrant management system itself or in the use
of that system.
Application: If the State:

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1) Has no significant disallowed costs related to subgrants in its most recent financial audit
(Single Agency Audit), the State meets this criterion; or,
2) Has significant subgrant-related problems in its most recent financial audit, but has corrected
the problem, the State meets the criterion.
d. The State Obligates and Expends Its Annual Grant Award in a Timely Manner.
Criterion: The State obligates and expends its annual grant award within the prescribed time
period, and in a manner that avoids returning funds to NPS in amounts exceeding 5 percent of the
State's annual grant award.
Objective: This criterion examines the recapture of funds as a reflection of three aspects of
proper subgrant management; i.e., 1) whether the subgrantee has the capability to carry out the
proposed project; 2) the extent to which the State monitors the progress of its subgrants; and, 3)
the adjustments the State makes (by amending subgrant agreements, canceling non-performing
subgrants, selecting new ones, etc.) to avoid NPS recapture of funds.
NPS accounts for last minute problems that do occasionally occur (which unavoidably lead to
recaptured funds) by setting the standard of 5 percent of the State's total annual HPF award,
returned to NPS over the two years of funding availability.
Funds that are received by the State as a part of a NPS reapportionment do not count in the
evaluation of this criterion because the State did not have 2 years to use the funding. The State
will be evaluated only on its annual HPF award. For example, if a State received an annual HPF
award of $500,000 in FY 1994, at the end of FY 1995, NPS would check for recapture of funds
exceeding $25,000 from that award.
Application: If the State has had funds in a cumulative amount of 5 percent or less of its annual
HPF award (by the end of its availability) recaptured by NPS, the State meets this criterion.
e. The State Maintains a Qualified Professional Staff.
Criterion: The State maintains a fully qualified staff as required by 36 CFR 61.4.
Objective: This criterion examines the State's staffing as an indicator of adequate professional
expertise for subgrant administration. Absence of professional expertise can lead to payment for
ineligible activities that do not meet the Secretary's "Standards." 36 CFR 61.4 defines the
minimum program expertise to which States must have full-time access.
If the State has an NPS-approved alternative staffing solution, the State meets the criterion
because it meets the 36 CFR 61 requirement. However, if the State has an NPS-approved
temporary waiver, it does not meet this criterion if the waiver conditions do not ensure the State's
access to the proper professional expertise.
Application: If the State:

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1) Meets 36 CFR 61 requirements for State staff, the State meets this criterion; or,
2) Does not meet 36 CFR 61 staff requirements, but has an NPS-approved alternative staffing
solution, the State meets this criterion.
3. Implementation.
a. General.
1) Reduced Review Status is granted on a case-by-case basis by NPS. Once a State qualifies, it
retains Reduced Review Status until such time as the NPS' normal review of grant documents
indicates that a criterion is no longer met and thus there is something significantly wrong with
State subgrant administration. There will not be an annual renewal of Reduced Review
Status. However, NPS will continue to review HPF grant documents on an on-going basis as
they are normally scheduled for submittal each year. If, as part of the normal review, there is
an indication that a criterion is no longer met, NPS will inform the State. Only for the initial
assessment will all the criteria be examined at the same time and then based on the most
recent documents available. Once NPS determines that a State meets a criterion, that
evaluation remains effective until information to the contrary is received.
2) NPS will make decisions based upon the information on file without requesting additional
information from the States. That is, the information needed to evaluate annual grants cycle
documents is enough to evaluate States for Reduced Review Status; no special data are
needed.
3) States will not apply for Reduced Review Status. NPS will automatically initiate efforts to
evaluate State qualifications and review them on an on-going basis as pertinent information is
received.
4) If NPS believes that a State does not qualify for Reduced Review Status, it will verify the
analysis by notifying the State in writing, detailing what specific criteria have not been
satisfied, and providing the State a reasonable amount of time to verify whether NPS’
conclusion is correct.
5) NPS reserves the right to terminate a State's Reduced Review Status at any time when the
State no longer meets one of the five criteria. The State will be notified in writing if it does
not qualify for Reduced Review Status.
6) Reduced Review Status is an optional reporting procedure for States. States may set aside
their Reduced Review Status at any time by submitting Project Notifications and Final
Project Reports for NPS to review, if they so desire.
b. Notification of Status.
1) Each qualified State shall be notified of its Reduced Review Status in writing from NPS to
the State Historic Preservation Officer (or his/her designee).

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2) The letter shall inform the State that it retains this status unless it is informed to the contrary
in writing by NPS.
3) The effective date of the Reduced Review Status shall be the date of the letter.
c. Effect.
1) Once notified of its Reduced Review Status, for subgrants of $25,000 or less Federal share,
the State will no longer be required to submit Project Notifications, Project Notification
amendments, and Final Project Reports to NPS as specified in Chapters 6, 7, 15 and 25,
except as noted below in subsection d.
2) Each State will, however, remain responsible for compliance with all other requirements of
the Historic Preservation Fund Grants Manual relative to subgrant, contract, or third-party
agreements and the standard records (documenting compliance with those requirements) must
be available for review at any time for cause. That is, the State must continue to maintain the
standard project files and records which Project Notifications and Final Project Reports
would normally summarize.
The State's written dated review certification is sufficient documentation for the Project
Notification. If a State has Reduced Review Status, and does not transmit a Project
Notification to NPS, then its files must contain this review certification for internal control
and State Program Review purposes.
3) Publications. States with Reduced Review Status must continue to send NPS copies of
publications as required in Chapter 3, Section C.7, but may wait to do so until the End-ofYear Report.
4) Recordkeeping. Project Notifications and Final Project Reports are summaries of
information already in State files. States must continue to collect and maintain the requisite
information in grant files in compliance with Chapter 24. However, States which have
received Reduced Review Status need no longer prepare Project Notifications, Project
Notification Amendments, or Final Project Reports for most projects.
5) NPS Technical Assistance. A State can lose its Reduced Review Status only if fails to meet
one of the criteria (see subsection G.2., above). If a State requests NPS assistance or opinion
on allowable costs, products, matching share, etc., this will not be used against the State.
The Reduced Review Status program is designed to use State Program Review and review of
documents which routinely come to NPS to determine whether the State's subgrant
administration warrants a waiver of the standard requirements; i.e., Reduced Review Status.
Only States with significant problems with their subgrant administration system or systemic
problems in using it would not qualify for the Reduced Review Status.

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d. Exceptions
Even if awarded Reduced Review Status, the State must continue to seek prior written approval by
submitting programmatic grant amendments and/or Project Notifications, Project Notification
amendments, and Final Project Reports in the following circumstances:
1) if the subgrant, contract, or third-party agreement involves an equipment purchase greater
than $5,000 which is not described in the approved Annual Grant; or
2) if the subgrant, contract, or third-party agreement requires prior written approval from NPS as
specified in the Historic Preservation Fund Grants Manual, Chapter 13, Section C (including
revolving funds); or,
3) if the total Federal share of the subgrant, contract, or third-party agreement exceeds $25,000;
or,
4) if the subgrant, contract, or third-party agreement is part of an NPS competitive selection
process for a reapportionment or direct grant process.
e. Reporting by States Without Reduced Review Status.
A State which does not qualify for Reduced Review Status must follow the subgrant reporting
requirements in section F., above, and Chapter 25 pertaining to submission of Project
Notifications, Project Notification amendments, and Final Project Reports for all subgrants,
contracts, or third-party agreements. The State must follow these subgrant reporting requirements
until such time that the State is notified in writing that its Reduced Review Status is reinstated or
renewed.
f.

Final Project Report. Except for projects covered by Reduced Review Status (see Section G.,
above), a Final Project Report, prepared in accordance with the requirements specified in Chapter
8, Exhibit 8-E must be submitted to NPS by the grantee within 90 days after project completion.
Grant funds must be refunded promptly to NPS after the 24-month term of the Annual Grant has
expired when the work: 1) does not meet the Secretary of the Interior's "Standards and
Guidelines," 2) does not meet the terms and conditions of the applicable HPF grant, and/or 3)
does not fall within the scope of the NPS-approved grant agreement or, if applicable, the Project
Notification. In some cases, subject to NPS approval, funds may be reallocated to other eligible
activities for use during the Annual 24-month Grant period.

g. Reinstatement of Status.
Once a State again meets all of the criteria for Reduced Review Status, NPS will notify the State
Historic Preservation Officer in writing of reinstatement.

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EXHIBIT 8-A PROJECT NOTIFICATIONS
A. INSTRUCTIONS FOR COMPLETING PROJECT NOTIFICATIONS. "Heading," "Title," and "item #
of the narrative" refer to the model Project Notification form located below on page 8-23. The section
below the banner section is called the "narrative."
1. Title. States must include a title of PROJECT NOTIFICATION in capital letters at the top of the
page.
2. Heading.
a. The title of the subgrant (e.g., "Architectural survey of Woodmoor subdivision"), the county or
counties where the grant-assisted work will be performed, and the Congressional District(s)
where the work will be performed must be noted in the upper left corner of the Project
Notification.
b. The amount of the Federal share being subgranted and the grant number from which the subgrant
is being funded must be identified in the upper right corner. (If more than one grant number is
involved, then separate Project Notifications are required for each grant source; e.g., for one
subgrant from the prior year's funding carried over into the second year of the NPS grant
agreement and for a second phase subgrant from the current Annual Grant).
c. Note that the Federal share provided in the upper right corner, when added to the nonfederal share
identified in item #2 of the Project Notification narrative, must equal the total costs of the budget
(work/cost breakdown) detailed in item #3 of the Project Notification. In addition, States should
briefly explain how they are addressing an apparent shortfall of nonfederal share (i.e., when there
is less than the required amount of nonfederal share listed, then identify the overmatch from
another source that is being used to compensate).
3. Narrative.
a. A description is required of all proposed work. The description must be consistent with the line
item project budget. Additional information required for specific project types is delineated in
Section C., below.
b. Some States specify the Federal/nonfederal share for each cost item in the budget in item #3 of
the narrative. This is not necessary as the same tests of allowability and reasonableness, etc.,
apply to the costs borne by both the Federal and the nonfederal shares. However, if this is useful
to the State, it is acceptable to so indicate. Note that Chapter 8, Section F.2.b.2), requires Project
Notifications for projects involving third parties whose costs are being used to meet matching
share requirements for the HPF Annual aggregate Grant, even though no HPF funds are involved.
It is important to document NPS approval for the matching share to withstand examination by
fiscal auditors.
c. The certification statement (item #8) must be signed by the State Historic Preservation Officer, or
by a person delegated signature authority in writing by the SHPO; and the signature must be
dated to facilitate monitoring of timeliness.

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In order to expedite the review of Project Notifications, the following sentence is part of the
required Certification: "All proposed costs for personal compensation charged to the Federal or
nonfederal share of this subgrant are within the maximum limit imposed by Chapter 13, Section
B.34.e., and have been assessed by knowledgeable SHPO staff and found to be within the normal
and customary range of charges for similar work in the local labor market, and appear to be
appropriate charges for the product to be achieved with grant assistance."
Currently (effective Jan. 7, 2007) the maximum rate is $172,165 annually or $82.49 per hour,
which is $660 per eight-hour day. As long as the State is fully implementing this certification by
analyzing the reasonableness of proposed costs, it will not be required to detail the hourly or daily
rates for personal compensation in item #3, the subgrant's cost breakdown.
4. Amendments. If an amended Project Notification is being transmitted, the heading should be so
identified: AMENDED PROJECT NOTIFICATION, and the purpose statement in item #4 of the
narrative must indicate the type of change (e.g., increase in Federal share, increase in nonfederal
share, decrease in Federal or nonfederal share, increase or decrease in duration, scope change, or
cancellation). 43 CFR 12.70 details when amendments are necessary. Note that only the affected
portions of the Project Notification need be transmitted (e.g., if only the budget and product will
change, then only transmit those items of the Project Notification after completing the heading and
banner information, and the type of change in item #4).
5. NPS may use a rubber stamp with an "approval/concurrence" statement. If there is room on the
grantee's Project Notification to legibly imprint it, comments or conditions may be added. NPS may
also employ a standard boilerplate letter. However, if additional comments or conditions are
appropriate, a letter will be sent by NPS to the State.
B. The following information is applicable to all subgrants or contracts and must be provided as part of the
Project Notification. The numbers below correspond to the item number of the Project Notification
narrative section (see page 8-A-7, below).
1. Subgrantee. Provide the name and address of the subgrantee or contractor. Include full legal name of
organization, unit of local government or individual with whom the State will enter into a grant
agreement or contract. (Note: For acquisition subgrants the subgrantee is the purchaser of the
property.) A contact person may be listed in addition to, but not in lieu of, the subgrantee.
2. Nonfederal Matching Share. List donor, source, kind and amount of nonfederal matching funds (if
any) to be applied to this activity.
a. donor: indicate "subgrantee" if donor, and/or list name(s) of other donor(s);
b. source: indicate where the funds are coming from (e.g., "private donation," or "State appropriated
funds"). The source of the match should be carefully evaluated by the SHPO to ensure it is
eligible nonfederal match.
c. kind: indicate the type of match (i.e., "cash," "in-kind services," "in-kind equipment," "indirect
costs," "volunteer services"). See Chapter 14. If non-cash, indicate the rate at which it is valued
and/or verify that the rate has been reviewed by the SHPO.

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NOTE: Inasmuch as States must complete Attachment B, "Sources of Nonfederal Matching
Share" as part of their End-of-Year Report (see Chapter 25), NPS recommends that States use
terms for "source" that match those in Attachment B.
3. Budget. Provide a simple budget which includes major work elements and the cost of each element.
For nonconstruction, major work elements may include items such as: personnel, supplies,
equipment, travel, printing, administration, support services, indirect cost (if applicable), etc. If the
budget includes "contractual services," indicate what the contract is for in parenthesis; e.g.,
Contractual (professional archeological consultant).
For development, use the construction terminology provided in Exhibit 8-F for major work elements
to the extent possible. The budget must provide enough detail to allow for an administrative review
by NPS.
NOTE: Prior NPS approval is required for any item of project equipment costing in excess of $5,000.
(See Chapter 13, Section C.2.)
4. Purpose. Provide a brief summary of how the work is to be accomplished and list products that are
expected to result from this subgrant. It is understood that a final performance report concerning the
grant project will be provided to the SHPO from the subgrantee; it is not necessary to list it as a
product.
a. The work summary statement must evidence compliance with the applicable Secretary of the
Interior's "Standards and Guidelines," if any.
b. For development work, the summary list must clearly relate to the major work elements provided
in the budget as line items.
c. Each budget line item should have a corresponding narrative statement about the work that will
be accomplished for the stated cost.
5. Beginning/Ending Dates. List project beginning and end dates: If the beginning date precedes the
date of the Annual Grant, please justify so that NPS may make a determination as to the acceptability
of preagreement costs if necessary.
6. Environmental Certification. Attach either an Environmental Certification or an Environmental
Assessment (see Chapter 11).
7. Program Income. If a subgrant/contract includes workshops, conferences, or publications, also
indicate if these are to be made available free of charge or, if there is a fee, indicate the estimated
amount of program income that will be produced before the grant end date and request NPS approval
for the method of handling this income (see Chapter 16 and 43 CFR 12.65).

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8. Certification. Provide the following certification:
CERTIFICATION: As the duly authorized representative, I certify that this subgrant will
be administered and work will be performed under the supervision of a professional meeting
appropriate 36 CFR 61 requirements, in accordance with the Historic Preservation Fund
Grants Manual, and the Secretary of the Interior's "Standards and Guidelines for
." All documentation required by the Historic Preservation Fund Grants
Manual will be maintained on file for audit and State Program Review purposes. All
proposed costs for personal compensation charged to the Federal or nonfederal share of this
subgrant are within the maximum limit imposed by Chapter 13, Section B.34.e. of the
Historic Preservation Fund Grants Manual. These costs have been assessed by knowledgeable
SHPO staff and found to be within the normal and customary range of charges for similar
work in the local labor market, and appear to be appropriate charges for the product to be
achieved with grant assistance.
C. In addition to the information required in B. above, provide the following information for the specific
subgrants or contracts as indicated:
1. NONCONSTRUCTION
a. For Survey subgrants/contracts the summary of work must state in Item 4:
1) Type of survey to be done (intensive or reconnaissance);
2) Type of resource being surveyed for (architectural, historical, or archeological);
3) Level of documentation to be produced (National Register level or other);
4) Estimated number of hectares to be surveyed;
5) The estimated number of inventory forms that will be produced;
6) The number and type of reports and/or other products that will be produced.
See Chapter 6, Section H for minimum requirements relating to Survey and Inventory
Program Area activities.
b. For National Register subgrants/contracts state in Item 4:
1) Type of nomination(s) to be prepared (e.g., individual, district, multiple property);
2) Estimated number of nominations to be prepared;
3) Estimated number of contributing properties to be contained in nomination(s).
See Chapter 6, Section I for requirements relating to National Register Program Area
activities.

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c. For Planning subgrants/contracts state in Item 4:
1) Type of plan, report or guideline (historic structure report, historic district guidelines, etc., to
be produced);
2) Who will use the report produced;
3) How this planning effort relates to the State's Comprehensive Statewide Historic Preservation
Planning Process.
4) The number and nature of products that will be produced.
See Chapter 6, Section G for requirements relating to Planning Program Area activities.
d. For Other subgrants/contracts state in Item 4:
1) Purpose of subgrant and how it will be carried out;
2) Quantify products wherever possible.
NOTE: This applies to all other nonconstruction subgrants, not just those in the " Other
Activities" Program Area (see Chapter 6, Section Q). The "Other Activities" Program Area
applies to subgrants/contracts that cross-cut several program areas, and because the
subcategory costs and work activities are more or less equal, cannot be properly classified in
one program area. An example would be a workshop or brochure that covered all SHPO
activities.
e. For multipurpose subgrants/contracts identify the Program Areas involved and provide the
information required (above) for each type of activity.
2. DEVELOPMENT. In addition to the information required in Part B above:
a. Provide the name and address of the property owner (if different than the subgrantee or
contractor) under Item 1.
b. To the extent possible, use the construction terminology provided in Exhibit 8-F for the budget in
Item 3.
c. If preagreement costs are included in the work/cost breakdown, clearly identify these costs by
item, amount, and date costs were first incurred as Item 9.
d. The Project Notification must specifically address areas of potential concern, depending on the
type of proposed work; e.g., that a masonry analysis will be performed prior to tuckpointing
masonry; that preliminary testing of chemical cleaners will be performed on a small and
inconspicuous area prior to initiating any masonry cleaning; that only low pressure rinses will be
used for masonry cleaning; whether historic fabric will be replaced with the same type of

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materials as originally used (explain why if it will not be); and whether other preliminary testing
will be performed as appropriate--such as a paint analysis. States must retain such documentation
in their files for State Program Review or on-site review purposes.
e. Include a statement that all predevelopment work has been completed prior to the submission of
the Project Notification to NPS, and that plans, specifications, and other necessary
predevelopment work have been professionally reviewed by a qualified historical architect or
architectural historian, or that this required documentation will be obtained prior to the
disbursement of any HPF grant assistance for the subgrant.
f.

If work is to be performed outside the scope of this subgrant or contract during the subgrant
period, summarize the work elements and estimated costs that are not a part of the subgrant
agreement as Item 10.

g. Add the following to the certification in Item #8:
I further certify that the required covenant (or preservation agreement) will be executed
by the owner of record prior to or simultaneously with the release of Federal funds.
(If the costs of the project are being used solely for matching share purposes, the preservation
agreement should be executed at the time the subgrant agreement is executed, since there will be
no release of Federal funds.)
OR,
The State accepts the responsibility for the continued maintenance, repair, and
administration of the property required by Section 102(a)(5) of the Act rather than
through the execution of a covenant with the property owner. NPS written concurrence
with this procedure was obtained on (insert date of NPS concurrence).
h. Provide at least two 8x10-inch black and white glossy photographs showing overall views of
existing conditions, plus additional photos or slides, if needed, to enable NPS to evaluate
proposed development work.
i.

See Chapter 6, Section K. for requirements relating to Development activities.

3. ACQUISITION. In addition to the information required in Part B above:
a. Provide the name and address of the property owner (the seller) in Item 1.
b. Provide the following appraisal information as Item 9:
1) Name and address of appraiser; (two appraisals are required if the value of the property
exceeds $100,000);
2) Date of the appraisals(s);

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3) Appraised value of the property;
4) A statement from the seller indicating that he/she is aware of the appraised value and has
been offered just compensation;
5) A statement that a copy of the appraisal(s) is on file with the SHPO and that the appraisal
documents meet the requirements in Exhibit 6-B.
c. If relocation assistance is involved, explain as Item 10 (see Chapter 20).
d. Indicate if the property is to be sold as part of a revolving fund, and provide the date of written
NPS approval for participation in the revolving fund as Item 11. (See Chapter 8, Section F.2.h.)
e. Add the following to the certification in item 8:
I further certify that the Fair Market Value of this property is the amount established by
the appraisal and that the required covenant will be executed by the owner of record prior
to or simultaneously with the release of Federal funds.
OR,
The State accepts the responsibility for the continued maintenance, repair, and
administration of the property required by Section 102(a)(5) of the Act rather than through
the execution of a covenant with the property owner. NPS written concurrence with this
procedure was obtained on (insert date of NPS concurrence).
f.

Provide at least two 8x10-inch black and white glossy photographs showing overall views of
existing conditions to enable NPS to review and evaluate the proposed project.

g. See Chapter 6, Section L, for requirements relating to Acquisition activities.

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OMB Control Number 1024-0038
Expiration Date: November 30, 2007
PROJECT NOTIFICATION

TITLE:

GRANT NUMBER:

AREA AFFECTED BY PROJECT
(counties):

TOTAL PROJECT COST:
FEDERAL SHARE:
NONFEDERAL SHARE:
CONGRESSIONAL DISTRICT:

TYPE: NEW [ ] REVISION [ ]

1. SUBGRANTEE:

2. NONFEDERAL MATCHING SHARE:
Donor:
Source:
Kind:
Amount:

Donor:
Source:
Kind:
Amount:

3. BUDGET:

4. PURPOSE:

Products:

5. BEGINNING/ENDING DATES:
6. An Environmental Certification indicating the applicable categorical exclusions is attached.
7. No program income will be generated.
2.

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GRANT NUMBER:

8. CERTIFICATION: As the duly authorized representative, I certify that this subgrant will be
administered and work will be performed under the supervision of a professional meeting appropriate 36
CFR 61 requirements, in accordance with the Historic Preservation Fund Grants Manual, and the
Secretary of the Interior's "Standards and Guidelines for
." All documentation required by
the Historic Preservation Fund Grants Manual will be maintained on file for audit and State Program
Review purposes. All proposed costs for personal compensation charged to the Federal or nonfederal
share of this subgrant are within the maximum limit imposed by Chapter 13, Section B.34.e. of the HPF
Grants Manual. These costs have been assessed by knowledgeable SHPO staff and found to be within the
normal and customary range of charges for similar work in the local labor market, and appear to be
appropriate charges for the product to be achieved with grant assistance.

_______________________________
Signature

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EXHIBIT 8-B SAMPLE PROJECT NOTIFICATION - Nonconstruction

TITLE: Wetwater River Basin Archeology

GRANT NUMBER: 12-95-00001

AREA AFFECTED BY PROJECT
(counties): Duval, Pasco

TOTAL PROJECT COST:
FEDERAL SHARE:
NONFEDERAL SHARE:

$7,000
$4,200
$2,800

CONGRESSIONAL DISTRICT: 03, 06
TYPE: NEW [X] REVISION [ ]

1. SUBGRANTEE: Slippery Slope University, Main Street, Rural, FL. 02222
(Contact: Dr. John Tyler)
2. NONFEDERAL MATCHING SHARE:
Donor: Subgrantee
Source: Anthropology Dept. budget
Kind: In-kind services
Amount: $2,000

Donor: Subgrantee
Source: Indirect Cost rate**
Kind: Indirect Costs
Amount: $800

3. BUDGET:
Personnel
Principal investigator--10 days
Crew (4) -- 7 days
Fringe benefits @ $200
Travel/per diem*
Indirect Costs**
Supplies
Rental equipment (truck/8 days)
Report duplication
Total Project Cost

$3,500

$ 800
$1,600
$ 250
$ 650
$ 200
_________________________
$7,000
$4,200 Federal Share
$2,800 Nonfederal Share

*
**

Site is more than 50 miles from University
Federally approved rate (Dept. of Education), signed agreement is on file at SHPO.

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Page 2 GRANT NUMBER: 12-95-00001
4. PURPOSE: The purpose of the project is to fill data gaps and answer specific research questions
identified by our comprehensive planning process.
The project will be accomplished under the direct supervision of Dr. John Tyler, of the subgrantee's staff,
who meets professional qualifications in both historic and prehistoric archeology. The reconnaissance
level survey will sample a 2,560 hectare area of the Wetwater River Basin for prehistoric archeological
sites. The work will include file and document searches, transect survey with subsurface testing of the
2,560 hectares, and preparation of a final survey report. Located sites (80 estimated) will be investigated
to a level sufficient to complete State inventory forms.
5. BEGINNING/ENDING DATES: March 1, 1995 -- August 31, 1995
6. An Environmental Certification indicating the applicable categorical exclusions is attached.
7. No program income will be generated.
8. CERTIFICATION: As the duly authorized representative, I certify that this subgrant will be
administered and work will be performed under the supervision of a professional meeting appropriate 36
CFR 61 requirements, in accordance with the Historic Preservation Fund Grants Manual, and the
Secretary of the Interior's "Standards and Guidelines for Planning, Identification, Evaluation, and
Registration." All documentation required by the Historic Preservation Fund Grants Manual will be
maintained on file for audit and State Program Review purposes. All proposed costs for personal
compensation charged to the Federal or nonfederal share of this subgrant are within the maximum limit
imposed by Chapter 13, Section B.34.e. of the Historic Preservation Fund Grants Manual. These costs
have been assessed by knowledgeable SHPO staff and found to be within the normal and customary
range of charges for similar work in the local labor market, and appear to be appropriate charges for the
product to be achieved with grant assistance.

______________________________________
Signature

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Date

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EXHIBIT 8-C SAMPLE PROJECT NOTIFICATION -- Development

TITLE: 12345 East West St Roof Repair

GRANT NUMBER: 54-96-00002

AREA AFFECTED BY PROJECT
(counties): Jones

TOTAL PROJECT COST:
FEDERAL SHARE:
NONFEDERAL SHARE:

$25,000
$15,000
$10,000

CONGRESSIONAL DISTRICT: 12th
TYPE: NEW [X] REVISION [ ]

1. SUBGRANTEE:
a)

Subgrantee: Upland City Heritage Society, 222 Monument Street, Upland City, WV
99999. Contact: Ms. Harriet Maloney

b)

Property Owner: Ms. Jane Deer, 12345 East West Street, Upland City, WV 99999

2. NONFEDERAL MATCHING SHARE:
Donor: Ms. Jane Deer (owner)
Source: Loan
Kind : Cash
Amount: $4,525
Donor:
Source:
Kind:
Amount:

Donor:
Source:
Kind:
amount:

Subgrantee
Contributions from members
Cash
$5,000

Ms. Jane Deer (owner)
Same as donor
Donated Labor
$475 (10 hours @ $4.75 an hour)

3. BUDGET:
Architectural plans and specifications, structural investigations

$ 3,500

Tuckpointing and rebuilding chimney, including metal liner,
chimney top damper and flashings

$ 1,900

Roofing, including removal of existing shingles,
installation of 10"-#1 red cedar shingles over
spaced sheathing and roofing felts with galvanized, painted
flashings, gutters and downspouts

$ 19,600

Total

$ 25,000

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Page 2 GRANT NUMBER: 54-96-00002
4. PURPOSE:
a. The purpose of the project is to repair/reconstruct the chimney and replace the roof of this
1880 Victorian Gothic residence, the most visible and important building in the West End
Historic District; a National Register-listed district. The subgrantee will contract for the work
using appropriate procurement procedures, except that the property owner will provide the
labor for painting portions of the woodwork.
b. Architectural Plans, Specifications, Structural Investigation: The architect has provided plans
and detailed specifications for the roof work and chimney repairs. Percentage of necessary
in-kind replacement of siding and exterior trim has been determined and specified by the
architect. Where accessible, structural members have been examined for soundness and
possible pest infestation; where inaccessible, neighboring fabric has been examined for
indications of shifting, or damage to, structural supports. A report on structural conditions
has been prepared by the architect.
The architect will supervise all work to ensure compliance with the Secretary of the Interior's
"Standards for Historic Preservation Treatments." The architect is a qualified professional
with experience in completing repairs on similar historic buildings.
c. Masonry: Tuckpointing, where necessary on the chimney, will be done in a manner to match
the existing joint profiles; new mortar will match the existing in composition, color and
texture. The same mortar and existing brick will be used to rebuild portions of the chimney,
as required. A new metal liner and chimney top will be installed to meet code requirements.
d. Thermal and Moisture Protection: The existing asphalt roof shingles will be removed to
expose the bare sheathing. Damaged sheathing will be replaced in-kind; roofing felt will be
applied with galvanized nails and three-inch overlaps in the direction of water run-off. New
galvanized flashing will be installed at the chimney, roof edges, and valleys. Ten-inch #1 red
cedar shingles will be applied (documentation shows that the roof was originally wood
shingled).
e. Woods and Plastics: New galvanized half-round gutters and round downspouts will be
installed. Deteriorated and damaged clapboards and trim will be replaced in-kind (possible
15 percent replacement necessary).
f.

Finishes: All new metal flashing, gutters, downspouts and woodwork will be primed and
painted with two coats of finish paint in appropriate historic colors (to be determined by paint
analysis).

5. BEGINNING/ENDING DATES: March 1, 1996 -- August 31, 1996.
6. An Environmental Certification indicating the applicable categorical exclusions is attached.
7. No program income will be generated.
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8. CERTIFICATION: As the duly authorized representative, I certify that this subgrant will be
administered and work will be performed under the supervision of a professional meeting
appropriate 36 CFR 61 requirements, in accordance with the Historic Preservation Fund Grants
Manual, and the Secretary of the Interior's Standards for the Treatment of Historic Property. All
documentation required by the Historic Preservation Fund Grants Manual will be maintained on
file for audit and State Program Review purposes, and the required covenant will be executed by
the owner of record prior to the release of Federal funds. All proposed costs for personal
compensation charged to the Federal or nonfederal share of this subgrant are within the maximum
limit imposed by Chapter 13, Section B.34.e. of the Historic Preservation Fund Grants Manual.
These costs have been assessed by knowledgeable SHPO staff and found to be within the normal
and customary range of charges for similar work in the local labor market, and appear to be
appropriate charges for the product to be achieved with grant assistance.
9. Preagreement Costs (architectural services) were first incurred on October 10, 1995. Costs of
$3,500 are included in the budget and will be claimed as eligible project costs. Plans and
specifications have been completed and have been professionally reviewed by a qualified
architectural historian.
10. No work is being performed outside the scope of the subgrant.
Two 8X10-inch black and white glossy photographs are enclosed as required, plus six slides
showing selected views (labeled) of existing conditions.

______________________________________
Signature

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EXHIBIT 8-D SAMPLE PROJECT NOTIFICATION -- Acquisition

TITLE: 1345 33rd St. Purchase

GRANT NUMBER: 46-95-00003

AREA AFFECTED BY PROJECT
(counties): Davis

TOTAL PROJECT COST:
FEDERAL SHARE:
NONFEDERAL SHARE:

$97,500
$60,000
$37,500

CONGRESSIONAL DISTRICT: 2nd
TYPE: NEW [X] REVISION [ ]

1. SUBGRANTEE:
a)

Subgrantee: (Purchaser) Old City Preservation Commission, 1544 Elm Street, Old City,
South Dakota 32455.

b)

Property owner: (Seller) Mrs. Elvira Fox, 1345 33rd Street, Old City, South Dakota
32455.

2. NONFEDERAL MATCHING SHARE:
Donor:
Source:
Kind:
Amount:

Subgrantee
Contributions & Property Tax Revenue
Cash
$37,500

3. BUDGET:
Purchase of Property
Appraisal Fee

$ 95,000
$ 2,500

Total

$ 97,500

4. PURPOSE: The purpose of the project is to acquire the National Register-listed property, which is
threatened by demolition because no other options are viable. The subgrantee will
subsequently sell the property to a qualified owner after recording appropriate covenants.
The buyer will be required to provide acceptable rehabilitation work as a condition of
sale.
5. BEGINNING/ENDING DATES:

February 15, 1995 -- April 15, 1995.

6. An Environmental Certification indicating the applicable categorical exclusions is attached.
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7. No program income will be generated.
(NOTE: Additional nonfederal share to compensate for the small deficit in nonfederal share in this
project will be derived from overmatch from State appropriated funds paying SHPO staff salaries.)
8. CERTIFICATION: As the duly authorized representative, I certify that this subgrant will be
administered and work will be performed under the supervision of a professional meeting appropriate
36 CFR 61 requirements, in accordance with the Historic Preservation Fund Grants Manual, and the
Secretary of the Interior's Standards for the Treatment of Historic Property. All documentation
required by the Historic Preservation Fund Grants Manual will be maintained on file for audit and
State Program Review purposes. All proposed costs for personal compensation charged to the
Federal or nonfederal share of this subgrant are within the maximum limit imposed by Chapter 13,
Section B.34.e. of the Historic Preservation Fund Grants Manual. These costs have been assessed by
knowledgeable SHPO staff and found to be within the normal and customary range of charges for
similar work in the local labor market, and appear to be appropriate charges for the product to be
achieved with grant assistance.
The appraisal was performed by John Doe, a licensed professional appraiser, less than six months ago
and a copy is on file in the State office. I further certify that the Fair Market Value of this property is
the amount established by the appraisal and that the required covenant will be executed by the owner
of record prior to the release of Federal funds.
9. Appraisal Information:
a. Appraiser: Mr. John Doe, 1 Main Street, Old City, South Dakota 32455.
b. Date of appraisal: November 29, 1994
c. Appraised value: $95,000.
d. The seller accompanied the appraiser, has been informed of the appraised value, and has been
provided an offer of just compensation ($95,000) for the property.
e. A copy of the appraisal report is on file with the SHPO. The appraisal has been reviewed and the
SHPO has determined that the appraisal documents meet the requirements of the Manual.
10. Relocation assistance is not applicable.
11. The property will be sold as part of a revolving fund. Written NPS concurrence for participation in
the revolving fund was obtained on October 1, 1993.
12. Two 8x10 inch black and white glossy photographs are enclosed.
______________________________________
Signature

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EXHIBIT 8-E FINAL PROJECT REPORTS
Final Project Report. This report is applicable to all contracts/subgrants which require Project
Notifications. See Chapter 8, Sections F and G for more information on Project Notifications and
Reduced Review Status. The Final Project Report should not be confused with project file documentation
requirements or reporting requirements documenting archeological investigations. See Chapter 6, Section
J for archeological report requirements.
Policy. HPF funds shall not be disbursed for any project or activity that does not evidence that: 1)
planned work has been accomplished within the scope of the subgrant or contractual agreement
(summarized in the Project Notification except for projects covered by Reduced Review Status; see
Chapter 8, Section G); 2) work was done according to the applicable Secretary's Standards; and 3) work
was done in accordance with the terms and conditions of the applicable HPF grant.
In circumstances where funds are disbursed for ineligible activities, such costs shall be recovered in one
of two ways: 1) funds shall be returned to the grantee by the subgrantee if the applicable 2-year Federal
grant period has not expired (and a reprogramming amendment submitted to NPS for approval), or 2)
funds shall be returned to NPS by the grantee if the grant period has expired.
A. Instructions for Completion of the Final Project Report.
For each project subgrant or contract (except those covered by Reduced Review Status; see Chapter
8, Section G, provide the requested information in the format specified on page 8-E-3. NPS expects
grantees not to exceed this one page format unless there are exceptional circumstances.
1-3. Provide title/name of subgrant/contract, and the NPS assigned grant number(s) from which the
subgrant/contract was funded. Provide the National Register property name and address if
development or acquisition work was performed with grant assistance. This is the title or
property name identified on the Project Notification.
4. When a scope change amendment requiring NPS approval has been obtained, identify
amendment and date of approval.
5. Describe differences between planned major work items as described in the Project Notification
and the actual major work items performed.
6. For major cost categories, describe any differences between the planned project budget estimate
and the final expenditures billed, both Federal and nonfederal shares.
7. When the scope of work involves a publication, three copies of the publication produced under
the subgrant/contract are to be submitted to NPS. Copies of the publication can either be
enclosed with the Final Project Report or can be forwarded under separate cover. The Final
Project Report should specify the date when the publication will be submitted to NPS.
8. If applicable, one original and one archival copy of HABS/HAER drawings must be submitted
within 1 year of project completion.

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9. Provide any information that may have been required by NPS special condition or instructions
applicable to individual subgrants/contracts.
Example: The number of full and/or part-time persons employed as a direct result of subgrants
made under the Emergency Jobs Act of 1983, P.L. 98-8.
10. For all Final Project Reports provide the following certification:
I certify professionally qualified program and grants management staff of my organization have
confirmed, through site visits and/or review of financial and performance reports that work under
this subgrant (or contract) has been accomplished according to applicable laws, regulations,
program standards, grant management requirements specified in the Historic Preservation Fund
Grants Manual and the terms and conditions of the applicable HPF grant(s).
For acquisition or development work provide the appropriate additional certification statement:
The covenant or preservation agreement has been satisfactorily executed prior to release of HPF
assistance and a copy has been obtained by the SHPO for monitoring purposes.
OR
The State accepts the responsibility for the continued maintenance, repair, and administration of
the property required by Section 102(a)(5) of the Act rather than through the execution of a
covenant with the property owner. NPS written concurrence with this procedure was obtained on
(insert date of NPS concurrence).
11. For acquisition or development work endorse labeled photographs (5" x 7" or larger) identifying
work performed with grant assistance. Photographs must illustrate the "before development
conditions" and the "after development appearance" (l each) of the property.
Provide the signature of SHPO (or President, National Trust) and date of signature.
Provide enclosure(s), as applicable.
B. Submission Information. An acceptable Final Project Report for each subgrant project (not covered
by Reduced Review Status; see Chapter 8, Section G, must be submitted to NPS within 90 days of the
project end date.

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OMB Control Number 1024-0038
Expiration Date: November 30,, 2007
FINAL PROJECT REPORT FORMAT
(if attached to copy of Project Notification, skip items 1-3.)

1.

Project title/name:

2.

NPS grant number(s):

3.

National Register property name/address (If applicable):

4.

Identify any amendments and their approval dates:

5.

Describe differences between planned and actual major work items:

6.

Describe differences between planned and actual major cost categories:

7.

Date three copies of any publications will be forwarded to NPS:

8.

Date HABS/HAER documentation (if any) will be submitted to NPS:

9.

Provide any other data required by special conditions or instructions applicable to individual
subgrants/contracts (on reverse side).

10.

Certification: I certify professionally qualified program and grants management staff of my
organization have confirmed, through site visits and/or review of financial and performance
reports that work under this subgrant (or contract) has been accomplished according to applicable
laws, regulations, Secretary of the Interior's Standards, other program standards, grant
management requirements specified in the Historic Preservation Fund Grants Manual, and the
terms and conditions of the applicable HPF grant(s).

11.

If the subgrant/contract is for acquisition or development, initial one of the following:
The covenant or preservation agreement has been satisfactorily executed prior to release
of HPF assistance and a copy has been obtained by this office for monitoring purposes.
OR
The State accepts the responsibility for the continued maintenance, repair, and
administration of the property required by Section 102(a)(5) of the Act rather than
through the execution of a covenant with the property owner. NPS written concurrence
with this procedure was obtained on (date) .

Signed:

SHPO or President, National Trust/Date
Enclosure: Labeled photographs for acquisition or development.

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EXHIBIT 8-F CONSTRUCTION SPECIFICATION TERMS
The following provides a listing of commonly used categories or major work elements derived from the
uniform construction index. It is recommended that the terminology (those terms in bold print) be used when
preparing budget estimates for major work categories for development projects/subgrants/contracts. While
States will require more specific information from subgrant applicants under each category to select projects,
requiring applicants to use these categories will facilitate State and NPS review, and provide for improved
monitoring and documentation of work performed. The specific, more detailed work items in parentheses are
provided only as a guide to explain the type of detailed work which falls into the major work categories.
1.

General Conditions. (start-up costs, scaffolding, project sign);

2.

Sitework. (subsurface investigation, demolition, drainage, underpinning);

3.

Concrete. (poured in place concrete, precast concrete, concrete restoration and cleaning);

4.

Masonry. (mortar, unit masonry, stone, masonry restoration and cleaning);

5.

Metals. (structural metal framing, metal finishes and restoration);

6.

Wood and Plastics. (rough carpentry, finish carpentry, architectural woodwork, millwork);

7.

Thermal and Moisture Protection. (waterproofing, dampproofing, insulation, roofing, flashings);

8.

Doors and Windows. (doors and frames, entrances and storefronts, window repair and restoration,
window replacement, hardware);

9.

Finishes. (lath and plaster, gypsum wallboard, ceramic tile, wood, brick, and stone flooring,
painting);

10.

Specialties. (fire extinguishers and cabinets);

11.

Equipment. (not generally applicable) when eligible, refer to Chapter 13;

12.

Furnishings. (not generally applicable) when eligible, refer to Chapter 13.

13.

Special Construction. (solar and wind energy systems);

14.

Conveying Systems. (elevators);

15.

Mechanical. (plumbing, fire protection, heating, cooling, air distribution); and

16.

Electrical. (service and distribution, lighting).

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Chapter 9 - Certified Local Governments
A. Purpose.
This Chapter presents requirements for the administration and operation of the Certified Local
Government (CLG) program. States may amplify minimum CLG requirements so long as any additional
requirements are consistent with the Act and applicable Federal regulations, including 36 CFR 61.
The purposes of the CLG program are: (1) to ensure the broadest possible participation of local
governments in the national historic preservation program while maintaining standards consistent with
the National Historic Preservation Act, and the Secretary of the Interior's "Standards and Guidelines for
Archeology and Historic Preservation;" (2) to enrich, develop, and help maintain local historic
preservation programs in cooperation and coordination with the SHPO; and (3) to provide financial and
technical assistance to further these purposes.
B. Exemptions from CLG Program Participation.
Only grantees such as States, with subordinate general purpose local governments, are required to
participate in the CLG Program; other grantees such as the District of Columbia and Insular Areas, have
been exempted.
C. Participation by Indian Tribes.
An Indian tribe may be certified and participate in the CLG program if the tribe effectively meets the
definition of a local government in Section 301(3) of the Act.
D. Minimum Requirements for Certification.
Governments are certified when the SHPO and the Secretary (who has delegated this authority to the
NPS) certify that the local government has agreed to:
2. Enforce Appropriate State or Local Legislation for the Designation and Protection of Historic
Properties.
Federal regulations are found in 36 CFR 61.6. For the purpose of the CLG Program, the Act defines:
"Designation” as “the identification and registration of properties for protection that meet criteria
established by the State or the locality for significant historic and prehistoric resources within the
jurisdiction of a local government.” Designation includes the identification and registration of
resources according to State or local criteria which must be consistent with the Secretary of the
Interior's Standards for Identification and Registration. Adoption of the National Register criteria is
encouraged.
"Protection” as “a local review process under State or local law for proposed demolition of, changes
to, or other action that may affect historic properties designated pursuant to” a local government
becoming a Certified Local Government. The CLG’s local protection review process of the Act
applies only to properties designated pursuant to State or local laws and procedures. This would not
include properties listed on or determined eligible for the National Register of Historic Places unless
such properties also were designated under the appropriate State or local process.

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In its CLG procedures, each State must define what constitutes appropriate State or local legislation
for the designation and protection of historic properties and its enforcement. NPS does not require
State or local legislation regarding designation and/or protection as a prerequisite for certification.
However, if State and/or local legislation is required in the State’s certification procedures, that
legislation must be consistent with the Act and with the definitions above (for designation and/or
protection).
2. Establish an Adequate and Qualified Historic Preservation Review Commission by State or Local
Legislation.
"Historic preservation review commission" means a board, council, commission, or other similar
collegial body established by State or local legislation. The members must be appointed, unless
otherwise provided by State or local legislation, by the chief elected official of the jurisdiction.
Members must be drawn from professionals in architecture, history, architectural history, planning,
prehistoric and historic archeology, folklore, cultural anthropology, curation, conservation, and
landscape architecture or related disciplines to the extent such professionals are available in the
community concerned, and such other persons as have demonstrated special interest, experience, or
knowledge in history, architecture, or related disciplines. NPS regulations regarding commissions are
found in 36 CFR 61.6.
a. If no State law exists that allows the establishment of local commissions, the State will require
the local government to establish a commission by law or ordinance, or other official action.
b. The State may define "adequate and qualified" within the limits of 36 CFR 61.6, but the
requirements set shall not be more stringent or comprehensive than the State's requirements for
the State Review Board.
c. A State may specify in its State CLG procedures or incorporate by reference in State CLG
procedures, the minimum number and type of professional members that the local government
shall appoint to the commission, and indicate how additional expertise may be obtained. A local
government may be certified without the minimum number or types of disciplines if it can
provide written documentation to the SHPO that it has made a reasonable effort to fill those
positions. However, if the SHPO has delegated State Review Board responsibilities to the
Certified Local Government for that jurisdiction, the local commission must meet all applicable
Review Board requirements, and perform all Review Board responsibilities.
When a professional discipline is not represented in the commission membership, the commission
shall seek expertise in this area from persons meeting the Secretary of the Interior's Professional
Qualification Standards, as appropriate.
3. Maintain a System for the Survey and Inventory of Properties that Furthers the Purposes of the Act.
The State shall promulgate guidelines for local survey and inventory systems that ensure that such
systems and the data produced can be readily integrated into SHPO inventories, the statewide
comprehensive historic preservation plan, and other appropriate State and local planning processes.
CLG survey data shall be in a format consistent with SHPO inventory requirements and shall not be
inconsistent with the Secretary of the Interior's "Standards for Identification and Evaluation." This
policy does not apply to survey data produced by local governments before the effective date of CLG
certification.

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4. Provide for Adequate Public Participation in the Local Historic Preservation Program.
The State shall define in writing minimum requirements for public participation in the conduct of
overall CLG activities. These minimum requirements must include provision for open meetings
(which must include public participation in the National Register Nomination process), minutes that
are publicly available, and the publication and dissemination of commission procedures, as well as
compliance with local, State, and Federal public participation regulations.
5. Satisfactorily Perform the Responsibilities Delegated to it Under the Act.
Each local government must have the legal authority to fulfill the minimum requirements specified by
the SHPO in its NPS-approved CLG procedures. See Section L, below, for State Monitoring
Responsibilities.
E. State Procedures for Certification.
1. State procedures for certification must include the minimum requirements stipulated in the Act (see
Section D, above) and any additional responsibilities to be delegated to CLGs by the SHPO, subject
to the restrictions of 36 CFR 61.6 (see Section G.2., below);
2. A description of how local governments can apply for certification;
3. An explanation of the role of the SHPO and NPS in the certification process; i.e., indication that
applications for certification will be reviewed by the SHPO and the NPS, and a description of the
certification, process, and schedule including time frames for review (see Section G.3., below);
4. A statement that CLG performance in program operation and administration will be evaluated and
monitored by the SHPO according to written procedures and standards (see Section L., below); and
5. A method for decertification, or removal of CLG status for cause. (See Section M., below.)
F. Amendments to NPS Approved State Procedures.
1. With the exception of changes required as a result of NPS policy directives or regulatory changes,
each State shall follow appropriate consultation procedures as described below when amending NPSapproved State Certification and Pass-Through CLG Procedures:
a. For proposed amendments affecting the major requirements for becoming a CLG or operating a
CLG program, or the policy for allocating Pass-Through funds, the SHPO must consult with local
governments, local historic preservation commissions, and all other parties likely to be interested
in the CLG program and CLG issues; it must consider local preservation needs and capabilities,
and invite comments on the proposed amendment from local governments, commissions, and
parties in the State likely to be interested. Each State must keep a record of its consultation
process and make it available to NPS upon request. The State must allow a 60-day period for
public comment on the proposed amendment before it is submitted to NPS. Records of all
comments received during the commenting period must be kept by the State and must be made
available to NPS upon request. The State should be able to respond to all suggestions that it does
not adopt. The sole exception to these requirements is provided in Section F.1.b., below.

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b. For minor changes, technical corrections, and changes required by NPS policy directives, a
written notification from the SHPO to all CLGs will be considered adequate.
2. The SHPO must submit proposed amendments to NPS for review. The State must include with its
proposed amendment comments it has received (if any) from CLGs. NPS must notify the SHPO of
the result of its review within 45 working days of the receipt date of a sufficiently documented
proposed amendment.
3. If the National Park Service approves the amendment(s), the SHPO must: notify all CLGs in writing;
and send amended certification agreements to NPS for each CLG affected by the amendment of the
State procedures within 120 calendar days.
G. Certification of Local Governments.
It is the local government, and not the commission, that is certified. Commissions are responsible to the
SHPO only as representatives of the local government. The jurisdiction of the CLG is that of the local
government and must coincide with the geographic jurisdiction of the local government for CLG
purposes. However, a local government may perform required CLG activities through existing "historic
district commissions" or other qualified agencies or organizations if allowed by State CLG procedures or
guidelines. Such arrangements shall be detailed in written agreements in which the SHPO has concurred,
that specify the responsibilities, authority, and accountability of each party. Each party must meet State
CLG requirements pertinent to its CLG activity.
1. Applications for Certification to the SHPO.
a. The SHPO must review and compare with State procedures the following documentation that
must accompany a CLG application submitted by a chief elected local official or his/her designee.
1) The legal instrument(s) creating the commission;
2) Any laws that provide for the designation and/or protection of historic properties within the
jurisdiction of the applicant;
3) A list of current or proposed commission members and demonstration of their interest,
competence, or knowledge in historic preservation including information sufficient to allow
the SHPO to establish the qualifications of professional members. If the membership of the
proposed commission does not meet the professional qualifications stipulated in State
procedures, the applicant must provide written information concerning how it has sought
qualified professionals to participate in CLG activities.
4) A copy of the proposed Certification Agreement (See Section G.3., below).
5) Any other materials required by State CLG procedures.

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b. Records of Applications.
Each State must keep written records of certification applications and its responses to such
applications. The State must respond in writing to certification applications in a timely fashion
(generally within 60 calendar days).
c. The SHPO's review of applications for certification must ensure not only that all required
documents are present, but also that the documents meet the requirements of the NPS-approved
State procedures, prior to submitting material to the National Park Service. A model checklist for
documenting this State review is contained in Exhibit 9-B.
2. Limits on Delegation of Authority from SHPOs to CLGs.
SHPOs may delegate additional responsibilities to individual CLGs beyond those stated in Section D
above. However, delegations shall not include a. through d.:
a. The SHPO's statewide coordinating responsibilities derived from the Act as outlined in 36 CFR
61.4(b).
b. Responsibilities that are specified by law or regulation to be conducted in whole or in part at the
State level (see Section J., below);
c. Federal Preservation Tax Incentive Certifications. NPS regulations prohibit delegation of State
signature authority in the preservation tax incentives program. However, 36 CFR 67 requires that
a "State Official" must provide the comments and recommendations on certification requests to
the NPS.
d.

SHPO responsibilities under the regulations of the Advisory Council on Historic Preservation
may be delegated only by agreement pursuant to 36 CFR 800.

3. Certification Agreement.
The SHPO will prepare, keep on file, and submit to NPS a signed Certification Agreement between
itself and the local government that:
a. Lists individually, or by specific reference to the State procedures, all requirements and
responsibilities common to all CLGs within the State (See Section G.2., above);
b. Lists all additional responsibilities and requirements delegated to the CLG by the SHPO (but see
Section G.2., above); and,
c. Includes the signatures of the SHPO and the chief elected local official or their authorized
designee(s).
4. NPS Review of CLG Applications.
After having determined that a CLG application meets all the requirements in State procedures, the
SHPO will forward a request for concurrence to the National Park Service. The request for
concurrence must include the following.

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a. Signed Certification Agreement. A copy of the signed certification agreement between the CLG
and the SHPO.
b. Signed Review Checklist. A certification by the SHPO that the CLG application is complete and
the locality meets the requirements for CLG status. The certification must be in the form of a
completed review checklist or other review document. The checklist or review document must be
signed and dated by the SHPO (or designee) or the State CLG Coordinator who completed the
checklist while reviewing the application.
5. Results of NPS Review.
If the request for concurrence cannot be affirmed as submitted, the National Park Service will notify
the SHPO prior to 15 working days after receipt of the request. The National Park Service shall
provide written notice of what is necessary for the request for concurrence to be approved.
6. Effective Date of Certification Agreement.
A Certification Agreement is not effective until it is signed by the chief elected local official and the
SHPO, and concurred with in writing by NPS. The effective date of certification is the date of NPS
concurrence. When NPS concurs with the SHPO recommendation for certification, NPS will notify
the SHPO in writing, and send a copy of that letter to the CLG.
7. Amendments to Local Government Certification Agreements.
a. Substantive changes in Certification Agreements must be forwarded as a written amendment to
the National Park Service for concurrence. NPS written concurrence by letter or fax must be
received before the amendment may be considered in effect. Changes in Certification
Agreements must be consistent with State procedures and with this Chapter.
b. When NPS acts upon the SHPO’s certification amendment request, NPS will notify the SHPO of
its decision in writing, and send a copy of the letter to the CLG.
H. Procedures for Local Government Certification If No Approved State Program Exists.
1. When there is no approved State program, local governments wishing to be certified may apply
directly to the National Park Service.
2. To the extent feasible, NPS will ensure that there is consistency and continuity in the CLG program
of a State that does not have an approved historic preservation program.
3. If an unapproved State historic preservation program had approved CLG procedures and existing
CLGs prior to its loss of Approved State Program status, NPS will consider the procedures in its
review of applications for certification. In such situations the local government shall:
a. Follow the procedures for certification as set forth in Section G. above, noting that wherever
"SHPO" is mentioned, NPS will fulfill, to the extent feasible, the SHPO's requirement or
obligation to the local government; and,
b. Unless directed otherwise by NPS, meet all requirements and fulfill all responsibilities set forth in

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its State procedures for certification and transfer of funds (see Section I., below), which are
beyond the NPS minimum requirements for certification in 36 CFR 61; and,
c. Unless directed otherwise by NPS, be required to meet all requirements and fulfill all
responsibilities set forth in this Chapter.
4. Applications for certification (See Section G.1, above) must:
a. Be signed by the local chief elected official;
b. Demonstrate that the local government meets the specifications for certification set forth in 36
CFR 61 (see Section D, above); and,
c. Meet other requirements specified by NPS.
5. NPS shall review certification applications and take action within 90 calendar days of the receipt date
of the certification application.
6. NPS shall be responsible for monitoring and evaluating local governments certified without an
approved State historic preservation program in accordance with 36 CFR 61 and procedures set forth
in this Chapter.
I.

CLG Implementation of the Secretary’s Standards.
The SHPO shall provide orientation materials and training in accordance with local needs to CLGs. The
orientation and training shall be designed to provide public information, education and training, and
technical assistance in historic preservation.
SHPOs should strongly encourage CLGs and local governments interested in becoming CLGs to adopt
the appropriate Secretary of the Interior's "Standards for Archeology and Historic Preservation" relevant
to their activities, even though they might not expect to regularly receive HPF funds. Locally developed
standards and guidelines governing CLG activities are acceptable if they are consistent with the Secretary
of the Interior's "Standards" even though they may not specifically cite them or contain identical wording.
However, local guidelines that are not in accord with the Secretary's Standards and/or specifically
recommend or require action clearly in conflict with these Standards are not acceptable. The SHPO
should work to change these, and must ensure that no HPF funds or matching share contributions are
involved in the implementation of unacceptable guidelines.

J. Role of Certified Local Governments in the National Register Nomination Process.
1. If the State Has an Approved Program.
Information on CLG participation in the National Register nomination process is found in Section
101(c)(2) of the Act and 36 CFR 61. General rules for the National Register are found in 36 CFR 60.
The SHPO has the responsibility to oversee the coherence and integrity of the National Register
nomination process in the State. SHPOs may not delegate to a CLG the authority to nominate
properties directly to the National Register. Otherwise, the SHPO may delegate to a CLG, through
State CLG procedures and the Certification Agreement, any of the responsibilities of the SHPO

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pertaining to processing National Register nominations. Any delegated responsibilities will be
performed in accordance with the requirements for States (including a CLG commission whose
membership meets the requirements for State Review Boards). A State may authorize the local
preservation commission of a Certified Local Government to act for the State Review Board for the
purpose of considering National Register nominations within the certified local government’s
jurisdiction, provided the commission meets the professional qualifications required for the State
Review Board when considering such nominations. See Chapter 3, Section B.3, and the NPS Manual
for State Historic Preservation Review Boards.
It is the responsibility of the SHPO to work with CLGs to maximize their participation in the National
Register nomination process pursuant to the Act, Federal regulations, and State procedures, in a
manner that is not biased against any particular type of resource.
a. Notification of Nomination.
Before a property within the jurisdiction of a CLG may be nominated to the National Register by
the State, the SHPO will notify the chief elected local official and the commission in accordance
with 36 CFR 61, 36 CFR 60, and State procedures and/or guidelines. The SHPO will notify the
chief elected local official and the commission at least 60, but no more than 120 calendar days
prior to State Review Board consideration (but see Section J.1.d.2), below). These notification
procedures must be implemented as soon as a local government is certified, and apply to all
nominations within the jurisdiction of the CLG, for which the State has not begun official owner
notification procedures as of the date of certification, except as noted below.
b. Exceptions.
1) The CLG notification procedures do not apply when a nomination is processed by or through
a CLG which provides its recommendation and report to the SHPO with the nomination
package.
2) CLG notification procedures do not apply where a Federal agency nominates a property
under its ownership or control. Federal agencies should, however, be encouraged by the
SHPO to coordinate their nominations with CLGs.
c. The CLG Recommendation and Report.
After providing a reasonable opportunity for public comment, the commission shall prepare a
report as to whether or not, in its opinion, the property meets the National Register criteria.
Within 60 calendar days of notice from the SHPO, the chief elected local official shall transmit
the report of the commission, along with his/her recommendation, to the SHPO. Joint transmittal
by the CLG of the nomination and the CLG report and recommendation will facilitate SHPO
review and eliminate the need for separate notification and 60-day review by the CLG. (See
Section J.1.a, above.)
1) If the SHPO does not receive the report and recommendation within 60 days, he/she shall
continue the nomination process.
Consistency with the purposes of the Act, and ensuring that National Register decisions take
into account local concerns, require that CLGs participate in the National Register

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nomination process to the maximum extent feasible. A commission should report, and the
chief elected local official should transmit the report with his/her recommendations to the
SHPO, as often as possible, or in accordance with State CLG performance standards. If a
CLG consistently does not provide nomination reports, the SHPO should seek to determine if
appropriate technical assistance would encourage greater participation. (See Section I.,
above)
2) States may define the format of commission reports.
3) When a relevant historic preservation discipline is not represented in the commission
membership, the commission shall be encouraged to seek expertise in this area when
considering National Register nominations requiring the application of such expertise. (See
D.2.c, above.) Requisite expertise may be provided through consultation with the SHPO or
with persons meeting the Secretary of the Interior’s Professional Qualifications Standards.
For example, if the commission must review the nomination of a prehistoric archeological
site, and no commission member is a prehistoric archeologist, the commission is required to
obtain the advice of an archeologist meeting the Secretary's Professional Qualifications
Standards for purposes of reviewing the nomination. (See Section D.2, above, or the
Glossary for the definition of historic preservation review commission.) If it cannot, it should
notify the SHPO.
d. State Action Following CLG Recommendation.
If both the commission and the chief elected local official recommend that the property not be
nominated, the SHPO may not nominate the property unless an appeal is filed in accordance with
Section 101(c)(2) of the Act and 36 CFR 60. If either or both the commission and the local chief
elected official recommend that the property is eligible for nomination, the SHPO will present the
nomination to the State Review Board in accordance with the procedures in 36 CFR 60, and 36
CFR 61.
1) Any report and recommendation made by the CLG shall be included with any nomination
submitted by the State to the Keeper of the National Register.
2) The State may expedite the CLG's participation in the nomination process, including
shortening the 60-day commenting period, with the concurrence of the CLG as long as owner
notification procedures, 36 CFR 60, and 36 CFR 61 have been met.
a) Where the State and the CLG agree to expedite CLG participation with respect to a
particular nomination, the State must keep records that contain the following
information:
(1) Name of the CLG;
(2) Name of the property;
(3) A statement from the CLG declaring that the CLG agrees with the State to expedite
the process;

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(4) Date of concurrence;
(5) Signatures of the chief elected local official and the chairperson of the commission;
and,
(6) Description of the public participation opportunities that have been provided.
b) Where the State and the CLG agree programmatically to expedite concurrence on all
nominations, or in nominations of particular types or groups of properties, the State must
obtain and keep records that contain the following information:
(1) Name of the CLG;
(2) A statement of applicability to all nominations or nominations of specified types or
groups of properties;
(3) A statement from the CLG declaring that the CLG agrees with the SHPO to expedite
the process;
(4) Date of agreement;
(5) Description of the public participation opportunities that will be provided; and
(6) Signatures of the chief elected local official, the chairperson of the commission, and
the SHPO or designee.
2. If the State Does Not Have an Approved Program.
CLGs will assume the nomination responsibilities of the State for properties under their jurisdiction if
the State does not have an Approved State Program. The chief elected local official shall perform the
nomination responsibilities of the SHPO as outlined in 36 CFR 60. The commission shall perform
the responsibilities of the State Review Board as outlined in 36 CFR 60.
K. HPF Pass-Through to Certified Local Governments.
The SHPO must transfer a minimum of 10 percent of the State's annual apportionment of HPF funds to
CLGs for HPF eligible activities. In any year in which the annual HPF grant appropriation exceeds $65
million, one half of the amount above $65 million shall also be transferred to CLGs.
1. General Provisions.
All provisions applicable to subgrants (See Chapter 8) apply to CLG Pass-Through subgrants.
2. Eligible Applicants/Activities.
a. All CLGs within the State are eligible to compete for funds from the CLG pass-through.
However, the SHPO is not required to award funds to all governments that are eligible to receive
funds.

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b. Only Certified Local Governments are eligible to receive funds set aside for pass-through.
Governments attempting to become certified may receive HPF grant assistance, but such funding
will not qualify as part of the required minimum 10 percent CLG pass-through.
c. All CLG activities that are assisted with HPF money or used as matching share must meet the
applicable Secretary's Standards for Archeology and Historic Preservation. For example, design
review is an HPF allowable cost, provided that the standards used for design review by a CLG
meet the Secretary's Standards for the Treatment of Historic Properties (which is the applicable
Standard for that activity).
d. HPF monies used by the SHPO to administer CLG subgrants will not be credited towards the
SHPO's CLG 10 percent minimum pass-through requirement.
3. Distributing CLG Pass-Through Subgrants.

a. Each SHPO must develop and maintain a procedure for allocating its CLG pass-through funds to
CLGs in the State, as part of its NPS-approved State CLG procedures (see Sections E and F,
above). The procedures for allocation of CLG funds shall include the following:
1) A clear rationale on which funding decisions will be based. The rationale for CLG funding
may be the same as the annual SHPO subgrant funding priorities, and may cross reference the
annual announcement containing additional details;
2) Written guidelines for the review of applications and criteria for selection of applications (for
example, a point rating system);
3) Provision(s) that the funds awarded to a CLG will be sufficient to produce specific products
directly as a result of the funds transferred.
NOTE: If sufficient matching funds are available to the SHPO from other sources, a provision
for matching funds need not be an allocation or selection factor for CLG subgrants, so long as the
SHPO meets the overall matching requirements for the State's program. (See Chapter 14, Section
D.6.)
b. Each SHPO shall ensure that its NPS-approved procedures for the transfer of funds to CLGs and
guidelines for allocating those funds are widely publicized so that each eligible CLG has the
opportunity to apply for funding. Each SHPO must make an annual mailing to each CLG and
each local government whose application for certification is pending within the State notifying
them of the availability of annual grant funds. The notification letter or subsequent application
materials must include the following information: 1) The total amount available, or expected to
be available to CLGs; 2) State priorities for funding; 3) Selection criteria; 4) The deadline for
submitting subgrant requests; 5) Sufficient written description of the information which must be
provided in the subgrant application, and whom to contact for additional information or questions
about application requirements, so that a competitive application may be submitted.

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c. Historic preservation related activities not covered by the Act and its regulations and guidelines,
that are conducted by CLGs, should be consistent with the purposes of the Act and the CLG
program; however, these activities are not eligible for HPF grants.
4. Amendments to the State’s Procedure for Distributing CLG Pass-Through funds.
States must consult CLGs about Amendments to State CLG procedures (see Section F., above).
5. Requirements for CLG Subgrants.
To remain eligible for each year's CLG pass-through, the CLG must continue to comply with the
conditions of its Certification Agreement and State performance standards.
SHPOs must ensure that each CLG receiving a portion of the State's annual HPF CLG pass-through:
a. Adheres to all required administrative procedures and policies for HPF subgrants established by
the SHPO, including those set forth in this manual. All costs claimed or applied as matching
share must be reasonable, and necessary for proper and efficient conduct of subgrant supported
activities in keeping with OMB Circular A-87. (See Chapters 12 and 13.) Records must
evidence compliance with the competitive procurement requirements of 43 CFR 12.76 (see
Chapter 17), including small purchase procedures, or competitive negotiation for professional
services.
b. Adheres to requirements mandated by Congress regarding the use of HPF funds. NPS will advise
SHPOs of directives contained in annual appropriation laws regarding the use of HPF funds that
must be applied to CLGs receiving pass-through funds.
c. Adheres to requirements specified by the SHPO in the Subgrant Agreement.
d. Meets the eligibility requirements described in this manual, particularly in Chapter 6, Sections D
and E, and Chapter 13, Sections B and C. All CLG activities that are assisted with HPF funds,
including the matching share, must meet the Secretary of the Interior's "Standards for Archeology
and Historic Preservation."
6. Calculating the CLG Pass-Through.
The 10 percent minimum pass-through is based upon the total amount of all grant awards made to the
State in the fiscal year.
a. States may provide more than the required minimum 10 percent pass-through.
b. States may not credit themselves, in the current fiscal year’s grant, for money subgranted or
expended in the previous fiscal year that was in excess of the calculated 10 percent minimum
pass-through for the previous fiscal year (e.g., a State cannot use the fact that it subgranted 15
percent of its FY 1995 apportionment to CLGs to offset subgranting less than 10 percent of its
1996 apportionment to CLGs). Similarly, States may not compensate for a failure in a past fiscal
year to achieve the required ten percent minimum pass-through by exceeding the ten percent in a
subsequent fiscal year. A minimum of ten percents of each fiscal year’s apportionment must be
subgranted to and expended by CLGs.

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c. Any supplemental award increases the 10 percent minimum pass-through requirement for the
recipient State for the fiscal year from which the supplemental award was derived, unless
otherwise stated by NPS in the apportionment certificate.
d. Funds must be transferred from the State to CLGs. Substituting services for cash is not
equivalent to transfer of funds. States may provide services to CLGs, as they may to any local
government, but such services are considered technical assistance and not part of the required
CLG 10 percent minimum pass-through.
7. Commitment of CLG Funds.
Pass-through funds up to the 10 percent minimum that are not subgranted to CLGs by September 30
of each fiscal year will be deobligated by NPS and reprogrammed to other States for CLG purposes.
During the second year of obligational authority, SHPOs may reprogram pass-through subgrant funds
to other CLGs within the term of the appropriation and in accordance with NPS' Use or Lose Policy
(See Chapter 3, Section K.) Following the end of the 2-year Annual Grant period, any funds
deobligated must be returned to the United States Treasury.
8. CLG Subgrant Amendment Requests.
Amendments to CLG subgrants will be treated as any other subgrant amendments. (See Chapters 15).
9. Data for End-of-Year Report.
Pass-through subgrants to CLGs must appear in the Project/Activity Database Report, so that NPS
may determine whether the amount awarded to CLGs during the fiscal year in review satisfies the 10
percent minimum requirement. (See Chapters 8 and 25).
10. CLG Pass-Through Funds Used Outside Boundaries of a CLG.
A CLG may use Pass-Through funds for activities involving historical or archeological resources
outside its jurisdiction if:
a. Such activity is not prohibited by State or local ordinances or State CLG procedures; and,
b. The activity conducted and the proposed costs are allowable under the provisions of the Historic
Preservation Fund Grants Manual; and,
c. Activities which will occur outside the jurisdiction of the CLG clearly demonstrate a direct
benefit to identifying, evaluating, and protecting the historic and archeological resources of the
CLG; and,
d. Both the CLG and the other local government or Indian tribe with jurisdiction agree.
11. Pooling CLG Subgrants.
Subgrants can be pooled by CLGs for specific purposes. For example, several CLGs could pool a
subgrant to share the services of a preservation professional who could travel among the CLGs as a
"circuit rider." Such an arrangement is permissible when the following conditions are met:
a. All local governments involved in pooling are certified;

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b. One CLG is designated as the administrator of the subgrant and identifies itself as such in its
request for CLG funding;
c. The CLG designated as the administrator of the subgrant has consented and demonstrates such
agreement by submittal of a letter to the SHPO in conjunction with its request to the State for
CLG funds. State records and, if required, Project Notifications submitted by the State to NPS
must include the following information:
1) Names of all CLGs involved in the pooling of CLG subgrants and signatures of each CLG's
chief elected local official or designee;
2) The amount of HPF funds requested to be used in the pool;
3) The donor, source, kind, and amount of each CLG’s matching share commitment to the total
subgrant, if State procedures require the CLG subgrant to be matched;
4) The proposed product(s) of the subgrant.
d. When States are required to submit Project Notifications to NPS, in addition to the standard
information required, the SHPO must clearly indicate that the subgrant is part of a CLG pooling
effort by naming all CLGs involved and designating which CLG is to administer the subgrant.
(See Chapter 8, Exhibit 8-D.) The Project Notification should also include a copy of the request
from the CLG designated to administer the subgrant to the SHPO.
12. Delegating Third-Party Administration.
CLG subgrants may be administered by a designated third-party if the CLG indicates in its funding
application to the State that it wants any subgrant awarded to it to be administered by a specific
organization. Designation of a third-party to administer a subgrant is not a procurement action. Such
a delegate agency may be another unit of local government, a commercial firm, a nonprofit entity, or
an educational institution as long as it has the administrative capability required by Chapter 8, Section
D. The delegate agency cannot be the SHPO or any part of the Department of State Government it is
part of. This provision is intended to facilitate such projects as workshops for multiple CLGs, or
hiring a consultant to perform services for several CLGs. This provision will eliminate the need to
award subgrants to every CLG attending a workshop. It will also negate the administrative burden of
the sponsoring CLG processing payments for expenses incurred by attendees from other CLGs.
The subgrant agreement will be executed between the SHPO and the CLG’s designated
administrative agent provided that the CLG’s grant application designates a third party to administer
the subgrant. The third party will be paid the subgrant funds upon satisfactory completion of the
scope of work and compliance with all conditions of the subgrant agreement. Any CLG receiving
grant assistance under this provision must have followed the procedures specified in the State's NPS
approved process for transferring funds to CLGs.

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13. CLG Subgrants If No Approved State Program Exists.
a. The method for allocating funds will be determined by NPS in accordance with the procedures set
forth for States in 36 CFR 61.7, and this manual.
b. In order to maintain consistency and continuity in funding allocation policies, NPS will consider
State procedures for transferring funds to CLGs.
L. Standards and Procedures for Monitoring and Evaluating CLG Performance.
The SHPO shall monitor and conduct periodic evaluations of CLGs. See Section E.4.
1. States must monitor CLGs on an on going basis, and evaluate each CLG no less than once every four
years.
2. States shall establish written procedures and standards to evaluate CLG performance in program
operation and administration. Performance standards and procedures must be included in the
Certification Agreement, or referenced therein. These standards and procedures must be made
available to local governments at the time of application for certification. The procedures and
standards for evaluating CLG performance should include elements such as quantity, quality, and
timeliness.
3. The SHPO shall maintain written records for all CLG evaluations. States may define the format of
the evaluation report/records.
4. The State must promptly notify the CLG in writing of the results of the evaluation.
a. If an SHPO evaluation indicates that a CLG's performance is inadequate, the SHPO shall suggest
ways to improve performance, and shall stipulate a time period in which those improvements are
to be made. (See Section M.2.a., below)
b. If, after the stipulated period of time, the SHPO determines that there has not been sufficient
improvement in the CLG's performance, the SHPO may recommend decertification of the CLG
to the NPS for concurrence. The SHPO must notify the CLG in writing that the decertification
process has begun. See Section M.2.b., above.
M. Decertification of Certified Local Governments.
1. Request by SHPO for CLG Decertification.
a. The SHPO may recommend decertification to the National Park Service after all of the following
conditions have been met.
1) The SHPO determines that a CLG's performance does not meet the performance standards
specified in the Certification Agreement or referenced therein (see Section D.5., and Section
L., above); and,

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2) The SHPO specifies to the CLG in writing ways to improve performance within a period of
time by which deficiencies must be corrected or improvements must be achieved; and,
3) After the period of time stipulated by the SHPO, the SHPO determines that there has not been
sufficient improvement.
b. Failure to perform acceptably under an HPF subgrant is not in itself sufficient grounds for
decertification. The SHPO must notify the CLG in writing prior to, or at the time of, its
recommendation to NPS for decertification. The notification must state the specific reasons for
the proposed decertification, describe the State’s technical assistance efforts, and affirm that the
SHPO will notify the CLG of the NPS concurrence with the decertification.
c. The SHPO may also recommend decertification if a CLG requests to be decertified in writing.
The SHPO must forward a copy of the CLG’s letter as an enclosure to the SHPO’s request to
decertify the CLG. Compliance with the conditions stipulated in Section M.1.a., above, is not
required, if the CLG has requested its own decertification.
d. If the CLG had been delegated Section 106 responsibilities in its jurisdiction by the State, and a
Programmatic Agreement has been executed with the Advisory Council for Historic Preservation,
then the SHPO must notify the Advisory Council that the CLG has been decertified.
2. Effective Date of Decertification.
The SHPO must affirm with the decertification recommendation to NPS that the SHPO has notified
the CLG. The local government is decertified if the National Park Service concurs in writing with the
SHPO's recommendation to decertify the CLG.
a. The NPS will notify the SHPO in writing prior to 30 working days after receipt of the
recommendation, if there are problems with the recommendation or if the NPS needs more time to
review the recommendation.
b. Upon receipt of the written NPS concurrence with the SHPO recommendation for decertification,
the SHPO must inform the CLG in writing of the decertification, and, if necessary, must take
appropriate action if the decertified local government has a current CLG subgrant (see Section
M.3., below).
c. If the local government wishes to become recertified it must reapply for certification.
3. Decertified Local Governments with Subgrants Awarded Prior to Decertification.
a. Decertification, by itself, may not constitute grounds for termination of a CLG subgrant unless
the terms of the subgrant cannot continue to be met after decertification. If a local government
retains its subgrant awarded as a CLG, that subgrant will continue to "count" toward the State's
10 percent minimum pass-through.
b. Should the subgrant be amended after decertification:

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1) Any increase in the Federal share of the subgrant will not count towards the State's 10 percent
minimum pass-through; and
2) Any reduction to the Federal share of the subgrant must be reprogrammed to other CLGs if
the State’s cancellation of the subgrant would result in noncompliance with the 10 percent
minimum Pass-Through requirement.
c. The SHPO may conclude normal subgrant closeout procedures (not termination), unless the terms
of the subgrant agreement can no longer be met, in which case the SHPO shall terminate the
subgrant. See Chapter 22.
d. The SHPO may continue to administer the subgrant awarded to the local government if the local
government can otherwise meet the work terms and conditions of the subgrant agreement.
e. As a consequence of decertification, the local government is no longer eligible for CLG subgrants
unless recertified. The local government may, however, be eligible for HPF assistance other than
the 10 percent minimum pass-through, if available.
N. Required Recordkeeping.
States shall maintain written records regarding:
1. The development and use of State procedures for certification and transfer (i.e., subgrant) of funds to
local governments (See Section D., above);
2. Certification and decertification of local governments (see Sections G. and M., above);
3. Training and technical assistance to CLGs and to local governments (see Section I., above);
4. Transfer of funds (awarding of subgrants) to CLGs (see Section K., above.);
5. Subgrant administration; and
6. Monitoring and evaluation of CLGs (see Section L., above.).

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EXHIBIT 9-A MODEL LOCAL GOVERNMENT CERTIFICATION AGREEMENT
Pursuant to the provisions of the National Historic Preservation Act, as amended, to applicable federal
regulations (36 CFR 61), and to
[insert title of State Certification
Procedures],
[insert proper name of the local government] agrees
to:
(1) Enforce appropriate legislation for the designation and protection of historic properties [specify legislation
or cross reference requirements from State procedures].
(2) Maintain an adequate and qualified historic preservation review commission composed of professional
and lay members [list or cross reference specific requirements from State procedures].
(3) Maintain a system for the survey and inventory of historic properties [list or cross reference specific
requirements from State procedures].
(4) Provide for adequate public participation in the historic preservation program, including the process of
recommending properties to the National Register [list or cross reference specific requirements from State
procedures].
(5) Adhere to all Federal requirements for the Certified Local Government Program.
(6) Adhere to requirements outlined in the State of
[enter State name]
[enter title of State CLG procedures] issued by the State Historic Preservation
Office.
Upon its designation as a Certified Local Government,
[enter local government
name] shall be eligible for all rights and privileges of a Certified Local Government (CLG) specified in the
Act, Federal procedures, and procedures of
[enter State name]. These rights
include eligibility to apply for available CLG grant funds in competition only with other certified local
governments.
STATE:

LOCAL GOVERNMENT:

SHPO or Designee

Chief Elected Local Official

Typed Name and Title

Typed Name and Title

Date

Date

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EXHIBIT 9-B MODEL CLG CERTIFICATION APPLICATION CHECKLIST
State:

Jurisdiction:

Date submitted to State:

Date approved by State:

(1) Applicant meets the Federal definition of local government and has authority to enforce acceptable
legislation for the designation and protection of historic properties.
(2) Applicant has established a historic preservation review commission consisting of
meets State procedure requirements for number of members.
There are

lay members.

There are

professional members qualified in the fields of :

members. This

This meets State procedure requirements for professional membership.
(3) All commission members have a demonstrated, positive interest, competence, or knowledge in historic
preservation.
(4) Professional members of the commission have been appointed to the extent available in the community,
and we have reviewed resumes that document professional qualifications acceptable under the Secretary
of the Interior’s Historic Preservation Professional Qualification Standards. If not, the applicant
satisfactorily documented an adequate search for the requisite professional members and how it will
obtain access to expertise when needed.
(5) The role and responsibilities of the local government have been specified in detail in the enclosed
agreement, including:
A. The four basic responsibilities:
1. Enforcing State or local legislation for the designation and protection of historic resources.
2. Maintaining a system for survey and inventory of historic properties.
3. Providing for adequate public participation in the historic preservation program.
4. Reviewing National Register nominations through a qualified local commission.

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B. Additional responsibilities.
1. Required of all CLGs in
a. Maintain adequate financial management systems.
b. Adhere to all requirements of the Historic Preservation Fund Grants Manual.
c. Adhere to any requirements mandated by Congress regarding use of federal historic
preservation funds.
d. Adhere to requirements outlined in the State of
Local Government
Participation Procedures issued by the State Historic Preservation Office.
2. Requirements specific to this CLG (if any stipulated).

(6) The CLG contact person, including title/position, mailing address, and telephone number:

(7) The Certification Agreement has been signed by SHPO and Chief Elected Local Official.
(8) Any other information relevant to this application:

STATE REVIEWER:

Signature

Name and Title

Date

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Chapter 10 - Title VI and Section 504 Compliance Requirements
A. Purpose.
This Chapter details guidelines for the implementation of Title VI of the Civil Rights Act of 1964, 42
U.S.C. 2000d, et seq.; Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794, as amended; and the
Age Discrimination Act of 1975, as amended (42 U.S.C. 6101, et seq.) The contents of this Chapter
incorporate Department of the Interior regulations published in 43 CFR 17 subparts A, B, and C; the
Americans with Disabilities Act of 1990 (ADA), and related regulations; part of the Architectural Barriers
Act of 1968, Section 504 of the Rehabilitation Act of 1973, and the Fair Housing Act of 1988. The ADA
prohibits discrimination based on disability by the private and public sectors. The ADA has separate and
concurrent requirements for State and local governments, which may or may not be recipients of Federal
assistance. Each of these laws provide for review and investigation of recipient actions to determine
compliance.
The objectives of the respective Acts are as follows:
1. Civil Rights Act of 1964. Title VI of the Civil Rights Act of 1964 provides that no person in the
United States shall, on the grounds of race, color, or national origin, be excluded from participation
in, be denied the benefits of, or otherwise subjected to considerations under any program or activity
receiving Federal financial assistance.
2. Rehabilitation Act of 1973. Section 504 of the Rehabilitation Act of 1973 is designed to eliminate
discrimination on the basis of disability in any program or activity receiving Federal financial
assistance.
3. Age Discrimination Act of 1975. The Age Discrimination Act of 1975 prohibits discrimination on
the basis of age in programs and activities receiving Federal Financial assistance. The Act also
permits recipients of Federal funds to continue to use certain age discriminations, as outlined in 43
CFR 17, subpart C.
B. Covered Employment.
1. A grantee or a subgrantee's employment practices shall be subject to the nondiscrimination
provisions of Title VI, Section 504, and the Age Discrimination Act as provided in Section C.5.b.,
below. With regard to Title VI, the Department is concerned not only with discriminatory
employment practices, but also practices that directly affect services to the public under a federally
assisted program to which these guidelines apply. A recipient receiving Federal financial assistance
directly, or through contractual, licensing, or other arrangements, shall not use age distinctions or take
any other actions which may exclude, deny, or limit individual employment or benefits. The
employment practices of construction contractors hired by grantees and their subgrantees will not be
subjected to the provisions, unless specifically provided. (However, see Chapter 18, Equal
Employment Opportunity Contract Compliance.) The employment requirement stipulated by Section
504 for the disabled is extended to provide that recipients must not discriminate in employment
against disabled persons. Reasonable accommodations must be provided for disabled persons who
are qualified job applicants or incumbent employees. This requirement may be waived by the NPS
Equal Opportunity Office in cases where accommodation is proven to cause an undue hardship on the
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operation of recipient programs as a result of, but not limited to, the following (see Section C.9,
below):
a. Size of recipient program with respect to number of employees, number and type of facilities, and
size of budget;
b. The type of the recipient's operations, including the composition and structure of the recipient's
workforce; and
c. The nature and cost of the accommodation needed.
Enforcement of Title VI, Section 504, and the Age Discrimination Act provisions with respect to
covered employment practices shall not be superseded by State or local merit systems relating to
such employment practices.
C. Compliance Responsibilities.
1. Office for Equal Opportunity Responsibility. The Office of Equal Opportunity (OEO), as authorized
by the Secretary of the Interior, shall assure that no person participating in a program funded in whole
or in part by the National Park Service is subjected to discrimination on the basis of race, color,
national origin, or disability. This shall be accomplished through continued policy direction,
oversight, compliance reviews, and complaint investigations, as well as technical assistance and
program evaluation.
2. National Park Service Responsibility. The NPS, as grantor of Historic Preservation Fund (HPF)
monies, has direct responsibility for assuring that HPF grantees and subgrantees are in compliance
with the provisions of Title VI, Section 504, and the Age Discrimination Act. For purposes of HPF
grants, the NPS shall execute its responsibility through:
a. providing guidance to grantees in the use of an open project selection process to allocate NPS
grant assistance among applicants;
b. notifying the Office for Equal Opportunity of any inconsistencies with Title VI, Section 504, and
the Age Discrimination Act detected in any grantee's program by NPS personnel; and
c. cooperating with the Office for Equal Opportunity in seeking a satisfactory resolution of any
inconsistencies found.
3. Grantee Responsibility. The States and the National Trust for Historic Preservation, as grantees, are
responsible for giving reasonable assurance that the applicant and all subgrantees will comply with
the requirements imposed by Title VI, Section 504, and the Age Discrimination Act, including
methods of administration which give reasonable assurance that any noncompliance will be corrected.
This shall be accomplished through:
a. establishing an open project selection process according to NPS standards (see Chapter 8,
Section C);

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b. providing the State Clearinghouse the opportunity to comment upon the civil rights aspects of
applications submitted according to the Executive Order 12372 review process (see Chapter 4,
Section C.3).
c. notifying NPS’ Equal Opportunity Office of any inconsistencies with Title VI and Section 504
detected in any subgrantee's program by grantee personnel;
d. cooperating with NPS’ Equal Opportunity Office toward seeking a satisfactory resolution of any
inconsistencies found, including efforts toward seeking voluntary compliance; and
e. assuring that each subgrantee/applicant is provided a copy of nondiscrimination guidelines.
4. Coordination of Responsibility. NPS will periodically review the grantee's administration of the HPF
program, including reviews of the compliance of subgrantee programs with Title VI, Section 504, and
the Age Discrimination Act. NPS will provide grantees, subgrantees, and applicants for grant
assistance with such technical assistance as necessary to reasonably assure compliance with Title VI,
Section 504, and the Age Discrimination Act. Federal, State, and local officials are expected to
cooperate fully toward securing voluntary compliance where deficiencies in programs or projects are
found. (See Section C.5. for review procedures.)
5. Compliance Reviews of Grantees and Subgrantees. Grantee and subgrantee compliance shall be
based on the following criteria:
a. The HPF program evidences compliance with the provisions of Title VI, Section 504, and the
Age Discrimination Act by specifically demonstrating their consideration of the role of minorities
and disabled individuals in the history, archaeology, architecture, and cultural development of the
State.
b. The grantee makes available to the public Title VI, Section 504 and the Age Discrimination Act
nondiscrimination information, and by what means (i.e., through posters, brochures and program
literature). Where necessary, (1) whether bilingual information is made available for non-English
speaking populations which comprise 10 percent or more of the total population, and (2) whether
program information is available for the vision or hearing impaired and any other disability that
impairs the communication process. The required nondiscrimination language to be inserted into
all grant-related public notices and publications reads as follows:
This program receives Federal financial assistance for identification and protection of historic
properties. Under Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act
of 1973, and the Age Discrimination Act of 1975, the U.S. Department of the Interior prohibits
discrimination on the basis of race, color, national origin, age, or disability in its federally assisted
programs. If you believe you have been discriminated against in any program, activity, or facility
as described above, or if you desire further information, please write to:
Office for Equal Opportunity
National Park Service
1849 C Street, N.W.
Washington, D.C. 20240

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c. Title VI, Section 504 and Age Discrimination Act complaints received by the grantee are
forwarded to the Office for Equal Opportunity within 10 days.
d. The frequency and type of all compliance assistance provided by the grantee for its subgrantees.
e. The grantee adequately provides Title VI, Section 504 and Age nondiscrimination information to
its subgrantees (i.e., through posters, brochures, and program literature).
f.

Title VI, Section 504, and Age Discrimination Act compliance responsibilities have been
designated to qualified grantee staff, and the responsibilities are being effectively executed (does
not apply to subgrantees).

g. Minority and disabled individuals participate on the grantee's State Review Board and the
subgrantee's appointed planning and advisory bodies associated with the program.
h. Inclusion of properties nominated to the National Register and on the statewide survey that
represent minority group contributions to the history and culture of the State (does not apply to
subgrantees);
i.

Organizations representing minorities and the disabled are notified of the opportunity to apply for
HPF subgrants annually.

j.

Evidence of continuing cooperation and liaison with private individuals and organizations,
including minority and disabled individuals and organizations, representing these groups in
grantee and subgrantee programs (including award of minority related subgrants or contracts).

k. Adherence to Title VI complaint procedures as written in Section D of this chapter, including the
public notification provisions in grantee and subgrantee programs.
l.

The imposition of nondiscriminatory admission fees for entrance to HPF grant-assisted
properties, where such fees are used in grantee and subgrantee programs.

m. Full accessibility for minority and disabled persons, and persons of all ages to grantee and
subgrantee activities and services (e.g., workshops, exhibitions, tours, etc.) is promoted. With
regard to the disabled, specific responsibilities include but are not limited to:
1) Making physical alterations which enable qualified disabled persons to have access to
otherwise inaccessible areas or features of historic properties (see Chapter 5, General
Condition B.12.b.);
2) Using audio-visual materials and devices to depict otherwise inaccessible areas or features of
historic properties;
3) Assigning persons to guide qualified disabled persons into or through otherwise inaccessible
portions of historic properties;

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4) Adopting other innovative methods to achieve program accessibility.
n. Qualified disabled persons (as defined in 43 CFR 17.202(k)) are, on the basis of disability, being
treated in a nondiscriminatory fashion in employment under any programs or activities of the
grantee and subgrantee through:
1) Recruitment, advertising, and the processing of applications for employment;
2) Hiring, upgrading, promotion, award of tenure, demotion, transfer, layoff and rehiring;
3) Rates of pay or any other form of compensation and changes in compensation;
4) Job assignments, job classifications, organizational structures, position descriptions, lines of
progression, and seniority lists;
5) Leave of absence, sick leave, or any other leave;
6) Fringe benefits available by virtue of employment, whether or not administered by the
recipient;
7) Selection and financial support for training including apprenticeship, professional meetings,
and selection for leave of absence to pursue training;
8) Employer-sponsored activities, including social or recreation programs;
9) Any other term, condition, or privilege of employment such as granting awards, recognition
and/or monetary recompense for money-saving suggestions or superior performance;
10) Providing reasonable accommodations to known physical or mental limitations of an
otherwise qualified disabled applicant or employee except in cases outlined in Section B.1,
above, Covered Employment;
11) Employment tests, pre-employment inquiries, interviews, or other selection criteria; and
12) Providing nondiscrimination language in employment information materials as discussed in
Subsection C.5.b, above.
o. Grantees have obtained assurances from nonprofit organizations that are applicants or
subgrantees of federally assisted programs or activities, in accordance with 43 CFR 17, which
provides that the overall program will be operated in compliance with Title VI, and Section 504.
Covenants associated with HPF grant assistance, including transfer of real property or interest in
the property, must also contain language which assures nondiscrimination (see Section C.5.b.,
above).
6. Section 504 Self-Evaluation. Recipients and subrecipients are required to evaluate, modify, and take
necessary remedial steps towards ensuring that its policies, practices, and facilities are in compliance
with Section 504. This self-evaluation process should be conducted with the assistance of interested

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persons, including disabled persons or organizations representing disabled persons. The selfevaluation must cover all areas outlined in Section C.5., above. A self-evaluation guide and checklist
may be obtained from Historic Preservation Grants Division, National Park Service, 1849 C Street,
N.W., (Org. Code 2256), Washington, DC 20240.
A recipient that employs 15 or more persons shall, for at least three years following completion of the
evaluation, maintain on file all records pertaining to the evaluation as outlined in 43 CFR 17.205.
Such records must be made available for public inspection and for the Director, Office for Equal
Opportunity, upon request.
7. Designation of Section 504 Coordinator. A recipient must designate a staff person to coordinate
efforts to comply with Section 504 requirements.
8. Waiver of Accessibility Requirements. When alterations are the only feasible means of providing
access but would cause a substantial impairment of significant historic features, a modification or
waiver of the access standard may be sought in accordance with 43 CFR 17.260. The Department
believes that the program accessibility standards are flexible enough to make programs accessible
without impairing the integrity of historic buildings. However, whenever such problems arise,
modifications or waivers may be necessary.
9. Procedures for Requesting a Waiver. Where program accessibility cannot be achieved without
causing a substantial impairment of significant historic features, the Equal Opportunity Office may
grant a waiver of the program accessibility requirement, upon consultation with NPS Historic
Preservation Grants Division and the Advisory Council on Historic Preservation. All requests must
be in writing and must be signed by an authorized official. The request should be submitted to the
Director of the Office for Equal Opportunity.
In determining whether program accessibility can be achieved without causing a substantial
impairment, the written request should include a complete description of the property identifying the
following factors:
a. Significance of the property, identifying reason(s) the property has been listed on the National
Register of Historic Places;
b. Scale of property (i.e., its physical description), with an explanation of its ability to absorb
alterations;
c. Use of the property, whether primarily for public or private purposes;
d. An analysis of the historic and/or architectural features of the property that will be affected by
accessibility requirements with an explanation of why other program accessibility alternatives are
not possible; and
e. Cost of alterations in comparison to the increased inaccessibility.
10. Procedures for Granting a Waiver. After the Office for Equal Opportunity receives all the necessary
information, the Equal Opportunity Office, in consultation with NPS, will review the records and

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determine whether the waiver request is to be approved or not. Once a decision regarding the waiver
request has been made, the recipient shall be notified in writing by the Equal Opportunity Office of its
determination no later than 30 days from the completion date of the waiver review.
11. Transition Plan Responsibilities. Whenever structural changes to facilities are necessary to meet
program accessibility requirements, recipients shall develop, within one year of the cited accessibility
violation, a transition plan setting forth the steps necessary to complete such changes. In the case of
new recipients, a transition plan must be developed within one year of receipt of the financial
assistance. A transition plan guide may be obtained from NPS Historic Preservation Grants Division,
1849 C Street N.W., (Org. Code 2256), Washington, D.C. 20240.
Transition plans should be developed with the assistance of interested persons, including disabled
persons or organizations representing disabled persons and made available for public inspection. The
plan should contain the following information:
a. Identification of physical obstacles in the recipient's facilities that limit the accessibility of its
program or activity to disabled persons;
b. Detailed description of the methods that will be used to make the facilities accessible and usable;
c. Timetable for achieving full program accessibility. If the time period will exceed the specified
required timeframe of one year, an identification of steps taken during each year to achieve
accessibility is required; and
d. Identification of the person responsible for implementation of the plan (name, address and
telephone number).
D. Title VI, Section 504, and Age Complaint Procedures.
This section prescribes the procedures with respect to the prompt processing and disposition of
complaints.
1. Public Notification of Right to File a Complaint. Grantees shall inform the public of their right to file
a complaint. Where grantees extend HPF assistance to subgrantees, the grantees shall also be
responsible for ensuring that this standard is met.
a. Grantees shall also include information on Title VI, Section 504, and Age Discrimination Act
requirements, complaint procedures, and the rights of beneficiaries in grant-related handbooks,
manuals, pamphlets, and other materials which are ordinarily distributed to the public. In
instances where disabled persons have visual, hearing or other disabilities that impair their
communication process, accommodations must be made to meet their needs, such as audiovisual
aids and/or interpreters.
b. Posters explaining the nondiscrimination provisions of Title VI, Section 504, and Age
Discrimination Act as they apply to the HPF program shall be displayed in at least one
conspicuous place in grantee administrative offices. Posters should note the availability of
additional Title VI and Section 504 information and explain briefly the procedures for filing
complaints.

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2. Who may file. Any person, or specific class of persons, who believes that he or she has been
subjected to discrimination as prohibited by Title VI, Section 504, and/or the Age Discrimination Act
may file a complaint.
3. How, When, and Where to File. All complaints filed under Title VI, Section 504, and the Age
Discrimination Act must be in writing, and must be signed by the complainant and/or the
complainant's representative. In the event that a complaint is made in other than written form, the
official receiving the complaint must instruct the complainant to submit the complaint in writing to
the Equal Opportunity Office, National Park Service for prompt processing. The complaint should
contain: the name, address, and telephone number of the complainant; the name and address of the
alleged discriminating official, grantee or subgrantee; the basis of the complaint, and the date of the
alleged discrimination.
Complaints must be filed within 180 calendar days from the date of the alleged discrimination. The
time limit for filing may be extended only by the Director, Equal Opportunity Office. Complaints
should be filed directly with the Director, Equal Opportunity Office, National Park Service, 1849 C
Street, N.W., Washington, D.C. 20240. In the event that complaints are received by NPS and/or
grantees, such complaints will be forwarded to the Equal Opportunity Office within 10 days of
receipt.
4.

Complaint Processing.
a. Acknowledgment of Complaint. The Equal Opportunity Office shall acknowledge in writing the
receipt of every complaint within 10 days. Acknowledgment letters shall be sent to the
complainant, NPS Historic Preservation Grants Division, and the grantee.
b. Complaint Log. Grantees shall maintain a log of any Title VI, Section 504, and Age
Discrimination Act complaint received. Moreover, the Equal Opportunity Office shall maintain a
log of all such complaints received for processing. The purpose of the complaint log is to provide
essential information and data regarding each complaint being processed by the Department.
Each log must contain a case number, the complainant's name, address, and telephone number.
Each log must also include a description of the complaint, the date the complaint was filed and
investigation completed, the disposition of the case, and all other information pertinent to the
complaint.
c. Routing Responsibilities. When NPS, any grantee or subgrantee, receives a complaint, the office
in receipt must log in the complaint, note the date of receipt on the complaint and maintain a
confidential copy for its records. The original complaint document must be forwarded to the
Office for Equal Opportunity within 10 days of receipt. The Office for Equal Opportunity shall
acknowledge its receipt and notify the grantee, as well as NPS Historic Preservation Grants
Division.
The grantee is encouraged to inquire into the facts of any complaints of an administrative nature
brought to its attention. However, if any part of the complaint is based upon alleged Title VI,
Section 504, or Age Discrimination Act, the Equal Opportunity Office must be notified as
provided for above.

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d. Determination of Jurisdiction. Upon receipt of a complaint by the Department, the Office for
Equal Opportunity shall determine whether the complaint comes within the purview of Title VI,
Section 504, or Age Discrimination. When the Department lacks jurisdiction over a complaint,
the Office for Equal Opportunity Program, shall refer the complaint to the appropriate State or
Federal agency that has responsibility for addressing the complaint.
5. Complaint Investigations.
a. Scope. Investigations shall be confined to issues and facts relevant to allegations in the
complaint.
b. Confidentiality. Complainants shall be offered a pledge of confidentiality as to their identity.
This offer, if accepted, shall be binding on the investigator. Complainants shall be interviewed at
all times in places which will not create the risk of compromising confidentiality. Except where
essential to the investigation, the investigator shall not reveal the identity of the complainant to
the respondent or to any third party. If the investigator determines the necessity to reveal the
complainant's identity, the complainant's written permission to do so must be secured.
c. Conduct of Investigation. Upon determination of jurisdiction by the Department, the Equal
Opportunity Office shall promptly initiate an investigation of the matter.
d. Investigation Reports. In all instances where an investigation has been conducted, an
Investigation report shall be prepared, with findings and recommendations. The complainant and
the agency against whom the complaint is made shall be notified in writing of the disposition.
e. Investigation by Primary Recipients. The Director, Equal Opportunity Office, within 10 working
days of the receipt of a complaint, may authorize a grantee to investigate the complaint and make
findings and recommendations subject to approval by the Equal Opportunity Office. Upon such
delegation of authority, a grantee may investigate complaints filed against subgrantees. The
investigative report will be provided to the Equal Opportunity Office within 30 days of
authorization to investigate. The grantee may not investigate any complaint in which it, or any of
its officers or employees are implicated. If at any time prior to its completion, it is determined
that investigation of a complaint has been improperly conducted, the Equal Opportunity Office,
may withdraw the grantee's authority to investigate. If the complainant is dissatisfied with the
findings, the complainant may appeal the findings to the Equal Opportunity Office for its decision
within 30 days of the complainant's receipt of the investigative report.
f.

6.

If No Conditions of Noncompliance are Found. Where the Director or designee determines that
review and investigation of findings do not support an allegation of discrimination, the complaint
shall be administratively closed. Within 10 working days of the closing date, the complainant
will be notified through certified mail of the decision and given the reason(s) for the decision.

If Noncompliance is Found.
a. Voluntary Compliance Defined. Voluntary Compliance means willingness to correct conditions
of noncompliance identified by complaint investigations or compliance reviews. Departmental

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regulations require the resolution of an apparent condition of noncompliance by informal means
whenever possible.
b. Procedures for Effectuating Voluntary Compliance.
1) In every case where a complaint investigation or compliance review results in a finding of
noncompliance, the Director, Equal Opportunity Office, shall notify the grantee through
certified mail of the apparent noncompliance, offer recommendations to correct the
conditions of noncompliance, and offer a reasonable time to willingly comply.
2) The Equal Opportunity Office shall record the date the grantee received notice, and shall note
and record the last day afforded the grantee for voluntary compliance before initiating the
administrative sanctions described below.
3) The grantee may request a meeting for the purpose of discussing the problem areas or
requirement for compliance. The principal investigator will accompany the Director or his
designated representative to the meeting for the above stated purpose.
4) The Director, Equal Opportunity Office, or designee shall approve the grantee's voluntary
compliance plans, methods, procedures, and proposed actions if such approval will result in
compliance with Title VI, Section 504, and the Age Discrimination Act.
c. Sanctions Available to the Department. When an applicant or a grantee is found to be in
noncompliance with Title VI, Section 504, and/or the Age Discrimination Act, and compliance
has not been achieved by voluntary means, Title VI and Section 504 provide several enforcement
alternatives. If discrimination based on race, color, national origin, disability or any other
technical violation of Title VI and Section 504 is found in an applicant's program, the Equal
Opportunity Office can recommend temporary deferral of Federal funds to the agency awarding
the grant until full compliance has been satisfactorily established. If the grant has been made, the
Equal Opportunity Office may initiate administrative proceedings for the termination of current
and future grant assistance. Alternatively, the Office for Equal Opportunity Office may enforce
Title VI and Section 504 by "any other means authorized by law” including referral to the U.S.
Department of Justice for appropriate judicial enforcement. However, no order suspending,
terminating, or refusing to grant assistance to a recipient will become effective until the Equal
Opportunity Office has:
1) Advised the grantee of its failure to comply and determined that compliance cannot be
secured by voluntary means.
2) Made an express finding on the record after opportunity for a hearing, of a failure by the
applicant or grantee to comply with a Title VI or Section 504 requirement.
3) Submitted a full written report of the circumstances and the grounds for such action to the
Secretary of the Interior.
4) Obtained approval of the action to be taken from the Secretary of the Interior.

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5) Ensured that the Secretary has filed a full written report with the House and Senate
Committees having the legislative jurisdiction over the program involved.

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Chapter 11 - Environmental Compliance Requirements
A. National Environmental Policy Act (NEPA).
This Chapter details the Department of the Interior requirements concerning compliance with the
National Environmental Policy Act and related legislation, regulations and Executive Orders, as they
apply to the Historic Preservation Fund grant program.
1. Policy. The national policy concerning the assessment of the environmental impact of Federal and
federally funded actions is contained in the National Environmental Policy Act of 1969 (42 U.S.C.
4321-4347). All NPS Historic Preservation Fund grant actions are subject to the provisions of NEPA
and the Council on Environmental Quality Regulations for Implementing the Procedural Provisions
of NEPA (CEQ Regulations) (40 CFR 1500-1508).
2. Grantee Responsibility. Except for Reduced Review States (see Chapter 8, Section G), the applicant
must submit appropriate environmental documentation to NPS with the HPF grant Project
Notification (either an Environmental Certification, see section A.5 below, or an Environmental
Assessment, see section A.8 below). Certain categories of proposed actions may be excluded from the
NEPA process. Categorical Exclusions approved for NPS appear in Section A.4., below. All other
proposed actions require the preparation of either an Environment Assessment (EA) or an
Environmental Impact Statement (EIS). All grantees are required to submit necessary information as
an Environmental Assessment, unless the proposed grant-assisted activity is covered by a Categorical
Exclusion. If appropriate, grantees with statewide jurisdiction that qualify under NEPA section
102(2)(D) may be required to submit an EIS. The scope, content, and objectivity of the document
shall comply with NEPA, CEQ Regulations, and the Departmental Manual. (See Section A.8.
below.)
A State that has environmental laws equivalent to or more stringent than NEPA may submit
environmental documentation meeting both State and Federal requirements.
3. NPS Responsibility. NPS is responsible for determining and advising the State on whether a
proposed grant action is either categorically excluded or requires an EA or EIS. NPS is also
responsible for ensuring the adequacy of any required EA or EIS.
Projects involving floodplains and wetlands must comply with the requirements of 44 CFR 3642;
Executive Order 11988, Floodplain Management; Executive Order 11990, Protection of Wetlands;
Department of the Interior Manual (520 DM) and NPS Floodplain/Wetland Protection Guidelines.
This compliance requires information in addition to that required by NEPA. See Section B, below.
4. Categorical Exclusions. Authorized Categorical Exclusions are those referred to in 516 DM 6
Appendix 7. The actions shown qualify for Categorical Exclusion unless NPS determines that there
is cause for exception under 516 DM 2.3A(3), (see Section A.6 below for the exceptions). The
exclusions found in Section A.6.f. and A.6.g. are particularly relevant to HPF grantees. (However,
note that the list of Categorical Exclusions is not necessarily a list of activities eligible for HPF grant
assistance.)

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The following exclusions for the Department of the Interior are provided in 516 DM 2, Appendix 1
(also see additional Categorical Exclusions authorized for NPS in 516 DM 6, Appendix 7, and listed
below in Section A.4.b-g, of this Chapter):
a. Departmental Categorical Exclusions. These are general in nature and include the following:
1) Personnel actions and investigations and personnel services contracts;
2) Internal organizational changes and facility and office reductions and closings;
3) Routine financial transactions, including such things as salaries and expenses, procurement
contracts, guarantees, financial assistance, income transfers, audits, fees, bonds and royalties;
4) Law enforcement and legal transactions, including such things as arrests, investigations,
patents, claims, legal opinions, and judicial activities including their initiation, processing,
and/or settlement, appeal or compliance;
5) Regulatory and enforcement actions, including inspections, assessments, administrative
hearings, and decisions; when the regulations themselves or the instruments of regulations
(leases, permits, licenses, etc.) have previously been covered by the NEPA process or are
exempt from it in 516 DM 2, Appendix 1 (also see additional categorical exclusions listed
below in Section A.4.b-g, of this Chapter;
6) Non-destructive data collection, inventory (including field, aerial and satellite surveying and
mapping), study, research and monitoring activities;
7) Routine and continuing government business, including such things as supervision,
administration, operations, maintenance, and replacement activities having limited context
and intensity; (e.g. limited size and magnitude or short-term effects);
8) Management, formulation, and allocation of the Department's budget at all levels. (This does
not exclude the preparation of environmental documents for proposals included in the budget
when otherwise required.);
9) Legislative proposals of an administrative or technical nature, including such things as
changes in authorizations for appropriations, and minor boundary changes and transactions;
or having primarily economic, social, individual or institutional effects; and comments and
reports on referrals of legislative proposals;
10) Policies, directives, regulations and guidelines of an administrative, financial, legal, technical
or procedural nature; or the environmental effects of which are too broad, speculative or
conjectural to lend themselves to meaningful analysis and will be subject later to the NEPA
process, either collectively or case-by-case; and
11) Activities which are educational, informational, advisory or consultative to other agencies,
public and private entities, visitors, individuals or the general public.

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The following are NPS-specific Categorical Exclusions:
b. Actions Related to General Administration:
1) Changes or amendments to an approved action, when such changes would cause no or only
minimal environmental impact;
2) Land and boundary surveys;
3) Minor boundary changes;
4) Reissuance/renewal of permits, rights-of-way or easements not involving new environmental
impacts;
5) Conversion of existing permits to rights-of-way, when such conversions do not continue or
initiate unsatisfactory environmental conditions;
6) Issuances, extensions, renewals, reissuances or minor modifications of concession contracts
or permits not entailing new construction;
7) Commercial use licenses involving no construction;
8) Leasing of historic properties in accordance with 36 CFR 18 and NPS-38;
9) Preparation and issuance of publications;
10) Modifications or revisions to existing regulations, or the promulgation of new regulations for
NPS-administered areas, provided the modifications, revisions or new regulations do not:
a) Increase public use to the extent of compromising the nature and character of the area or
causing physical damage to it;
b) Introduce noncompatible uses which might compromise the nature and characteristics of
the area, or cause physical damage to it;
c) Conflict with adjacent ownerships or land uses; or
d) Cause a nuisance to adjacent owners or occupants.
11) At the direction of the NPS responsible official, actions where NPS has concurrence or
coapproval with another bureau and the action is a categorical exclusion for that bureau.
c. Plans, Studies and Reports.
1) Changes or amendments to an approved plan, when such changes would cause no or only
minimal environmental impact;

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2) Cultural resources maintenance guides, collection management plans and historic furnishings
reports;
3) Interpretive plans (interpretive prospectuses, audio-visual plans, museum exhibit plans,
wayside exhibit plans);
4) Plans, including priorities, justifications and strategies, for nonmanipulative research,
monitoring, inventorying and information gathering;
5) Statements for management, outlines of planning requirements and task directives for plans
and studies;
6) Technical assistance to other Federal, State and local agencies or the general public;
7) Routine reports required by law or regulation;
8) Authorization, funding or approval for the preparation of Statewide Comprehensive Outdoor
Recreation Plans;
9) Adoption or approval of surveys, studies, reports, plans and similar documents which will
result in recommendations or proposed actions which would cause no or only minimal
environmental impact;
10) Preparation of internal reports, plans, studies and other documents containing
recommendations for action which NPS develops preliminary to the process of preparing a
specific Service proposal or set of alternatives for decision;
11) Land protection plans which propose no significant change to existing land or visitor use; and
12) Documents which interpret existing mineral management regulations and policies, and do not
recommend action.
d. Actions Related to Development.
1) Land acquisition within established park boundaries;
2) Land exchanges which will not lead to significant changes in the use of land;
3) Routine maintenance and repairs to non-historic structures, facilities, utilities, grounds and
trails;
4) Routine maintenance and repairs to cultural resource sites, structures, utilities and grounds
under an approved Historic Structures Preservation Guide or Cyclic Maintenance Guide; or if
the action would not adversely affect the cultural resource;
5) Installation of signs, displays, kiosks, etc.;

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6) Installation of navigation aids;
7) Establishment of mass transit systems not involving construction, experimental testing of
mass transit systems, and changes in operation of existing systems (e.g., routes and schedule
changes);
8) Replacement in kind of minor structures and facilities with little or no change in location,
capacity or appearance;
9) Repair, resurfacing, striping, installation of traffic control devices, repair/replacement of
guardrails, etc., on existing roads;
10) Sanitary facilities operation;
11) Installation of wells, comfort stations and pit toilets in areas of existing use and in developed
areas;
12) Minor trail relocation, development of compatible trail networks on logging roads or other
established routes, and trail maintenance and repair;
13) Upgrading or adding new overhead utility facilities to existing poles, or replacement poles
which do not change existing pole line configurations;
14) Issuance of rights-of-way for overhead utility lines to an individual building or well from an
existing line where installation will not result in significant visual intrusion and will involve
no clearance of vegetation other than for placement of poles;
15) Issuance of rights-of-way for minor overhead utility lines not involving placement of poles or
towers and not involving vegetation management or significant visual intrusion in an NPSadministered area;
16) Installation of underground utilities in previously disturbed areas having stable soils, or in
existing overhead utility right-of-way;
17) Construction of minor structures, including small improved parking lots, in previously
disturbed or developed areas;
18) Construction or rehabilitation in previously disturbed or developed areas, required to meet
health or safety regulations, or to meet requirements for making facilities accessible to the
disabled;
19) Landscaping and landscape manipulation in previously disturbed or developed areas; and
20) Construction of fencing enclosures or boundary fencing posing no effect on wildlife
migrations.

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e. Actions Related to Visitor Use.
1) Carrying capacity analyses;
2) Minor changes in amounts or types of visitor use for the purpose of ensuring visitor safety or
resource protection in accordance with existing regulations;
3) Changes in interpretive and environmental educational programs;
4) Minor changes in programs and regulations pertaining to visitor activities;
5) Issuance of permits for demonstrations, gatherings, concerts, arts and crafts shows, etc.,
entailing only short-term or readily mitigable environmental effects; and
6) Designation of trailside camping zones with no or minimal improvements.
f.

Actions Related to Resource Management and Protection.
1) Archeological surveys and permits, involving only surface collection or small-scale test
excavations;
2) Day-to-day resource management and research activities;
3) Designation of environmental study areas and research natural areas;
4) Stabilization by planting native plant species in disturbed areas;
5) Issuance of individual hunting and/or fishing licenses in accordance with State or Federal
regulations;
6) Restoration of noncontroversial native species into suitable habitats within their historic
range, and elimination of exotic species;
7) Removal of park resident individuals of nonthreatened/endangered species which pose a
danger to visitors, threaten park resources or become a nuisance in areas surrounding a park,
when such removal is included in an approved resource management plan;
8) Removal of non-historic materials and structures in order to restore natural conditions; and
9) Development of standards for, and identification, nomination, certification and determination
of eligibility of properties for listing in the National Register of Historic Places and the
National Historic Landmark and National Natural Landmark Programs.

g. Actions Related to Grant Programs.
1) Proposed actions essentially the same as those listed in Sections A.4.b-f, above;

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2) Grants for acquisition of areas which will continue in the same or lower density use with no
additional disturbance to the natural setting;
3) Grants for replacement or renovation of facilities at their same location without altering the
kind and amount of recreational, historical or cultural resources of the area; or the integrity of
the existing setting;
4) Grants for construction of facilities on lands acquired under a previous NPS or other Federal
grant provided that the development is in accord with plans submitted with the acquisition
grant;
5) Grants for the construction of new facilities within an existing park or recreation area
provided that the facilities will not:
a) Conflict with adjacent ownerships or land use, or cause a nuisance to adjacent owners or
occupants, e.g., extend use beyond daylight hours;
b) Introduce motorized recreation vehicles;
c) Introduce active recreation pursuits into a passive recreation area;
d) Increase public use or introduce noncompatible uses to the extent of compromising the
nature and character of the property, or causing physical damage to it; or
e) Add or alter access to the park from the surrounding area.
6) Grants for preservation of properties listed on or eligible for listing on the National Register
of Historic Places, at their same location and provided that such actions:
a) Will not alter the integrity of the setting;
b) Will not increase public use of the area to the extent of compromising the nature and
character of the property; and
c) Will not cause a nuisance to adjacent property owners or occupants.
5. Certification. When a proposed project appears to qualify as one of the categorical exclusions listed
in Section A.4 above, and does not involve one or more of the exceptions in 516 DM 2.3(a)(3) listed
in Section A.6 below, the grantee shall indicate on the Environmental Certification Form the
categorical exclusion into which the project falls. If NPS concurs, the Certification will be signed by
the grant approving official, and maintained as part of the grant documentation. (See form at end of
this chapter.) If the project does not qualify for an exclusion, an Environmental Assessment must be
prepared (see Section A.8).

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6. Exceptions. The following exceptions apply to individual actions within categorical exclusions.
Environmental Assessments (EAs) must be prepared for actions which would otherwise fall under
categorical exclusions, but which may:
a. Have significant adverse effects on public health or safety;
b. Have adverse effects on such unique geographic characteristics as historic or cultural resources,
park, recreation, or refuge lands, wilderness areas, wild or scenic rivers, sole or principal drinking
water aquifers, prime farmlands, wetlands, floodplains, or ecologically significant or critical
areas, including those listed on the Department's National Register of Natural Landmarks;
c. Have highly controversial environmental effects;
d. Have highly uncertain and potentially significant environmental effects or involve unique or
unknown environmental risks;
e. Establish a precedent for future action or represent a decision in principle about future actions
with potentially significant environmental effects;
f.

Be directly related to other actions with individually insignificant but cumulatively significant
environmental effects;

g. Adversely affect properties listed or eligible for listing on the National Register of Historic
Places;
h. Adversely affect a species listed or proposed to be listed on the List of Endangered or Threatened
Species, or designated Critical Habitat for these species;
i.

Require compliance with Executive Order 11988 (Floodplain Management), Executive Order
11990 (Protection of Wetlands), or the Fish and Wildlife Coordination Act; or

j.

Threaten to violate a Federal, State, local or tribal law or requirement imposed for the protection
of the environment.

7. Special Cases. NPS may find that some actions which normally qualify for Categorical Exclusion
merit special consideration. In such cases NPS will require submission of an EA, or if the grantee
qualifies under NEPA section 102(2)(D), an EIS.
8.

Environmental Assessments.
a. An EA must cover the points listed in subparagraph 8b. below in sufficient detail to resolve the
test of "major and significant" (see CEQ Regulations, 40 CFR 1508.18 and 1508.27) and provide
a basis for deciding whether to prepare an EIS on the project. Such assessments generally need
be no more than two or three pages in length, except when complex projects are involved. The
grantee or subgrantee may not proceed with the proposed action until NPS has reviewed the EA
and issued a Finding of No Significant Impact (FONSI; see Section A.9 below), or notified the
SHPO that an EIS must be prepared by NPS. The EA must be submitted with the Project

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Notification (see Chapter 8, Exhibit 8-A). Note: even Reduced Review States must submit an
Environmental Assessment if required by the provisions of Chapter 11, Sec. A.
An EA should not be prepared if the need for an EIS is self evident; go directly to the EIS.
b. Format and Content. Pertinent information of sufficient scope and depth must be provided in an
EA to allow NPS to accurately ascertain the impact of the project and to determine whether an
EIS is needed. Whenever possible, an environmental impact should be quantified (see 40 CFR
150). In all cases the level of activities involved should be given--number of trees to be removed,
cubic yards of debris to be removed, cubic yards of fill to be required, etc. For projects with
property rights outstanding, the environmental information must also explain how the outstanding
rights are to be dealt with and how the State plans to assure that the environment will not be
affected significantly. An EA will cover the following four points at a minimum:
1) The Proposed Action. Include a description of the proposed action, a statement regarding the
need for it, a description of what the action is designed to accomplish, location of the project,
its scope, the level of impact causing activities associated with the project, when the action is
to take place, and, if applicable, its relation to other Federal, State, or local projects and
proposals. Cite other Federal actions (i.e., 404 Permit, etc.). Include a map.
2) Alternatives to the Proposed Action. This section will include a brief discussion of
alternatives as required by NEPA. The EA must include a description of appropriate
alternatives to recommended courses of action in any proposal which involves unresolved
conflicts concerning alternative uses of available resources. The environmental impacts of
the proposal and the alternatives should be presented in comparative form and should define
the issues, pros, and cons of a reasonable range of alternatives, and provide a clear basis for
choice between them by NPS and the public.
3) Environmental Impacts of Proposed Action. Succinctly describe those environmental
elements which would be affected. Discuss anticipated impacts on the following elements
and any means to mitigate adverse environmental impacts:
--land use (project site and surrounding area)
--fish and wildlife
--vegetation
--geology and soils
--mineral resources
--air and water quality
--water resources/hydrology
--historic/archeological resources
--transportation/access
--consumption of energy resources
--socioeconomic effects
"Impacts" are defined as causing direct or indirect changes in the existing environment,
whether beneficial or adverse, which are anticipated as a result of the proposed action or
related future actions. To the extent appropriate, the document will discuss impacts of the

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action, including environmental damage which could be caused by users, upon physical and
biological environment as well as upon cultural, aesthetic, and socioeconomic conditions.
Elements of impacts which are unknown or only partially understood should be indicated.
Any off-site impacts, such as increased traffic on neighborhood roads or increased noise
levels in surrounding areas, should be described.
4)

A listing of agencies and persons consulted.

c. Public Notice. Public notice should be provided in accordance with 40 CFR-7506.6 and, where
appropriate, the public involved in the environmental assessment process.
d. Adoption. In accordance with 40 CFR 1506.3, an EA prepared for a Federal grant program not
administered by NPS may be submitted if adequate to meet environmental documentation
requirements of proposed HPF grant actions.
e. Points to Consider in Environmental Assessments.
(1) Environmental documentation should be free of project justification and personal bias. The
project should be justified elsewhere in the grant application.
(2) Do not rely on generalities. Specific facts are essential. All statements and conclusions
should be supported, and quantified where possible.
(3) Use graphics to help explain the project.
(4) Be concise, clear and to the point.
(5) Adverse impacts should be addressed as fairly as beneficial impacts; and impacts should be
presented without conclusionary statements as to their significance.
9. Finding of No Significant Impact (FONSI). If NPS, after reviewing the environmental assessment,
determines that the proposed project will not have a significant effect on the quality of the human
environment and that an EIS is therefore unnecessary, a Finding of No Significant Impact (FONSI)
will be signed and included in the project file. See Exhibit 11-B at end of this Chapter.
10. Guideline to Determine when an Environmental Impact Statement Should be Prepared. NPS will
require sufficient environmental data from the grantee to prepare an EIS on a proposed project
deemed to be a major Federal action having a significant impact on the physical, biological, and/or
socioeconomic environment of the project site and/or surrounding area. Cumulative impacts and/or
subsequent actions must be considered in environmental data submitted.
The occurrence of one or more of the following factors indicates that an EIS may be needed:
a. Marshes or wetlands, unique animal or plant ecosystems, lakes, streams, or marine areas are
affected significantly.

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b. The proposed HPF project would or might result in major natural or physical changes, including
interrelated social and economic changes and residential and land use changes, within the project
area or its immediate environs.
c. An archeological or historical site on or eligible for nomination to the National Register of
Historic Places would be subjected to significant adverse effects by the proposed project.
d. Highly controversial issues involving the environmental effects of the project exist or are
expected.
e. The project site contains threatened or endangered species of flora or fauna, significant mineral
values, or a unique geologic formation.
f.

Actions which foreclose other beneficial uses of mineral, agricultural, timber, water, energy, or
transportation resources critical to the Nation's or a State's welfare.

11. Adoption of Previous Statement.
a. In accordance with 40 CFR 1506.3, an EIS prepared for a Federal grant program not administered
by NPS may be adopted by NPS if adequate to meet the requirements of a proposed HPF action.
When another agency's statement is adopted, only the final statement must be circulated.
b. An EIS previously prepared for the acquisition of land under a Land and Water Conservation
Fund (L&WCF) grant, or other Federal actions, will satisfy section 102(2)(C) of NEPA for an
HPF project provided that:
1) the development is in accordance with the plans submitted with the acquisition project; and
2) the EIS for the acquisition project adequately describes the environmental impacts of the
facility to be developed and public use of the area.
12. Preparing and Processing an EIS.
a. Policy. Each EIS shall be prepared in accordance with: (1) 40 CFR 1500-1508; (2) DOI Manual,
516 DM 4; and (3) NPS Environmental Guidelines, NPS-12. For any EIS prepared by a State
agency with statewide jurisdiction under NEPA section 102(2)(D), the responsible NPS official
shall actively furnish guidance and participate in the preparation of the EIS and shall
independently evaluate the EIS prior to its approval and adoption.
b. Notice of Intent. (40 CFR 1501.7 and 1508.22; 516 DM 2.3D).
After a decision is made to prepare an EIS, a Notice of Intent (NOI) will be published by NPS in
the Federal Register and made available to the affected public--see 40 CFR 1506.6.
c. Scoping Process. (40 CFR 1501.7; 516 DM 2.6).
Scoping is an early and open process to determine the scope of significant issues to be addressed
in an EIS. An invitation to affected Federal, State, and local agencies and interested persons to
participate in the scoping process should be included in the Notice of Intent.

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d. Format and Content of an EIS. The necessary in-depth environmental information and analysis
must use the following format:
1) Cover Sheet. (May be satisfied by SF 424).
2) Summary.
3) Table of Contents.
4) Purpose of and need for the Action.
5) Alternatives including the Proposed Action.
6) Affected Environment.
7) Environmental Consequences.
8) Consultation and Coordination in the Development of the Proposal and in Preparation of the
Environmental Impact Statement. (This section will contain the List of Agencies,
Organizations, and Persons to Whom Copies of the Statement are sent.)
9) Index.
10) Appendices (if any).
Each element of the format should contain the information called for in 40 CFR 1502.11
through 1502.18, 516 DM 4.6C, and NPS-12 (NEPA Handbook), plus appropriate
maps/graphics of the area affected by the proposed action.
e. Final EIS.
1) The final EIS shall include a "Public and Other Agency Comment and Response Section."
This section is an expansion of the Consultation/Coordination Chapter described in item
12(d)(8) above. All written comments on the Draft EIS from Federal and State agencies
should be printed in full and not summarized, even if voluminous. All other substantive
written comments should either be printed in the final EIS or summarized if exceptionally
voluminous.
2) Distribution of the final EIS. At a minimum, a copy of the final EIS will be sent to each
commenter and all Federal agencies that were sent the draft EIS. Ordinarily, no more than
500 copies of the final EIS need be printed. Copies of the EIS should be available for public
inspection at NPS and other appropriate government offices and local libraries.
3) Comments on final EIS. Comments are not solicited on a final EIS. However, any comments
received within 30 days of distributing a final EIS should be considered in deciding whether
to approve an HPF grant or subgrant.

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Record of Decision.
No decision on the proposed action may be made until 30 days after notice of the filing of the EIS
is published by the U.S. Environmental Protection Agency in the Federal Register. The record of
decision shall be in accord with 40 CFR 1505.2.

B. Floodplain and Wetlands Management.
1. Policy. All projects must comply with Executive Order 11988, Floodplain Management; Executive
Order 11990, Protection of Wetlands; the U.S. Water Resources Council's Floodplain Management
Guidelines for Implementing Executive Order 11988 (43 CFR 6030); DOI Floodplain and Wetland
Guidelines (520 DM), and NPS Floodplain and Wetlands Guidelines.
The objectives of the Executive Orders and of the procedures detailed in this Chapter are to avoid to
the extent possible the long and short term adverse impacts associated with the occupancy and
modification of floodplains and wetlands, and to avoid direct or indirect support of development of
floodplains and wetlands wherever there is a practicable alternative. Where floodplains or wetlands
cannot be avoided, these procedures will focus on mitigation of the adverse effects of any action. In
the context of the Orders, mitigation means to:
a. Design or modify actions so as to minimize harm to life, property, and natural values;
b. Minimize destruction, loss or degradation of wetlands;
c. Restore and preserve natural and beneficial floodplain values; and
d. Preserve and enhance natural and beneficial floodplain values.
Direct or indirect funding of floodplain development or construction in wetlands should be
avoided when practical alternatives exist. When activities or projects funded with assistance from
an HPF grant must be carried out in floodplain or in wetlands because no practical alternatives
exist, the work must be done in conformance with the requirements of Section 7.C of the NPS
Floodplain/Wetlands Protection Guidelines.
2. Policy on Cultural Resources located in Floodplains or Wetlands. As part of its congressional
mandate, the National Park Service preserves and interprets cultural resources possessing historical,
archeological, architectural, engineering and cultural significance included on, or eligible for
inclusion on, the National Register of Historic Places. In general, it is NPS policy that cultural
resources located in floodplains will be managed to assure their in-place preservation. Floodproofing
measures taken to protect the cultural property or site from the hydraulic or erosive forces of flooding
will be designed so as not to adversely affect the historic integrity of the structure or site. When a
cultural site or structure does not have the significance to merit action sufficient to ensure its
preservation from flood loss, an appropriate level of study and an appropriate treatment plan will be
prepared and implemented whenever possible.
3. Decision-Making Process. These guidelines require that a sequential analysis be implemented that
includes the following steps:

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a. Determine if the Proposed Action is in, or could affect, a Floodplain or Wetland.
1) Determine if the action is in the Base Floodplain by consulting Flood Insurance Rate Maps or
Flood Hazard Boundary Maps. Grantees may contact the National Flood Insurance Program
of the Federal Insurance Administration of the Federal Emergency Management Agency to
obtain a flood map of their locality (call 800-638-6620). If no maps are available, consult the
appropriate NPS Environmental Coordinator, or assume that the action may be in the base
floodplain and begin compliance with the Executive Orders, or obtain the services of a
licensed consulting hydrologist or engineer who is qualified to determine whether the action
is located in the floodplain;
2) Determine if the proposed action is in a Wetland by consulting with the responsible field
office of the U.S. Fish and Wildlife Service to obtain a National Wetland Inventory Map. If
there is no such map, the grantee should consult the wetland inventories maintained by the
U.S. Corps of Engineers, the U.S. Environmental Protection Agency, the National Oceanic
and Atmospheric Administration (U.S. Department of Commerce), and NPS.
b. Public Review. See Section B.6., below.
c. Variances. For purposes of floodplain management and compliance with Executive Orders
11988 and 11990, note that 44 CFR 60.6 stipulates procedures whereby a community may issue a
variance to its floodplain management regulations for the reconstruction, rehabilitation, or
restoration of structures listed on the National Register of Historic Places or on a State Inventory
of Historic Places. Issuance of such a variance allows a building permit to be issued and flood
insurance to be purchased (although often at increased premium rates). Documentation of such a
variance must be submitted to NPS with the HPF grant application and the Environmental
Assessment.
4. Environmental Assessment--Floodplain/Wetland Areas. Grant proposals for projects which lie in
floodplain or wetland areas normally require preparation of an environmental assessment. The
assessment must include the following:
a. Need for the proposal, including an explanation of why the proposed action in the floodplain or
wetland is to be taken;
b. The extent of the direct and indirect support of floodplain and wetlands development;
c. Measures to be taken to minimize harm to lives and property and the natural and beneficial
floodplain values and to restore and preserve these values served by floodplains and wetlands;
d. Alternative actions (including no action, and renovation of eligible facilities at alternative sites)
are to be considered;
e. Assurance that all Federal, State, and local floodplains/wetlands regulations and standards are
being met;

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A location map delineating the floodplain or wetlands;

g. The environmental impacts of the proposed action and alternatives; and
h. A listing of persons and agencies consulted.
5. Statement of Findings. When the proposed action involves adverse impacts to floodplain or wetland
areas, the environmental documents will be coupled with a separately identifiable Statement of
Findings not to exceed three pages documenting the rationale for the determination that there is no
practicable alternative location. The Statement of Findings shall conform with the requirements
promulgated in Sections 6.C.3.c. and 6.C.6. of the NPS Floodplain/Wetlands Protection Guidelines,
and must provide the following information:
a. A description of why the proposed action must be located in the floodplain;
b. A description of all significant facts considered in making the determination, including alternative
sites and actions;
c. A statement indicating whether the actions conform to applicable State or local floodplain
protection standards;
d. A description of how the activity will be designed or modified to minimize harm to or within the
floodplain;
e. A statement indicating how the action affects the natural or beneficial floodplain values;
f.

A statement indicating why the National Flood Insurance Program criteria are demonstrably
inappropriate for the proposed action (see 44 CFR 60);

g. A map showing the location of the floodplain or wetland and the site(s) of the proposed action;
and
h. The signature of the SHPO recommending approval of the Statement of Findings and also
recommending the approval of NPS on the combined Environmental Assessment and Statement
of Findings.
6. Citizen Participation and Executive Order 12372 Review. The HPF applicant must ensure that the
general public has an opportunity for early review of development plans or proposals for actions
affecting floodplains or wetlands. In all cases, a press notice will be published in the local media
briefly describing the proposed action and urging members of the public to provide their views to the
sponsor. The notice must expressly state that the proposed site or portion of the proposed site is in a
floodplain or wetland. The applicant jurisdiction must include a copy of the press notice, any public
comments received, and the proposed environmental assessment with the HPF proposal information
normally submitted to Executive Order 12372 review entities at the full application stage. When
adverse comments have been received as a result of the Executive Order 12372 review process or
early public review, NPS will forward copies of all notices and NEPA documents to the following
agencies noted in Section 1.8C(4) of the Floodplain Guidelines and Wetland Protection Procedures,

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and in 520 DM 1: U.S. Environmental Protection Agency; Federal Emergency Management Agency;
U.S. Fish and Wildlife Service; U.S. Geological Survey; Bureau of Reclamation; U.S. Army Corps of
Engineers; U.S. Soil Conservation Service; appropriate State Review Agencies as determined under
Executive Order 12372; and Coastal or River Basin Commissions and State Coastal Zone
Management Administrators, as appropriate.

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EXHIBIT 11-A ENVIRONMENTAL CERTIFICATION

Based upon a review of the application, proposal narrative, and the supporting documentation contained in the
application, it has been determined that the proposed HPF project,
meets the criteria for categorical exclusion under 516 DM 6. (You must indicate the appropriate categorical
exclusion from those listed in Section A.4 of Chapter 11 of the Historic Preservation Fund Grants Manual.)

Applicable Categorical Exclusion [give number of exclusion from Section A.4. of Chapter 11 [e.g., A.4.c.(6)]

Grantee or Applicant

Date

Title

I Concur:

Grant Awarding Official
National Park Service

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NATIONAL PARK SERVICE
EXHIBIT 11-B FINDING OF NO SIGNIFICANT IMPACT

Project Number and Name

City, County, State

Proposed Federal Action:
Approval of HPF Grant for:

Federal Environmental Finding
After careful and thorough review and consideration of the facts contained in the attached Environmental
Assessment for the proposed project, I find that the proposed Federal action will not significantly affect the
quality of the human environment under the National Environmental Policy Act, Section 102(2)(c) and,
therefore, an EIS is not required.

Name

Title

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Chapter 12 Cost Principles and Indirect Costs

Chapter 12 - Cost Principles and Indirect Costs
A. Purpose and Scope.
This Chapter identifies the principles to be used in determining allowable costs of programs and projects.
The principles apply to HPF grant-supported activities conducted by grantees as well as by subgrantees,
including contractors and subcontractors under grants.
B. Application of Cost Principles.
Grant funds must be used only for allowable costs of the activities for which the HPF grant was awarded.
All costs claimed under the grant are subject to the applicable cost principles, as well as the additional
selected items of costs listed in Chapter 13 of this Manual. While grants to State governments are
awarded subject to the cost principles of OMB Circular A-87 and HPF grants to the National Trust are
awarded subject to the cost principles of OMB Circular A-122, all subawards (subgrants, contracts) are
subject to those Federal cost principles and general standards applicable to the particular sub-recipient.
Grantees are to cite the appropriate cost principles in their subgrants or contracts with other parties, as
follows:

Subgrantee or Contract

Applicable OMB Circular or
CFR

Governments (State agencies, local governments, or
federally recognized Indian tribes)

A-87

Institutions of Higher Education (publicly financed
colleges or universities)

A-21

Nonprofit Organizations

A-122

For-Profit Organizations (other than hospitals)

48 CFR 31.2

1. Subgrants and Cost-type Contracts. The cost principles applicable to a subgrantee or cost-type
contractor will not necessarily be the same as those applicable to the grantee. For example, where a
State government awards a subgrant to an institution of higher education, OMB Circular A-21 would
apply to the costs incurred by the institution of higher education, even though OMB Circular A_87
would apply to costs incurred by the State.
2.

Costs Allowable with Prior Approval. Each set of cost principles identifies certain costs that, in
order to be allowable, must be approved by NPS. Other costs do not require prior approval. The
following procedures govern approval of costs which require NPS approval:
a. When costs are treated as indirect costs (or are allocated pursuant to a government cost allocation
plan), acceptance of the costs as part of the indirect cost rate or cost allocation plan shall
constitute approval. (See Section F, below.)

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b. (1) When the costs are treated as direct costs, they must be approved in advance by the NPS
Grant Awarding Official. (See Section E, below.)
(2) If the costs are specified in the grant application budget, approval of the budget shall
constitute approval of the costs.
(3) If the costs are not specified in the grant application budget, the grantee shall obtain specific
prior approval in writing from the grant awarding official. For this purpose the prior approval
procedures of Chapter 15, Section D, shall be followed.
c. In the case of subgrants and cost-type contracts, no approval shall be given which is inconsistent
with the purpose or terms of the Federal grant.
C. Basic Guidelines.
1. Factors Affecting Allowability of Costs. The allowability of individual items of cost, as Federal
share or nonfederal share, must meet the following general criteria for cost items:
a. be reasonable and necessary for proper and efficient performance and administration of grant
supported activities; within the scope of NPS approved work; be allocable under these principles;
and except as otherwise specified in this Manual, not be a general expense required to carry out
the overall responsibilities of State or local governments.
b. be allocable to Federal awards under the provisions of the OMB Circulars.
c. be authorized or not prohibited under State or local laws or regulations.
d. conform to any limitations or exclusions set forth in these cost principles, Federal laws, this
Manual, or other limitations included in the terms and conditions of the grant award as to types or
amounts of cost items.
e. be consistent with policies, regulations, and procedures that apply uniformly to both federally
assisted and other activities of the grantee.
f.

be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost
if any other cost incurred for the same purpose in like circumstances has been allocated to the
Federal award as an indirect cost.

g. except as otherwise provided for in OMB Circulars, be determined in accordance with generally
accepted accounting principles.
h. not be included as a cost or used to meet cost sharing or matching requirements of any other
Federal award.
i.

except as specifically provided by Federal law or regulation, be net of all applicable credits.

j.

be adequately documented.

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2. Reasonable Costs. A cost is reasonable if, in its nature or amount, it does not exceed that which
would be incurred by a prudent person under the circumstances prevailing at the time the decisions
was made to incur the cost. In determining the reasonableness of a given cost, grantees must give
consideration to:
a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of
the institution or the performance of the grant-assisted work;
b. The restraints or requirements imposed by such factors as sound business practices, arms length
bargaining, Federal and State and other laws and regulations, and grant/subgrant/contract terms,
specifications, and conditions;
c. Market prices for comparable goods and services.
d. The action that a prudent person would take under the circumstances, considering his/her
responsibilities to the public at large, the Government, his/her employees, and the fulfillment of
the purposes for which the grantee institution was organized; and
e. Significant deviations from the established practices of the grantee organization which may
unjustifiably increase the grant costs.
3. Allocable Costs.
a. A cost is allocable to a particular cost objective, such as a grant/contract, project, service, or other
activity, if the goods and services involved are chargeable or assignable to such cost objective, in
accordance with the relative benefits received. A cost is allocable to an NPS grant if it is treated
consistently with other costs incurred for the same purpose in like circumstances and if it:
1) Is incurred specifically for the grant; and either
2) Benefits both the grant and other work but can be distributed to them in proportion to the
benefits received; or
3) Is necessary to the overall operation of the grantee organization, although a direct relationship
to any particular cost objective cannot be shown (see Section F, Indirect Costs).
b. Any cost allocable to a particular grant or cost objective under these principles may not be shifted
to other Federal grant awards to overcome funding deficiencies, to avoid restrictions imposed by
law or terms of the grant agreements, or for other reasons. (However, this prohibition would not
preclude grantees from shifting costs that are allowable under two or more grant awards in
accordance with existing agreements.)
c. Where an accumulation of costs will ultimately result in charges to a Historic Preservation Fund
grant, an indirect cost allocation plan is required as described in Section H, below.

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4. Applicable Credits.
a. Applicable credits are those receipts or reduction of expenditure-type transactions that offset or
reduce expense items allocable to grants or contracts as direct or indirect costs. Examples of such
transactions are: purchase discounts, rebates, allowances; recoveries or indemnities on losses;
insurance refunds or rebates; and adjustments of overpayments or erroneous charges. To the
extent that such credits accruing to or received by the governmental unit relate to allowable costs,
they must be credited to the Federal grant award either as a cost reduction or a cash refund, as
appropriate.
b. Applicable credits may also arise when Federal funds are received or are available from sources
other than the grant program involved to finance operations or capital items of the grantee. This
includes costs arising from the use or depreciation of items donated or financed by the Federal
Government to fulfill matching requirements under another grant program. These types of credits
should likewise be used to reduce related expenditures in determining the rates or amounts
applicable to a given grant.
5. Specific NPS Criteria:
a. All Federal assistance received under an HPF grant must be expended solely for the reasonable
and eligible costs of approved activities described in the grant application and, when required,
subsequent Project Notifications for projects in accordance with the terms of the grant agreement
and this Manual.
b. The grantee may neither delegate nor transfer its accountability for the use of grant funds.
c. No profit or other increment above cost in the nature of profit is allowed to the grantee or
subgrantee for Federal reimbursement purposes. The value of donated services or donated goods
and space is not reimbursable either as a direct or indirect cost. However, such in-kind
contributions can fulfill matching share requirements. Only cash expenditures are reimbursable;
e.g., if $4,000 of cash expenditures are matched by $7,000 of donated services, then the
maximum Federal reimbursement is $4,000. Where donations are treated as indirect costs,
indirect cost rates must separate the value of the in-kind donations so that reimbursement will not
be made where costs were not incurred.
d. NPS will not be obligated to reimburse the grantee for costs incurred in excess of the amount
approved in the grant agreement.
e. It is the intent of NPS that funds be awarded to assist work not yet undertaken, rather than to help
pay for work already begun or completed. This applies to entire projects and to each phase of a
multi-stage project.
1) Preagreement costs are those costs incurred prior to program or, if applicable, project
approval by NPS. They include costs incurred for subsequent phases before the appropriate
grant documents are approved by NPS. With the specific exceptions stated in Chapter 13 and
Chapter 14, preagreement costs are not eligible for assistance.

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2) In some cases, the grantee will have begun some parts of the work, and thereby incurred
costs, before the grant documents appropriate to the program or project are acted upon by
NPS. If such a program or project is approved, none of the costs incurred prior to approval
will be matched, except as indicated in Chapter 14.
f.

If, during the conduct of a project, it becomes apparent that completion will not be possible
within the approved grant period, the grantee may submit an amendment to apply unexpended
funds to other program or project work. This should be submitted at least 30 days prior to the
scheduled end date. Requests for extensions of time to incur costs beyond the 24-month grant
period authorized by the HPF appropriation will not be approved.

D. Composition of Cost.
1. Total Cost. The total cost of a grant program is the sum of the allowable direct costs incident to its
performance, plus its allocable portion of allowable indirect costs, less applicable credits. The grant
program or project costs include any portion of the approved grant program financed by the grantee
as cost-sharing contributions.
2. Classification of Costs. There is no universal rule for classifying certain costs as either direct or
indirect under every accounting system. A cost may be direct with respect to some specific service or
function, but indirect with respect to the grant or other ultimate cost objective. It is therefore essential
that each item of cost be treated consistently either as a direct or an indirect cost. Specific guides for
determining direct and indirect costs allocable under grant programs are provided in the following
sections.
E. Direct Costs.
1.

General.
a. Direct costs are those that can be identified specifically with a particular cost objective, in order
to be charged to that particular grant. However, a cost may not be assigned to a grant or contract
as a direct cost if any other cost incurred for the same purpose, in like circumstances, has been
allocated to a grant or contract as an indirect cost.
b. Costs identified specifically with a particular HPF grant-assisted project or activity are direct
costs of the appropriate grant/contract and may be charged to it. Costs identified specifically with
other than HPF assisted work of the grantee organization are direct costs of that work and are not
to be charged to an HPF grant award, either directly or indirectly.
c. Costs charged as direct costs to NPS-supported grants, including project grants, must be charged
in a uniform manner to all other work of the grantee organization in order to preclude an
overcharge to the Government as a result of the Government's participation in the indirect cost
pool. Conversely, where the grantee's established accounting system provides for the treatment
of certain items of cost as direct costs, then the same items must be considered direct costs to
Federal grants and may not be included in the indirect cost pool.

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d. In accordance with Section 102(e) of the Act, the total direct administrative costs and any State
indirect costs charged for carrying out State programs may not exceed 25 percent of the aggregate
costs.
2. Direct Costs Chargeable to Grant Programs. Typical direct costs include the following.
a. Compensation of employees for the time and effort devoted and identified specifically to the
performance of grant awards.
b. Cost of materials acquired, consumed, or expended specifically for the purpose of the grant.
c. Equipment and other approved capital expenditures.
d. Travel expenses incurred specifically to carry out the grant award.
3. Unallowable Direct Costs. The costs of certain activities are not allowable as charges to HPF grants
or contracts or subgrants awarded by grantees using grant funds. These costs may not be charged to
HPF grants as direct or indirect costs. However, even though a particular activity or cost is
designated as unallowable for purposes of computing charges to HPF grants, it must nevertheless be
treated as a direct cost for purposes of determining if a portion of the grantee's indirect cost (as
defined in the following section) is properly allocable to it. The amount of indirect cost allocated
must be in accordance with the principles set forth in Section F. In general, an unallowable grantee
activity shall be accounted for as an unallowable direct cost when it (a) includes salaries of personnel,
(b) occupies space, and (c) benefits from the grantee organization's indirect cost pool. Chapter 13
includes specific items of unallowable costs; the costs associated with these activities shall be treated
as direct costs and may not be charged to HPF grants.
For non-profit grantees and subgrantees, the costs of activities performed primarily as a service to
members, clients, or the general public when significant and necessary to the organization's mission
must be treated as direct costs whether allowable or not allowable and be allocated an equitable share
of indirect costs. (See Attachment A, Section B.3 and 4 of OMB Circular A-122.)
4. Minor Items. Any direct cost of a minor amount may be treated as an indirect cost where such
accounting treatment for that item of cost is consistently applied to all cost objectives (see Section F,
below).
F. Indirect Costs.
1. General. Indirect costs are those (a) incurred for a common or joint purpose benefiting more than one
cost objective, and (b) not readily assignable to the cost objectives specifically benefited, without
effort disproportionate to the results achieved. The term "indirect costs" applies to costs of this type
originating in the grantee department, as well as those incurred by other departments in supplying
goods, services, and facilities. To facilitate equitable distribution of indirect expenses to the cost
objectives served, it may be necessary to establish a number of pools of indirect cost within a grantee
department or in other agencies providing services to a grantee department. Indirect cost pools
should be distributed to benefited cost objectives on bases that will produce an equitable result in
consideration of relative benefits derived. Where in-kind donations are treated as indirect costs,
indirect cost rates must separate the value of the donations so that reimbursement will not be made
where no costs were incurred. Under OMB Circular A-21, the indirect costs of universities are
termed “Facilities and Administrative Costs.”

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2. Grantee Departmental Indirect Costs. All grantee departmental indirect costs, including the various
levels of supervision, are eligible for allocation to grant programs provided they meet the conditions
set forth in this Chapter (see Sections E.1.d. and G).
3. Predetermined Fixed Rates for Indirect Costs. A predetermined fixed rate for computing indirect
costs applicable to a grant may be negotiated with the appropriate cognizant Federal agency in
situations where the cost experience and other pertinent facts available are deemed sufficient to
enable the contracting parties to reach an informed judgment (1) as to the probable level of indirect
costs in the grantee department during the period to be covered by the negotiated rate, and (2) that the
amount allowable under the predetermined rate would not exceed actual indirect cost.
4. Limitation on Indirect Costs. HPF grants are subject to a statutory limitation upon the amount of
indirect costs that may be allowed pursuant to a current indirect cost rate approved by the cognizant
Federal agency. See Section 102(e) of the Act. The total direct administrative costs and any State
indirect costs, charged for carrying out State programs may not exceed 25 percent of the aggregate
costs except in the case of grants to Micronesia under Section 101(e)(6) of the Act, as amended.
G. Application of Indirect Cost Principles and Procedures.
1. Indirect costs shall be allowable to the extent that they are directly related, necessary, reasonable,
allocable, and determined allowable in view of the factors set forth in Section C, above, and Chapter
13, which details standards for selected items of cost.
2. Grantees must examine the elements of subgrantee organizations' indirect cost pools to ensure that
proposed indirect costs to be charged to an HPF assisted grant conform to these guidelines.
3. In accordance with Cost Principles for Educational Institutions, OMB Circular A-21, Section G.3: a
negotiated fixed amount in lieu of Facilities and Administrative (indirect costs) may be appropriate
for self contained, off-campus, or primarily subcontracted research activities where the benefits
derived from an institution's Facilities and Administrative services cannot be readily determined.
Such negotiated Facilities and Administrative costs will be treated as an offset before allocation to
instruction, organized research, other sponsored research and other institutional activities. The base
on which such remaining expenses are allocated should be appropriately adjusted. A special indirect
cost rate may also be negotiated for a large non-recurring project when such project costs would
distort the normal direct cost base in computing the overhead rate.
H. Cost Allocation Plan.
1. General. A plan for allocation of costs will be required to support the distribution of any joint costs
related to the grant program. All costs included in the plan will be supported by formal accounting
records which will substantiate the propriety of eventual charges.
2. Requirements. The allocation plan of the grantee department should cover all joint costs of the
department as well as costs to be allocated under plans of other agencies or organizational units which
are to be included in the costs of federally sponsored programs. The cost allocation plans of all the
agencies rendering services to the grantee department, to the extent feasible, should be presented in a
single document. The allocation plan should contain, but not necessarily be limited to, the following:

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a. the nature and extent of services provided and their relevance to the federally sponsored
programs;
b. the items of expense to be included; and
c. the methods to be used in distributing cost.
3. Instructions for Preparation of Cost Allocation Plans. The Department of Health and Human Services
has issued instructions for use by State and local government grantees in preparing cost allocation
plans. This applies to both central support services of State and local governments and indirect cost
proposals of individual grantee departments. Refer to ASMB C-10, "Cost Principles and Procedures
for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the
Federal Government, A Guide for State and Local Government Agencies." Those procedures are
applicable to grants awarded by all Federal agencies. Nonprofit grantees should refer to OMB
Circular A-122, Attachment A, Part D.
4. General Guidelines for Preparing a Cost Allocation Plan.
a. There are three basic steps in the preparation of a plan:
1) classifying grant costs as either direct or indirect according to the established policy of the
State;
2) selecting an appropriate distribution base(s) for indirect costs; then
3) distributing the indirect costs to the programs.
b. The cost allocation plan is subject to Federal audit to determine that:
1) Indirect costs have been distributed to all benefiting programs (Federal and nonfederal);
2) the distribution is based on method(s) reasonably indicative of the amount of services or
supplies provided;
3) the services provided are necessary to the successful performance of Historic Preservation
Fund grants;
4) the grant costs claimed are otherwise allowable in accordance with this Chapter and Chapter
13.
c. Indirect costs should be distributed to each applicable direct cost objective on the basis of one of
the following:
1) Total direct salaries;
2) Total direct salaries plus applicable fringe benefits;

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3) Total direct costs;
4) Other bases for certain indirect costs, such as those shown below:
Type of Indirect Expense

Possible Base for Allocation

Office space and related costs (heat, light,
janitor service, etc.)
Data processing
Organization and management services
Printing and reproduction
Telephone
Office supplies
Postage
Payroll services and personnel Administration
Accounting or bookkeeping services

Square feet of space occupied for HPF activities

Auditing

Machine hours
Direct
Direct hours, job basis, pages printed, etc.
Number of telephone instruments
Number of employees
Usage, letters written
Number of employees
Total dollar volume or number of transactions
processed
Direct audit hours

d. Any method of distribution which will provide an equitable distribution of costs can be used.
However, it is not acceptable to allocate either direct or indirect costs on the basis of revenue
received or on the basis of funds received under Federal grants. Costs must be allocated on the
basis of services rendered or goods provided.
e. Required documentation must be maintained.
1) Project records must reflect NPS approval of those costs listed in Chapter 13, Section C.
2) Grantee records must include the applicable indirect cost allocation plan and the written
approval of the plan and indirect cost rate by the cognizant Federal agency.
5. Negotiation and Approval of Indirect Cost Proposals for States.
a. The Department of Health and Human Services, will be responsible for negotiation, approval, and
audit of central support service cost allocation plans submitted to it by the States. At the grantee
department level in a State, a single cognizant Federal agency will have responsibility for the
negotiation, approval, and audit of the indirect cost proposal. Cognizant Federal agencies (those
with the predominant financial interest in the work of the grantee department) have been
designated for this purpose. A current list of agency assignments is maintained by OMB.
b. Questions concerning the cost allocation plans should be directed to the agency responsible for
such approvals.
c. The following guidance is provided for grantees when the Department of the Interior is the
cognizant Federal agency:

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If indirect costs are to be applied, a cost allocation plan must be submitted annually to the
Department of the Interior's Office of Inspector General (Attention: Regional Audit Manager) for
negotiation and approval. In cases where the grantee's approved indirect cost rate is a provisional
rate, subject to later finalization after the actual costs for the applicable fiscal period are known,
the amount budgeted for indirect costs must not exceed the amount derived under a provisional
rate contained in the agreement for the current budget period. Guidance and advice concerning
indirect cost proposals may be obtained from the Office of Inspector General (see addresses in
Exhibit 23-A).
6. Negotiation and Approval of Indirect Cost Proposals for Local Government.
a. Cost allocation plans will be retained at the local government level for audit by a designated
Federal agency except in those cases where that agency requests that cost allocation plans be
submitted to it for negotiation and approval.
b. At the grantee department level of local governments, the Federal agency with the predominant
interest in the work of the grantee department will be responsible for necessary negotiation,
approval and audit of the indirect cost proposal. A list of cognizant Federal agencies assigned
responsibility for negotiation, approval and audit of central support service cost allocation plans
at the local government level is maintained by OMB.
7. Negotiation and Approval of Indirect Cost Proposals for Federally Recognized Indian Tribal
Governments. The Federal agency with the predominant interest in the work of the grantee
department will be responsible for necessary negotiation, approval and audit of the indirect cost
proposal. This will typically be the Department of the Interior.

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Chapter 13 - Standards for Allowability of Costs
A. Purpose and Applicability.
This Chapter provides standards for determining the allowability of selected items of cost in accordance
with Office of Management and Budget Circulars A-87 and A-122. It also includes additional cost items
specific to the Historic Preservation Fund program. The National Trust must comply with OMB Circular
A-122, Cost Principles for Nonprofit Organizations, and the HPF specific items in this Chapter.
Subgrantees that are educational institutions shall be governed by Circular A-21 and the HPF specific
items in this Chapter. Note that certain listed costs are allowable (Section B), other costs are allowable
with the prior written approval of NPS (Section C), and other costs are unallowable (Section D). The
costs not specifically addressed in the Circulars are preceded by an asterisk.
These standards will apply irrespective of whether a particular item of cost is treated as a direct or an
indirect cost, or as part of either the Federal or nonfederal matching share of grant assistance. This listing
of cost items is not all inclusive. Failure to mention a particular item of cost in these standards is not
intended to imply that it is either allowable or unallowable, rather a determination of allowability in each
case will be based on the treatment of standards provided for similar or related items of cost. The
allowability of the selected items of cost is subject to the policies and principles stated in Chapter 12,
"Cost Principles," particularly Section C.
B. Allowable Costs.
1. Accounting Costs.
The cost of establishing and maintaining accounting and other fiscal information systems is
allowable.
2. Acquisition Costs.
Acquisition costs incurred to obtain title or to purchase a preservation easement on a property listed
individually in the National Register of Historic Places, or a contributing property in a National
Register District, are allowable when the acquisition complies with the Secretary of the Interior's
Standards for the Treatment of Historic Properties and with Section L of Chapter 6. Appraisal costs
incurred to obtain an appraisal of the property's current fair market value by a licensed appraiser, title
search and recordation fees, property surveys, title insurance, legal fees, broker's commissions, and
purchase price for an amount equal to or less than the appraised value are allowable for an acquisition
of real property that meets the requirements of Chapter 6 of the Historic Preservation Fund Grants
Manual. The boundary of the HPF acquisition project must not exceed the boundaries described in
the National Register nomination. (Costs such as annual property taxes, escrow fees, and loan
interest or points are not allowable costs.)
3. Administrative Costs.
Under Section 102(e) of the NHPA, the total direct administrative costs and any State indirect costs
charged for carrying out State projects may not exceed 25% of the aggregate costs. See Chapter 7,
Exhibit 7-B (Additional Instructions for the SF 424-A), and Chapter 12, Section F.4, for guidance.
4. Advertising and Public Relations Costs.
Advertising media include newspapers, magazines, radio and television programs, direct mail,
exhibits, and the like.
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a. Allowable advertising costs are those which are solely for: recruitment of personnel necessary
for the grant program; the procurement of goods and services required for the performance of the
HPF grant agreement; and notices required by Federal or State regulations pertaining to the HPF
program.
b. Public Relations costs are allowable when: (1) specifically required by the Federal award and
then only as a direct cost; (2) incurred to communicate with the public and press pertaining to
specific activities or accomplishments that result from performance of the Federal award and then
only as a direct cost; or (3) necessary to conduct general liaison with news media and government
public relations officers, to the extent that such activities are limited to communication and
liaison necessary to keep the public informed on matters of public concern, such as notices of
Federal contract/grant awards, financial matters, etc. (Also see Public Information Costs, Section
B.36, below.)
5. Advisory Councils.
Costs incurred by advisory councils or committees established pursuant to Federal requirements to
carry out programs, such as State Review Boards, are allowable. The costs of like organizations, such
as local review boards established by "certified local governments" is allowable when provided for in
an approved subgrant agreement, and when in compliance with the cost allowability provisions of this
Chapter. (See Section B.42.)
6. Appraisals.
The cost of necessary appraisals by a licensed appraiser is allowable. (See Chapter 6, Section L.)
7. Audit Service.
The costs of audits necessary for the administration and management of functions related to grant
programs are allowable, provided that the audits were performed in accordance with the requirements
of the Single Agency Audit Act and of OMB Circular A-133 implementing it (see Chapter 23).
Generally, the percentage of costs charged to Federal awards for a single audit shall not exceed the
percentage derived by dividing Federal funds expended by total funds expended by the recipient or
subrecipient (including program matching funds) during the fiscal year. The percentage may be
exceeded only if appropriate documentation demonstrates higher actual costs. Other audit costs are
allowable if specifically approved by the awarding or cognizant agency as a direct cost to an award,
or included as an indirect cost in a cost allocation plan or rate.
8. Automatic Electronic Data Processing.
The cost of data processing services is allowable (also see Section B.17, regarding Equipment).
9. Bonding.
Costs of bonding employees and officials are allowable for HPF grantees. In addition, costs of such
bonds as bid, performance, payment, advance payment, infringement, and fidelity are allowable if
required pursuant to the terms of the HPF award, and if such bonding is in accordance with sound
business practice. (See unallowable insurance costs in Section D.22.)
10. Budgeting.
Costs incurred for the development, preparation, presentation and execution of HPF assisted program
and project budgets are allowable.

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11. Communications.
Communication costs incurred for telephone calls or service, mail, messenger, and similar
communication expenses necessary for and directly related to HPF grant program operations are
allowable.
12. Compensation for Personal Services (including Fringe Benefits).
a.

General. For State and local governments, compensation for personal services includes all
remuneration, paid currently or accrued, for services rendered during the period of performance
under the grant agreement, including but not necessarily limited to wages, salaries and fringe
benefits. Such compensation is allowable to the extent that it satisfies the specific requirements
of the OMB Cost Principles and that the total compensation for individual employees:
1) Is reasonable for the services rendered, and conforms to the established policy of the
governmental unit consistently applied to both Federal and nonfederal activities;
2) Follows an appointment made in accordance with State, local, or Indian tribal government
laws and rules and which meets other requirements required by Federal law, where
applicable;
3) Is determined and supported as provided in b., below.

b. Reasonableness. Compensation for employees engaged in work on HPF grant-assisted activities
will be considered reasonable to the extent that it is consistent with that paid for similar work in
other activities of the State or local government. In cases where the kinds of employees required
for Federal awards are not found in the other activities of the State or local government,
compensation will be considered reasonable to the extent that it is comparable to that paid for
similar work in the labor market in which the employing government competes for the kind of
employees involved. Compensation surveys providing data representative of the labor market
involved will be an acceptable basis for evaluating reasonableness.
c. Unallowable Costs. Costs which are unallowable under the provisions of this Chapter shall not
be allowable solely on the basis that they constitute personal compensation.
d. Fringe Benefits. Allowability is subject to the following considerations: (1) Fringe Benefits are
allowances and services provided by employers to their employees as compensation in addition to
regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave,
employee insurance, pensions, and unemployment benefit plans. Except as provided elsewhere in
the OMB Cost Principles, the costs of fringe benefits are allowable to the extent that the benefits
are reasonable and are required by law, governmental unit employee agreement, or an established
policy of the governmental unit. (2) The cost of fringe benefits in the form of regular
compensation paid to employees during periods of authorized absences from the job, such as for
annual leave, sick leave, holidays, court leave, military leave, and other similar benefits, are
allowable if: (a) they are provided under established written leave policies; (b) the costs are
equitably allocated to all related activities, including Federal awards; and, (c) the accounting basis
(cash or accrual) selected for costing each type of leave is consistently followed by the
governmental unit. (4) The accrual basis may be only used for those types of leave for which a
liability as defined by Generally Accepted Accounting Principles (GAAP) exists when the leave
is earned. When a governmental unit uses the accrual basis of accounting, in accordance with
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GAAP, allowable leave costs are the lesser of the amount accrued or funded. (5) The cost of
fringe benefits in the form of employer contributions or expenses for social security; employee
life, health, unemployment, and worker's compensation insurance (except as indicated in Section
B.21); pension plan costs (see subsection e., below); and other similar benefits, whether treated as
indirect costs or direct costs, shall be allocated to Federal awards and all other activities in a
manner consistent with the pattern of benefits attributable to the individuals or group(s) of
employees whose salaries and wages are chargeable to such Federal awards and other activities.
e. Pension Plan Costs. Pension Plan Costs may be computed using a pay-as-you-go method or an
acceptable actuarial cost method in accordance with established written policies of the
governmental unit. (1) For pension plans financed on a pay-as-you-go method, allowable costs
will be limited to those representing actual payments to retirees or their beneficiaries. (2) Pension
Costs calculated using an actuarial cost-based method recognized by GAAP are allowable for a
given fiscal year if they are funded for that year within six months after the end of that year.
Costs funded after the six-month period (or a later period agreed to by the cognizant agency) are
allowable in the year funded. The cognizant agency may agree to an extension of the six-month
period if an appropriate adjustment is made to compensate for the timing of the charges to the
Federal Government and related Federal reimbursement and the governmental unit's contribution
to the pension fund. Adjustments may be made by cash refund or other equitable procedures to
compensate the Federal Government for the time value of Federal reimbursements in excess of
the contributions to the pension fund. (3) Amounts funded by the governmental unit in excess of
the actually determined amount for a fiscal year may be used as the governmental unit's
contribution in future periods. (4) When a governmental unit converts to an acceptable actuarial
cost method, as defined by GAAP, and funds pension costs in accordance with this method, the
unfunded liability at the time of conversion shall be allowable if amortized over a period of years
in accordance with GAAP. (5) The Federal Government shall receive an equitable share of any
previously allowed pension costs (including earnings thereon) which revert or inure to the
governmental unit in the form of a refund, withdrawal, or other credit.
f.

Post-retirement Health Benefits. Post-retirement health benefits (PRHB) refers to costs of health
insurance or health services not included in a pension plan covered by subsection e., above, for
retirees and their spouses, dependents, and survivors. PRHB costs may be computed using a payas-you-go method or an actuarial cost method in accordance with established written policies of
the governmental unit. (1) For PRHB financed on a pay-as-you-go method, allowable costs will
be limited to those representing actual payments to retirees or their beneficiaries. (2) PRHB costs
calculated using an actuarial cost method recognized by GAAP are allowable if they are funded
for that year within six months after the end of that year. Costs funded after the six-month period
(or a later period agreed to by the cognizant agency) are allowable in the year funded. The
cognizant may agree to an extension of the six-month period if an appropriate adjustment is made
to compensate for the timing of the charges to the Federal Government and related Federal
reimbursements and the governmental unit's contributions to the PRHB fund. Adjustments may
be made by cash refund, reduction in current year's PRHB costs, or other equitable procedures to
compensate the Federal Government for the time value of Federal reimbursements in excess of
contributions to the PRHB fund. (3) Amounts funded in excess of the actuarially determined
amount for a fiscal year may be used as the government's contribution in a future period. (4)
When a governmental unit converts to an acceptable actuarial cost method and funds PRHB costs
in accordance with this method, the initial unfunded liability attributable to prior years shall be
allowable if amortized over a period of years in accordance with GAAP, or, if no such GAAP
period exists, over a period negotiated with the cognizant agency. (5) To be allowable in the

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current year, the PRHB costs must be paid either to: (a) an insurer or other benefit provider as
current year costs or premiums, or (b) an insurer or trustee to maintain a trust fund or reserve for
the sole purpose of providing post-retirement benefits to retirees and other beneficiaries. (6) The
Federal Government shall receive an equitable share of any amounts of previously allowed postretirement benefit costs (including earnings thereon) which revert or inure to the governmental
unit in the form of a refund, withdrawal, or other credit.
g. Severance Pay. (1) Payments in addition to regular salaries and wages made to workers whose
employment is being terminated are allowable to the extent that, in each case, they are required
by: (a) law, (b) employer-employee agreement, or (c) established written policy. (2) Severance
payments (but not accruals) associated with normal turnover are allowable. (3) Abnormal or
mass severance pay will be considered on a case-by-case basis and is allowable only if approved
by the cognizant Federal agency.
h. Distribution of Time for Salaries and Wages. Charges to Federal awards for salaries and wages,
whether treated as direct or indirect costs, must be based upon payrolls documented in accordance
with generally accepted practice of the governmental unit and approved by a responsible
official(s) of the grantee. No further documentation is required for the salaries and wages of
employees who work in a single indirect cost activity. Where employees are expected to work
solely on a single Federal award or cost objective, charges for their salaries and wages will be
supported by periodic certifications that the employees worked solely on that program for the
period covered by the certification. These certifications will be prepared at least semi-annually
and will be signed by the employee or supervisory official having first-hand knowledge of the
work performed by the employee. Where employees work on multiple activities or cost
objectives, a distribution of their salaries or wages will be supported by personnel activity reports
or equivalent documentation which meets standards for personnel activity records (a) through (e)
below, unless a statistical sampling system (see below) or other substitute system has been
approved by the cognizant Federal agency.
Documentary support for time distribution will be required where employees work on: (a) more
than one Federal award, (b) a Federal award and a nonfederal award, (c) an indirect cost activity
and a direct cost activity, (d) two or more indirect cost activities which are allocated using
different allocation bases, or (e) an unallowable activity and a direct or indirect cost activity. The
time distribution method used must account for the total salaried effort of the persons covered. A
system which provides for the reporting only of effort applicable to federally sponsored activities
is not acceptable. Time should be accounted for in units no longer than working days, and a brief
description linking work performed to a specific approved project or activity should be used.
(For example, "Consulted with subgrantee's architect on project XX--0001" would be acceptable;
"Grant activities" would not.)
Salaries and wages of employees used in meeting cost sharing or matching requirements of
Federal awards must be supported in the same manner as those claimed as allowable costs under
Federal awards.
Personnel activity reports or equivalent documentation must meet the following standards: (a)
they must reflect an after-the-fact distribution of the actual activity of each employee; (b) they
must account for the total activity for which each employee is compensated; (c) they must be
prepared at least monthly and must coincide with one or more pay periods; and (d) they must be
signed by the employee. Note that budget estimates or other distribution percentages determined
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before the services are performed do not qualify as support for charges to Federal awards but may
be used for interim accounting purposes, provided that: (i) the grantee's system for establishing
the estimates produces reasonable approximations of the activity actually performed; (ii) at least
quarterly, comparisons of actual costs to budgeted distributions based on the monthly activity
reports are made. Costs charged to Federal awards to reflect adjustments made as a result of the
activity actually performed may be recorded annually if the quarterly comparisons show the
differences between budgeted and actual costs are less than ten percent; and (iii) the budget
estimates or other distribution percentages are revised at least quarterly, if necessary, to reflect
changed circumstances.
Substitute systems for allocating salaries and wages to Federal awards may be used in place of
activity reports. These systems are subject to approval if required by the cognizant agency. [See
OMB Circular A-87, Item B.11h.(6).]
i.

Donated Services. Donated or volunteer services may be furnished to a grantee by professional
and technical personnel, consultants, and other skilled and unskilled labor. The value of these
services is not reimbursable either as a direct or indirect cost. However, the value of donated
services may be used to meet cost sharing or matching requirements in accordance with the
provisions of Chapter 14. The value of donated services used in the performance of a direct cost
activity shall, when material in amount, be considered in the determination of the grantee's
indirect costs or rate(s) and, accordingly, shall be allocated a proportionate share of applicable
indirect costs. To the extent feasible, donated services will be supported by the same methods
used by the grantee to support the allocability of regular personnel services.

j.

Nonprofit Organizations. For nonprofit organizations charges for personal services must comply
with the requirements of OMB Circular A-122, Attachment B, Item 6.

k. Educational Institutions. For educational institutions charges for personal services must comply
with the requirements of OMB Circular A-21, Item J.6.
13. Depreciation and Use Allowances.
a. Grantees may be compensated for the use of buildings, capital improvements, and equipment
used in grant program operations through use allowances or depreciation. Use allowances are the
means of providing compensation in lieu of depreciation or other equivalent costs. A
combination of the two methods may not be used in connection with a single class of fixed assets
(e.g., buildings, office equipment, computer equipment, etc.).
b. The computation of depreciation or use allowance shall be based on acquisition cost of the assets
involved. Where actual cost records have not been maintained, a reasonable estimate of the
original acquisition cost may be used. The computation of depreciation or use allowances will
exclude the cost or any portion of the cost of buildings and equipment borne or donated by the
Federal Government, irrespective of where title was originally vested or where it presently
resides; and any portion of the cost of buildings or equipment which has been contributed by or
for the grantee or its governmental unit in satisfaction of a matching share requirement.
c. Where the depreciation method is followed, adequate property records must be maintained, and
any generally accepted method of computing depreciation may be used. However, the method of
computing depreciation must be consistently applied for any specific asset or class of assets for
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all affected federally sponsored programs and must result in equitable charges considering the
extent of the use of the assets for the benefit of such programs.
d. In lieu of depreciation, a use allowance for buildings and improvements may be computed at an
annual rate not exceeding two percent (2%) of acquisition cost. The use allowance for equipment
(excluding items properly capitalized as building cost) will be computed at an annual rate not
exceeding 6-2/3 percent (i.e., 6.67 percent) of the acquisition cost of usable equipment.
e. No depreciation or use charge may be allowed on any assets that would be considered as fully
depreciated, provided, however, that reasonable use charges may be negotiated for any such
assets if warranted after taking into consideration the amount of any depreciation previously
charged to the government, the estimated useful life remaining at time of negotiation, the effect of
any increased maintenance charges, decreased efficiency due to age, and any other factors
pertinent to the utilization of the facility or item for the purpose contemplated. Use allowances or
depreciation applicable to the asset shall not exceed the total acquisition cost of the asset, or its
fair market value at the time of its donation.
f.

Charges for use allowances or depreciation must be supported by adequate property records.
Physical inventories must be taken at least once every two years (a statistical sampling approach
is acceptable) to ensure that assets exist, and are in use. Governmental units will manage
equipment in accordance with State laws and procedures. When the depreciation method is
followed, records indicating the amount of depreciation taken each period must be maintained.

g. For nonprofit grantees, see OMB Circular A-122, Item 9.
14. Development Costs.
Development costs incurred by subgrant, contract or force account as follows are allowable when
such work complies with the Secretary of the Interior's Standards for the Treatment of Historic
Properties and with the provisions of Section K of Chapter 6 of the Historic Preservation Fund Grants
Manual:
a. Costs of exterior work, structural work, and necessary improvements in wiring, plumbing, and
other utilities;
b. Costs of interior restoration if the public is to have access to the interior in accordance with public
benefit policies.
15. Disbursing Service.
The cost of disbursing grant program funds by the Treasurer or other designated officer is allowable.
16. Employee Morale, Health, and Welfare Costs.
The costs of health or first aid clinics and/or infirmaries, recreational facilities, employees' counseling
services, employee information publications, and any related expense incurred in accordance with
general State, local, or Indian tribal government policy, are allowable. Income generated from any of
these activities will be offset against expenses. For nonprofit grantees, see OMB Circular A-122,
Item 11.
17. Equipment and Other Capital Expenditures.
Any article of nonexpendable tangible personal property having a useful life of more than one (1)
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year and an acquisition cost of $5,000 or less is defined as supplies, and is allowable as a direct cost,
without specific prior NPS approval, if necessary for the performance of the HPF grant. (See Section
C.2 of this Chapter for prior approval of items costing more than $5,000.) When replacing equipment
purchased with Federal funds, the grantee may use the equipment to be replaced as a trade-in or sell
the property and use the proceeds to offset the cost of the replacement equipment. Capital
expenditures which are not charged directly to a Federal award may be recovered through use
allowances, or depreciation (see Section B.13).
18. Exhibits.
Costs of temporary exhibits relating specifically to HPF grant assisted program operations,
accomplishments, or results are allowable. (See Section D.29 for unallowable exhibition costs.)
19. Furnishings.
The cost of project furnishings is allowable as part of a development project when such furnishings
are original pieces of furniture or permanently attached items that are integral to building construction
or documented historic design or reconstruction based upon documented original furnishings. Some
rehabilitation projects may involve furnishings when such furnishings are essential to major
objectives of the project. (Replicas of furnishings are not eligible for HPF grant assistance.)
20. General Conditions for Construction Contracts.
This term, used in construction cost estimates, bids, and construction administration documents,
refers to provisions by the general contractor of miscellaneous requirements to other contractors and
subcontractors, thereby eliminating the duplication and expense of each trade providing its own
temporary facilities. General conditions including, but not limited to, temporary heat, power,
lighting, water, sanitary facilities, scaffolding, elevators, walkways and railings, construction office
space and storage, as well as cleanup, security, and required insurance, permits, and surety bonds, are
allowable when identified as a line item in the project application. (See Section D.9. for contingency
costs, and D.22 for insurance costs, which are unallowable.)
21. Indirect Costs.
Indirect costs are allowable only in accordance with the applicable indirect cost principles and when
based on a current approved or provisional rate awarded by the cognizant Federal agency. (See
Chapter 12; also see Section D.21 of Chapter 13.)
22. Insurance and Indemnification.
Costs of hazard and liability insurance to cover personnel or property directly connected with the
HPF-assisted program or project site required or approved and maintained pursuant to the grant
agreement are allowable during the grant period. Costs of other insurance in connection with the
general conduct of activities are allowable if maintained in accordance with sound business practice,
except that the types and extent and cost of coverage or of contributions to any reserve covering the
risk of loss of, or damage to, Federal Government property are unallowable except to the extent that
the NPS has specifically required or approved such costs. (See OMB Circular A-87, Item B.25, for
the allowability of self-insurance reserves.) For nonprofit grantees, see OMB Circular A-122, Item
18. (Also see Section D.22 for certain unallowable insurance costs.)
23. Interest.
Financing costs (including interest) paid or incurred on or after September 1, 1995, associated with
the otherwise allowable costs of office building acquisition, construction, or fabrication,
reconstruction or remodeling completed on or after October 1, 1980, is allowable, subject to the
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following conditions: (1) the financing is provided (by other than tax or user fee sources) by a bona
fide third party external to the grantee; (2) the assets are used in support of Federal award; (3)
earnings on debt service reserve funds or interest earned on borrowed funds pending payment of
construction or acquisition costs are used to offset the current period's cost or the capitalized interest,
as appropriate. Earnings subject to being reported to the Federal Internal Revenue Service under
arbitrage requirements are excludable; (4) Governmental units will negotiate the amount of allowable
interest whenever cash payments (interest, depreciation, use allowances, and contributions) exceed
the grantee's cash payments and other contributions attributable to that portion of real property used
for Federal awards.
24. Interpretive Signs.
The costs of purchasing and installing (but not maintaining) a minimum number of interpretive or
informational markers or signs at grant-assisted historic buildings and structures and archeological
sites are allowable. (See Section D.24, below.)
25. Labor Relations Costs.
For nonprofit grantees, see OMB Circular A-122, Item 20.
26. Landscaping.
Costs of landscaping are allowable as follows:
a. Restoration, rehabilitation, stabilization, or protection of a well-documented historic landscape
listed in the National Register of Historic Places either individually, or as a contributing element
to a National Register property;
b. Grading for purposes of drainage, building or site safety, and protection of a National Register
listed property;
c. Improvements necessary to facilitate access for the disabled to a National Register listed
property; or
d. Revegetation to stabilize and protect an archeological site or other National Register property.
(Note: Non-historic features such as parking lots, street paving, street lamps, and benches are not
eligible for HPF grant assistance.)
27. Legal Expenses.
The cost of legal expenses required in the administration of HPF grant programs is allowable. (Legal
expenses for the prosecution of claims against the Federal Government are unallowable.)
28. Maintenance, Operations, and Repair.
Costs of utilities, insurance, security, janitorial services, elevator service, upkeep of grounds,
necessary maintenance, normal repairs and alterations, and the like for office space are allowable to
the extent that they: (1) keep property in an efficient operating condition, (2) do not add to the
permanent value of property or appreciably prolong its intended life, and (3) are not otherwise
included in rental or other charges for space. Costs which add to the permanent value of property or
appreciably prolong its intended life shall be treated as capital expenditures (see Section B.17., above
and Section C.2., below). However, costs of ongoing maintenance and administration of real property

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assisted with Historic Preservation Fund monies are unallowable (see D.26). For nonprofit grantees,
see OMB Circular A-122, Items 22, 38, and 39.
29. Materials and Supplies.
The cost of materials and supplies necessary to carry out the HPF grant program is allowable.
Purchases made specifically for the grant program should be charged at their actual prices after
deducting all cash discounts, trade discounts, rebates, and allowances received. Withdrawals from
general stores or stockrooms should be charged at cost under any recognized method of pricing,
consistently applied. Incoming transportation charges are a proper part of materials and supplies
costs.
30. Memberships, Subscriptions, and Professional Activities.
a. Memberships. The cost of the grantee organization's membership in civic, business, technical,
and professional organizations (dues) is allowable provided:
1) the benefit from the membership is directly related to achieving grant program objectives;
2) the expenditure is for agency membership;
3) the cost of the membership is reasonably related to the value of the services or benefits
received; and
4) the expenditure is not for membership in organizations substantially engaged in lobbying.
Note: The Lobbying Disclosure Act of 1995 explicitly defines organizations of State government
officials as not being lobbying organizations. Therefore, payment of dues to the National
Conference of State Historic Preservation Officers is an allowable grant cost. (See Section D.25
for ineligible Lobbying Costs which cannot be charged to the HPF grant.) For nonprofit grantees,
see OMB Circular A-122, Item 21.
b. Reference Material. The cost of the grantee organization's subscriptions to business, technical,
and professional periodicals is allowable when necessary to accomplish grant program purposes.
c. Meetings and Conferences. Costs are allowable when the primary purpose of the meeting is the
dissemination of technical information relating to the grant program. The costs of meals,
transportation, rental of meeting facilities, and other incidental costs are allowable. For nonprofit
grantees, see OMB Circular A-122, Item 25.
31. Motor Pools.
The costs of a service organization which provides automobiles to grantee agencies at a mileage or
fixed rate and/or provides vehicle maintenance, inspection, and repair services are allowable.
32. Page Charges in Scientific or Professional Journals.
Page charges for scientific or professional publications are allowable as a necessary part of grant cost
where: the papers report work supported by the HPF grant and acknowledge the grant; the charges
are levied impartially on all papers published by the journal, whether by non-government or by
Government authors; and there will be a significant and direct benefit to the achievement of HPF
grant program objectives.
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33. Plans and Specifications.
Costs of architectural plans and specifications, shop drawings, and/or other materials required to
document and plan development project work according to the Secretary's Standards for the
Treatment of Historic Properties are allowable.
34. Professional and Consultant Service Costs.
a. Costs of professional and consultant services rendered by persons or organizations that are
members of a particular profession or possess a special skill, whether or not officers or employees
of the grantee, are allowable, subject to the provisions of Chapter 5 of the Historic Preservation
Fund Grants Manual and subject to the subsections below, when reasonable in relation to the
services rendered, and when not contingent upon recovery of the costs from the Government (i.e.,
contingent fees are prohibited).
b. Factors to be considered in determining the allowability of costs in a particular case include: 1)
the nature and scope of the service rendered in relation to the service required; 2) the necessity of
contracting for the service, considering the grantee organization's capability in a particular area;
3) the impact of HPF grants on the grantee organization; (4) the qualifications of the individual or
concern rendering the service and the customary fees charged, especially on non-government
contracts and grants; and 5) the adequacy of the contractual agreement for the service (i.e.,
description of the service and products to be provided, estimate of time required, rate of
compensation, and termination provisions).
Retainer fees supported by evidence of bona fide services available or rendered are allowable.
c. Costs of legal, accounting, and consulting services, and related costs incurred in the prosecution
of claims against the Government are unallowable. (See Section D.33.)
d. Written agreements shall be executed between the parties which detail the responsibilities,
standards, and fees.
e. Compensation for Consultants. No person employed as a consultant, or by a firm providing
consultant services, shall receive more than a reasonable rate of compensation for personal
services paid with HPF funds, or when such services are contributed as nonfederal share. This
rate shall not exceed the maximum daily rate of compensation in the Federal Civil Service equal
to 120 percent of a GS-15, step 10 salary (as of January 2007, this limit is $660 per day, or
$172,165 divided by 2,087 hours (Federal work year) rounded to the next whole dollar, or $82.49
per hour).
When consultant services rates exceed this rate, only the amount up to that rate can be charged to
the HPF grant, or be claimed as nonfederal matching share costs. Where consultants are hired at
salaries above that rate, the excess costs must be paid outside the historic preservation grant (and
nonfederal share).
f.

For nonprofit grantees, also see OMB Circular A-122, Item 35.

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35. Protective Devices.
Costs of burglar and fire alarm systems and other protective devices or protective measures for HPF
programs, projects, and records are allowable.
36. Public Information Services Costs.
Public information services costs include the costs associated with newsletters, pamphlets, news
releases, films, videotapes, and other forms of historic preservation related information services.
a. Allowable costs are those normally incurred to: 1) inform or instruct individuals, groups, or the
general public about specific historic preservation activities, accomplishments, and issues that
result from performance of the HPF grant; 2) interest individuals and organizations in
participating in HPF grant supported programs of the grantee and the achievement of NPS
approved work program objectives; 3) provide necessary stewardship reports to State and local
government agencies, contributing organizations, and the like; or to 4) disseminate the results of
grantee sponsored activities to preservation professionals, interested organizations, and the
general public.
b. Within the foregoing parameters, public information services which (1) are not directly related to
historic preservation or NPS approved activities, or (2) are costs related to fundraising appeals
are unallowable. Public information costs are allowable as direct costs only. For nonprofit
organizations, see OMB Circular A-122, Item 37.
37. Publication and Printing Costs.
Costs of printing and reproduction services necessary for grant administration, including but not
limited to forms, manuals, the State Comprehensive Historic Preservation Plan, annual subgrant
application instructions, and informational literature, are allowable. Publication costs of reports or
other media relating to HPF grant program accomplishments or results are allowable when necessary
to comply with grant supported program or project requirements, such as Final Project reports,
publications undertaken at the written direction of NPS, as well as other publications necessary for
grant assisted program administration. See Chapter 3, Section D.3. In addition, for nonprofit
organizations, see OMB Circular A-122, Item 38.
38. Recruiting Costs.
For nonprofit grantees, see OMB Circular A-122, Item 41.
39. Relocation Assistance.
Costs of relocation assistance payments made under the requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as amended by the Surface
Transportation and Uniform Relocation Assistance Act of 1987 (42 U.S.C. 4601; see 49 CFR 24), are
allowable. See Chapter 20 for details and limits. In addition, for nonprofit organizations, see OMB
Circular A-122, Item 42.)
40. Rental Costs.
Rental of office space is allowable, subject to the provisions of Chapter 12, Section C, and OMB
Circular A-87, Item B.38. The cost of office space in privately or publicly owned buildings used for
the benefit of the grant program is allowable subject to the following conditions: (1) the total cost of
space, in a privately or publicly owned building, may not exceed the rental cost of comparable space
and facilities in a privately owned building in the same locality; (2) the cost of space procured for

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grant program usage may not be charged to the program for periods of nonoccupancy without
authorization of NPS. For nonprofit organizations, see OMB Circular A-122, Item 43.
Equipment rental is allowable only to the extent that the equipment is only needed for a short time
and it would not be more cost effective to purchase the equipment.
41. Research.
Costs of historical, architectural, and archeological research necessary for project accomplishment are
allowable. Purely archival research is unallowable. (See Section D.1, below.)
42. Review Boards.
Costs incurred by State review boards or committees established and acting pursuant to NPS
requirements are allowable. Members of the State review board may receive subsistence, travel
allowances, and compensation while serving on the business of the review board, in accordance with
State law, regulations, and practices applicable to persons performing comparable duties and services
for the State.
43. Royalties and Other Costs for Use of Patents and Copyrights.
See Chapters 16 and 19. In addition, for nonprofit grantees, refer to OMB Circular A-110 and
Circular A-122, Item 44. Payment of royalties is allowable unless patent or copyright is invalid or the
Federal Government has a right of royalty-free use (which is a requirement for all grant-assisted
publications).
44. Severance Pay.
For nonprofit grantees, refer to OMB Circular A-122, Item 45.
45. Signs.
Costs of signs acknowledging HPF assistance at construction project sites during the grant period are
allowable. [See Chapter 6, Section K.2.b.3)]
46. Specialized Service Facilities.
For nonprofit grantees, see Circular A-122, Item 46.
47. Taxes.
In general, taxes or payments in lieu of taxes which the grantee agency is legally required to pay are
allowable. In no case are Federal income taxes an allowable grant cost. In addition, for nonprofit
grantees, refer to OMB Circular A-122, Item 47. (Also see Item D.35, for unallowable costs.)
48. Termination Cost.
For nonprofit grantees, see OMB Circular A-122, Item 48.
49. Training and Education.
The cost of training for employee development is allowable. For nonprofit grantees, see OMB
Circular A-122, Item 49.
50. Travel.
Travel costs are allowable for expenses for transportation, lodging, subsistence, and related items
incurred by employees traveling on official business incident to the HPF grant program. Such costs
may be charged on an actual basis, on a per diem or mileage basis in lieu of actual costs incurred, or
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on a combination of the two, provided the method used is applied to an entire trip, and results in
charges consistent with those normally allowed in like circumstances in non-Federally sponsored
activities. Lodging costs must be documented by a receipt in order to be eligible for reimbursement
under the HPF grant.
The difference in cost between first class air accommodations and less than first class
accommodations is unallowable except when less than first class accommodations are not reasonably
available, and the provisions of OMB Circular A-87, Item B.41(c) are met. Foreign travel costs are
allowable only with prior written approval of NPS. (See Section C.4, below.) Notwithstanding the
provisions of Section D.17, travel costs of officials covered by those subsections, when specifically
and directly related to the HPF grant program, are allowable with the prior written authorization of
NPS. For nonprofit grantees, see OMB Circular A-122, Item 51. The maximum allowable mileage
rate that can be charged to the HPF grant as of November 2020 is forty-eight and one half cents
(48.5) cents per mile. (To confirm the most current allowable mileage rate, consult the website:
http://www.policyworks.gov/org/main/mt/homepage/mtt/pov.htm.)
C. Costs Allowable with Approval of NPS.
1. Automatic Data Processing.
The cost of data processing services for the HPF grant program is allowable. This cost may include
rental of equipment or depreciation on grantee owned equipment. The acquisition of equipment with
a unit acquisition cost over $5,000, whether by outright purchase, rental purchase agreement, or other
method of purchase, is allowable only upon specific prior approval of NPS. (See Section C.2.)
2. Equipment and Other Capital Expenditures.
The cost of facilities, equipment, other capital assets, and repairs or improvements which materially
increase the value or useful life of capital assets is allowable when such procurement is specifically
justified in writing and specifically approved in writing by NPS. When assets acquired with HPF
grant funds are sold, no longer available for use in the NPS sponsored program, or used for purposes
not authorized by NPS, the NPS equity in any assets with a current fair market value over $5,000 will
be refunded in the same proportion as Federal participation in its cost. In case any assets are traded
on new items, only the net cost after trade in allowances of the newly acquired assets is allowable.
Articles with a unit cost of more than $5,000 and a useful life of more than one (1) year are allowable
when specifically approved by NPS as a direct cost. (See Section B.17 regarding articles costing less
than $5,000.)
3. Extended Training.
Costs of out of service training involving extended periods of time (more than a month of time away
from work) is allowable only when specifically authorized in writing by NPS.
4. Foreign Travel.
Foreign travel costs are allowable only when the travel has received specific prior written approval
from NPS. Each separate foreign trip must be specifically approved and justified on the basis of
direct benefits to the HPF grant program. For purposes of this provision, foreign travel is defined as
"any travel outside of Canada or any jurisdiction defined as a State by the National Historic
Preservation Act, as amended."
5. Moving Historic Structures or Objects.
Costs of moving or reconstructing properties are allowable only if the project meets NPS criteria and
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if the property remains listed in the National Register, either individually listed or as a contributing
property to a historic district. The Keeper of the National Register must give prior written approval
for the move in accordance with 36 CFR 60.14b. If the Keeper does not concur that the property will
remain on the National Register after the move, then no costs of moving the property are eligible for
HPF grant assistance (see Chapter 6, Section J.2.c).
6. Overtime.
For nonprofit grantees, see OMB Circular A-122, Item 28.
7. Participant Support Costs.
For nonprofit grantees, see OMB Circular A-122, Item 30.
8. Preagreement Costs.
Costs incurred prior to the effective date of the grant award, whether or not they would have been
allowable if incurred after such date, are allowable only with prior written approval of NPS and when
specifically provided for in the grant agreement. See additional requirements for nonprofit grantees
in OMB Circular A-122, Item 34.
9. Proposal Costs.
Costs of preparing proposals for potential Federal Government grant agreements are allowable as
direct costs when specifically provided for in the grant agreement. (Proposal costs should normally
be treated as indirect costs.)
10. Rearrangements and Alterations.
Costs incurred for special rearrangements and alterations of facilities required specifically for the
grant program are allowable when specifically approved in writing by NPS. (See Section C.2.)
11. Revolving Fund Costs.
The costs of planned financial assistance by a grantee through a revolving fund mechanism are
unallowable except with prior written NPS approval (see Chapter 8, Section F.2.h).
D. Unallowable Costs.
1. Archival Research.
Costs of purely archival research are unallowable. Grant-assisted research must directly relate to
achieving the purposes of the HPF grant program.
2. Acquisition of Previously Assisted Properties.
Costs of an acquisition of real property which has previously received HPF assistance for
development (or acquisition) are not allowable during the term of the covenant or preservation
agreement.
3. Alcoholic Beverages.
Costs of Alcoholic Beverages are unallowable.
4. Archeological Salvage.
Costs of data recovery unrelated to increasing an understanding of a National Register property are
unallowable. (See Chapter 6, Section K.4.d.)

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5. Bad Debts.
Any losses arising from uncollectible accounts and other claims, and related collection costs, are
unallowable.
6. Certified Historic Structures.
Grantees may not provide HPF development assistance for projects which have been accorded
Federal preservation tax benefits for that same work. Similarly, HPF development grant assistance
used for any portion of a building by an owner and/or lessee precludes that owner and/or lessee from
obtaining the Federal tax incentives for historic preservation contained in the Internal Revenue Code
for that portion of the building.
7. Church-owned Property.
Costs of acquiring and/or repairing church-owned property are unallowable because of the
Administration's policy on maintaining the separation of Church and State. (See Chapter 6, Section
D.6 for allowable technical assistance and planning costs.)
8. Conditional Donations.
Any donation of real property containing a reversionary provision to the donor which can be
exercised during the term of the covenant is not eligible as matching share.
9. Contingencies.
Contributions to a contingency reserve or any similar provision made for events the occurrence of
which cannot be foretold with certainty as to time, or intensity, or with an assurance of their
happening, are unallowable. (The term "contingency reserve" excludes self-insurance, pension plan,
and post-retirement health benefit reserves computed using acceptable actuarial cost methods; see
Section B.12.)
10. Contributions and Donations.
a. Charitable contributions and donations of grant funds, property, or grant-assisted services are
unallowable. For nonprofit grantees, see OMB Circular A-122, Item 8, and see discussion of
donations in A-122, Item 10.
b. The value of services donated by employees or other persons paid with HPF grant funds or other
Federal funds is unallowable.
c. Donated goods (i.e., expendable personal property/supplies and donated use of space) may be
furnished to a grantee, subgrantee, or grant supported contractor. The value of the goods and
space is not reimbursable as a direct or indirect cost. However, the value of the donations may be
used to meet matching share requirements when determined in accordance with the conditions
described in Chapter 14.
11. Curation.
Costs of curation or exhibition of artifacts or other materials after the project end date are
unallowable.
12. Entertainment.
Costs of entertainment, including amusements, social activities, and any costs directly associated with

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such costs (such as tickets to shows or sports events, meals, lodgings, rentals, transportation, and
gratuities) are unallowable. For nonprofit grantees, see OMB Circular A-122, Item 12.
13. Equipment.
Equipment and other capital expenditures are unallowable as indirect costs. (See Section B.13, for
the allowability of use allowances or depreciation on buildings, capital improvement, and equipment.)
14. Federal Properties.
Costs related to federally owned properties are not eligible for HPF assistance. (However, see
Chapter 6, Section H.3.i., for allowable costs for surveys on Federal lands.) Note that the
Consolidated Rail Corporation is not an instrumentality of the Federal Government and is therefore
eligible for grant assistance. (See 45 U.S.C. 741b.)
15. Fines and Penalties.
Fines, penalties, damages, and other settlements resulting from violations (or alleged violations) of, or
failure of the grantee to comply with, Federal, State, local, or Indian tribal laws and regulations are
unallowable, except when incurred as a result of compliance with specific provisions of the Federal
award or written instructions by NPS authorizing in advance such payments. For nonprofit grantees,
see OMB Circular A-122, Item 14.
16. Fundraising and Investment Management Costs.
Expenses and costs of organized fundraising, including financial campaigns, endowment drives,
solicitation of gifts and bequests, investment counsel, and similar expenses incurred to raise capital or
obtain contributions are unallowable. For nonprofit grantees, see OMB Circular A-122, Item 19 for
other unallowable fundraising costs.
17. General Government Expenses.
The salaries and expenses of the Office of the Governor of a State or the chief executive of a political
subdivision or the chief executives of a Federally recognized Indian tribal government are considered
a cost of general State or local government and are unallowable. For a federally recognized Indian
tribal government, only that portion of the salaries and expenses of the office of the chief executive
that is a cost of general government is unallowable; the portion of salaries and expenses directly
attributable to managing and operating historic preservation programs by the chief tribal executive
and his staff is allowable. Salaries and expenses of State legislatures, tribal councils, county
supervisor or board, city council, school boards, etc., are unallowable.
18. HABS/HAER Costs for Federal Supervision.
Payments of HPF grant funds to Federal officials supervising or otherwise administering
HABS/HAER projects are not allowable. See exception for temporary limited employees in Chapter
6, Section E.7.
19. Honoraria.
Payments of HPF grant funds for honoraria are not allowable when the primary intent is to confer
distinction on, or to symbolize respect, esteem, or admiration for, a recipient. (Payments for services
rendered, such as a speaker’s fee at a grant-assisted workshop, are allowable.)
20. Idle Facilities and Idle Capacity.
For State and local government grantees, the provisions of OMB Circular A-87, Item B.24 are
applicable. For nonprofit grantees, the provisions of OMB Circular A-122, Item 16, are applicable.
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21. Indirect Costs to Individuals.
Indirect costs to individuals under grantee awarded subgrants and contracts are not allowable.
“Overhead” or administrative support costs must be charged on a direct cost basis and documented by
appropriate supporting documentation.
22. Insurance and Indemnification.
Actual losses which could have been covered by permissible insurance (through an approved self
insurance program or otherwise) are unallowable unless expressly provided for in the grant
agreement. However, costs incurred because of losses not covered under nominal deductible
insurance coverage provided in keeping with sound management practice, minor losses not covered
by insurance, such as spoilage, breakage, and disappearance of small hand tools which occur in the
ordinary course of operations, are allowable. Indemnification includes securing the grantee against
liabilities to third persons and other losses not compensated by insurance or otherwise. The Federal
Government is obligated to indemnify the grantee only to the extent expressly provided for in the
Federal award. Costs of commercial insurance that protects against the costs of the contractor for
correction of the contractor's own defects in materials or workmanship are unallowable.
23. Interest and Other Financial Costs.
Costs incurred for interest on borrowed capital or the use of a grantee's own funds, however
represented, are unallowable, except as specifically provided in Item B.23 of this Chapter, or when
authorized by Federal legislation. For nonprofit organizations, costs incurred for interest on borrowed
capital or temporary use of endowment funds, however represented, are unallowable, except to
acquire capital assets and equipment by purchase or lease agreements on assets acquired after
September 29, 1995. (See OMB Circular A-122, Item 19.)
Payment of interest penalties for late payment of bills to contractors is prohibited by the Prompt
Payment Act (31 U.S.C. 3901 et. seq.). That Act specifies:
"(A) in no case shall an obligation to pay such interest penalties be construed to be an obligation of
the United States, and
"(B) any payment of such interest penalties shall not be made from funds provided to the grant
recipient by a Federal agency, nor shall any nonfederal funds expended for such interest
penalties be counted toward any matching requirement applicable to that grant."
24. Interpretive Expenses.
Interpretive expenses, such as staff salaries or maintenance of interpretive devices (with the exception
of purchase and installation costs for such devices in accordance with Section B.24 above) are
unallowable.
25. Lobbying.
The cost of certain activities associated with obtaining grants, contracts, cooperative agreements, or
loans is an unallowable cost. Lobbying with respect to HPF grants, contracts, cooperative
agreements, and loans shall be governed by 31 U.S.C. 1352 and the provisions of the Common Rule
"New Restrictions on Lobbying," published in the Federal Register (55 FR 6736) on February 26,
1990, as well as the Office of Management and Budget's "Governmentwide Guidance for New
Restrictions on Lobbying" and the associated notices published in the Federal Register at 54 FR
52306 (December 20, 1989), at 55 FR 24540 (June 15, 1990), and at 57 FR 1772 (January 15, 1992).
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The costs associated with activities or any form of communication designed to influence in any
manner a Member of Congress to favor or oppose any legislation or appropriation are unallowable.
In addition, all recipients of Federal grant assistance over $100,000 must certify on the DI-2010 Form
that they will not use grant funds for lobbying expenses. (See Chapter 7, Exhibit 7-D, for the DI2010 form.)
The cost of membership in the National Conference of State Historic Preservation Officers is an
allowable cost (see explanation in Chapter 13, Section B.30).
a. Lobbying Provisions for Nonprofit Organizations. For nonprofit organizations, notwithstanding
other provisions of OMB Circular A-122, costs associated with the following activities are
unallowable:
1) Attempts to influence the outcomes of any Federal, State, or local election, referendum,
initiative, or similar procedure, through in-kind or cash contributions, endorsements,
publicity, or similar activity;
2) Establishing, administering, contributing to, or paying the expenses of a political party,
campaign, political action committee, or other organization established for the purpose of
influencing the outcomes of elections;
3) Any attempt to influence: the introduction of Federal or State legislation; or the enactment or
modification of any pending Federal or State legislation:
a) through communication with any member or employee of the Congress or State
legislature (including efforts to influence State or local officials to engage in similar
lobbying activity), or with any government official or employee in connection with a
decision to sign or veto enrolled legislation; or
b) by preparing, distributing or using publicity or propaganda, or by urging members of the
general public or any segment thereof to contribute to or participate in any mass
demonstration, march, rally, fundraising drive, lobbying campaign or letter writing or
telephone campaign; or
4) Legislative liaison activities, including attendance at legislative sessions or committee
hearings, gathering information regarding legislation, and analyzing the effect of legislation,
when such activities are carried on in support of or in knowing preparation for an effort to
engage in unallowable lobbying.
b. Exceptions. The following activities are excepted from the provisions detailed above:
1) Providing a technical and factual presentation of information on a topic directly related to the
performance of a grant, contract or other agreement through hearing testimony, statements or
letters to the Congress or a State legislature, or subdivision, member, or cognizant staff
member thereof, in response to a documented request in accordance with the stipulations of
OMB Circular A-122, Attachment B, Item 21.b.

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2) Any lobbying made unallowable by subsection a.3), above, to influence State legislation in
order to directly reduce the cost, or to avoid material impairment of the organization's
authority to perform the grant, contract, or other agreement.
3) Any activity specifically authorized by statute to be undertaken with funds from the grant,
contract, or other agreement.
c. Indirect Costs.
1) When an organization seeks reimbursement for indirect costs, total lobbying costs shall be
separately identified in the indirect cost rate proposal, and thereafter treated as other
unallowable activity costs in accordance with the procedures of paragraph B.3 of Attachment
A of OMB Circular A-122.
2) Organizations shall submit as part of their annual indirect cost rate proposal a certification
that the requirements and standards of this paragraph have been complied with.
3) Organizations shall maintain adequate records to demonstrate that the determination of costs
as being allowable or unallowable pursuant to paragraph B.21 of Attachment A of OMB
Circular A-122 complies with the requirements of that Circular.
4) Time logs, calendars, or similar records shall not be required to be created for the purposes of
complying with this section during any particular calendar month when: (1) the employee
engages in lobbying, as defined in subsection a. and b. (above), 25% or less of the employee's
compensated hours of employment during that calendar month, and (2) within the preceding
five-year period, the organization has not materially misstated allowable or unallowable costs
of any nature, including legislative lobbying costs. When conditions (1) and (2) above are
met, organizations are not required to establish records to support the allowability of claimed
costs in addition to records already required or maintained. Also, when conditions (1) and (2)
above are met, the absence of time logs, calendars, or similar records will not serve as a basis
for disallowing costs by contesting estimates of lobbying time spent by employees during a
calendar month.
26. Maintenance and Administration.
Costs of ongoing maintenance and administration of properties following HPF grant assistance are
not allowable, in accordance with Section 102(a)(5) of the Act, as amended. This prohibition is not
applicable to the National Trust.
27. Meals.
Costs of meals for grantee employees, Review Board members (including any other State oversight or
advisory boards), or CLG Commission members are unallowable except as per diem when such
persons are on travel status in conjunction with activities eligible for HPF assistance.
28. Mitigation Expenses.
Costs of mitigation activities performed as a condition or pre-condition for obtaining a Federal permit
or license or funding by other Federal programs are not allowable.

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29. Museums.
Costs of museum exhibits, staff salaries, and other administrative expenses, including maintenance,
are unallowable, if they are not directly related to HPF eligible activities. (See Section B.18.)
30. Nonconformance with Applicable Secretary of the Interior's Standards.
Work performed under grants, subgrants, or other contractual arrangements that do not conform to the
applicable Secretary's Standards are unallowable costs.
31. Organization Costs.
For nonprofit grantees, see OMB Circular A-122, Item 27.
32. Profits and Losses on Disposition of Depreciable Property or Other Capital Assets.
For State and local government and Indian tribe grantees, see OMB Circular A-87, Item B.22. For
nonprofit grantees, see OMB Circular A-122, Item 36.
33. Prohibition on Compensating Intervenors.
Compensation to any person intervening in any proceeding under the Act is unallowable due to the
provisions of Section 101(f) of the National Historic Preservation Act. (See Legal Expenses in
Section B.27.)
34. Purchase Price.
The purchase price of real property is not allowable as an eligible development project cost. (It is an
allowable cost for an acquisition project because it is a direct and necessary contribution to achieve
acquisition project purposes.)
35. Taxes.
Taxes or tax penalties which the organization involved would not have been liable to pay under
prudent management are unallowable. This includes payroll tax penalties or interest paid on late
taxes. (See Section B.47 for allowable taxes.)
36. Underrecovery of Cost Under Grant Agreements.
Any excess cost not covered by the Federal contribution under one grant agreement is unallowable as
a cost under any other Federal agreement. This includes, but is not limited to, the grantee's
contributed portion of cost sharing agreements, or any underrecoveries through negotiation of lump
sum for, or ceilings on, indirect costs. For nonprofit grantees, see OMB Circular A-122, Item B.22.

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Chapter 14 - Matching Share
A. Purpose and Scope.
This Chapter sets forth the criteria and procedures for the allowability and evaluation of cash and in-kind
contributions made by grantees and their subgrantees and subcontractors in satisfying matching share
requirements in accordance with OMB Circulars A-87, A-102 (as codified in 43 CFR 12.64) for States,
and OMB Circulars A-122 and A-110 (as codified in 43 CFR 12.923) for the National Trust.
B. Definitions.
1. Cash Contributions. Cash contributions represent the grantee's cash outlay, including the outlay of
money contributed to the grantee by nonfederal third parties. Unless authorized by Federal
legislation, outlays charged to other Federal grants or to Federal contracts or funds received from
other Federal grants shall not be used as part of the grantees' cash contribution except as specified in
Section M of this Chapter.
2. In-kind Contributions. In-kind contributions represent the value of noncash contributions provided
by the grantee or nonfederal third parties. In-kind contributions may consist of charges for real
property, nonexpendable personal property, and the value of goods and services directly benefiting
and specifically identifiable to approved objectives of the grant-supported program.
3. Grant costs. Grant costs are the sum of the allowable costs (as set forth in the applicable Federal cost
principles, and Chapters 12 and 13) incurred by the grantee and the values of the cash or allowable inkind contributions made by the grantee or third parties in lieu of cash to accomplish the objectives of
the grant (or subgrant) agreement during the grant period.
4. Grant period. The grant period is the span of time stipulated in the grant agreement during which all
nonfederal share is contributed and during which all work to be accomplished under the terms of the
agreement must be completed (but see the exceptions described in Sections E and F of this Chapter).
C. Basic Guidelines.
1. Matching share (or "cost sharing") represents that portion of total project or program costs not borne
by the Federal Government. Cash or in-kind (non-cash) matching share may consist of:
a. Charges incurred by the grantee as costs during the grant period.
b. Costs financed with cash contributed or donated to the grantee by other nonfederal third parties.
c. Costs represented by services and real and personal property, or use of these, contributed or
donated by nonfederal third parties during the grant period. Where in-kind contributions are made
by the Federal Government, they may be included in the grantee's matching share only if Federal
legislation authorizes such inclusion.
2. All contributions, whether cash or in-kind will be accepted as an eligible part of the grantee's
matching share when such contributions meet all of the following criteria:
a. Are verifiable from the grantee's records;
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b. Are not included as matching contributions for any other federally assisted program or any
Federal contract (i.e., are not double counted);
c. Are necessary and reasonable for proper and efficient accomplishment of approved grant
objectives;
d. Are incurred and contributed within the grant period;
e. Are types of costs which are allowable under the applicable Federal cost principles (Chapter 12)
as well as the provisions of Chapter 13;
f.

Are not paid by the Federal Government directly or indirectly under another assistance agreement
unless authorized by Federal law to be used for cost sharing or matching (see Section M of this
chapter);

g. Are provided for in the approved grant agreement; and
h. Conform to other provisions of this Manual.
D. Allowability.
General principles for establishing the allowability of matching share are as follows:
1. Either cash or in-kind contributions of goods, property, services, or combinations of these, can qualify
for and meet matching share requirements when the criteria of Section C (above) are met.
2. In-kind contributions must be fairly valued and must be of such nature that, if the Federal share had
been used to pay for the contribution, the grantee would have incurred an allowable cost. In-kind
contributions are eligible only to the extent that they represent actual necessary costs for which
Federal funds could be applied for project or program objectives. Any grant funds applied in excess
of actual cost would constitute an unallowable profit to the grantee or subgrantee. (See Chapter 12,
Section C.5.c.)
3. Following grant approval, all cash and in-kind contributions, including those applicable to
subgrantees or subcontractors, must be recorded in the ledger accounts as grant costs when the inkind services or goods are performed or received. Records, including required supporting
documentation, of in-kind services performed or goods received must be maintained on a current
basis. Note: After-the-fact certification for personnel costs contributed by University subgrantees is
allowable if documentation is prepared in accordance with OMB Circular A-21, Section J.6.
4. In accordance with 48 U.S.C. 1469a, American Samoa, Guam, the Commonwealth of the Northern
Mariana Islands, the Freely Associated States of Micronesia, the Republic of the Marshall Islands, the
Republic of Palau, and the Virgin Islands are not required to contribute nonfederal share for HPF
grants, unless the matching share required exceeds $200,000 for a grant.
5. Grantees may choose to contribute matching share in excess of the minimum required 40 percent as
part of the grant application. Each subgrant need not be matched on a 60-40 basis as long as the total
grant to the State is matched at the required rate during the NPS-approved grant period; i.e., grantees

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may aggregate or “pool” matching share contributions from individual historic preservation projects
so long as the total costs incurred during the fiscal year are at least 40 percent matching share.
a. The nonfederal share including any overmatch is subject to audit, as is the Federal share.
b. Documentation of the basis for applying allowable indirect cost rates as matching share is
discussed in Chapter 12. Any indirect costs must be claimed pursuant to a current rate approved
by the cognizant Federal agency.
c. The basis for determining the matching share charges for personal services, material, equipment,
indirect costs, buildings, and land must be documented.
d. Matching share for multi-resource projects involving several contributing properties within
historic districts must be directly related to the grantee's proposed grant work and must meet all
the requirements of this Chapter. Unrelated work or contributions outside the scope of eligible
HPF-assisted work does not qualify as matching share merely because it occurs within a historic
district during the approved grant period.
E. Timing of Contributions.
Matching share (as with costs borne by the Federal share) will not be allowable if contributed prior to the
effective date of the grant award (refer to Chapter 13, Section C), whether or not the cost would have
been allowable if incurred after such date, with the following exceptions:
Some costs must be incurred before an annual grant application or before a Project Notification can be
submitted to NPS with the required descriptive and cost data. The costs of appraisals, site investigation
and selection, site planning, feasibility studies, preliminary design, environmental assessment,
preparation of cost estimates, construction drawings and specifications and similar items necessary for
preparation of the application or Project Notification may be eligible for assistance, although incurred
prior to NPS concurrence.
While nonfederal share contributions need not be made in exact time concurrence and proportion with
withdrawal and expenditure of Federal funds, the full grantee matching share must be contributed by the
end of each 12-month grant period, or of any stipulated NPS-approved grant period.
Requests for approval of preagreement costs must be detailed in either: 1) the Annual Grant application
submitted to NPS with the line item, amount, and date these costs were incurred listed in a cover letter
accompanying the grant application (when these costs are known at the time of the application); or 2)
noted specifically in the Project Notification by line item, amount, and date. Pre-agreement costs must be
specifically approved by NPS in writing in accordance with Chapter 13, Section C.8.
F. Relationship of Costs to Grant Period.
1. General. To be eligible for matching assistance, costs must have been incurred within the approved
grant period, with the specific exceptions described in this Chapter. Costs incurred, or contributions
of services made, or assets acquired prior to or subsequent to the grant period authorized by NPS,
unless specified in the grant agreement, in a Project Notification concurred in by NPS in writing, or in
a subsequently approved amendment, are not allowable.

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2. Acquisition costs. Since the transfer of ownership in real property can be a protracted process which
differs under various State laws and grantee procedures, the relationship of acquisition costs to the
grant period is separated into two elements: the date when the acquisition cost is incurred and the
date when the cost is eligible for reimbursement. Acquisition costs are incurred on the date when the
earliest of any of the following transactions takes place: (a) Grantee or subgrantee accepts deed, lease,
or other appropriate conveyance; or (b) Grantee or subgrantee makes full payment for the property; or
(c) Grantee or subgrantee makes full payment to an escrow agent.
3. Development costs. Development (construction) costs are ordinarily first incurred at the start of
actual physical work on the site (such as the clearing of ground, the beginning of construction of a
building, or the delivery of material to the site), and continue through the period the work is being
done. Development costs are not ordinarily incurred at some earlier time when contracts are signed,
funds obligated, or purchase orders issued, or at a later time when the ensuing bills are paid (but see
Section E, above).
G. Valuation of In-kind Contributions.
In-kind contributions will be valued at the actual costs incurred in accordance with the principles for
determining costs specified in Chapters 12 and 13.
H. Valuation of In-kind Contributions from Nonfederal Third Parties.
1. Valuation of volunteer services. Volunteer services may be furnished by professional and technical
personnel, consultants, and other skilled and unskilled labor. Volunteer services may be counted as
matching share if they are an integral and necessary part of the approved work (but see Exclusions,
Section N, below).
2.

Rates for volunteer services.
a. Volunteer services charged to the NPS grant must be such as will make a meaningful and
desirable contribution. Volunteers must possess the required qualifications in the skill or
profession involved, and must actually perform that specific work. Rates claimed for volunteer
services must be consistent with those regular rates paid for similar work in other activities of the
State Government. In those instances in which the skills required for the HPF-assisted work are
not found in the State Government, rates used must be consistent with those paid for similar work
in the labor market in which the grantee competes for the kind of services involved.
b. If a volunteer performs services outside his profession or trade, this volunteer time must be
valued at the Federal minimum wage rate unless a higher rate can be documented as applicable
and is approved by the SHPO. All such rates are subject to NPS field and audit review. (As of
September 1997, the minimum wage is $5.15 per hour). [The minimum wage will change soon.]
c. The use of volunteer services must be documented by the same methods used by the grantee,
subgrantee, or other third party for its own employees, although stricter accountability standards
may be agreed to by the grantee and third parties.

3. Volunteers employed by other organizations. When an employer other than the grantee, a local
government subgrantee, or an institution of higher education subgrantee furnishes the services of an
employee, these services will be valued at the employee's regular rate of pay (exclusive of fringe

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benefits and overhead costs) provided these services are in the same skill for which the employee is
normally paid.
4. Review board contributions. Time spent by review or any other advisory board members which is
directly related to the development, conduct, or administration of the grantee's Historic Preservation
Fund grant program is allowable as a matching share contribution to the extent that the contributed
time is spent solely in the members' capacity as board members and to the extent that all requirements
of this Chapter are fulfilled. Time spent in meetings directly relating to approved program objectives
which is chargeable as matching share must be documented by the agenda, minutes of the meeting,
and separate time records for each volunteer (as with all other volunteered services). Travel time
must be reasonable and meetings must be held in easily accessible places. Unreasonable or
undocumented donations of time will be subject to audit review and possible adjustment or
disallowance.
I.

Required Supporting Documentation for Volunteer Services.
All volunteer services claimed as nonfederal matching share must be substantiated by time cards or
records that are signed by both the volunteer and supervisor, as required for all other employees of the
grantee or subgrantee. Such records must show the actual hours worked and the specific duties
performed. The records must also indicate the basis for determining the rate of the volunteer's
contributions, and such documentation must be available for audit (see suggested recordkeeping form at
the end of this Chapter, and Chapter 13, Section B.12, Compensation for Personal Services).

J. Valuation of Donated Expendable Personal Property.
Expendable personal property includes such items as expendable equipment, office supplies, laboratory
supplies, or workshop supplies. Values assessed to donated or contributed expendable personal property
included as matching share must be reasonable and must not exceed the fair market value at the time of
donation. The basis for determining the valuation must be documented and available for audit.
K. Valuation of Donated Nonexpendable Personal Property, Buildings and Land, or Use of These Types of
Property.
1. General. As stipulated by OMB Circular A-102 (codified in 43 CFR 12.64) and OMB Circular A110 (codified in 43 CFR 12.923), the method used for charging matching share for donated
nonexpendable property, buildings and land differs according to the purpose of the grant:
a. If the purpose of the grant is to furnish equipment, buildings or land to the grantee or otherwise to
provide a facility, the total value of the donated property may be claimed as matching share.
b. If the purpose of the grant is to support activities that require the use of equipment, buildings or
land on a temporary or part-time basis, depreciation or use charges for equipment and buildings
may be made. The full value of equipment or other capital assets and fair rental charges for land
may be made provided that NPS has approved the charges.
2. Valuation of donated nonexpendable personal property.
a. The valuation of donated nonexpendable personal property shall not exceed the fair market value
of equipment and property of the same age and condition at the time of donation.

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b. Donation of title. If the donor transfers title to the property, the amount allowable as matching
share shall be determined as if the grantee had purchased the property and paid the fair market
value of the property at the time of the transfer. (See suggested recordkeeping form for donated
material in Exhibit 14-C).
c. Donation for use. If only use of property is donated as a loan, the amount allowable as matching
share shall be determined as if the grantee had rented the property and paid the fair rental value at
the time of the donation. (See suggested recordkeeping form for equipment use in Exhibit 14-B.)
3. Valuation of donated real property: buildings and land.
a. General. The value of donated land and buildings may not exceed its fair market value at the
time of donation to the grantee as established by an independent certified real property appraiser
or GSA representatives and certified by a responsible official of the grantee (see Chapter 6,
Exhibit 6-B, for appraisal requirements).
b. Use of space. The value of donated space shall not exceed the fair rental value of space
established by an independent appraisal of comparable space and facilities in a privately owned
building in the same locality.
4. Donation of less-than-appraised value of real property as matching share for acquisition of historic
property.
a. The difference between fair market value and the selling price will be allowable as matching
share for an acquisition for the remainder purchase cost of that property, or for the remainder cost
of a preservation easement, if the owner willingly and knowingly sells the property or easement
for less than the appraised fair market value.
b. The grantee must ensure that a legally sufficient arm's length relationship exists between the
donor and the donee.
c. When a partial donation of less-than-the-full-appraised market value of real property is applied as
matching share, grantee records must fully document that the acquisition was conducted in
compliance with the acquisition policies established by the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601-4651), particularly the
statement of just compensation (see Chapters 6 and 20).
L. Use of Federal Funds.
1. General prohibition. Generally, Federal funds cannot be matched with other Federal funds.
However, the statutory provisions of the Federal programs listed below specifically allow the funds
provided under them to be used as nonfederal matching share.
2. Exceptions. The funds derived from the following Federal programs may be applied as matching
share for HPF grants-in-aid:
a. Federal funds granted to Tribal organizations under grants pursuant to Section 104 of the Indian
Self Determination and Education Assistance Act, provided the NPS grant contributes to the
purposes of Section 104 (see 25 CFR 272-12). Grantees must justify the use of such funds in
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writing and NPS must approve their use as matching share prior to the award of the HPF grant.
(Grantees will be required to ensure that covenants and all other terms and conditions of NPS
grants, including public access, can be enforced by the State as a precondition for work involving
Indian Tribes as subgrantees, or for projects located on Indian lands.)
b. Federal funds available under Section 105(a)(9) of the Housing and Community Development
Act of 1974, 42 U.S.C. 5305(a)(9), as amended (the Community Development Block Grant
Program). The provisions of the Davis-Bacon Act will apply if CDBG funds are used as
matching share for an HPF grant.
3. Supplemental Funding. The statutory provisions of certain other Federal grant programs' legislation
allow the use of their program funding to supplement HPF grants. In such instances grantees must
identify the source of the funding, and, if the grant application is approved by NPS, the other Federal
agency will transfer funds to NPS for administration by NPS. No more than 80 percent of total costs
may be federally supported. These funds will be subject to all grant terms and conditions and all
provisions of this Manual. The following may be used to supplement HPF grant assistance:
a. Public Works and Economic Development Act of 1965, as amended. Commonly known as
Regional Commission Supplemental Grants. (See 13 CFR 560 et. seq. and 42 U.S.C. 3188a); and
b. Appalachian Regional Development Act of 1965 (40 U.S.C. Appendices 214).
4. Grantee Reimbursements as Matching Share. After the Federal share of eligible HPF grant costs has
been reimbursed to the State, these reimbursed funds may be treated as nonfederal in nature. The
reimbursed funds may subsequently be used as nonfederal matching share if contributed for future
HPF grant work.
M. Exclusions.
The following items are not allowable matching share:
1. Any cash or in-kind contribution used to match another Federal grant cannot be used again as
matching share for NPS grant funds.
2. a. Volunteer work performed by grantee staff members within the scope of the normal
responsibilities of the position in excess of their paid working hours is not allowable as matching
share.
b. Consultants who are sole proprietors of their firms may donate services only if the employment
contract specifies that the consultant is accepting less than his/her normal rate of pay and is
explicitly donating the difference for the achievement of project work. Such donations must be
documented in accordance with the provisions of this Chapter. A written statement of intention
to donate the rate difference should be on file and available for audit.
c. Employees of consultants may not donate services or accept less than their regular rate of pay as a
donation because this violates the provisions of the Fair Labor Standards Act.
3. Federally guaranteed loans are not eligible as matching share for HPF grant funds because of the
possibility of directly involving Federal funds in matching HPF monies should a default occur.

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4. Students in a federally funded work/study or Federal student loan program cannot contribute
donated services as matching share for an HPF grant.
5. Items such as legal advice which are normally provided to grantees by other State governmental units
without charge are not allowable as matching share. (When these services are not normally provided
without charge, the services may be eligible as matching share.)
6. Donated property as matching share for development work. 43 CFR 12.64 requires all nonfederal
share contributions to be "necessary and reasonable for proper and efficient accomplishment of
project objectives"; and requires that "values for grantee in-kind contributions will be established in
accordance with OMB Circular A-87." Accordingly, donation of real property or a preservation
easement is not eligible nonfederal share for development work. Title to the property is not necessary
to perform development work and does not involve any cost sharing for the development work.
7. Any real property donation or contribution containing a reversionary provision to the donor which
can be exercised during the term of the preservation covenant is not eligible as matching share.
8. Donation of a Remainder Interest with a Reserved Life Estate. This type of donation involves a gift
with the condition that the real property be retained for the remainder of the donor's (or his/her
immediate family's) life. While these benefits may also ensure the preservation of the property, no
contribution in keeping with the requirements of, and this Chapter is effected and no eligible
matching share is created.
9. Irrevocable long-term leases. As with a preservation easement, the value of the lease is not allowable
as matching share.
N. Examples of forms.
Exhibits A, B, and C provide examples of the kind of recordkeeping forms grantees should maintain to
evaluate donated labor, material or equipment use. These are suggested models only; comparable formats
would also serve for audit purposes.

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Chapter 14 Matching Share
EXHIBIT 14-A VALUE OF DONATED LABOR
TIME SHEET
HISTORIC PRESERVATION FUND
Retain for Audit
PROJECT NAME AND NUMBER

NAME OF PERSON CONTRIBUTING DONATED TIME
(LABORER, PLUMBER, MASON, ETC.)

KIND OF WORK PERFORMED

Hourly Rate -- Based On:
A person donating time to a project will be paid at the Federal minimum wage unless he/she is professionally
skilled in the work they are performing on the project (i.e., plumber doing work on pipes, mason doing work
on a brick building). When this is the case, the wage rate this individual is normally paid for performing this
service may be charged to the project.
TIME OF WORK
DATE

START

END

START

END

TOTAL WORK
HOURS

TOTAL VALUE OF DONATION
SIGNATURE REQUIRED VERIFYING RECORD:

SIGNATURE OF PERSON DONATING TIME

DATE

SUPERVISOR VERIFYING ACCURACY

DATE

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HOURLY RATE

VALUE (DONATED
HOURS X RATE)

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EXHIBIT 14-B VALUE OF DONATED EQUIPMENT USE
HISTORIC PRESERVATION FUND
RETAIN FOR AUDIT
PROJECT NAME AND NUMBER

DONOR
Value of Donated Equipment Use

DATE

TYPE & SIZE
OF
EQUIPMENT

TOTAL HOURS
OF USE

HOURLY
RATE

VALUE OF
DONATION
(HOURS OF USE X
HOURLY RATE)

TOTAL VALUE OF DONATION

_______
VERIFYING OFFICIAL'S SIGNATURE

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DATE

EQUIPMENT
OPERATOR'S
SIGNATURE

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EXHIBIT 14-C VALUE OF DONATED MATERIAL
HISTORIC PRESERVATION FUND
RETAIN FOR AUDIT

PROJECT NAME AND NUMBER

DONOR

Value of Donated Material
DESCRIPTION OF
MATERIAL DONATED

DATE OF
DONATION

CURRENT FAIR
MARKET VALUE

TOTAL VALUE OF DONATION

__
VERIFYING OFFICIAL'S SIGNATURE

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DATE

BASIS OF VALUE

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Historic Preservation Fund Grants Manual
Chapter 15 Application and Budget Changes

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Chapter 15 - Application and Budget Changes
A. Purpose.
This Chapter sets forth requirements and procedures for requesting post award programmatic changes and
budget revisions in grants and subgrants in accordance with 43 CFR 12.70 (for States) and 43 CFR
12.925 (for the National Trust).
B. Applicability.
The provisions of this Chapter apply to changes in: (1) the Annual Grant and (2) subgrants, projects, and
contracts awarded by the grantee with HPF assistance.
Any substantive revision in the NPS approved grant application which served as the basis of the Grant
Agreement must be approved in writing by NPS prior to effecting the change. Any substantial alterations
in the scope or objectives previously described in individual Project Notifications (see Chapter 8, Exhibit
8-A) must be submitted to NPS prior to proceeding. An amendment may also be initiated by NPS to
carry out requirements such as deobligations of funds or changes in Federal appropriations, laws, or
regulations affecting NPS grants.
C. General.
Grantees and subgrantees are permitted to re-budget within the approved direct cost budget of each grant
and subgrant to meet unanticipated requirements, and may make limited program changes to the approved
grant and/or individual project without NPS prior approval. Certain types of post award changes do
require prior NPS written approval.
1. Waiver of Cumulative Transfers of Funds among Budget Categories. An amendment is not required
for transfers of funds among direct cost categories (personnel, travel, equipment, etc.) unless the
cumulative amount of transfers exceeds 10 percent of the total budget and the Federal share exceeds
$100,000.
2. Relationship to Cost Principles. The cost items specified in Chapter 13, Section C, require prior NPS
approval. These requirements apply to all grants and subgrants even when programmatic scope of
work changes or budget revisions discussed below are not applicable. Grantees may request NPS
approval by letter if such costs are not identified in the grant application.
D. Programmatic Grant or Budget Changes.
Except as stated in other regulations or in a grant award document, grantees (and subgrantees through the
grantee) will notify the NPS grant awarding official whenever the following actions are anticipated:
1. Any revision of the scope or objectives of the grant, regardless of whether there is an associated
budget revision requiring prior approval.
2. A revision pertains to cost items requiring prior NPS approval. (See Chapter 13, Section C.)
3. A budget revision that would result in the need for additional Federal funding.
4. A fund or budget transfer from nonconstruction to construction or vice versa. See 43 CFR
12.70(c)(3).

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5. For subgrants, grantees shall require subgrantees to obtain prior approval from the SHPO whenever
changes are proposed in the subgrant project director, principal investigator, or any other persons
expressly identified as key project personnel in the subgrant award. Approval by NPS is not required.
6. The amount of funds awarded is expected to exceed need. The grantee should transmit a formal
amendment to NPS to deobligate the unneeded funds.
7. The required 10 percent Certified Local Government Pass-through percentage cannot be fully
obligated or expended.
E. Subgrant Project or Budget Changes.
When Project Notifications are required, grantees shall forward revised information to NPS prior to
implementing proposed scope of work or budget changes whenever a proposed revision results in a
change in the scope or objective of a project summarized in the Project Notification. However, minor
revisions should be noted in the Final Project Report (see Chapter 8, Exhibit 8-E) and not in an
amendment request unless one of the provisions below is applicable. Documentation of the revisions
must still be retained in State project files subject to NPS review.
An amendment is required when the revision results in a change in scope and objectives, or when one of
the following provisions is applicable.
1. The revision increases the budgeted amounts of Federal funds needed to complete the project.
2. The revision involves cancellation of a project previously summarized in a Project Notification sent
to NPS.
3. A new project is proposed, requiring a Project Notification, funded from one or more decreases to
previously approved projects.
4. Additional time is required to complete a project requiring a Project Notification (but not to exceed
the end date of the Annual Grant funding the subgrant).
5. Project budget revisions involve those costs requiring prior NPS approval. (See Chapter 13, Section
C.)
6. The project requiring a Project Notification is completed for less Federal share than budgeted, but
only if the "excess" money is to be transferred to another use within the 24-month period of
availability. (See Section G.2., below.)
F. Requesting Prior Approval: Grants.
1. A request for prior approval of any budget revision will be in the same budget format the grantee used
in its application and must be accompanied by a narrative justification for the proposed revision.
Requests for amendments must be sent in writing to NPS. NPS approval shall not be valid unless it is
in writing and signed by the NPS grant awarding official.
NPS will not act on grant amendment requests after the grant end date unless the amendments close
out the grant. Any subsequent revisions other than individual cost items requiring NPS approval (see

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Section C, above) must be noted in the End-of-Year Report. (See Chapter 25) Note: Neither the
End-of-Year Report nor revisions to the Report are grant amendments.
2. Documentation. To submit a grant amendment forward one SF 424 with the original signature of the
SHPO or SHPO authorized grantee official. Instructions for completion of the SF 424 are given in
Chapter 7, Exhibit 7-A. Note that item 8 of the SF 424 should include entering either "C," "D," or
"E." Item 15 should be left blank unless the Federal or nonfederal share of the program is being
increased or decreased. The reason(s) for the requested changes must be specified on the reverse side
of the SF 424. The applicable Attachment A pages and grant budget forms affected by the changes
must be included, and each page marked "Amended" with the date of the amendment request.
3. Timing. If the request for approval is still under consideration at the end of 20 calendar days, the
NPS grant awarding official shall inform the grantee in writing as to when a decision can be expected.
This includes requests for approval of costs requiring NPS prior approval.
G. Subgrantees Requesting Prior Approval from the Grantee.
1. A request by a subgrantee for prior approval will be addressed in writing to the grantee. The grantee
will promptly review such requests and respond in writing. A grantee will not approve any budget or
project revision which is inconsistent with the purpose or terms and conditions of its HPF grant. For
subgrants requiring a Project Notification, if the revision requested by the subgrantee will result in a
change in the project scope of work, objectives or budget requiring NPS action (see above), the
grantee shall obtain that determination from NPS before approving its subgrantee's request. Except in
unusual circumstances, NPS will not act on any subgrant amendment requested after the subgrant end
date stated on the Project Notification. In such instances, deviations from the scope of work or
budget must be specifically discussed in the Final Project Report.
2. Documentation. For subgrant amendments requiring NPS approval, forward a revised Project
Notification, with the elements to be amended and the reasons for the amendment specified. The
purpose of the amendment must be clearly noted on the Project Notification.
a. Cancellation. Subject to the limitations specified in Sections I and K, below, a grantee may
unilaterally rescind any subgrant award prior to commencement of project work by submitting a
Project Notification executed in accordance with the instructions for that form, with an
explanation of the reasons for the termination. A project will be considered to be commenced
when Federal funds have been disbursed to the project by the grantee.
After Federal funds have been disbursed, the subgrant project agreement may be terminated only
by mutual agreement with NPS. For subgrants requiring Project Notifications, the grantee will
submit a Project Notification executed in accordance with the instructions for that form, with an
explanation of the reasons for the termination. The amount of decrease must be shown. This
information will also be provided in the Project/Activity Database Report submitted with the
End-of-Year Report. (See Chapter 25, Section D.1.).
b. Completion at Lower Cost. If a subgrant is completed at a Federal share of costs less than the
Federal share specified on the Project Notification, and the 24-month term of obligational
authority of the applicable apportionment has not expired, the remaining funds can be reassigned

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by grantee amendment request to other eligible activity (including a new subgrant) under the
terms of the applicable NPS grant agreement until the end of the 24-month Annual Grant period.
Transferring Funds among Existing Subgrants (within the same grant, i.e., with the same grant
number). For States on Reduced Review Status, revised Project Notifications reporting increases
and decreases are only needed for subgrants greater than $25,000 Federal share. (States not on
Reduced Review Status must send them in for each project.) Documentation of the funds transfer
must still be retained in State project files subject to NPS review. This information must be
included in the Project/Activity Database Report in the End-of-Year Report. (See Chapter 25,
Section D.1.b.)
1) Forward a revised Project Notification completed as in Section G.1, above. Only the amount
of decrease should be entered.
2) Forward a revised Project Notification completed as in Section G.1, above, with an
explanation of the reasons for the increase. Only the amount of increase, Federal and
nonfederal share, if applicable, should be entered. The "Remarks" section must also:
a) Identify the additional work elements to be undertaken with the increase in estimated
costs;
b) State the source of the additional Federal funds to be applied to the amendment; e.g.,
completion of another project under budget;
c) Specify donor, source, kind, and amount of additional nonfederal share. (If none, so
state.)
3. Timing. If NPS does not concur or notify the grantee of deficiencies requiring corrective action prior
to the end of the 20-calendar-day review period, grantees may proceed with the amended subgrant,
but remain responsible for complying with the terms and conditions of the grant under which the
subgrant was awarded.
EXCEPTIONS:
a) Written NPS concurrence of the Project Notification is required for all development subgrants,
contracts, or projects affecting National Historic Landmarks. The 20 calendar day review period
limit is not applicable for National Historic Landmarks; however, NPS will meet the 20 day
timeframe as closely as possible.
b) Written NPS approval must be obtained before incurring costs for work requiring prior NPS
approval. (See Chapter 13, Section C.)
H. Phased Projects.
For subgrants requiring Project Notifications (see Chapter 8, Section F.2.b.), a separate Project
Notification must be submitted for each phase of a subgrant project financed with separate HPF grants.
(For example, a subgrant funded with the FY 1995 grant must be completed within that grant period.
Costs may not be charged to the grant after September 30, 1996. A new Project Notification, marked
"Phase 2," may be submitted to continue the second phase of planned work on that project using, for

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example, FY 1996 grant funds.) All phased projects should be keyed to the applicable HPF grant
numbers to avoid audit questioned costs. For phased projects, a new Project Notification must be
submitted for NPS concurrence in the regular manner before additional costs from a subsequent
appropriation are incurred.
I.

Use or Lose Carryover Limitation.
If an amendment involves the cancellation of a project in full, or reduction of Federal share awarded to a
previous subgrant, such that the cancellation or reduction will result in the grantee exceeding the 25
percent carryover policy, this fact must be noted on the amendment request and justified. An excessive
increase in SHPO "in-house" expenses and an accompanying decrease in subgrant/contract commitments
will result in a reduction in obligational authority by NPS if the 25 percent limit is exceeded (without a
written NPS approved waiver) because of the particular amendment or the cumulative effect of several
amendments.

J. CLG Pass-Through.
If a subgrant amendment results in less than 10 percent of the State's apportionment being expended for
CLG subgrants in the 24-month period of grant availability, NPS will reduce the State's obligational
authority. See Chapter 9, Section K.7.
K. Extensions of Time for Annual Grants.
No extensions of time to incur costs will be approved by NPS for grants beyond the grant period provided
in the NPS grant agreement. This applies to the overall program grant and all projects undertaken within
the program grant. Funds not expended for costs incurred during the 24-month Annual Grant period
"expire" and will be deobligated in accordance with Section L, below. NOTE: An NPS approved
increase in the Federal share does not automatically provide any additional time to complete proposed
work, nor does it alter the period to obligate or expend funds.
L. NPS Initiated Reprogramming and Deobligations.
NPS may initiate an amendment to carry out administrative requirements such as changes in Federal
appropriations laws, or administrative regulations, including deobligations of funds.
1. NPS may reduce the amount of grant funds for the current fiscal year by an amount equal to the
amount of the prior year's apportionment unobligated or unpaid in accordance with grant procedures.
(See Chapter 3, Section K.2.d.) Sometimes "unused" prior year's funds will be deobligated by NPS
instead of reducing the current year's allocation of funds.
2. NPS may, after written notice to the grantee, deobligate unbilled funds after the grant period has
expired.

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Chapter 15 Application and Budget Changes

When submitting proposed Project Budget amendments, the following form may be used to detail
the proposed budget changes.
EXHIBIT 15-A MODEL PROJECT BUDGET FORM
Budget Category

Original Budget

Proposed Changes
(+/-)

New Revised Budget

Personnel and Fringe
Benefits

$

$

$

Travel and Per Diem

$

$

$

Supplies and Materials

$

$

$

Consultant/Contractual
Services

$

$

$

Equipment

$

$

$

Indirect Costs

$

$

$

Total

$

$

$

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Chapter 16 - Program Income (Grant-Related Income)
A. Purpose.
This Chapter sets forth policies and requirements relating to (a) program income and (b) interest and
other investment income earned on advances of HPF grant funds. Its provisions are in accordance with
OMB Circular A-102, as codified in 43 CFR 12.65 (for States), and Circular A-110, as codified in 43
CFR 12.924 (for the National Trust).
B. Policy.
1. Applicability. Program income (or grant-related income) means gross income earned by a grantee (or
subgrantee or contractors) from activities of which part or all of the cost is either borne as a direct
cost by a grant or counted towards meeting matching requirements of a grant. It includes, such
income in the form of fees for services performed during the grant or subgrant period, proceeds from
the sale of tangible personal or real property, usage or rental fees, and patent or copyright royalties.
If income meets this definition, it shall be considered program income regardless of the method used
to calculate the amount paid to the recipient (whether, for example, by a cost-reimbursement method
or a fixed price arrangement). Nor will the fact that the income is earned by the recipient from a
Federal procurement contract under a Federal grant awarded to another party affect the income's
classification as program income.
The following shall not be considered program income:
a. Revenues raised by a government recipient under its governing powers, such as taxes, special
assessments, levies, and fines. (However, the receipt and expenditure of such revenues shall be
recorded as part of a grant or subgrant project transactions when such revenues are specifically
earmarked for the project in accordance with the terms of the grant or subgrant.)
b. Tuition and related fees received by an institution of higher education for a regularly offered
course taught by an employee performing under a grant or subgrant.
2. General program income.
a. Definition. General program income means all program income accruing to a grantee during the
period of grant support, or to a subgrantee during the period of subgrant support, other than the
special categories of such income in subsections 3, 4, and 5 below. See Section B.6., below, for a
discussion of program income generated after the grant period.
b. Use. General program income shall be retained by the grantee or recipient and used with NPS
approval in accordance with one or a combination of the following alternatives:
1) Deductive alternative. Under this alternative, the income is deducted from the total grant or
project costs to arrive at net costs on which the Federal share of costs will be based. This
alternative results in the same size program and unanticipated program income is used to
reduce the Federal share and nonfederal share contributions (rather than increase the total
funds committed to the grant or project). The income shall be used for current costs unless
NPS authorizes deferral to a later period.

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To illustrate this alternative: Assume a project in which the grantee incurs $100,000 of
allowable costs and receives no third-party in-kind or cash contributions. If the grantee
earns $10,000 in general program income and this alternative is chosen, that $10,000
must be deducted from the $100,000 (resulting in $90,000 of total grant costs) before
applying the maximum percentage of Federal participation. If the Federal participation is
60 percent, the most that could be paid to the grantee would be $54,000 (60 percent of
$90,000).
2) Cost-sharing or matching alternative. Under this alternative, the income is used to finance
the nonfederal share of allowable costs of the project or program when approved by NPS.
This alternative results in the same size program and the grantee is allowed to use program
income as part or all of its contribution towards project costs rather than having to contribute
its share from its own resources. The Federal share percentage will remain the same as if
there was no program income.
To illustrate this alternative: Assume the same situation as in the preceding section. Under
this alternative, the 60 percent maximum Federal percentage of participation would be
applied to the full $100,000 and $60,000 could be paid to the grantee.
3) Additional costs alternative. Under this alternative, the income is used for costs which are in
addition to the allowable costs of the project or program but which further eligible program
objectives. This alternative is intended to result in a larger program than would otherwise
have been operational. Examples of purposes for which the income may be used are:
a) Expanding the project or program.
b) Continuing the project or program after grant or subgrant support ends.
c) Supporting other eligible projects or programs that further the objectives of the National
Historic Preservation Act.
d) Obtaining equipment or other assets needed for the project or program.
3. Program Income -- Proceeds from the sale of real property and sale of equipment and supplies
acquired for use. The following kinds of program income shall be treated in accordance with OMB
Circular A-102, as codified in 43 CFR 12.71-73 for States and 43 CFR 12.924 for the National Trust
(also see Chapter 19, Section D):
a. Proceeds from the sale of real property purchased or developed under a grant or subgrant
intended for direct use in the subgrant project or program rather than for sale or rental.
b. Proceeds from the sale of equipment and supplies fabricated or purchased under a grant or
subgrant and intended for use in the grant or subgrant-supported project or program rather than
for sale or rental.
4. Program income -- royalties and other income earned from a copyrighted work. This section applies
to royalties, license fees, and other income earned from a copyrighted work developed under a grant
or subgrant. This section applies whether a third party or the grantee itself acts as the publisher,

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seller, exhibitor, or performer of the copyrighted work. If the recipient of HPF assistance incurs costs
to earn the income but does not charge these costs to HPF grant funds, to required matching funds, or
to other program income, such costs may be deducted from the gross income in order to determine
how much must be treated as program income.
The terms of the grant govern the disposition of income subject to this section. Unless the grant terms
treat this kind of income, there are no NPS requirements governing the disposition. A grantee is not
prohibited from imposing its own requirements on the disposition of this type of program income
which is earned by its subgrantees or contractors, provided those requirements are in addition to and
not inconsistent with any requirements imposed by the terms of an HPF grant.
5.

Program income - royalties or income earned from patents or from inventions. Unless the grant
agreement provides otherwise, grantees will have no obligation to NPS with respect to royalties
received as a result of patents or inventions arising out of activities assisted by HPF grants. (See
Chapter 19.)

6.

Program income - income after grant or subgrant support not otherwise treated. This section applies
to program income other than that treated above which arises from or is attributable to an activity
while supported by an HPF grant or subgrant, but which does not accrue until after the period of grant
or subgrant support has ended. One example is the proceeds from the sale or rental of a residual
inventory of merchandise fabricated or purchased by a grant-supported workshop during the period of
support.
The terms of the grant govern the disposition of program income subject to this section. If the terms
of the grant do not treat this kind of income, there are no NPS requirements governing the disposition.
A grantee is not prohibited from imposing requirements of its own on the disposition of this kind of
income which is earned by its subgrantees, provided those requirements are in addition to, and not
inconsistent with, any requirements imposed by the terms of the HPF grant.

7. Interest earned on advances of grant funds.
a. Except where exempted by Federal statute (see paragraph 7.b., below for the principal exception),
the National Trust and all subgrantees of a State shall remit any interest or other investment
income which exceeds $250 per year earned on advances of HPF grant funds. This includes any
interest or investment income earned by subgrantees and contractors on advances to them that are
attributable to an advance of HPF grant funds to the grantee. Unless the grantee receives other
instructions from the responsible NPS official the grantee shall remit the amount due by check or
money order payable to: "National Park Service.” The check or money order must be submitted
to the Historic Preservation Grants Division, National Park Service, 1849 C Street, N.W. (2255),
Washington, DC 20240. The Grant Number should be written on the check and referenced in a
cover letter if possible.
b. Interest earned by all subgrantees (including units of local government) on advances of HPF
funds shall be remitted to NPS except for interest earned on advances to States as provided by the
Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4231) and advances made to tribal
organizations pursuant to Section 102, 103, or 104 of the Indian Self Determination and
Education Assistance Act (25 U.S.C. 450).

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c. Interest earned on the investment of HPF grant funds will be reported on item 13a of the SF 272
Report of Federal Cash Transactions, with the remittance noted on that form.
d. Grantees are cautioned that they are subject to the provisions of Chapter 21 to minimize the time
between the transfer of advances and their disbursement. These provisions apply even if there is
no accountability to NPS for interest or other investment income earned on the advances, in order
to minimize Federal borrowing.
8. Service Fees. States shall not charge a fee to recipients for any service or activity for which HPF
grant assistance is available. This prohibition shall apply to all Program Areas including, but not
limited to National Register nominations and tax certifications, whether or not a State chooses to
apply available HPF assistance to a particular Program Area for which it wishes to charge fees.
However, this prohibition shall not prevent any owner of grant-assisted properties from charging a
reasonable nondiscriminatory admission fee, comparable to fees charged at similar facilities in the
area (see Covenant Requirements, Chapter 6, Section M.).
This prohibition does not apply to nominal fees charged for providing public access to existing
program information (e.g., duplication/photocopying of existing documentation or publications,
access to computer information, and other actions taken to respond to requests from the general
public).
9. Application of program income for grant-related purposes. The grantee will elect any of the three
alternatives specified in Section B.2., above, if the terms and conditions of the grant do not specify
which is to be followed. The grantee will request written approval of its proposed method of
disposition from NPS at the time of grant application or by a program amendment. Failure to request
and obtain written NPS approval of a proposed disposition method may result in audit questioned
costs. The actual use of program income in accordance with the treatment approved by NPS must be
documented in the grantee’s files for audit purposes and reported in accordance with subsection B.10,
below.
10. Reporting program income. Program income will be reported on the SF 272 Report of Federal Cash
Transactions Report, or on the SF 270 Request for Advance or Reimbursement (see Chapter 21), in
the reporting period in which it was accrued. Grantees will record the receipt and expenditure of
revenue (such as taxes, special assessments, levies, fines, etc.) as part of grant transactions when such
revenues are specifically earmarked for a grant in accordance with the grant agreement.

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Chapter 17 - Procurement Standards
A. Applicability.
This Chapter provides standards and guidelines applicable to procurement of supplies, equipment,
construction work, and other services supported with HPF grant funds. These standards are designed to
ensure that such materials and services are obtained efficiently and economically and in compliance with
applicable Federal laws, and OMB Circular A-102, as codified in 43 CFR 12.76 (for States), and OMB
Circular A-110, as codified in 43 CFR 12.940-948 (for the National Trust and non-profit institutions).
B. Grantee/Grantor Responsibility.
1. The grantee is responsible for the settlement of all contractual and administrative issues arising out of
procurements entered into in support of a grant. These include, but are not limited to: source
evaluation, protests, disputes, and claims. NPS will not substitute its judgment for that of the grantee
unless the matter is primarily a Federal concern. Violations of law are to be referred to the local,
State, or Federal authority having proper jurisdiction.
2. Grantees shall use their own procurement procedures which reflect applicable State and local laws
and regulations, provided that procurements for HPF-assisted work conform to the standards set forth
in this Chapter and applicable Federal laws. Accordingly, if State or local requirements are more
stringent (e.g., State regulations require that all contracts over $10,000 be bid), the grantee must
comply with those more restrictive requirements.
3. Grantees should not execute contracts or subgrant agreements until the grant agreement against which
costs will be charged has been executed by NPS, unless written NPS authorization for such
preagreement costs is obtained (see Chapter 13, Item C.8).
4. Grantees shall maintain a contract administration system ensuring that contractors perform in
accordance with the terms, conditions, and specifications of their contracts or purchase orders.
C. Code of Conduct.
Grantees will maintain a written code or standards of conduct which shall govern the performance of their
officers, employees, or agents engaged in the award and administration of contracts supported by HPF
funds. No employee, officer, or agent of the grantee shall participate in the selection, or in the award or
administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would
be involved.
Such a conflict would arise when any of the following has a financial or other interest in the firm selected
for award: (1) the employee, officer, or agent; (2) any member of his immediate family; (3) his or her
partner; or (4) an organization which employs, or is about to employ, any of the above.
The grantee's officers, employees, or agents shall neither solicit nor accept gratuities, favors, or anything
of monetary value from contractors, potential contractors, or parties to subgrant agreements. Grantees
may set minimum rules where the financial interest is not substantial or the gift is an unsolicited item of
nominal intrinsic value.

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To the extent permitted by State or local law or regulations, such standards of conduct shall provide for
penalties, sanctions, or other disciplinary actions for violations of such standards by the grantee's officers,
employees, or agents, or by contractors or their agents. Refer to Chapter 3, Section C. for detailed
requirements involving conflict of interest.
D. Procurement Procedures.
The grantee shall establish procurement procedures which provide that proposed procurement actions
shall be reviewed by grantee officials to avoid the purchase of unnecessary or duplicative items.
Consideration should be given to consolidation or breakdown as appropriate, to obtain a more economical
purchase. Where appropriate, an analysis shall be made of lease-versus-purchase alternatives, and any
other appropriate analysis to determine which approach is the most economical. Grantees and
subgrantees are encouraged to enter into State and local intergovernmental agreements for procurement or
use of common goods and services.
E. Contracting with Minority Business Enterprise and Woman Business Enterprise Firms.
1. It is the Federal Government’s policy to award a fair share of contracts to Minority Business
Enterprises (MBEs) and Woman Business Enterprises (WBEs). The instructions regarding the
reporting of MBEs/WBEs under grants and cooperative agreements awarded by the Department of
the Interior (DOI) bureaus and offices are based on Executive Orders 11625, 12138, and 12432. In
accordance with 43 CFR 12.76 (or 43 CFR 12.944 for nonprofit organizations), affirmative steps
must be taken to assure that MBEs/WBEs are utilized when possible as sources of supplies,
equipment, construction, and services. The affirmative steps shall include the following:
#
#
#
#
#

#

Including qualified MBEs/WBEs on solicitation lists;
Assuring that MBEs/WBEs are solicited once they are identified;
When economically feasible, dividing total requirements into smaller tasks or quantities so as to
permit maximum MBE/WBE participation;
Where feasible, establishing delivery schedules which will encourage MBE/WBE participation;
Encouraging use of the services of the U.S. Department of Commerce's Minority Business
Development Agency (MBDA) and the U. S. Small Business Administration to identify
MBEs/WBEs, as required;
If any subcontracts are to be let, requiring the prime contractor to take the affirmative steps listed
above.

2. Minority Business Enterprise (MBE). An MBE is a business concern that is (1) at least 51 percent
owned by one or more minority individuals, or, in the case of a publicly owned business, at least 51
percent of the stock is owned by one or more minority individuals; and (2) whose daily business
operations are managed and directed by one or more of the minority owners. Executive Order 11652
designates the following:
a. Black American (with origins from Africa);
b. Hispanic American (with origins from Puerto Rico, Mexico, Cuba, South or Central America);
c. Native American (American Indian, Eskimo, Aleut, or native Hawaiian);

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d. Asian-Pacific American (with origins from Japan, China, the Philippines, Vietnam, Korea,
Samoa, Guam, the Republic of Palau, the Republic of the Marshall Islands, and the Federated
States of Micronesia, Northern Marianas, Laos, Cambodia, Taiwan, or the Indian subcontinent);
or
e. Other groups whose members are U. S. citizens and are found to be disadvantaged by the Small
Business Administration pursuant to section 8(d) of the Small Business Act as amended (15
U.S.C. 637(d)), or the Secretary of Commerce.
3. Women's Business Enterprise (WBE). A WBE is a business concern that is,
a. at least 51 percent owned by one or more women, or, in the case of a publicly owned business, at
least 51 percent of the stock is owned by one or more women; and,
b. whose daily business operations are managed and directed by one or more of the women owners.
Business firms which are 51 percent owned by minorities or women, but are in fact managed and
operated by non-minority individuals do not qualify for meeting MBE/WBE procurement goals.
4. Grantees are encouraged to procure goods and services from labor surplus areas.
F. Types of Contracts.
The types of contracts which are allowable when Federal funds are involved include cost reimbursement
contracts, firm fixed-price contracts, fixed-price incentive contracts, or cost-plus-a-fixed-fee contracts.
Other types of special contracts may be acceptable, depending upon the individual circumstances.
However, cost-plus-a-percentage-of-cost and percentage-of-construction-cost contracts may not be used
under any circumstances, and costs incurred under these types of contracts are unallowable.
G. Selection Procedures.
1. All procurement transactions, regardless of whether by sealed bids or by negotiation, and without
regard to dollar value, shall be conducted in a manner that provides maximum open and free
competition consistent with this Chapter. Procurement procedures shall not restrict or eliminate
competition. Examples of what is considered to be restrictive of competition include, but are not
limited to:
a. placing unreasonable requirements on firms in order for them to qualify to do business,
b. noncompetitive practices between firms,
c. organizational conflicts of interest, and
d. unnecessary experience and bonding requirements.
2. The grantee shall have written selection procedures which stipulate that:
a. Solicitations of offers, whether by competitive sealed bids or competitive negotiation, shall:

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1) Incorporate a clear and accurate description of the technical requirements for the material,
product, or service to be procured but which does not unduly restrict competition. The
description may include a statement of the qualitative nature of the material, product or
service to be procured, and, shall set forth those minimum essential characteristics and
standards to which it must conform if it is to satisfy its intended use. (Detailed product
specifications should be avoided.) When it is impractical or uneconomical to make a clear
and accurate description of the technical requirements, a "brand name or equal" description
may be used. The specific features of the named brand which must be met by offerors shall
be clearly stated.
2) Clearly set forth all requirements which offerors must fulfill and all other factors to be used in
evaluating bids or proposals, such as a deadline for completion of project work.
b. Contract awards shall be made only to responsible contractors that possess the potential ability to
perform successfully under the terms and conditions of proposed procurement. Contractor
integrity, compliance with public policy, record of past performance, and financial and technical
resources should be considered. (Note: evidence of default, adverse record of past performance,
or related factors are necessary to demonstrate lack of responsibility.)
c. Contract awards shall not be made to a former employee, contractor or professional who has
developed or has drafted bid specifications, requirements, a statement of work, an invitation for
bids, and/or a request for proposals for a particular procurement. Project records must include
evidence of an analysis by the SHPO that the solicitation or specifications were nonrestrictive.
3. Consultants. States shall apply State government policies with respect to use and payment of
consultant services, shall ensure that those policies apply equally to the use of consultants paid for by
HPF grant funds and by other matching funds, and shall ensure that these will include, at a minimum,
the standards described below. They do not apply to the use of consultants whose fees are treated as
an indirect cost.
4. Written Agreements. Written agreements between the parties shall be executed which detail the
responsibilities, standards, and fees. The grantee shall ensure that the agreement includes the
following provisions pertaining to consultant conduct:
a. A consultant shall not use his/her position for the actual or apparent purpose of private gain other
than payment for services rendered for himself/herself or another person, particularly one with
whom he/she has family, business, or financial ties (see Chapter 3, Section C.).
b. A consultant shall not convey inside information that has not become part of the body of public
information and that would not be available upon request, directly to any person for the purpose
of private gain for himself/herself or another person, particularly one with whom he/she has
family, business, or financial ties.
c. A consultant shall not, either for or without compensation, engage in teaching, lecturing, or
writing that is dependent on information obtained as a result of his/her employment with the
grantee, except when that information has been made available to the general public or will be
made available upon request, or when the SHPO gives written authorization for the use of nonpublic information on the basis that the use is in the public interest.

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H. Methods of Procurement.
Procurement under HPF grants shall be made by one of the following methods: 1) small purchase
procedures; 2) competitive sealed bids ( formal advertising); 3) competitive negotiation; 4)
noncompetitive negotiation. (See Section J, below, concerning required documentation and Chapter 24,
for information relating to retention of procurement records.)
1. Small purchase procedures. Small purchase procedures are simple, informal methods (i.e., imprest
funds, purchase orders, blanket purchase agreements) used for a procurement of services, supplies or
other property, costing in the aggregate not more than $100,000. Grantees shall comply with State or
local small purchase dollar limits if they are lower than the Federal Threshold of $100,000. If small
purchase procedures are used for a procurement under a grant, price or rate quotations shall be
obtained from an adequate number of qualified sources to assure competition.
2. Competitive sealed bids. In competitive sealed bids (formal advertising), sealed bids are publicly
solicited, and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder
whose bid, conforming with all the material terms and conditions of the invitation for bids, is lowest
in price, and is most advantageous to the grantee, considering price, discounts, transportation costs,
taxes, and the contractor's ability to fulfill the contract.
a. In order for formal advertising to be feasible, the following conditions must be present:
1) A complete, adequate and realistic specification or purchase description is available, which
avoids unnecessarily restrictive specifications or requirements which might unduly limit the
number of bidders.
2) Two or more responsible suppliers are willing and able to compete effectively for the grantee's
business.
3) The procurement lends itself to a firm-fixed-price contract, and selection of the successful
bidder can appropriately be made principally on the basis of price.
b. If formal advertising is used for a grant procurement, the following requirements apply:
1) A sufficient time prior to the date set for opening of bids, bids shall be solicited from an
adequate number of known suppliers. (The period allowed for bids to be submitted should
generally be at least 20 to 30 calendar days.) In addition, the invitation shall be publicly
advertised.
2) The invitation for bids, including specifications and pertinent attachments, shall clearly define
the items or services needed in order for the bidders to properly respond to the invitation.
3) All bids shall be opened publicly at the time and place stated in the invitation for bids.
4) A firm-fixed-price contract award shall be made by written notice to that responsible bidder
whose bid, conforming to the invitation for bids, is lowest. Where specified in the bidding
documents, factors such as discounts, transportation costs, and life cycle costs shall be
considered in determining which bid is lowest. Payment discounts may only be used to

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determine low bid when prior experience of the grantee indicates that such discounts are
generally taken.
5) Any or all bids may be rejected when there are sound documented business reasons in the
best interest of the program. If all bids are rejected as too costly, and the scope of work is
then substantially altered, the work must be re-advertised.
c. Guide to Formal Advertising. Formal advertising, with adequate purchase descriptions, sealed
bids, and public openings will be the required method of procurement unless negotiation is
necessary to accomplish sound procurement. Procurements of $100,000 or less need not be
formally advertised unless otherwise required by State or local law or regulation.
Formal advertising includes placing the "Invitation to Bid" in a major newspaper that covers the
area affected by the project. Notices should be published at least three times (which can be either
three successive times in one publication, or published one time simultaneously in three different
publications). Use of pre-selected bid lists, posting in public places, and publication in trade
journals and magazines are legitimate steps to ensure free and open competition and reflect
prudent administration of Federal funds if used in conjunction with newspaper and other mass
media announcements. Minimum documentation of formal advertising for audit purposes
consists of a copy of the actual advertisement run in appropriate newspapers with an invoice
showing the dates published.
The formal advertisement must state that Federal funds are involved and that compliance with all
applicable Federal, State, and local laws, rules, and regulations is required. After all bids are
received, they should be tabulated and summarized in a manner that will facilitate comparison of
the relative advantages and disadvantages of each bid. In awarding contracts which include
additive and deductive bid items, the award procedures should include a disclosure of the
selection priority for these items. This tabulation and/or summary should be signed and dated to
provide documentation as to the basis for awarding the bid.
It is not always necessary to award the contract to the lowest bidder simply because it is the
lowest. There may be important considerations that obviate such action, such as State or local
laws and regulations which make provisions for implementation of socioeconomic programs
giving priority to the disabled, small business, or minority-owned contractors. However, the
justification for doing so should be documented in writing. NPS should be consulted when there
is: (1) failure to receive a sufficient number of bids; (2) great disparity in bid quotations; or (3)
intent to award a contract to other than the low bidder.
If no bid or no acceptable bids are received, a contract can be negotiated for the same scope of
work if each bidder is given notice of this intent and a reasonable opportunity to negotiate. In
such circumstances, notices concerning negotiations should be sent to all bidders, if any, by
certified mail with "signed receipt requested" to provide documentation of compliance. Any
material change in the invitation to bid, including changes in specifications, would necessitate readvertising.
In accordance with OMB Circular A-110, nonprofit grantees may select the most appropriate
procurement procedure without prior concurrence by NPS, unless a sole source procurement in

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excess of $100,000 is involved. However, nonprofit grantees must maintain procurement
records for all purchases in excess of $100,000 which shall include the following: (1) basis for
contractor selection; (2) justification for lack of competition when competitive bids or offers are
not obtained; and (3) basis for award cost or price.
3. Competitive negotiation. In competitive negotiation, proposals are requested from a number of
sources and the Request for Proposal is distributed to several prospective bidders, negotiations are
normally conducted with more than one of the sources submitting offers, and either a fixed-price or
cost-reimbursable type contract is awarded, as appropriate. Competitive negotiation may only be
used if conditions are not appropriate for the use of formal advertising. If competitive negotiation is
used for a procurement under a grant, the following requirements shall apply:
a. Proposals shall be solicited from an adequate number of qualified sources to permit reasonable
competition consistent with the nature and requirements of the procurement. The Request for
Proposals shall be publicized (distributed to several prospective bidders; it does not require
publication) and reasonable requests by other sources to compete shall be honored to the
maximum extent practicable.
b. The Request for Proposals shall identify all significant evaluation factors, including price or cost
where required and their relative importance.
c. The grantee shall provide mechanisms for technical evaluation of the proposals received,
determinations of responsible offerors for the purpose of written or oral discussions, and selection
for contract award.
d. Award may be made to the responsible offeror whose proposal will be most advantageous to the
procuring party, price and other factors considered. Unsuccessful offerors should be notified
promptly.
e. Grantees must use competitive negotiation procedures for procurement of
architectural/engineering professional services, whereby competitors' qualifications are evaluated
and the most qualified competitor is selected, subject to negotiation of fair and reasonable
compensation. Resumes, references, and past work experience will be evaluated to assess
professional qualifications for procurement of professional services.
4. Noncompetitive negotiation. Noncompetitive negotiation is procurement through solicitation of a
proposal from only one source, or after solicitation of a number of sources, competition is determined
inadequate. Noncompetitive negotiation may be used when the award of a contract is infeasible
under small purchase, competitive bidding (formal advertising), or competitive negotiation
procedures. Circumstances under which a contract may be awarded by noncompetitive negotiation
are limited to the following:
a. The item is available only from a single source (which is often best documented after no
responses are received from a preliminary formal advertising);
b. Public exigency or emergency when the urgency for the requirement will not permit a delay
incident to competitive solicitation;

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c. NPS authorizes in writing noncompetitive negotiation because of compelling special
circumstances; or
d. After solicitation of a number of sources, competition is determined inadequate.
I.

Cost or Price Analysis.
Grantees shall perform some form of cost or price analysis in connection with every procurement action,
including contract modifications. Costs or prices based on estimated costs for contracts under grants shall
be allowed only to the extent that costs incurred or cost estimates included in negotiated prices are
consistent with Federal cost principles. In particular, a change order must not be used to increase the cost
of a contract which was deliberately underbid to get the award. Change orders to adjust the cost of the
contract without an increase in scope may be adjusted for materials and labor costs only. The fixed fee
profit amount must remain the same.

J. Grantee Procurement Records.
Grantees shall maintain records sufficient to detail the history of a procurement. These records shall
include, but are not necessarily limited to the following information: rationale for the method of
procurement, selection of contract type, contractor selection or rejection, and the basis for cost or price.
K. Contract Provisions.
In addition to provisions defining a sound and complete procurement contract, any recipient of Federal
grant funds shall include the following contract provisions or conditions in all grant-related contracts and
subcontracts:
1. Contracts other than small purchases shall contain provisions or conditions which will allow for
administrative, contractual, or legal remedies in instances where contractors violate or breach
contract terms, and provide for such sanction and penalties as may be appropriate.
2. All contracts in excess of $100,000 shall contain suitable provisions for termination by the grantee,
including the manner by which it will be effected and the basis for settlement.
3. All construction contracts in excess of $100,000 awarded by grantees and their contractors or
subgrantees shall contain a provision requiring compliance with Executive Order 11246, entitled "
Equal Employment Opportunity", as amended by Executive Order 11375, and as supplemented in
Department of Labor regulations (41 CFR Part 60). (See Chapter 18.)
4. All contracts and subgrants for construction or repair shall include a provision for compliance with
the Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor
regulations (29 CFR Part 3). This Act provides that each contractor or subgrantee shall be prohibited
from inducing, by any means, any person employed in the construction, completion, or repair of
public work, to give up any part of the compensation to which he is otherwise entitled. The grantee
shall report all suspected or reported violations to NPS.
5. The National Historic Preservation Act is silent about and therefore does not require compliance with
the Davis-Bacon Act (40 U.S.C. 276a to a-7). Therefore State law and administrative procedures
govern whether all construction contracts in excess of $2,000 awarded by grantees and subgrantees
shall include a provision for compliance with the Davis-Bacon Act.

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However, HPF grantees should be aware that the provisions of the Davis-Bacon Act are applicable
when: Community Development Block Grant ( CDBG) monies are used as the nonfederal share of an
HPF grant; or supplemental funding is provided through a Federal program to which the Davis-Bacon
Act applies (see Chapter 14, Section L, Use of Federal Funds).
6. The National Historic Preservation Act is silent about and therefore does not require compliance with
the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330). Therefore State law and
administrative procedures govern whether all contracts awarded by grantees and subgrantees in
excess of $2,000 for construction contracts, and in excess of $2,500 for other contracts which involve
the employment of mechanics or laborers shall include a provision for compliance with Sections 103
and 107 of the Contract Work Hours and Safety Standards Act regarding overtime pay and safe
working conditions.
7. The contract shall include notice of NPS requirements and regulations pertaining to reporting and
patent rights under any contract involving research, developmental, experimental, or demonstration
work with respect to any discovery or invention which arises or is developed in the course of or under
such contract, and of NPS requirements and regulations pertaining to copyrights and rights in data
(see Chapter 19).
8. All negotiated contracts awarded by grantees (except those awarded by small purchase procedures)
shall include a provision to the effect that the grantee, the Department of the Interior, the Comptroller
General of the United States, or any of their duly authorized representatives, shall have access to any
books, documents, papers, and records of the contractor which are directly pertinent to that specific
contract, for the purpose of making audit, examination, excerpts, and transcription. Grantees shall
require contractors to maintain all required records for 3 years after grantees make final payments
and all other pending matters are closed.
9. Contracts, subcontracts, and subgrants of amounts in excess of $100,000 shall contain a provision
which requires compliance with all applicable standards, orders, or requirements issued under Section
306 of the Clean Air Act (42 U.S.C. 1857(h)), Section 508 of the Clean Water Act (33 U.S.C. 1368),
Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15), which
prohibit the use under non-exempt Federal contracts, grants, or loans of facilities included on the
EPA List of Violating Facilities. The provision shall require reporting of violations to the grantor
agency (NPS) and to the EPA Assistant Administrator for Enforcement.
10. Contracts shall recognize mandatory standards and policies relating to energy efficiency which are
contained in the State energy conservation plan issued in compliance with the Energy Policy and
Conservation Act (P.L. 94-165). NPS may require changes, remedies, changed conditions, access and
record retention, and suspension of work clauses approved by the Office of Federal Procurement
Policy.
L. Bonding and Insurance.
Grantees are to follow their own requirements relating to bid guarantees, performance bonds, and
payment bonds unless the construction contract or subcontract exceeds $100,000. For those over
$100,000 NPS may accept the grantee's procedures if NPS determines that the Federal Government's
interests are adequately protected (see 43 CFR 12.76 or 43 CFR 12.948(c)).

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1. Definitions.
a. Bid guarantee. A bid guarantee is a firm commitment, such as a bid bond, certified check, or
other negotiable instrument accompanying a bid as assurance that the bidder will, upon
acceptance of the bid, execute such contractual documents as may be required within the time
specified.
b. Performance bond. A performance bond is a bond executed in connection with a contract to
secure fulfillment of all the contractor's obligations under the contract.
c. Payment bond. A payment bond is executed in connection with a contract to assure payment, as
required by law, of all persons supplying labor and material in the execution of the work provided
for in the contract.
2. Contracts for Construction.
a. Bids and contracts of $100,000 or less. Except as otherwise required by law, the grantee shall
follow its own regular requirements and practices relating to bid guarantees, performance bonds,
and payment bonds.
b. Bids and contracts exceeding $100,000. The recipient may follow its own regular policy and
requirements if NPS has determined that the Federal Government's interest will be adequately
protected. If this determination has not been made, the minimum requirements shall be as
follows:
1) A bid guarantee from each bidder equivalent to 5 percent of the bid price;
2) A performance bond on the part of the contractor for 100 percent of the contract price; and
3) A payment bond on the part of the contractor for 100 percent of the contract price.
3. Sources of Bonds. Where bonds are required in the situations described above, the bonds shall be
obtained from companies holding certificates of authority as acceptable sureties (31 CFR 223). A list
of these companies is published annually by the Department of the Treasury in its Circular 570 (the
current list can be accessed at http://www.fms.treas.gov/c570/c570.html). The Department of the
Treasury Circular 570 may also be obtained from the Government Printing Office, 732 North Capitol
St. NW • Washington, DC 20401 (202) 512-1800.
M. Record keeping and Access to Contractor Records.
43 CFR 12.76 and 43 CFR 12.948 both require grantees (and subgrantees) to include in specified kinds of
contracts a provision for access to the contractors' records by the grantee and by the Federal Government.
The following applies to the provision:
1. The provision must require the contractor to place the same provision in any subcontract which would
have to have the provision were it awarded directly to the subgrantee.
2. The provision must require retention of records for 3 years after final payment is made under the
contract or subcontract and all pending matters are closed. The provision must also require that, if an

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audit, litigation, or other action involving the records is started before the end of the 3-year period, the
records must be retained until all issues arising out of the action are resolved or until the end of the 3year period, whichever is later.
3. In contracts and subcontracts under a subgrant, the provision must require that access to the records
be provided to the grantee as well as the subgrantee and the Federal Government.

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Historic Preservation Fund Grants Manual
Chapter 17 Procurement Standards
EXHIBIT 17-A MBE/WBE UTILIZATION UNDER FEDERAL GRANTS,
COOPERATIVE AGREEMENTS, AND OTHER FEDERAL FINANCIAL ASSISTANCE
OMB NOS. 9999-0001 AND 0640-0017
PART 1. (REPORTS ARE REQUIRED QUARTERLY EVEN IF NO CONTRACTS TO MBE/WBE FIRMS WERE MADE)
1.A. FEDERAL FISCAL YEAR

1.B. REPORTING QUARTER (Check appropriate box)
1st (Oct.-Dec.)
3rd (Apr.-Jun.)

2nd (Jan.-Mar.)
4th (Jul.-Sep.)

2.FEDERAL FINANCIAL ASSISTANCE AGENCY
(Department/Agency, Bureau/Administrating
Office, Address)

3.REPORTING RECIPIENT (Name and Address)

2.A.

3.A. REPORTING CONTACT

REPORTING CONTACT

PHONE:

4.A.FINANCIAL ASSISTANCE AGREEMENT ID NUMBER

PHONE:

4.B.FEDERAL FINANCIAL ASSISTANCE PROGRAM
15.904 HISTORIC PRESERVATION

4.C.

TYPE OF FEDERAL ASSISTANCE AGREEMENT
GRANT

COOPERATIVE AGREEMENT
OTHER FEDERAL FINANCIAL
ASSISTANCE

5.A.
PERIOD WHEN PROCUREMENT UNDER THIS
AWARD WILL OCCUR
END DATE:
START DATE:
5.B.

AMOUNT OF TOTAL
PROJECT DOLLARS
PLANNED FOR
PROCUREMENT THIS
FISCAL YEAR

5.C. RECIPIENT'S MBE/WBE GOALS
(Percent of total procurement dollars (5b) for each)
MBE

%

WBE
%

5.D. MBE/WBE PROCUREMENT ACCOMPLISHED THIS
QUARTER
MBE $
WBE $

5.E.

NEGATIVE REPORT (Check)
SEE INSTRUCTIONS

6. COMMENTS:

7. NAME OF AUTHORIZED REPRESENTATIVE

TITLE

8. SIGNATURE OF AUTHORIZED REPRESENTATIVE

DATE

STANDARD FORM 334

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AUTHORIZED FOR LOCAL REPRODUCTION

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Historic Preservation Fund Grants Manual
Chapter 17 Procurement Standards
MBE/WBE PROCUREMENT OVER $10,000 MADE DURING REPORTING QUARTER
PART II.
Procurement Made By

Business Enterprise

Recipient

Minority

Other

Women

$ Value of
Procurement

Date of Award
(MM/DD/YY)

*

Type of Product or
Service (Enter Code)

*

Type of Product Service Codes
1. Agriculture
5. Transportation
9. Services
2. Mining
10. Other
6. Whole Sale Trade
7. Retail Trade
3. Construction
4. Manufacturing
8. Finance, Insurance, Real Estate

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a=Business Services
b=Professional Services
c=Repair Services
d=Personal Services

Name/Address of MBE/WBE
Contractor or Vendor

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Exhibit 17-A (Continued)
INSTRUCTIONS for MBE Report (SF 334)
MBE/WBE UTILIZATION UNDER FEDERAL GRANTS, COOPERATIVE
AGREEMENTS, AND OTHER FEDERAL FINANCIAL ASSISTANCE
A. General Instructions: MBE/WBE utilization is based on Executive Orders 11625, 12138 and 12432
and OMB Circular A-102. Standard Form 334 must be completed by recipients of Federal grants,
cooperative agreements, or other Federal financial assistance valued at $500,000 or more and which
involve procurement of supplies, equipment, construction or services to accomplish Federal
assistance programs. Even if no procurements involving minority firms were awarded, a report
must be filed each quarter by grantees who receive more than $500,000 of Federal assistance.
Recipients are required to report to agency award officials within 15 calendar days following the end
of each Federal fiscal year quarter (i.e., January, April, July, and October).
B. Definitions: Procurement is the acquisition through order, purchase, lease or barter of supplies,
equipment, construction or services needed to accomplish federal assistance programs.
A minority business enterprise (MBE) is a business concern that is (1) at least 51 percent owned by
one or more minority individuals, or, in the case of a publicly owned business, at least 51 percent of
the stock is owned by one ore more minority individuals and (2) whose daily business operations are
managed and directed by one ore more of the minority owners.
There is no standard definition of minority individuals used by all Federal assistance agencies.
However, recipients shall presume that minority individuals include Black Americans, Hispanic
Americans, Native Americans, Asian Pacific Americans, or other groups whose members are found
to be disadvantaged by the Small Business Act or by the Secretary of Commerce under Section 5 of
Executive Order 11625. The reporting contact at your Federal financial assistance agency can
provide additional information.
A woman business enterprise (WBE) is a business concern that is, (1) at least 51 percent owned by
one or more women, or, in the case of a publicly owned business, at least 51 percent of the stock is
owned by one or more women: and, (2) whose daily business operations are managed and directed by
one or more of the women owners.
Business firms which are 51 percent owned by minorities or women, but are in fact managed and
operated by non-minority individuals do not qualify for meeting MBE/WBE procurement goals.
C. Instructions for Part 1:
1. Complete Federal fiscal year and check applicable reporting quarter. (Federal fiscal year runs
from October 1 through September 30.)
2. Identify the Federal financial assistance department or agency including the bureau, office or
other subactivity which administers your financial assistance agreement.

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3. Identify the agency, state, authority, university or other organization which is the recipient of the
Federal financial assistance and the person to contact concerning this report.
4a. Assistance agreement number assigned by Federal financial assistance agency.
4b. If appropriate, identify specific department or agency Federal financial assistance program under
which this project is awarded.
4c. Check type of Federal assistance.
5a. Period during which contracts and other purchases under this award will actually be executed.
5b. Includes procurement using Federal funds plus recipient matching funds and funds from other
sources.
5c. Portion of total procurement dollars recipient plan to spend with MBEs or WBEs this fiscal year.
With the concurrence of the Federal financial assistance agency, a fair share goal shall be
determined by each recipient.
5d. Dollar amount of all MBE/WBE contracts awarded under this assistance agreement this quarter.
5e. Check only if one or more procurements in excess of $10,000 were executed this reporting
quarter but no MBE/WBE procurements occurred. Sign and date form and return it to Federal
financial assistance agency.
6. Additional comments or explanations. Please refer to specific item number(s) if appropriate.
7. Name and title of official administrator or designated reporting official.
8. Signature and month, day, year report submitted.
D. Instructions for Part II: For each MBE/WBE procurement over $10,000 made under this assistance
agreement during the reporting quarter, provide the following information. (Recipients may also
report on individual MBE/WBE procurements of less than $10,000 if they want these credited toward
their MBE/WBE goals. However, reporting on smaller procurements is not required.)
1. Check whether this is a first tier procurement made directly by Federal financial assistance
recipient or other second tier procurement made by recipient's subgrantee or prime contractor.
Include all qualifying second tier purchases executed this quarter regardless of when the first tier
procurement occurred.
2. Check MBE or WBE.
3. Dollar value of procurement.
4. Date of award, shown as month, day, year.

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5. Using codes at the bottom of the form, identify type of product or service acquired through this
procurement (e.g., enter 1 if agriculture, 2 if mining, etc.).
6. Name and address of MBE/WBE firm.

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Chapter 18 - Equal Employment Opportunity Construction
Contract Compliance
A. Purpose.
This Chapter implements certain compliance procedures required by Executive Order 11246, and by
the Office of Federal Contract Compliance Programs (OFCCP) of the Department of Labor (41 CFR
60-4). These regulations apply to all federally-assisted construction contracts and subcontracts in
excess of $10,000. In determining whether HPF-assisted construction contracts exceed this dollar
limit, the total amount of the contract awarded, rather than the amount of Federal assistance, shall
apply.
B. Women and Minority Construction Hiring Goals.
The Department of Labor has developed regulations regarding goals and timetables for female and
minority participation in the construction industry (41 CFR 60-4). Certain geographic areas have
been established for the purpose of establishing goals for minority participation in the construction
industry. A list of these geographic areas is found in the Federal Register of May 5, 1978: goals and
timetables established for women are national in scope and apply uniformly throughout the Nation,
and are found in Appendix A of Women and Minorities in Construction; goals and timetables
established for minorities apply only in the specific geographic areas listed in Appendix B of Women
andMinorities in Construction.
C. Grantee Responsibilities.
The following are grantee responsibilities under Executive Order 11246 for HPF construction projects
as well as responsibilities which must be required of subgrantees:
The grantee must provide a copy to contract bidders of the “ Notice of Requirement for Affirmative
Action to Ensure Equal Employment Opportunity,” including goals which are to be inserted by
contracting officer or applicant. (See Exhibit 18-A of this Chapter.) Goals may be obtained from the
OFCCP.
1. For construction contracts over $10,000 the following must be included in the contract:
a. “ Equal Opportunity Clause” (This may be included by reference; see Exhibit 18-C.)
b. “Standard Federal Equal Employment Opportunity Construction Contract Specification” (see
Exhibit 18-B.)
c. “Certification of Non-Segregated Facilities” signed by prime contractor and subcontractor.
(See Exhibit 18-D)
2. Provide notice of contract awards subject to these provisions to Director of OFCCP within 10
days after the award (including name, address and telephone number of contractor, employer
identification number, dollar amount of contract, estimated starting and completion dates,
contract number, and geographical area in which the contract is to be performed). Notice is to be

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sent to OFCCP's Regional Office or Area office. The location of these offices is listed in Section
F, below.
3. Ensure that EEO posters are displayed at federally assisted construction sites. Posters may be
obtained from OFCCP.
4. Ensure that contractors engaged in federally assisted construction contracts are providing data and
reports to the appropriate OFCCP regional office as required or requested.
5. Ensure that the provisions of the “Equal Opportunity Clause” (Exhibit 18-C) are also followed for
construction contracts involving force account labor (see Glossary).
6. Pursuant to Executive Order 11246, carry out sanctions and penalties imposed by the Secretary of
Labor upon the federally assisted construction contractor or subcontractor, and refrain from
entering into any contract, extension of a contract, or other modification of such a contract with a
contractor debarred from Government contracts under this Order. Debarred contractors are listed
at the General Services Administration web site at http://www.epls.gov/
D. Contractor Responsibilities.
The following are the responsibilities of federally assisted construction contractors under Executive
Order 11246.
1. Abide by the provisions of the “Equal Opportunity Clause” (Exhibit 18-C).
2. Abide by the provisions of the following: “Notice of Requirement for Affirmative Action to
Ensure Equal Employment Opportunity.” (Exhibit 18-A), and “The Standard Federal Equal
Employment Opportunity Construction Contract Specification.” (Exhibit 18-B).
3. Ensure that personnel decisions are also in accordance with the following:
a. Uniform Guidelines on Employee Selection Procedures (see 41 CFR 60-3).
b. Guidelines Restricting Sex Discrimination (see 41 CFR 60-20).
c. Guidelines on Restricting Discrimination Because of Religion or National Origin (see 41
CFR 60-50).
4. Incorporate into all subcontracts the following:
a. “Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity.”
(Exhibit 18-A)
b. “The Standard Federal Equal Employment Opportunity Construction Contract Specification”.
(Exhibit 18-B)
c. “The Equal Opportunity Clause.” (Exhibit 18-C)

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5. Provide data and reports to OFCCP as required or requested, including the following:
a. One-time notification within 10 days of all construction projects in the designated geographic
area, Federal and nonfederal, by agency, contract number, location, estimated dollar value,
percent completed and project completion date.
b. Notification of any subsequent construction work (Federal and nonfederal) in the designated
geographic area in excess of $10,000.
c. Workforce Utilization Report to be filed monthly (Form CC-257, available from OFCCP, see
Section F for the OFCCP address).
6. Maintain non-segregated facilities.
7. Include a signed “Certification of Non-Segregated Facilities” in contracts and require subcontractors to include a signed “Certification of Non-Segregated Facilities.” (See Exhibit 18-D.)
8. Expressly state in all employment solicitation or advertising that the contractor is an Equal
Opportunity Employer.
9. Display Equal Opportunity Poster.
10. Allow OFCCP personnel access to site, records, and employees for purpose of determining the
contractor's compliance status.
11. Refrain from entering into contracts with contractors debarred from Federal contracts or federally
assisted construction contracts. A list of debarred contractors is available at the General Services
Administration web site at http://www.epls.gov/.
E. Sanctions.
In the event of noncompliance with the provisions of this Chapter, sanctions outlined in Section
303(b) of Executive Order 11246 and 41 CFR 60-1.4(b) may include one or all of the following NPS
actions:
1. Cancellation, termination, or suspension, in whole or in part, of the grant.
2. Refraining from extending any further assistance to the grantee or subgrantee until satisfactory
assurance of future compliance has been received.
3. Referring the case to the U.S. Department of Justice for appropriate action.
F. Complaints.
States and local project sponsors receiving complaints alleging violation of Executive Order 11246,
as amended, by contractors or by any of their subcontractors shall promptly transmit such complaints
to the appropriate Department of Labor Regional Office; (Office of Federal Contract Compliance
Programs). A list of OFCCP’s Regional, District, and Area Offices’ addresses and telephone listings
is available from the Office of Federal Contract Compliance Programs.

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Chapter 18 Equal Employment Opportunity Construction Contract Compliance

Office of Federal Contract Compliance Programs
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
[email protected].
1-800-397-6251

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Chapter 18 Equal Employment Opportunity Contract Compliance

EXHIBIT 18-A NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION
TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY
(EXECUTIVE ORDER 11246)
1. The Offeror's or Bidder's attention is called to the “Equal Opportunity Clause” and the “Standard Federal
Equal Employment Opportunity Construction Contract Specifications” set forth herein.
2. The goals and timetables for minority and female participation, expressed in percentage terms for the
Contractor's aggregate workforce in each trade on all construction work in the covered area, are as
follows:

TIMETABLES

Goals for Minority
Participation for
Each Trade

Goals for Female
Participation in
Each Trade

(Insert Goals for
Each Year)

(Insert Goals for
Each Year)

These goals are applicable to all the Contractor's construction work (whether it is Federal or federally
assisted) performed in the covered area.
The Contractor's compliance with the Executive Order and the regulations in 41 CFR 60-4 shall be based on
the Contractor's implementation of the Equal Employment Clause, specific affirmative action obligations
required by the specification set forth in 41 CFR 60-4.3(a), and the Contractor's efforts to meet the goals
established for the geographical areas where the contract resulting from this solicitation is to be performed.
The hours of minority and female employment and training must be substantially uniform throughout the
length of the contract, and in each trade, and the contractor shall make a good faith effort to employ minorities
and women evenly on each of its projects. The transfer of minority or female employees or trainees from
Contractor-to-Contractor or from project-to-project for the sole purpose of meeting the Contractor's goals
shall be a violation of the contract, the Executive Order and the regulations in 41 CFR 60-4. Compliance with
the goals will be measured against the total work hours performed.
3. The Contractor shall provide written notification to the Director of the Office of Federal Contract
Compliance Programs within 10 working days of award of any construction subcontract in excess of
$10,000 at any tier for construction work under the contract resulting from this solicitation. The
notification shall list the name, address, and telephone number of the subcontractor; and the geographical
area in which the contract is to be performed.
4. As used in this Notice, and in the contract resulting from this solicitation, the “covered area” is (insert
description of the geographical areas where the contract is to be performed giving the State, county and
city, if any).

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EXHIBIT 18-B STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY
CONSTRUCTION CONTRACT SPECIFICATIONS
(EXECUTIVE ORDER 11246)
1. As used in these specifications:
a. “Covered area” means the geographic area described in the solicitation from which this contract
resulted.
b. “Director” means Director, Office of Federal Contract Compliance Programs, United States
Department of Labor, or any person to whom the Director delegates authority.
c. “Employer identification number” means the Federal Social Security Number used on the Employer's
Quarterly Federal Tax Return, U.S. Treasury Department Form 941.
d. “Minority” includes:
(i) Black (all persons having origins in any of the Black African racial groups not of Hispanic
origin):
(ii) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American or other
Spanish Culture or origin, regardless of race);
(iii) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far
East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); and
(iv) American Indian or Alaskan Native (all persons having origins in any of the original peoples of
North America and maintaining identifiable tribal affiliations through membership and
participation or community identification).
2. Whenever the Contractor, or any Subcontractor at any tier, subcontracts a portion of the work involving
any construction trade, the Contractor/Subcontractor shall physically include in each subcontract in
excess of $10,000 the provisions of these specifications and the Notice which contains the applicable
goals for minority and female participation and which is set forth in the solicitations from which the
contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a Hometown Plan approved by the U.S.
Department of Labor in the covered area either individually or through an association, the Contractor's
affirmative action obligations on all work in the Plan Area (including goals and timetables) shall be in
accordance with that Plan for those trades which have unions participating in the Plan. Contractors must
be able to demonstrate their participation in and compliance with the provisions of any such Hometown
Plan. Each Contractor or Subcontractor participating in an approved Plan is individually required to
comply with their obligations under the EEO clause, and to make a good faith effort to achieve each goal
under the Plan in each trade in which it has employees. The overall good faith performance by other
Contractors or Subcontractors toward a goal in an approved Plan does not excuse

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any covered Contractor's or Subcontractor's failure to take good faith efforts to achieve the Plan's goals
and timetables.
4. The Contractor shall implement the specific affirmative action standards provided in paragraphs 7a
through 7p of this Attachment. The goals set forth in the solicitation are expressed as percentages of the
total hours of employment and training that the Contractor should reasonably be able to achieve for
minority and female utilization in each construction trade in which it has employees in the covered area.
The Contractor is expected to make substantially uniform progress toward these goals in each craft during
the period specified.
5. Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the
Contractor has a collective bargaining agreement to refer either minorities or women, shall excuse the
Contractor's obligations under these specifications, Executive Order 11246, or the regulations
promulgated pursuant thereto.
6. In order for the nonworking training hours of apprentices and trainees to be counted in meeting the goals,
such apprentices and trainees must be employed by the Contractor during the training period, and the
Contractor must have made a commitment to employ the apprentices and trainees at the completion of
their training, subject to the availability of employment opportunities. Training must be in accordance
with training programs approved by the U.S. Department of Labor.
7. The Contractor shall take specific affirmative actions to ensure equal employment opportunity. The
evaluation of the Contractor's compliance with these specifications shall be based upon the Contractor's
efforts to achieve maximum results from these actions. The Contractor shall document these efforts fully,
and shall implement affirmative action steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and coercion at all
sites, and in all facilities at which the Contractor's employees are assigned to work. The Contractor,
where possible, will assign two or more women to each construction project. The Contractor shall
specifically ensure that all foremen, superintendents, and other on-site supervisory personnel are
aware of and carry out the Contractor's obligation to maintain such a working environment, with
specific attention to minority or female individuals working at such sites or in such facilities.
b. Establish and maintain a current list of minority and female recruitment sources, provide written
notification to minority and female recruitment sources and to community organizations when the
Contractor or the Contractor's union have employment opportunities available, and maintain a record
of the organizations' responses. (See Chapter 17, Section E.2.)
c. Maintain a current file of the names, addresses and telephone numbers of each minority and female
off-the-street applicant and minority or female referral from a union, a recruitment source or
community organization and of what action was taken with respect to each such individual. If such
individual was sent to the union hiring hall for referral and was not referred back to the Contractor by
the union, or if referred, not employed by the Contractor, this shall be documented in the file with the
reason therefore, along with whatever additional actions the Contractor may have taken.
d. Provide immediate written notification to the Director when the union or unions with which the
Contractor has a collective bargaining agreement has not referred to the Contractor a minority person

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or woman sent by the Contractor, or when the Contractor has other information that the union referral
process has impeded the Contractor's effort to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in training programs for the areas which
expressly include minorities and women, including upgrading programs and apprenticeship and
trainee programs relevant to the Contractors' employment needs, especially those programs funded or
approved by the Department of Labor. The Contractor shall provide notice of these programs to the
sources compiled under 7b, above.
f.

Disseminate the Contractor's EEO policy by providing notice of the policy to unions and training
programs and requesting their cooperation in assisting the Contractor in meeting EEO obligations; by
including it in any policy manual and collective bargaining agreement; by publicizing it in the
company newspaper; annual report, etc.; by specific review of the policy with all management
personnel and with all minority and female employees at least once a year; and by posting the
company EEO policy on bulletin boards accessible to all employees at each location where
construction is performed.

g. Review, at least annually, the company's EEO policy and affirmative action obligations under these
specifications with all employees having any responsibility for hiring, assignment, layoff, termination
or other employment decisions including specific review of these items with onsite supervisory
personnel such as superintendents, general foremen, etc., prior to the initiation of construction work at
any job site. A written record shall be made and maintained identifying the time and place of these
meetings, persons attending, subject matter discussed, and disposition of the subject matter.
h. Disseminate the Contractor's EEO policy externally by including it in any advertising in the news
media, specifically including minority and female news media, and providing written notification to
and discussing the Contractor's EEO policy with other Contractors and Subcontractors with whom the
Contractor does or anticipates doing business.
i.

Direct recruitment efforts, both oral and written, to minority, female and community organizations, to
schools with minority and female students and to minority and female recruitment and training
organizations serving the Contractor's recruitment area and employment needs. Not later than one
month prior to the date for the acceptance of applications for apprenticeship or other training by any
recruitment sources, the Contractors shall send written notification to organizations such as the above,
describing the openings, screening procedures, and tests to be used in the selection process.

j.

Encourage present minority and female employees to recruit other minority persons and women and,
where reasonable, provide after school, summer and vacation employment to minority and female
youth both on the site and in other areas of a Contractor's workforce.

k. Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR
60-3.
l.

Conduct, at least annually, an inventory and evaluation of at least all minority and female personnel
for promotional opportunities and encourage these employees to seek or to prepare for, through
appropriate training, etc., such opportunities.

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m. Ensure that seniority practices, job classifications, work assignments and other personnel practices, do
not have a discriminatory effect by continually monitoring all personnel and employment-related
activities to ensure that the EEO policy and the Contractor's obligations under these specifications are
being carried out.
n. Ensure that all facilities and company activities are nonsegregated except that separate or single-user
toilet and necessary changing facilities shall be provided to assure privacy between the sexes.
o. Document and maintain a record of all solicitations of offers for subcontracts from minority and
female construction contractors and suppliers, including circulation of solicitations to minority and
female contractor associations and other business associations.
p. Conduct a review, at least annually, of all supervisors' adherence to and performance under the
Contractor's EEO policies and affirmative action obligations.
8. Contractors are encouraged to participate in voluntary associations which assist in fulfilling one or more
of the affirmative action obligations (7a through 7p). The efforts of a contractor association, joint
contractor-union, contractor-community (or other similar group of which the contractor is a member and
participant), may be asserted as fulfilling any one or more of their obligations under 7a through 7p of
these specifications provided that:
a. the contractor actively participates in the group,
b. makes every effort to assure that the group has a positive impact on the employment of minorities and
women in the industry,
c. ensures that the concrete benefits of the program are reflected in the Contractor's minority and female
workforce participation,
d. makes a good faith effort to meet its individual goals and timetables,
e. and can provide access to documentation which demonstrates the effectiveness of actions taken on
behalf of the Contractor.
The obligation to comply, however, is the Contractor's and failure of such a group to fulfill an obligation
shall not be a defense for the Contractor's noncompliance.
9. The Contractor is required to provide equal employment opportunity and to take affirmative action for all
minority groups, both male and female, and all women, both minority and non-minority. Consequently,
the Contractor may be in violation of the Executive Order if a particular group is employed in
substantially disparate manner (for example, even though the Contractor has achieved the goals for
women generally, the Contractor may be in violation of the Executive Order if a specific minority group
of women is underutilized).
10. The Contractor shall not use the goals and timetables of affirmative action standards to discriminate
against any person because of race, color, religion, sex, or national origin.

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11. The Contractor shall not enter into any subcontract with any person or firm debarred from government
contracts pursuant to Executive Order 11246.
12. The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the
Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as
may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing
regulations, by the Office of Federal Contract Compliance Programs. Any Contractor who fails to carry
out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246,
as amended.
13. The Contractor, in fulfilling the obligations under these specifications, shall implement specific
affirmative action steps, at least as extensive as those standards prescribed in paragraph 7 of this
Attachment, so as to achieve maximum results from the efforts to ensure equal employment opportunity.
If the Contractor fails to comply with the requirements of the Executive Order, the implementing
regulations, or these specifications, the Director shall proceed in accordance with 41 CFR 60-4.8.
14. The Contractor shall designate a responsible official to monitor all employment-related activity to ensure
that the company EEO policy is being carried out, to submit reports relating to the provisions thereof as
may be required by the Government, and keep records. Records shall at least include for each employee
the name, address, telephone numbers, construction trade, union affiliation if any, employee identification
number when assigned, social security number, race, sex, status (e.g., mechanic, apprentice, trainee,
helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay,
and locations at which the work was performed. Records shall be maintained in an easily understandable
and retrievable form; however, to the degree that existing records satisfy this requirement, contractors
shall not be required to maintain separate records.
15. Nothing herein provided shall be construed as a limitation upon the application of other laws which
establish different standards of compliance or upon the application of requirements for hiring of local or
other area residents (e.g., those under the Community Development Block Grant Program).

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EXHIBIT 18-C EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for
construction work, or modification thereof, as defined in the regulations of the Secretary of Labor codified as
41 CFR Chapter 60, which is paid for in whole or in part with funds obtained from the Federal Government or
borrowed on the credit of the Federal Government pursuant to a grant, contract, loan insurance, or guarantee,
or undertaken pursuant to any Federal program involving such grant, contract, loan insurance, or guarantee,
the following equal opportunity clause:
During the performance of this contract, the contractor agrees to the following:
1. The contractor will not discriminate against any employee or applicant for employment because of race,
color, religion, sex, or national origin. The contractor will take affirmative action to ensure the applicants
are employed, and that employees are treated during employment without regard to their race, color,
religion, sex, or national origin.
2. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the
contractor, state that all qualified applicants will receive consideration for employment without regard to
race, color, religion, sex, or national origin.
3. The contractor will send to each labor union or representative of workers with which the Contractor has a
collective bargaining agreement or other contract or understanding, a notice to be provided advising the
said labor union or workers' representatives of the Contractor's commitments under this section, and shall
post copies of the notice in conspicuous places available to employees and applicants for employment.
4. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of
the rules, regulations, and relevant orders of the Secretary of Labor.
5. The contractor will furnish all information and reports required by Executive Order 11246, and by rules,
regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to all books,
records, and accounts by the administering agency and the Secretary of Labor for purposes of
investigation to ascertain compliance with such rules, regulations, and others.
6. In the event of the Contractor's noncompliance with the nondiscrimination clauses of this contract or with
any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in
whole or in part and the contractor may be declared ineligible for further Government contracts or
federally assisted construction contracts in accordance with procedures authorized in Executive Order
11246, and such other sanctions may be imposed and remedies invoked as provided in that Executive
Order, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
7. The contractor will include the portion of the sentence immediately preceding paragraph (1) and the
provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules,
regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246,
so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such
action with respect to any subcontract or purchase order as the administering agency may direct as a
means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in

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the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor
as a result of such direction by the administering agency, the contractor may request the United States to
enter into such litigation to protect the interests of the United States.
The applicant further agrees to be bound by the above equal opportunity clause with respect to its own
employment practices when participating in federally assisted construction work; provided, that if the
applicant so participating is a State or local government, the above equal opportunity clause is not
applicable to any agency, instrumentality, or subdivision of such government which does not participate
in work on or under the contract.
The applicant agrees to assist and cooperate actively with the administering agency and the Secretary of
Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause
and the rules, regulations, and relevant orders of the Secretary of Labor, to furnish the administering
agency and the Secretary of Labor such information as they may require for the supervision of such
compliance, and to otherwise assist the administering agency in the discharge of the agency’s primary
responsibility for securing compliance.
The applicant further agrees to refrain from entering into any contract or contract modification subject to
Executive Order 11246, with a contractor debarred from, or who has not demonstrated eligibility for,
Government contracts and federally-assisted construction contracts pursuant to the Executive Order and
will carry out such sanctions and penalties for violation of the equal opportunity clause as may be
imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor
pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that failure or
refusal to comply with these undertakings may cause the administering agency to take any or all of the
following actions: cancel, terminate, or suspend in whole or in part this grant, contract, loan, insurance,
guarantee; refrain from extending any further assistance to the applicant under the program with respect
to which the failure or refusal occurred until satisfactory assurance of future compliance has been
received from such applicant; and refer the case to the U.S. Department of Justice for appropriate legal
proceedings.

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Chapter 18 Equal Employment Opportunity Contract Compliance

EXHIBIT 18-D CERTIFICATION OF NON-SEGREGATED FACILITIES
(Applicable to federally assisted construction contracts and related subcontracts exceeding $10,000 which
are not exempt from the Equal Opportunity clause).
The federally-assisted construction contractor certifies that he/she does not maintain or provide for his/her
employees any segregated facilities at any of his/her establishments, and that he does not permit his/her
employees to perform their services at any location, under his/her control, where segregated facilities are
maintained. The federally-assisted construction contractor certifies further that he/she will not maintain
or provide for his/her employees any segregated facilities at any of his/her establishments, and that he/she
will not permit his/her employees to perform their services at any location, under his/her control, where
segregated facilities are maintained. The federally-assisted construction contractor agrees that a breach of
this certification is a violation of the Equal Opportunity clause in this contract. As used in this
certification, the term “segregated facilities” means any waiting room, work area, rest rooms and other
storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas,
transportation, and housing facilities provided for employees which are segregated by explicit directive or
are in fact segregated on the basis of race, creed, color, or national origin, because of habit, local custom,
or otherwise. The federally-assisted construction contractor agrees that (except where he/she has obtained
identical certifications from proposed subcontractors for specific time periods) he/she will obtain identical
certifications from proposed subcontractors prior to the award of subcontracts exceeding $10,000 which
are not exempt from the provisions of the Equal Opportunity clause, and that he/she will retain such
certifications in his/her files.

Signature

Date

Name and Title of Signer (Please Type)

(NOTE: The penalty for making false statements in offers is prescribed in 18 U.S.C. 1001.)

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Chapter 19 - Property Management Standards
A. Purpose.
This Chapter sets forth standards governing the acquisition, use, and disposition of real property,
equipment, and supplies purchased in whole or in part with HPF grant assistance in accordance with
OMB Circulars A-102 (as codified in 43 CFR 12.71-73), and Circular A-110 (as codified in 43 CFR
12.930-937). To be considered acquired with HPF grant support, some or all of the property's
acquisition cost must be a direct cost under the grant, a subgrant, or a cost-type contract and must be
either borne by grant funds or counted toward satisfying a grant matching requirement. This Chapter
also deals with inventions, patents, and copyrights arising out of activities assisted by a grant or
subgrant. Grantees must follow their own property management policies and procedures provided the
requirements of this Chapter are observed. NPS shall not impose additional property management
requirements on grantees unless specifically required by Federal laws or Executive Orders.
B. Scope and Applicability.
The provisions of this Chapter apply to both grantees and subgrantees. It is the grantee's
responsibility to ensure that its subgrantees, including Certified Local Governments, comply with
these property management standards.
Exceptions. This Chapter does not apply to:
1. property where only depreciation or use allowances are charged;
2. property donated entirely as a third-party in-kind contribution (as defined in Chapter 14);
3. equipment or supplies acquired primarily for sale or rental;
4. equipment or supplies acquired by a contractor under a grant or subgrant when, by the terms of
the contract, title is not vested in the grantee or subgrantee; or
5. real property purchased with HPF grant assistance when title is subject to the preservation
covenant, unless otherwise specified in the grant agreement, or unless the property will be used
by the grantee for office space.
C. Definitions.
1. Real property. Land, land improvements, structures, and appurtenances thereto, but excluding
movable machinery and equipment.
2. Personal property. Property of any kind except real property. Such property may be tangible
(having physical existence) or intangible (having no physical existence, such as patents,
inventions, or copyrights).
3. Nonexpendable personal property. Tangible personal property, including equipment, having a
useful life of more than 1 year and an acquisition cost of $5,000 or more per unit. A grantee may

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use its own definition of nonexpendable personal property provided that such definition includes
at least all tangible personal property as defined here.
4. Expendable personal property. Tangible personal property other than nonexpendable personal
property.
5. Acquisition cost of purchased nonexpendable personal property. The net invoice unit price of the
property including the cost of modifications, attachments, accessories, or auxiliary apparatus
necessary to make the property usable for the purpose for which it was acquired. Other charges
such as the cost of installation, transportation, taxes, duty, or in-transit insurance, will be included
or excluded from the unit acquisition cost in accordance with the grantee's regular accounting
practices. If the item is acquired by trading in another item and paying an additional amount,
“acquisition cost" means the amount received for trade-in plus the additional outlay. The term
does not include rental of property or alterations and renovations of real property.
D. Property Management Standards.
1. Real property acquired for historic preservation purposes. Where HPF monies are used to assist
private individuals and organizational entities or non-State government public bodies to acquire
title to real property when the purpose is to preserve and maintain a property for a term of up to
20 years for public benefit, the grantee will be considered a "pass-through" agent only. Titles to
such federally assisted property will vest in the non-State property owner.
Use and disposition of the real property will be in accordance with the terms and conditions of the
preservation covenant or agreement executed between the grantee and the property owner.
2. Real property acquired for administration of program operations. The provisions of this section
apply to HPF-assisted properties purchased for use in administering program operations or in
carrying out program objectives. The use and disposition of real property acquired wholly or in
part with HPF assistance by the grantee (as deedholder) will be governed by the following
requirements:
a. Real property acquired for HPF grant-supported activities shall be used by the grantee solely
for authorized purposes.
When the grantee no longer needs the property to conduct HPF grant-supported activities, the
grantee may request approval from NPS to use the property for other purposes. Use for other
purposes shall be limited to:
1) Projects or programs supported by other Federal grants or assistance agreements; or
2) Activities or programs having purposes consistent with those authorized for support by
NPS.
b. Title to real property acquired for administration will vest in the grantee (not the subgrantee)
subject to the condition that the grantee will use the real property for the authorized purpose
of the grant.

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c. Disposition. When the real property is no longer to be used as provided in subsection 2.a.,
above, the grantee shall request disposition instructions from NPS. The instructions will
provide for one of the following alternatives:
1) The grantee may be permitted to retain title after it compensates NPS in an amount
computed by applying the Federal percentage of participation in the cost of the original
project to the fair market value of the property.
2) The grantee may be directed to sell the property under guidelines provided by NPS and
pay NPS an amount computed by applying the Federal percentage of participation in the
cost of the original project to the proceeds from sale (after deducting actual and
reasonable selling and fix-up expenses, if any, from the sales proceeds). When the
grantee is authorized or required to sell the property, proper sales procedures shall be
established that provide for competition to the extent practicable and result in the highest
possible return.
3) The grantee may be directed to transfer title to the property to the Federal Government
provided that in such cases the grantee shall be entitled to compensation computed by
applying the grantee's percentage of participation in the cost of the program or project to
the current fair market value of the property.
3. Nonexpendable personal property. When nonexpendable tangible property is acquired by a
grantee with HPF funds, title shall not be taken by the Federal Government but shall vest in the
grantee subject to the following conditions:
a. Right to transfer title. For items of nonexpendable personal property having a unit
acquisition cost of $5,000 or more, NPS reserves the right to transfer the title to the Federal
Government or to a third party named by NPS when such third party is otherwise eligible
under existing statutes. Such reservation shall be subject to the following standards:
1) The property shall be appropriately identified in the grant or otherwise made known to
the grantee in writing.
2) NPS shall issue disposition instructions within 120 calendar days after the end of the
Federal support of the program or project for which it was acquired. If the NPS fails to
issue disposition instructions within the 120 calendar-day period, the grantee shall apply
the standards of subsections 3.c. and 3.d., below, as appropriate.
3) When the NPS exercises its right to take title, the property shall be subject to the
provisions for federally owned nonexpendable personal property. Disposition
instructions will be provided by NPS on a case-by-case basis.
4) When title is transferred either to the Federal Government or to a third party, the
provisions of subsection 3.c.2 (b) should be followed.

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Use of other tangible nonexpendable property for which the grantee has title.
1) The grantee shall use the property in the project or program for which it was acquired as
long as needed, whether or not the project or program continues to be supported by
Federal funds. When no longer needed for the original project or program, the grantee
shall use the property in connection with its other federally sponsored activities, in the
following order of priority:
a) Activities sponsored by NPS;
b) Activities sponsored by other Federal agencies.
2) Shared use. During the time that nonexpendable personal property is held for use on the
project or program for which it was acquired, the grantee shall make it available for use
on other projects or programs if such other use will not interfere with the work on the
project or program for which the property was originally acquired. First preference for
such other use shall be given to other projects or programs sponsored by NPS; second
preference shall be given to projects or programs sponsored by other Federal agencies. If
the property is owned by the Federal Government, use on other activities not sponsored
by the Federal Government shall be permissible if authorized by NPS. User charges
should be considered if appropriate, but must be treated as program income (see
Chapter 16).
c. Disposition of other nonexpendable property. When the grantee no longer needs the property
as provided in 3.b., above, the property may be used for other activities in accordance with
the following standards:
1) Nonexpendable property with a unit acquisition cost of less than $5,000: the grantee may
use the property for other activities without reimbursement to the NPS or sell the property
and retain the proceeds.
2) Nonexpendable personal property with a unit acquisition cost of $5,000 or more: The
grantee may retain the property for other uses provided that compensation is made to
NPS. The amount of compensation shall be computed by applying the percentage of
Federal participation in the cost of the original project or program to the current fair
market value of the property. If the grantee has no need for the property and the property
has further use value, the grantee shall request disposition instructions from NPS.
NPS shall determine whether the property can be used to meet NPS requirements. If no
requirement exists within NPS, the availability of the property shall be reported to the
General Services Administration by NPS to determine whether a requirement for the
property exists in other Federal agencies. NPS shall issue instructions to the grantee no
later than 120 days after the grantee request and the following procedures shall govern:
a) If so instructed or if disposition instructions are not issued within 120 calendar days
after the grantee's request, the grantee shall sell the property and reimburse NPS an
amount computed by applying to the sales proceeds the percentage of Federal

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participation in the cost of the original project or program. However, nonprofit
grantees shall be permitted to deduct and retain from the Federal share $500 or 10
percent of the proceeds, whichever is less, for the grantee's selling and handling
expenses (in accordance with 43 CFR 12.934(g)(1)).
b) If the grantee is instructed to ship property elsewhere, the grantee shall be reimbursed
by the benefiting Federal agency with an amount which is computed by applying the
percentage of the grantee participation in the cost of the original grant project or
program to the current fair market value of the property, plus any reasonable shipping
or interim storage costs incurred.
d. Property management standards for nonexpendable property. The grantee's property
management standards include the following procedural requirements:
1) Property records shall be maintained accurately and shall include:
a) A description of the property.
b) Manufacturer's serial number, model number, Federal stock number, national stock
number, or other identification number.
c) Source of the property, including grant or other agreement number.
d) Whether title vests in the grantee or the Federal Government.
e) Acquisition date (or date received, if the property was furnished by the Federal
Government) and cost.
f) Percentage (at the end of the budget year) of Federal participation in the cost of the
project or program for which the property was acquired. (Not applicable to property
furnished by the Federal Government.)
g) Location and condition of the property and the date the information was reported.
h) Unit acquisition cost.
i)

Ultimate disposition data, including date of disposal and sales price or the method
used to determine current fair market value where the grantee compensates NPS for
its share.

2) Property owned by the Federal Government must be marked to indicate Federal
ownership interest.
3) A physical inventory of property shall be taken and the results reconciled with the
property records at least every 2 years. Any differences between quantities determined
by the physical inspection and those shown in the accounting records shall be
investigated to determine the causes of the difference. The grantee shall, in connection

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with the inventory, verify the existence, current utilization, and continued need for the
property.
4) A control system shall be in effect to ensure adequate safeguards to prevent loss, damage,
or theft of the property. Any loss, damage, or theft of nonexpendable property shall be
investigated and fully documented; if the property was owned by the Federal
Government, the grantee shall promptly notify NPS.
5) Adequate maintenance procedures shall be implemented to keep the property in good
condition.
6) Where the grantee is authorized or required to sell the property, proper sales procedures
shall be established which would provide for competition to the extent practicable and
result in the highest possible return.
4. Expendable personal property. Title to expendable personal property shall vest in the grantee
upon acquisition. If there is a residual inventory of such property exceeding $5,000 in total
aggregate fair market value, upon termination or completion of the grant, and if the property is
not needed for any other federally sponsored project or program, the grantee shall retain the
property for use on nonfederally sponsored activities, or sell it, but must, in either case,
compensate the Federal Government for the Federal share. The amount of compensation shall be
computed in the same manner as nonexpendable personal property.
5. Intangible property.
a. Inventions and patents. If any grant-assisted activity or project work produces patentable
items, rights, processes, or inventions, in the course of work sponsored by NPS, such fact will
be promptly and fully reported to NPS. Unless there is a prior agreement between the grantee
and NPS on disposition of such items, NPS will determine whether protection on the
invention or discovery will be sought. NPS will also determine how the rights in the
invention or discovery, including rights under any patent issued thereon, will be allocated and
administered in order to protect the public interest consistent with "Government Patent
Policy" as printed in 36 Federal Register 16889. Nonprofit recipients are subject to
applicable regulations governing patents and inventions, including Governmentwide
regulations issued by the Department of Commerce and codified as 37 CFR 401.
b. Copyrights. Except as otherwise provided in the terms and conditions of the grant agreement,
the author or grantee is free to copyright any books, publications, or other copyrightable
materials developed in the course of or under a project financed by NPS. However, any such
copyrighted materials will be subject to a royalty-free, nonexclusive, and irrevocable license
to the Federal Government to reproduce, publish, or otherwise use, and to authorize others to
use, the work for Government purposes.
6.

Federal rights to data and copyrights.
a. The term "subject data" used in this section includes writings, technical reports, sound
recordings, magnetic recordings, computer programs, computerized data bases, pictorial

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reproductions, plans, drawings, specifications, or other graphical representations, and works
of any similar nature (whether or not copyrighted) which are
1) submitted with a proposal or grant application; or
2) specified to be delivered under an NPS grant; or
3) developed or produced and paid for in whole or in part by an NPS grant. The term does
not include financial reports, cost analysis, and other information incidental to grant
administration.
b. Except as may otherwise be provided in the grant agreement, when publications, films, or
similar materials are developed directly or indirectly from a program, project, or activity
supported by NPS funds, the author is free to arrange for copyright without approval.
However, such materials must include an acknowledgment of NPS grant assistance (Chapter
3, Section C.7., provides the required statement).
As a condition of grant assistance, the grantee agrees to, and awards to the Government and
its officers, agents, and employees acting within the scope of their official duties, a royaltyfree, nonexclusive, and irrevocable license throughout the world for Government purposes, to
publish, translate, reproduce, and use all subject data or copyrightable material based on such
data covered by the copyright.
c. The grantee shall not include in the subject data any copyrighted matter without the written
approval of the copyright owner. Such approval must include permission for the Government
to use the material in the manner provided in subsection 6.b., above.
d. Nothing contained in the foregoing shall imply a license to the Government under any patent
or be construed as affecting the scope of any license or other rights otherwise granted to the
Government under any patent.
e. Unless otherwise limited below, the Government may, without additional compensation to
the grantee, reproduce, publish, or otherwise use the data first produced under an award; and
authorize others to receive, reproduce, publish, or otherwise use the data for Federal
purposes.
f.

Notwithstanding any provisions of any grant or specific limitations concerning inspection and
acceptance, the Government shall have the right at any time to modify, remove, obliterate, or
ignore any marking not authorized by the terms of a grant on any piece of subject data
furnished under the grant.

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Chapter 20 - Uniform Relocation Assistance and Real
Property Acquisition Policies
A. Purpose and Policy.
This Chapter provides for the application of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C. 4601), as amended by Title IV of the Surface
Transportation and Uniform Relocation Assistance Act of 1987, to undertakings by State agencies
funded with financial assistance from the Historic Preservation Fund. The Relocation Act provides
for the uniform and equitable treatment of persons displaced from their homes, businesses, or farms
by Federal and federally assisted programs. It also establishes uniform and equitable land acquisition
policies for Federal and federally assisted programs. The procedures described in this part are based
on the Governmentwide rule in 49 CFR 24 implementing the Relocation Act.
The provisions of the Relocation Act and the requirements of this Chapter apply to the acquisition of
all real property for, and the relocation of all persons displaced by, projects which receive Historic
Preservation Fund assistance for all or part of the project cost and which involve public subgrantees
or the State as current owner or buyer. The provisions of the Relocation Act requiring relocation
assistance for displaced persons, businesses or farm operations do not apply to acquisition or
development projects undertaken by private or nonprofit subgrantees. However, it is NPS policy that
the uniform property acquisition standards (Section B, below) do apply to all projects regardless of
the type of subgrantee involved.
For the purposes of this Chapter, “State agency” shall include any department, agency, or
instrumentality of a State or of a political subdivision of a State, or any department, agency, or
instrumentality of two or more political subdivisions of a State or States.
B. Acquisition Involving no Federal Assistance.
The Relocation Act and these regulations apply even when HPF funds are not used for the cost of the
purchase of real property acquired for the assisted projects. When the purchase of property by a
grantee without Federal financial assistance results in the displacement of any person, business, or
farm operation, eligibility for Historic Preservation Fund assistance for the later development of the
property will depend on the following criteria:
1. If the acquisition or development occurred within the 2 years preceding the time the grantee
submits a funding application, the grantee must provide the assurances required by Sections 210
and 305 of the Relocation Act (see Section C, below) or a written certification (see subsection
B.4., below) as part of the application. The certification must state that at the time of the
acquisition and displacement, the grantee had not yet initiated planning activity to obtain NPS
assistance. The statement must be signed and dated with the certifying official's name, title, and
agency.
2. If the acquisition and last displacement occurred more than 2 but less than 5 years before the
grantee applies for HPF assistance, the grantee need not provide the assurances required by
Sections 210 and 305 of the Relocation Act unless written certification is provided as part of the
project application by the head of the State or local government agency sponsoring the project.

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The Certification will indicate that at the time of the acquisition and last known displacement,
such agency had not yet initiated planning activity to obtain the particular Federal assistance
being applied for.
3. If the acquisition and last displacement occurred more than five (5) years before the State applies
for HPF assistance the State need not provide the assurances required by Section 210 and 305 of
the Relocation Act, unless the Service has evidence to indicate that at the time of the acquisition
and last known displacement, the State or local government had initiated planning activity to
obtain the particular Federal assistance being applied for. In such case, Sections 210 and 305
assurances will be required.
4. A sample certification is as follows:
I, __________________________, _______________________________________
( NAME)
(TITLE - AGENCY)
*
hereby certify, under penalty for willful misstatement (18 U.S.C. 1001) that at the time of the
acquisition and last known displacement on the project property for which this Federal financial
assistance is being sought, no planning had been initiated by this agency to obtain this financial
assistance.
______________________________
(SIGNATURE)
______________________________
(DATE)
*

"Whoever, in any matter within the jurisdiction of any department or agency of the United States
knowingly and willfully falsifies, conceals or covers up any trick, scheme, or device or material
fact, or makes any false, fictitious or fraudulent statement or entry, shall be fined not more than
$10,000 or imprisoned not more than five years, or both."

5. For the purposes of the Uniform Relocation Assistance and Real Property Acquisition Policies
Act, "project" under this section would mean that property or portion thereof, that is needed to
support or qualify the particular project for which the assistance is being requested.
C. Assurances.
NPS will not approve any project which will result in the acquisition of real property and/or the
displacement of any person, business, or farm operation unless the grantee provides the assurances
required by Section 210 and 305 of the Act and the procedures in this Chapter. These assurances
specify that:
1. Fair and reasonable relocation payments and assistance will be provided to displaced persons, as
required by Sections 202, 203, and 204 of the Relocation Act. (See 49 CFR 24, Subparts c, d, and
e).
2. Relocation assistance programs offering the services described in Section 205 of the Relocation
Act will be provided to displaced persons. (See 49 CFR 24.205).

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3. A survey and analysis of available replacement housing has been made in accordance with
Department of the Interior regulations, and that within a reasonable period of time prior to
displacement, there will be available decent, safe, and sanitary replacement housing in
accordance with Section 205(c)(3) of the Relocation Act. (See 49 CFR 24, Subpart C).
4. In acquiring real property, the grantee must be guided, to the greatest extent practical under State
law, by the land acquisition policies set forth in Section 301 and 302 of the Relocation Act. (See
49 CFR 24.103(a) and 24.104.)
5. Property owners must be paid or reimbursed for necessary expenses as specified in Sections 303
and 304 of the Relocation Act. (See 49 CFR 24.106 and 24.107.)
6. The displaced persons must be informed of the benefits available under Title II of the Relocation
Act and the policies and procedures relating to the payment of such benefits. (See 49 CFR
24.203.)
7. Terms for compliance with these assurances are contained in the general provisions of the State's
project agreement.
D. Responsibility of the Grantee.
The grantee is responsible for implementing the provisions of the Relocation Act and the regulations
contained in this Chapter. The State Historic Preservation Officer must advise subgrantees on, and
assure compliance with, all relocation and acquisition matters related to the Relocation Act and these
procedures.
The grantee will maintain the following documentation available for NPS inspection for each
acquisition project, unless waived by NPS in writing:
1. Appraisal documentation including the State Historic Preservation Officer's written acceptance of
the appraisal report;
2. A statement of just compensation and copy of the written offer to purchase for that amount (see
49 CFR 24.102);
3. Documentation showing that the owner or his designated representative has been invited to
accompany the appraiser during the inspection of the property;
4. Relocation Plan, advisory services program description, and appeals procedure when
displacement has occurred;
5. Evidence that occupants of property acquired were furnished adequate information explaining
their eligibility for payments under Title II of the Relocation Act at the beginning of negotiations
(see 49 CFR 24.203);
6. Appropriate claims forms and supporting documentation;
7. Evidence of purchase price and of clear title;

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8. A statement of difference in value if the purchase price is greater than the approved appraisal of
fair market value (see 49 CFR 24.102(I)); and
9. Copies of waivers where applicable (see 49 CFR 24.7).
E. Service Action on Relocation and Acquisition Documents.
Except for statements of difference in value and waivers to benefits, the Service will not generally
require the documentation under Section D, above, to be submitted at the time of billing unless
otherwise requested. All required documentation must be kept on file in the office of the State
Historic Preservation Officer for purposes of fiscal audit and State Program Review.
F. Relocation Assistance Advisory Services.
As outlined in 49 CFR 24.205, "Uniform Relocation Assistance and Real Property Acquisition for
Federal and federally assisted programs," the State shall carry out a relocation assistance advisory
program, which includes in part, determining the relocation needs of each person to be displaced and
providing an explanation of payments and other assistance for which the person may be eligible. All
services required by 49 CFR 24.205 must be provided by the State or local sponsor.
G. Appeals.
Situations may occur when an applicant for payments under the Relocation Act may feel aggrieved by
a displacing agency's determination as to the applicant's eligibility for payment or the amount of the
payment. Each grantee must establish procedures that provide for adequate review by the State
Historic Preservation Officer of the applicant's concerns. The procedures should also provide for an
appeals process that can be followed should decisions remain disputed following review by the head
of the State agency. The procedures must ensure that:
1. Each appellant applicant has the opportunity to present the basis of disagreement with the
displacing agency's determination of eligibility for payment or the amount of payment.
2. Each appeal will be decided promptly.
3. Each appeal decision will include a statement of the reasons upon which it is based and a copy of
such decision will be furnished the appellant.
4. Each appellant applicant has a final appeal to the State.
5. All eligible relocatees shall be furnished a written notice of their right to appeal. Such
notification may be provided by brochure if the right to appeal is adequately described therein.
The appeals process must include procedures to be followed should decisions remain disputed
following review by the State Historic Preservation Officer. Final appeal must be available and final
determination made by higher officials of the State government, such as the State Relocation Officer
or similar official.

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H. Appraisals.
1. Grantees will comply with the current "Uniform Appraisal Standards for Federal Land
Acquisitions" published by the Interagency Land Acquisition Conference. Copies of these
standards are for sale by the Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402. Appraisals must be performed by certified independent appraisers. (See
Chapter 6, Exhibit 6-B.)
Policies respecting methods of acquisition and appraisal as set forth in Chapter 6, Section L,
conform with these standards and are to be followed.
2. Except for projects involving donations, the State will have responsibility for reviewing and
approving project-related appraisals prior to initiation of negotiations. NPS reviews will be
limited to spot checking and post audit program reviews. NPS reviews shall include an
evaluation of the adequacy of the appraisal in terms of thoroughness, reasonableness, impartiality
and conformance to the Uniform Appraisal Standards for Federal Land Acquisition to the extent
appropriate. Where the review results in substantive concerns as to the adequacy of the approved
appraisal, the State Historic Preservation Officer will be responsible for providing NPS with
supplemental appraisal documentation or a new appraisal in accordance with the review findings.
The value established by the revised or new appraisal will be used as the basis for determining
just compensation and for matching assistance.
3. Federal share of cost. The cost to a grantee of providing the payments and assistance required by
these procedures must be included as part of the program or project cost, but shall not be included
in any appraisal of real property value.
I.

Acquisition at Less than Appraised Market Value.
1. Waiver of Right to Just Compensation. If real property is acquired at less than the estimate of
fair market value determined by a certified independent professional appraiser(s), there must be
documentation that the owner was first provided with a written offer to purchase for the full
amount established as just compensation (equal to the approved appraisal of the fair market
value).
The grantee must submit in the project application a signed statement by the owner waiving the
Right to Just Compensation and indicating that he or she:
a. Has been informed of all of his or her rights and benefits under the Uniform Relocation
Assistance and Real Properties Acquisition Policies Act;
b. Has been provided with a statement of just compensation and a written offer to purchase for
the amount appraised as full market value (the amount should be shown in the owner's
statement);
c. Is satisfied with the price to be paid even though it is less than the appraisal of fair market
value; and

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d. The reasons why he or she has elected to accept the lesser amount. (NOTE: When a partial
donation of property (less than appraised fair market value) is to be applied as matching share
for an acquisition project, the seller-owner's signed waiver of just compensation and
statement of intention to donate the remainder value for historic preservation purposes must
be clearly specified.)
2. Donations. Nothing in these guidelines is to be construed to prevent or deter a property owner
from making a full or partial donation of property.
In those circumstances involving a partial donation, documentation must include evidence that
the owner has been provided with a statement of just compensation. A written statement by the
owner that he is making a partial donation is also required. A written offer to purchase and a
statement of just compensation are not necessary when acquisition is by full donation; the legal
act of donation itself precludes the necessity for these actions. This documentation relates only to
acquisition. Relocation benefits as provided by these regulations must still be complied with in
full under all circumstances (e.g., if tenants are displaced when an owner donates a property).
J. Annual report.
If a grantee has an HPF-assisted project involving relocation assistance activities, then that HPF
grantee will report annually giving the numbers of persons and businesses relocated, numbers
remaining to be relocated, relocation costs, and property acquired during the fiscal year for the State
historic preservation program. This report must be submitted in duplicate to NPS by November 1.
(See Exhibit 20-A.)
K. Regulations of the Department of the Interior.
The regulations of the Department of the Interior implementing the Common Rule for the Relocation
Act, issued in the Appendices, have been prepared to cover both Federal and federally assisted
programs. In addition, all other requirements and procedures of the Departmental regulations should
be read as applicable to State agencies and agency heads where federally assisted programs are
involved to the same extent as they apply to federal agencies and agency heads in strictly Federal
programs.
Application by displaced persons for reimbursement of moving and related expenses under the
Relocation Act may be accomplished by using Department of the Interior Forms DI-380 a-e. State
approved forms which accomplish the same purpose may be used in lieu of these forms if prior
approval is obtained from NPS.
L. Technical Assistance.
Local agencies knowledgeable about compliance with Relocation Act requirements are housing
authorities, redevelopment agencies, State Departments of Transportation or highways, and HUD
regional offices. These agencies may have brochures further explaining this law.

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EXHIBIT 20-A ANNUAL REPORT ON RELOCATION AND REAL PROPERTY ACQUISITION
ANNUAL REPORT ON RELOCATION AND REAL PROPERTY ACQUISITION ACTIVITIES (UNDER THE UNIFORM
RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970)
REPORTS
Report For PROGRAM
PROGRAM TITLE
CONTROL
Fiscal Year
SYMBOL
19
PB-122
AGENCY (Department, Bureau, Office, Division)

Section 1 - Relocation Assistance Payments and Expenses
ITEM
1

AMOUNT PAID
NUMBER OF
CLAIMS PAID (a) (b)

Payment's for Expenses moving individuals
and families

2
3

Actual expenses (Sec. 202(a))
Fixed payment including dislocation
allowance (Sec. 202(b))

4

Payments for searching and moving expenses Actual expenses (Sec. 202(a))
for displaced businesses, farms and non-profit
Payment in lieu of actual expenses
organizations
(Sec. 202(c))

5

Replacement housing payments for homeowners (Sec. 203)

6

Rental assistance payments (Tenants and certain others)
(Sec. 204(1))

7

Down payment assistance (Tenants and certain others) (Sec. 204(2))

8

Last resort housing (Sec. 206(a))

9

Subtotal (Sum of lines 1 thru 8)

10

Administrative costs in carrying out relocation program (Including cost of relocation
advisory services provided under Section 205 of the Act)

11

TOTAL (Sum of lines 9 and 10, column (b) only)

12

TOTAL AMOUNT PAID FROM FEDERAL FUNDS THIS FISCAL YEAR

13

TOTAL AMOUNT PROJECTED FOR NEXT FISCAL YEAR

14

TOTAL AMOUNT PROJECTED FOR NEXT FISCAL YEAR TO BE
PAID FROM FEDERAL FUNDS
SECTION II - Real Property Acquisition Settlements Completed
ITEM

15

Acquired by negotiation*

16

Acquired by condemnation**

17

TOTAL (Sum of lines 15 and 16)

18

TOTAL AMOUNT PAID FROM FEDERAL FUNDS

Number of
Parcels (a)

Compensation Paid
(b)

*Negotiated tracts include all tracts acquired by any method other than condemnation for reason of price or agreement.
**Include only tracts condemned because of price disagreement.
REMARKS

GENERAL SERVICES ADMINISTRATION

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INSTRUCTIONS
Section I - Relocation Assistance Payments and Expenses. For each of the types of assistance or payments
shown in lines 1 through 8, report the total number of claims paid in column (a) and the amounts thereof in
column (b). Descriptions for lines 1 through 5 and 7 through 9 are considered adequate for completion
without further instructions. For line 6, report total rental assistance claims paid including rental assistance to
former homeowners who elect to rent in lieu of receiving a replacement housing payment authorized by
Section 203 of the Act. In the case of claimants who elect to have their rental assistance payment in
installments, the total amount of the rental assistance entitlement should be reported as paid during the
reporting year in which the first installment is paid. In line 10, report the total amount of administrative costs
incurred in carrying out the relocation program including the cost of relocation assistance advisory services
provided under Section 205 of the Act. Descriptions in lines 11 through 14 are considered to be adequate
without further instructions.
Section II - Real Property Acquisition Settlements Completed. Report the number of parcels in column (a)
and the compensation paid in column (b) for real property acquired and paid for during the reportable year.
On line 15, report the total number of parcels and compensation paid for real property acquired by any
method other than condemnation for reason of price disagreement. On line 16, report in the appropriate
columns only tracts condemned because of price disagreement. Descriptions for lines 17 and 18 are adequate
for completion without further instructions. It is understood that this section will only include settlements
completed. It excludes the reporting of parcels acquired by condemnation where settlements have not been
completed. Such parcels should be reported when settlement has been completed.

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EXHIBIT 20-B RESIDENTIAL RELOCATION DISPLACEMENT STATISTICS

RESIDENTIAL RELOCATION DISPLACEMENT STATISTICS
CLAIMANTS DISPLACED DURING FY
NEGRO/
BLACK

SPANISH
SURNAMED

AMERICAN
INDIAN

ASIAN
AMERICAN/
ORIENTAL

ALL OTHERS

TOTAL ALL
GROUPS

UNDER AGE 62

62 AND OVER

TOTAL

*PEOPLE DISPLACED DURING FY

NEGRO/BLACK

SPANISH
SURNAMED

AMERICAN
INDIAN

ASIAN
AMERICAN/
ORIENTAL

ALL OTHERS

TOTAL ALL
GROUPS

TOTAL

*Report total number of people displaced.
Note:

Under "Spanish Surnamed" include persons of Puerto Rican, Mexican American, Cuban, Central or South American, or other Spanish descent. Under "Asian American/Oriental"
include Chinese, Japanese and Korean. Under "All Others" include white persons not of Spanish descent.

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Chapter 21 - Payments, Financial Management and Reporting
Requirements
A. Financial Management System Requirements.
Grantee and subgrantee financial management systems shall provide for the following:
1. Financial reporting. Financial reporting must be accurate, current, and involve the complete disclosure of the
financial results of each grant in accordance with the reporting requirements set forth in this chapter. When
reporting on an accrual basis is statutorily required, a recipient whose accounting system is not maintained on
that basis may develop the accrual information through an analysis of the documentation on hand.
2. Accounting records. Accounting records must adequately identify the source and application of funds for grant
or subgrant supported activities. These records must contain information pertaining to HPF grant awards and
authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income.
3. Internal control. Internal controls must be established to maintain effective control and accountability for all
grant or subgrant cash, property covered by Chapter 19, and other assets. Grantees must adequately safeguard
all such assets and ensure that assets are used solely for authorized purposes (see OMB Circular A-123 in the
Appendices).
4. Budgetary control. The actual and budgeted amounts for each grant and subgrant must be compared. Financial
information should be related to performance or productivity data, including the production of unit cost
information whenever appropriate or required by NPS.
5. Advance payments. Procedures must be established to minimize the time elapsed between the advance of funds
from the U.S. Treasury and disbursement by the grantee. When advances are made by Treasury check method,
the grantee shall make drawdowns from the U.S. Treasury as close as possible to the time of making the
disbursements. Advances made by grantees to subgrantees must conform substantially to the same standards of
timing and amount as apply to advances by NPS to grantees, including requirements for timely reporting of cash
disbursements and balances.
6. Allowable costs. Procedures must be established to determine the reasonableness, allowability, and allocability
of costs in accordance with the provisions of the applicable cost principles (see Chapter 12), the terms of the
grant agreement, and the Historic Preservation Fund Grants Manual.
7. Source documentation. Accounting records must be supported by source documentation such as canceled
checks, paid bills, payrolls, contract and subgrant award documents, etc. (See suggested documentation in
Chapter 24.) Separate subgrant project records must be established and identified by the applicable NPS grant
number.
8. Non-Federal audits. Recipients (State and local governments, Indian tribes, and non-profit institutions) that
expend NPS grant or subgrant funds must comply with the requirements concerning audits in OMB Circular A133.
9. Audit resolution. Each grantee must follow a systematic method to ensure timely and appropriate resolution of
audit findings and recommendations (see Chapter 23).
10. Fidelity bond. A fidelity bond is a bond indemnifying the recipient against losses resulting from the fraud or
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lack of integrity, honesty or fidelity of one or more employees, officers, or other persons holding a position of
trust. NPS may require a nongovernmental recipient to carry adequate fidelity bond coverage when the absence
of coverage for grant-supported activity is considered as creating an unacceptable risk (see 43 CFR 12).
B. Financial Personnel.
It is expected that the State Historic Preservation Officer has been delegated adequate executive responsibility for all
grant-supported operations, including those of a financial nature. The SHPO must ensure that his or her
organization's financial operations are conducted in accordance with the financial management standards listed in
Section A, above. The SHPO, on behalf of the State, is deemed accountable by NPS for meeting all statutory,
regulatory, or other financial requirements; and for ensuring that generally accepted principles of accounting are
applied, that an effective relationship exists between the SHPO and the chief financial officer responsible for grant
financial management; and that the chief financial officer is adequately trained and competent to administer the
amounts of funds controlled by the grantee.
C. Cash Depository Procedures.
1. Insurance coverage. Advances of Federal funds shall be deposited and maintained in insured bank accounts
whenever possible.
2. Minority banks. Consistent with the national goal of expanding the opportunities for minority business
enterprises, grantees and subgrantees are encouraged to use minority banks (i.e., a bank at least 50 percent of
which is owned by minority group members). A list of minority-owned banks can be obtained from the Office
of Minority Business Enterprise, Department of Commerce, Washington, D.C. 20230. (See Chapter 17,
Section E.2.)
3. Cash Depositories. Grantees are not required to physically segregate grant funds in separate cash depositories;
however, the grantee must maintain adequate accounting records to document the receipt and expenditure of
grant funds for allowable costs. NPS will not establish any eligibility requirements for cash depositories for
grant funds provided to a grantee.
D. Financial Reporting and Payment Requirements.
1. General. This section sets forth reporting requirements for grantees to: summarize expenditures made and
Federal funds unexpended for each award, report the status of Federal cash advanced, request advances and
reimbursement when the electronic funds transfer method is not used; and to define methods of making
payments to grantees. Instructions for completion of the applicable standard forms are included.
2. Policy. Methods and procedures for making payments to grantees, and by grantees to subgrantees, must
minimize the time elapsing between the transfer of funds from the U.S. Treasury and the recipient's
disbursements. Grant payments are made through electronic fund transfer via the SMARTLINK Payment
Management System, reimbursement by Treasury check or advance by Treasury check in accord with the
guidelines of 43 CFR 12.61 (for States), 43 CFR 12.922 (for the National Trust) and U.S. Treasury Circular No.
1075 (see 31 CFR 205).
3. Financial Status Report. Monthly financial status reports are prepared by the NPS Accounting Operations
Center and disseminated to grantees to expedite and contribute to the accuracy of reporting. NPS does not
normally require the submission of any grantee generated financial status report (such as the SF 269), but
grantees are responsible for reviewing and commenting in writing whenever the NPS printout appears
inaccurate, and grantees are required to reply in writing to NPS requests to certify the accuracy of NPS records.

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When NPS has determined that a grantee's accounting system does not meet the standards for financial
management systems contained in this Chapter, it may require financial reports with more frequency or more
detail (or both), upon written notice to the grantee, until such time as the standards are met.
E. Qualifications.
Electronic Fund Transfer via SMARTLINK is the preferred method of payment for States that meet the following
conditions:
1. The State requests authorization for use from NPS;
2. The State has established or demonstrated to NPS the willingness and ability to establish procedures that will
minimize the time elapsing between the transfer of funds and their disbursement;
3. The State's financial management system meets the standards for fund control and accountability prescribed in
43 CFR 12; and
4. NPS has reviewed the State's financial practices and found them to be adequate based on the State's past
performance, responsiveness to audit exceptions, and internal audit procedures.
F. Reimbursement by the SMARTLINK Payment Management System.
1. Applicable States/Grants. All States will use the SMARTLINK payment system with the exception of those
which are either: (a) mandated by NPS to use the direct reimbursement method of payment (using the SF 270);
or, (b) which lack the technical capability to use a computer-based system (in other words, State offices without
access to appropriate computer equipment). Once the State has adopted SMARTLINK for reimbursement
purposes, it must utilize only this method unless rescinded by NPS.
2. Getting Started.
a. Equipment Needed: 1) A personal computer (PC); 2) A modem; 3) Telecommunications software
[KERMIT software is provided and recommended by the Department of Health and Human Services (HHS)
but others may work]. HHS operates the SMARTLINK system.
b. Communication Parameters: 1) Baud rate = 1200; 2) Data bits = 7; 3) Stopbits = 1; 4) Parity = Even; 5)
Emulation = VT100; 6) Duplex = Half.
c. Initiation Steps.
1) The SHPO must notify NPS in writing that the State is prepared to begin using SMARTLINK. Included
with this notification should be the grantee name and address, grantee point of contact name (SHPO or
designate), title and telephone number and a completed Direct Deposit Sign-Up Form (SF-1199A)
which is to be obtained from the bank which maintains the State's account. This information will be
forwarded by NPS to the Accounting Operations Center.
2) NPS will certify in writing to HHS that the State is eligible to be on SMARTLINK for HPF drawdowns.
This certification will involve the transmission, by NPS, of appropriate grantee payment authorization
data [i.e., grantee name and address, grantee point of contact name (SHPO or designate), title and
telephone number, project numbers, total amounts authorized/unpaid balances, and the completed SF1199A] to HHS. Subsequent to the original initiation phase, data on new grants and dollar amendments

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on old grants will be forwarded to HHS by NPS-AOC upon posting of the applicable grant agreements
or amendments.
3) Following completion of the above steps, HHS will provide the following:
a) The telephone number used to access SMARTLINK.
b) A unique password permitting connection with the SMARTLINK greeting screen. (Lost passwords
may only be replaced by contacting HHS).
c) A Payment Management System (PMS) account number.
d) An "Old Identification Number" which must be changed on the first use of SMARTLINK and at
least every 60 days (since last use) thereafter.
e) "User's" and "Technical" Guides for detailed reference.
3. Making Drawdowns. Exhibit 21-A contains a sample payment screen for the SMARTLINK system.
a. Dial into SMARTLINK using the phone number provided.
b. When the screen displays "connect," press the Enter/Return key twice.
c. At the "Enter Translator Number" command, type "5" and press Enter/Return.
d. When the "Computer Center" and "Log on Commands" appear, type your Password and press Enter/Return.
e. A "Welcome" screen will appear. Press Enter/Return. (If you receive a "System Not Available at This
Time" message, disconnect and try later).
f.

The security screen will be displayed (the line at the bottom of the screen can either be ignored or deleted by
holding down the Control key and pressing the letter "O"). Type:
1) Your Account Number; and,
2) Your Old Identification Number; and,
3) If changing the I.D. number: Your New Identification Number. (You will be permitted three attempts
to enter the correct security data. Failure on the third try will result in disconnection.).
4) Press Enter/Return.

g. The "Payment Request" screen will now be displayed with the Identification and Account numbers already
filled in. If, once you are connected, you must log off/disconnect without completing a transaction, type a
question mark in one of the fields at the top of the screen (not a "Sub-Account" field) and press
Enter/Return. A blank security screen will then appear. Type "End" in the Account Number field and press
Enter/Return.
Use your Tab or Backspace key to move from field to field (refer to the HHS User's Guide section on cursor
movement if these keys don't work). Enter the Payment Due Date ("YYMMDD") which should reflect
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today's date, TOTAL amount requested, Federal Cash Balance on Hand (always "0"), and Expected
Disbursement Amount (which should equal the total amount requested unless an advance has been
authorized).
h. Remaining on the "Payment Request" screen, enter your "Sub-Account" data (for HPF purposes, a subaccount is a specific individual grant on which a payment is now being requested). Use the tab and
backspace keys (or other keys as appropriate) to move from field to field. Do not press the Enter/Return key
until all data has been entered correctly.
For each grant involved, up to a maximum of eight per screen, enter the full eight-character HPF Grant
Number (two-digit State prefix, hyphen, five trailing digits) and the Amount (no dollar signs or commas
and with or without the decimal point and cents) of this drawdown. The total amount requested (sum of the
amounts requested for the eight or fewer drawdowns on this screen) must equal the "Total Amount
Requested" entered in the top section of the screen.
i.

Do not make entries in the "+/-" fields unless the entry for this project corrects an overdraw on a prior
billing or payment on a Bill for Collection. In these instances, the amount (no "-" or "+" sign) should be
entered in the "Amount" field and a "-" sign in the "+/-" field.

j.

Check your entries/figures carefully and make any necessary corrections before pressing Enter/Return.

k. As a result of your entry, the SMARTLINK system will display either an error message(s) or a message that
your request was successfully submitted. If an error message is received, make the required corrections.
l.

When successfully completed with the above steps, enter either "A" ("Another Payment Request" which
returns you to the Security screen to make another request for up to eight additional projects), "E" ("End"
which logs you off of SMARTLINK), or "M" (which retains the Payment Request screen and allows the
entry of more requests, subject to the eight-payment-requests-per-screen limitation). Failure to sign off by
typing the appropriate End code may result in your incurring long-distance phone charges through the end
of the work day when HHS turns SMARTLINK off.

m. Upon successful completion of the steps above, various computer edits will be performed. The HHS edits
consist of validation matches of grant numbers, payment dates, fund balances, and account numbers.
Requests passing all edits are posted to the grantee's account. Requests failing the edits are held in holding
files for review by the HHS accountant(s) assigned to NPS activity who will take action, as appropriate,
including contacting NPS to resolve problems or obtain authorization to proceed.
n. Payment files are transmitted to the Federal Reserve Bank for further processing (grantee payment). The
grantee's bank will receive the requested funds within 24 hours (or less) of the request.
G. Signature Cards.
Two SF 1194 Signature Cards must be completed by the grantee and sent to NPS, Historic Preservation Grants
Division, whenever a grantee is using the Treasury check payment method (i.e., SF 270 requests). This form is
contained in Exhibit 21-B. The SHPO or Deputy SHPO must sign in the lower left blank to authorize the other
staff's signature authority for those who sign in any of the four blanks provided for signatures of individuals
authorized to draw funds.
If the grantee official signing in the lower left "authorizing official" space also wants to sign SF 270 payment
requests, then their signature should appear also in the upper spaces of the SF 1194 Signature Card provided for

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"signatures of individuals authorized to draw." If new personnel later need to be authorized to sign SF 270 payment
requests, then new SF 1194 Signature Cards must be forwarded to NPS.
H. Reimbursement by Treasury Check.
Grantees shall use the SF 270 Request for Advance or Reimbursement form (see Exhibit 21-C) to request
reimbursement by Treasury check . The State must submit one (1) original SF-270 when requesting reimbursement
by Treasury check. Such requests may be submitted as necessary for reimbursements.
I.

Advanced Payment Requirements.
An advance is a payment made to a grantee upon its request before cash outlays are made or through the use of
predetermined payment schedules before such payments are made. Advances may be made through the Treasury
check method subject to the conditions outlined below.
The timing of advances and the procedures to be followed must be in accord with Treasury Circular No. 1075 (see
31 CFR 205) and are described below:
1. Advances shall be limited to the minimum amounts needed and shall be timed to be in accord with only the
actual cash requirements of the grantee in carrying out the purpose of the approved project. Advances made by
a grantee to a subgrantee shall conform substantially to the same standards of timing.
2. The grantee shall make such reviews of the financial practices of subgrantees as necessary to ensure that
excessive withdrawals of cash from the Treasury do not occur. The Grantee shall institute such remedial
measures as may be necessary in the event of excessive withdrawals.
3. Any monies advanced to the grantee must be deposited in a bank with FDIC insurance coverage and the
balances exceeding the FDIC coverage must be collaterally secure.

J. Advance by Treasury Check.
In requesting an advance by Treasury check the grantee shall submit to the NPS a "Request for Advance or
Reimbursement" (SF 270, see Exhibit 21-C).
No later than 15 working days after the end of each quarter, the grantee must submit to NPS one original of the "
Federal Cash Transactions Report" ( SF 272, see Exhibit 21-D). This report is used by NPS to monitor cash
advanced and to obtain disbursement or outlay information for each grant.
K. Review of Drawdowns.
At least monthly, NPS will review each State's drawdowns and disbursements for reasonableness of cash balances
on hand and the timing of drawdowns. The review will also cover other financial practices of each State to ensure
against excessive withdrawals of Federal funds.
In the event that NPS determines a State is making excessive withdrawals of cash, remedial measures such as
placement on the direct reimbursement method of payment, and/or requesting immediate refund of excessive funds
to the NPS shall be taken to ensure proper use of Federal funds.
L. Requests for Forms.
Requests for forms should be addressed to:
National Park Service, Accounting Operations Center, Accounting and Special Projects Team
P.O. Box 4800, Reston, Virginia 22090, 703-487-9033 (phone) or 703-487-9196 (fax).

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EXHIBIT 21-A SAMPLE SMARTLINK PAYMENT SCREEN
SMARTLINK II - PMS PAYMENT REQUEST

PIN:

XXXX

ACCOUNT NUMBER:

XXXXX

PAYMENT DUE DATE (YYMMDD):

950102

(A)NOTHER PMT REQ
(E)ND
(M)ORE SUBACCTS FOR
ACCT
ENTER "A," "E" OR "M"-->E

TOTAL AMT REQUESTED:
17,000.12
FEDERAL CASH BALANCE ON HAND: 0
EXPECTED DISBURSEMENT AMOUNT: 17,000.12

SUB-ACCT

AMOUNT

+/-

+/-

SUB-ACCT

1.

14-50150

23000.00

+

5.

2.

14-6023

6000.12

_

6.

3.

7.

4.

8.

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AMOUNT

+/-

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EXHIBIT 21-B AUTHORIZED SIGNATURE CARD FOR PAYMENT VOUCHERS

Standard Form 1194
I TFRM 6-2000
Fiscal Service
Bureau of Accounts
(Grantee)

AUTHORIZED SIGNATURE CARD
FOR PAYMENT VOUCHERS

Grant Number

(Federal Agency)

National Park Service
SIGNATURES OF INDIVIDUALS AUTHORIZED TO REQUEST PAYMENT
ONLY ONE SIGNATURE REQUIRED ON PAYMENT VOUCHERS
OR
ANY TWO SIGNATURES REQUIRED TO SIGN OR COUNTERSIGN
Typed Name and Signature

Typed Name and Signature

Typed Name and Signature

Typed Name and Signature

I CERTIFY THAT THE SIGNATURES
ABOVE ARE OF THE INDIVIDUALS
AUTHORIZED TO DRAW PAYMENT
VOUCHERS

Date and Signature of Authorized Grantee
Official
1194-101

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APPROVED:

Date and Signature of NPS Certifying Officer

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INSTRUCTIONS FOR COMPLETING THE SF-1194
Block

Instructions

Signature of Individuals Authorized to
Draw (Request Payment)

An "X" in the first box authorizes any one of the individuals
signing the SF-1194 to sign Requests for Payment (SF 270s).

Typed Name and Signature

Type name(s) and signature(s) of person(s) authorized to sign
and/or countersign Requests for Payment.

Typed Name and Signature of
Authorizing Officials

Type name and date of signature of authorizing official (the
official who has been delegated authority to approve the
person(s) designated to sign Requests for Payment--usually the
SHPO).

Approved

Leave blank.

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See the Forms Section at the back of the Manual for copies of:

EXHIBIT 21-C REQUEST FOR ADVANCE OR REIMBURSMENT FORM (SF270)
EXHIBIT 21-D FEDERAL CASH TRANSACTIONS REPORT (SF272)

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Chapter 22 - Grant Closeout, Sanctions, Suspension, and
Termination
A. Purpose.
This Chapter sets forth procedures for grant closeout, suspension, and termination, in accordance with
OMB Circular A-102, as codified in 43 CFR 12.90 (for States) and Circular A-110, as codified in 43 CFR
12.960-973 (for the National Trust). When a grantee fails to comply with the terms and conditions of the
grant award, NPS may, upon reasonable notice to the grantee, withhold further payments, suspend the
grant, or prohibit the grantee from incurring additional commitments of grant funds until corrective action
is completed by the grantee or an NPS decision is made to terminate the grant.
B. Closeout Procedures.
The closeout of a grant is the process by which NPS determines that all applicable administrative actions
and all required work of the grant have been completed by NPS and the grantee. Each grant shall be
closed out as promptly as is feasible after expiration or termination.
1. In closing out HPF grants, the following actions are performed:
a. Upon request, NPS will promptly pay the grantee for any allowable reimbursable costs not
covered by previous payments. Note: It is the responsibility of the grantee to ensure that all
grant assisted work conducted under grants, including subgrants or other agreements, is
performed in keeping with the applicable Secretary of the Interior's Standards, the terms and
conditions of the applicable HPF grant, and the scope of the NPS-approved grant or subgrant
agreement. Costs not in conformance with these requirements will not be reimbursed with HPF
monies. (See Chapter 13, Section D, Unallowable Costs.) Ineligible or improper payments
issued by a grantee must be recovered.
b. The grantee must immediately refund or otherwise expend outstanding cash balances advanced
to the grantee in accordance with instructions from NPS.
c. The grantee must submit, within 90 days of the date of expiration or termination, (or the date
specified by a grant condition), all financial, performance, and other reports required by the terms
of the grant. This includes End-of-Year performance reports, Final Project Reports, or any other
special reports which may have been required as a condition of the grant.
d. If called for by the terms and conditions of the grant, NPS will adjust the Federal share of costs.
2. The closeout of a grant does not affect the retention period for, or Federal rights of access to, grant
records (see Chapter 24).
3. If a grant is closed out without audit, NPS retains the right to disallow and recover an appropriate
amount after fully considering any recommended disallowances resulting from an audit which may be
conducted later.
4. The closeout of a grant does not affect the grantee's responsibilities with respect to property or

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equipment purchased with grant assistance as specified in Chapter 19, "Property Management
Standards," or with respect to any program income for which the grantee is still accountable. See
Chapter 16.
5. The closeout of a grant does not affect the grantee's responsibilities with respect to covenants or
preservation agreements entered into as a condition of HPF grant assistance (see Chapter 6, Section
M.).
C. Amounts Payable to the Federal Government.
For each grant, the following constitutes a debt(s) owed by the grantee to the Federal Government, and
must be repaid by the grantee (whether or not a subgrantee or contractor has paid back funds to the
grantee):
1. Any grant funds paid to the grantee by the Federal Government in excess of the amount to which the
grantee is finally determined to be entitled under the terms of the grant;
2. Any interest or other investment income earned on advances of grant funds which is due the Federal
Government (see Chapter 16, Section B.7)
3. Any amounts due the Federal Government under 43 CFR 12.71 from disposal of property (see
Chapter 19, "Property Management Standards");
4. Any other amounts finally determined to be due the Federal Government under the terms of the
grant(s).
D. Sanctions for Noncompliance.
1. Applicability. When a grantee has materially failed to comply with grant terms, or conditions, NPS
may suspend the grant, terminate the grant for cause, or take such other remedies as may be legally
available and appropriate under the circumstances. The approval of a grant and any subsequent
payments made under the grant will not prevent NPS from withholding funds because of the grantee's
failure to observe applicable Federal requirements.
2. Withholding of payments. NPS may withhold payments otherwise due to a grantee if the grantee has
failed to comply with NPS reporting requirements, the HPF program objectives, requirements,
standards or grant award conditions. A written advance notification will be sent by NPS to the
grantee to identify the deficiency and to express the intent to withhold future payments if the
deficiency is not corrected by a specific date. If the deficiency is not corrected promptly, NPS will
notify the grantee in writing that payments will not be made until the deficiency is corrected.
Continued noncompliance or grantee failure to act may result in suspension or termination. (Under
grant suspensions or terminations, not only are payments withheld, but no additional costs, or only
very limited additional costs, will be authorized by NPS to be incurred by the grantee.) NPS may also
withhold payments to the extent of any grantee indebtedness to the United States.
3. Suspension. Suspension of a grant temporarily withdraws or limits a grantee's authority to utilize
HPF grant assistance pending corrective action as specified by NPS or pending a decision by NPS to
terminate the grant.

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a. Notification. When a grantee has materially failed to comply with the terms and conditions of a
grant, NPS may suspend any or all HPF grants after giving the grantee reasonable notice (usually
30 calendar days) and opportunity to show cause why the grant should not be suspended. The
notice of the suspension will detail the reasons for the suspension, any corrective action required
of the grantee, and the effective date of the suspension. The suspension may be made effective
without prior notice in an emergency situation such as when a delayed effective date would
unreasonably impair NPS' responsibility to protect the Federal Government's interest.
b. Commitments. No commitment of funds incurred by the grantee during the period of suspension
will be allowed under the suspended grant, unless NPS expressly authorizes them in the notice of
suspension or an amendment to it. Necessary and otherwise allowable costs which the grantee
could not reasonably avoid during the suspension period will be allowed if they result from
charges properly incurred by the grantee before the effective date of the suspension, and not in
anticipation of suspension or termination. At the discretion of NPS, third party contributions
applicable to the suspension period may be allowed in satisfaction of matching share
requirements.
c. Adjustments to payments. Appropriate adjustments to the payments submitted after the effective
date of suspension under the suspended grant will be made either by withholding the payments or
by not allowing the grantee credit for disbursements made in payment of unauthorized costs
incurred during the suspension period.
d. Suspension period. Suspensions will remain in effect until the grantee has takes the appropriate
corrective or gives written evidence to NPS that corrective action will be taken, or until NPS
terminates the grant.
4. Termination. Termination is the cancellation of HPF grant assistance in whole or in part, at any time
prior to the date of completion.
a. Termination for cause. NPS may terminate any grant, in whole or in part, at any time before the
date of completion, whenever it is determined that the grantee has failed to comply with the terms
and conditions of the grant. NPS will promptly notify the grantee in writing of the termination
and the reasons for the termination, together with the effective date. Payments made to grantees
or recoveries by NPS under grants terminated for cause will be in accordance with the legal rights
and liabilities of the parties.
b. Termination for convenience. NPS or the grantee may terminate grants or subgrant projects in
whole or in part when both parties agree that the continuation of the project would not produce
beneficial results commensurate with the further expenditure of funds. The two parties will agree
upon the termination conditions, including the effective date, and in the case of partial
terminations, the portion to be terminated. For partial terminations, such termination will not
affect the preservation agreement or covenant executed as a prior condition of grant assistance.
An amendment to the Grant Agreement or the Project Notification (as applicable) is required for
all terminations for convenience.

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c. Termination by grantee. The grantee may unilaterally cancel the NPS grant or any of its
subgrants at any time prior to the first payment on the grant or subgrant, although NPS must be
notified in writing. Once initiated, no HPF grant or subgrant may be terminated by a grantee
prior to satisfactory completion without the approval of NPS. After the initial payment the
project may be terminated, modified, or amended by the grantee only by mutual agreement of the
grantee and NPS. Requests for termination prior to completion must fully explain the reasons for
the action and detail the proposed disposition of the uncompleted work.
d. Commitments. When a grant is terminated, the grantee will not incur new obligations for the
terminated portion after the effective date of termination. The grantee will cancel as many
outstanding obligations as possible. NPS will allow full credit to the grantee for the Federal share
of the noncancellable obligations properly incurred by the grantee prior to termination. Costs
incurred after the effective date of the termination will be disallowed.
5. Applicability to subgrants. Grantees must adhere to the same standards regarding closeout,
suspension, and termination of their subgrants as prescribed in this Chapter for NPS.

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Chapter 23 - Grantee Accounting and Audit Responsibilities
A. Purpose.
This Chapter outlines audit requirements prescribed by OMB Circular A-133, Audits of States, Local
Governments, and Non-profit Institutions. This Circular has been issued pursuant to the Single Audit
Act of 1984 (31 U.S.C. 7501-7) and the Single Audit Act Amendments of 1996 [31 U.S.C. 7505(a)].
They establish audit requirements for recipients of Federal aid and define Federal responsibilities for
implementing and monitoring those requirements. (Note that the Office of Management and Budget
rescinded OMB Circular A-128, Audits of State and Local Governments, on July 30, 1997, but stipulated
that Circular A-128 still applies to audits of State and local governments and Indian tribes for fiscal years
beginning prior to June 30, 1996.)
B. Applicability.
OMB Circular A-133 is applicable to State and local governments, territories, and tribal governments, and
non-profit institutions. Grantees must be audited under the provisions of OMB Circular A-133, and the
appropriate OMB Cost Principles. Cost principles are discussed in Chapter 12 of this Manual.
Grantees are responsible for rendering a full accounting of each grant award in accordance with the
applicable HPF grant agreement and the appropriate cost principles for the manner in which HPF grant
funds are applied and for prompt resolution of audit findings.
C. Definitions.
For the purposes of Circular A-133 the following definitions from the Single Audit Act apply:
1. "Auditor" means an auditor that is a public accountant or a Federal, State, or local government audit
organization which meets the general standards specified in Generally Accepted Accounting
Standards. The term Auditor does not include internal auditors of non-profit organizations.
2. "Cognizant agency" means the Federal agency that is assigned audit responsibility for a particular
recipient organization by the Office of Management and Budget. That Federal agency is normally the
agency providing the majority of funds to a particular recipient organization. Where the Department
of the Interior is the cognizant agency, the Office of Inspector General will be the responsible
organizational unit.
3. "Federal financial assistance" means assistance that non-Federal entities receive in the form of grants,
contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or
direct appropriations, but does not include direct Federal cash assistance to individuals. It includes
awards received directly from Federal agencies, or indirectly through other units of State and local
governments.
4. "Generally accepted accounting principles" (GAAP) has the meaning specified in the Generally
Accepted Auditing Standards issued by the American Institute of Certified Public Accountants.
5. "GAGAS" means Generally Accepted Government Auditing Standards issued by the Comptroller
General of the United States, which are applicable to financial audits performed pursuant to OMB
Circular A-133.

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6. "Independent auditor" means a State or local government auditor who meets the independence
standards specified in generally accepted government auditing standards; or a public accountant who
meets such independence standards.
7. "Internal control" means a process effected by an entity’s management and other personnel to provide
reasonable assurance regarding the achievement of objectives in the following categories: (1)
effectiveness and efficiency of operations; (2) reliability of financial reporting; and (3) compliance
with applicable laws and regulations. "Internal control over Federally assisted programs" means a
process effected by an entity’s management and other personnel that is designed to provide
reasonable assurance that: (1) Transactions are properly recorded and accounted for to permit the
preparation of reliable financial statements and Federal reports, to maintain accountability over assets,
and to demonstrate compliance with laws, regulations, and other compliance requirements; (2)
Transactions are executed in compliance with laws, regulations, and the provisions of contracts or
grant agreements that could have a direct and material effect on a Federal program; and (3) Funds,
property, and other assets are safeguarded against loss from unauthorized use or disposition.
8. "Subrecipient" means a non-Federal entity that expends Federal awards received from a grantee passthrough entity to carry out a program, but does not include an individual that is a beneficiary of such a
program. A subrecipient may also be a recipient of other Federal awards directly from a Federal
awarding agency.
D. Policy.
The Single Audit Act, as amended, requires that non-Federal entities that expend $500,000 or more a year
in Federal awards must have a single or program-specific audit conducted in accordance with OMB
Circular A-133. This audit must also include an evaluation of compliance with grant terms and
conditions.
The independent auditor must determine whether:
1. the financial statements of the auditee are presented fairly in all material respects in conformity with
generally accepted accounting principles;
2. the recipient has internal accounting and other control systems to provide reasonable assurance that it
is managing its Federal financial assistance programs in compliance with applicable laws and
regulations; and
3. the recipient has complied with laws, regulations, and the provisions of contracts and grant
agreements that may have a material effect on its financial statements and on each of its programs.
E. Audit Costs.
The cost of audits made in accordance with the provisions of Circular A-133 is an allowable charge;
however, a grantee or subgrantee which is required to conduct an audit pursuant to the Single Audit Act
is prohibited from charging: (a) the cost of any financial or financial and compliance audit which is not
conducted in accordance with that Act, and (b) more than a reasonably proportionate share of the cost of
any such audit that is conducted in accordance with the Act, unless appropriate documentation
demonstrates higher actual cost.

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F. Scope of Audit.
The audit examination is intended to ascertain the fairness of the presentation of the financial statements,
effectiveness of the financial management systems and internal procedures that have been established to
meet the terms and conditions of the grant agreements. Audits will be made in accordance with generally
accepted audit standards, including the standards published by the U.S. General Accounting Office,
"Standards for Audit of Governmental Organizations, Programs, Activities and Functions," as they apply
to financial and compliance audits. Copies of the Audit standards can be obtained from the
Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402; telephone
202-512-1800 (request document #020-000-00-265-4).
The audit must cover the entire operations of a State or local government or, at the option of that
government, it may cover departments, agencies or establishments that received, expended, or otherwise
administered Federal financial assistance during the year. A series of audits of individual departments,
agencies, and establishments for the same fiscal year may be considered a single audit.
G. Frequency of Audit.
Audits must be made annually unless the State or local government has a constitutional or statutory
requirement for less frequent audits. For those governments, biennial audits, covering both years, are
permitted if the government so requests.
H. Sanctions.
The Single Audit Act provides that no cost may be charged to Federal assistance programs for audits
required by the Act that are not made in accordance with Circular A-133. Noncompliance with any of the
administrative requirements of this Chapter may result in withholding of payments or other sanctions as
appropriate. Where continued inability or unwillingness to have a proper audit exists, the Department of
the Interior will consider other appropriate sanctions, including: (a) withholding a percentage of
assistance payments until the audit is completed satisfactorily, (b) withholding or disallowing overhead
costs, and (c) suspending the Federal assistance agreement until the audit is made.
I.

Grantee Accounting and Audit Responsibilities for Subgrantees (Subrecipients).
Audit reports from subgrantees covered by Circulars A-133, or prepared as part of a subgrant agreement
must be received by the grantee. Grantees are responsible for reviewing audit and other reports submitted
by and for subgrantees; identifying questioned costs and other findings; deciding whether to sustain the
questioned costs, and accounting for sustained questioned costs as a receivable; and pursuing recovery or
taking other appropriate follow-up action. These audit reports must be maintained in the grantee's files
and made available for review during the grantee's own audit.
It is the grantee's responsibility to ensure that its subgrantees, including those awarded subgrants as
Certified Local Governments, comply with all financial requirements, including determining that the
expenditure of funds by subgrantees are in accordance with applicable laws, regulations, and grant terms
and conditions.
Grantees who award $500,000 per year to a subrecipient must:
1. determine whether subgrantees have met the audit requirements of Circular A-133;
2. determine whether the subgrantee spent Federal assistance funds provided in accordance with
applicable laws and regulations. This may be accomplished by reviewing an audit of the subgrantee

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made in accordance with Circular A-133, or through other means (e.g., onsite visits, reviews of
documentation supporting requests for reimbursement, or limited scope audits) if the subgrantee has
not yet had such an audit;
3. ensure that appropriate corrective action is taken within six months after receipt of the audit report in
instances of noncompliance with Federal laws and regulations;
4. consider whether subgrantee audits necessitate adjustment of the grantee's own records; and
5. require each subgrantee to permit independent auditors to have access to the records and financial
statements as necessary to comply with Circular A-133.
The written subgrant agreement does not relieve the grantee of any part of its responsibility to the Federal
Government under a grant. The subgrant agreement or contract must therefore provide sufficient rights
and control to enable the grantee to enable it to fulfill this responsibility and accountability. Grantees are
responsible for providing technical advice to subgrantees and their independent auditors, particularly if a
Federal cognizant agency is not assigned to the subgrantee.
The grantee's independent auditor is responsible for reviewing the Grantee's system for monitoring and
disbursing funds to subgrantees, and obtaining and acting on subgrantee audit reports; testing to
determine whether the system is functioning in accordance with prescribed procedures; commenting on
the grantee's monitoring and disbursing procedures with respect to subgrantees (if warranted by the
circumstances), and considering whether reported subgrantee questioned costs require adjustment of the
grantee's financial statements, footnote disclosure, or a modification of the auditor's report on compliance.
J. Auditor Selection.
In arranging for audit services grantees must follow the procurement standards prescribed by OMB
Circular A-133, Subpart C, and either 43 CFR 12.76 or 43 CFR 12.944. The standards provide that while
grantees are encouraged to enter into intergovernmental agreements for audit and other services, analysis
should be made to determine whether it would be more economical to purchase the services from private
firms. In instances where use of such intergovernmental agreements are required by State statutes (e.g.,
audit services) these statutes will take precedence.
Grantees are responsible for ensuring that audit examinations are made by individuals who are
sufficiently independent of those who authorize the expenditure of project funds, in order to provide
unbiased opinions, conclusions, or judgments. The criteria for independence are explained in Chapter 3
of the General Accounting Office's "Standards for Audit of Governmental Organizations, Programs,
Activities and Functions." (See ordering information in Section F, above.) The accounting profession
has established principles through a Code of Professional Ethics to guard against the presumption of loss
of independence. To be recognized as independent, the auditor must be free from any obligation to, or
material interest in, the client, its management, or owners. If there is any doubt as to independence or
conflict of interest, NPS should report the facts in writing to the cognizant agency's Office of Inspector
General.
Small audit firms and audit firms owned and controlled by socially and economically disadvantaged
individuals shall have the maximum practicable opportunity to participate in the performance of contracts
awarded with Federal funds. Grantees of Federal funds must follow the requirements of 43 CFR 12.76(e)
or 43 CFR 12.944(b) in selecting and contracting for audit services to further this goal.
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K. Audit Documentation.
Grantees will keep intact and accessible financial, records, supporting documents, statistical records, and
all other records pertaining to grants from NPS in accordance with the guidelines set forth in Chapter 24
of this Manual.
Grantees will furnish the auditor copies of the organization's financial statements, financial reports issued
during the audit period; charters, by-laws, incorporation documents, minutes of meetings of the board of
trustees/directors or review board, and bank account authorizations; audit reports issued within the past 2
years, including those prepared by internal or external auditors; an executed copy of the grant agreement
for each grant included within the scope of the audit; the approved budget for each program; copies of
program instructions, agency regulations, and applicable OMB Circulars; all major contracts, such as
leases, employment agreements, and major purchase commitments entered into by the grantee; the
applicable cost allocation plan and negotiated indirect costs proposals and agreements; and copies of
applicable NPS directives, including the Historic Preservation Fund Grants Manual.
The grantee is responsible for ensuring that the final audit report conforms to the requirements of the
General Accounting Office's "Standards for Audit of Governmental Organizations, Programs, Activities
and Functions." The cognizant agency's Office of Inspector General will review the audit report to
determine if it complies with Circular A-133. If the audit does not comply with the Circular, the grantee
will be required to obtain a re-audit. Grantees should consult with the cognizant agency's Office of
Inspector General to coordinate audit efforts and resolve problems.
L. Submission of Single Audit Reports.
1. In accordance with Generally Accepted Government Audit Standards, reports must be submitted by
the independent auditor to the organization audited and to those requiring or arranging for the audit.
2. When the recipient receives the report from its independent auditor, it must provide comments on the
findings and recommendations in the report, including a plan for corrective actions.
3. The grantee must submit a completed “Data Collection Form for Reporting on Audits of States, Local
Governments and Nonprofit Organizations,” form (SF-SAC) and copies of the reports to the
cognizant audit agency and to all Federal agencies that provided funding, and to the Federal Audit
Clearinghouse, Data Preparation Division, U.S. Bureau of the Census, 1201 E. 10th Street,
Jeffersonville, Indiana 47132. (Form SF-SAC and instructions are provided in the forms section of
the manual.)
4. The reports must be sent within 30 days after the completion of the audit, but no later than one year
after the end of the audit period unless a longer period is agreed to by the cognizant Federal agency.
5. Subrecipients must submit copies of their audit reports to the recipients that provided them Federal
assistance funds.
6. Recipients must keep their audit reports and reports from their subrecipients on file for 3 years from
the date of issuance.

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M. Response to Federal Audit Findings.
Grantees must respond in writing to findings and recommendations in the audit report within 30 calendar
days from the date the report is transmitted by NPS, unless an extension of time is granted by NPS. Such
extensions are awarded at NPS discretion. The time period for response shall depend on the complexity
of the issues involved. In the response, the grantee may take exception to particular findings and
recommendations. The rationale for such exceptions should be clearly set out in the response. The
response should point out and document errors of fact (if any), corrections already made, and state what
action is proposed and the estimated completion date of such action. Although the grantee need not send
all documentation supporting corrections unless requested to do so, documentation of actions taken must
be available for review during later audits.
The grantee's response and any additional requested information will be considered in determining
whether specific expenditures of grant funds or contributions to the nonfederal share should be allowed or
disallowed.
If the grantee does not respond within 30 days, or does not request an extension of time for a reasonable
period and for justifiable reasons, NPS will resolve audit findings on the basis of the issued audit report.
NPS will send the grantee a written notice of the determination to allow or disallow expenditures. Unless
the grantee appeals a disallowance determination within 15 calendar days after the postmark date of the
notice, the determination will become final. In those instances where no adverse findings have been
identified, the grantee will be notified that the audit report submitted is acceptable and that no further
action is required.
N. Satisfaction of Final Federal Audit Disallowances.
Unless the grantee receives written notice granting an extension, all final disallowances will be satisfied
within 30 calendar days of the date on which the disallowance becomes final. Failure by the grantee to
satisfy a final disallowance or take corrective action to remedy deficiencies in its accounting and internal
control systems may result in suspension, termination, or other remedial action. The Federal Government
reserves the right to bring suit or take other appropriate legal action to recover the amounts in question.
The audit cannot be closed until all final disallowances are satisfied.
O. Recovery of Disallowed Costs.
There are three acceptable methods of reimbursing disallowed audit costs:
1. By sending a check or warrant payable to the National Park Service; mailed to the Collections
Officer, Accounting and Special Projects Team, Accounting Operations Center, National Park
Service, P.O. Box 4800, Reston, Virginia 22090;
2. By applying previously unclaimed eligible matching share costs (total Federal and nonfederal costs
must be verified by the State auditor or other organization that performed the audit prior to
submission and acceptance by NPS) incurred within the approved project period to the specific grant
in which costs have been disallowed, evidenced by the submission of:

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•

an SF 424, Application for Federal Assistance, amending the nonfederal share and total project
costs for the specific project in which the disallowed costs were incurred. Item 8 of the SF 424
should specify that the amendment is for repayment of audit costs, and must include the audit
number; and,

•

an SF 270, Request for Advance or Reimbursement or SF 272, Federal Cash Transactions
Report, evidencing that less than 50 percent of total project costs incurred as eligible matching
share is being claimed for reimbursement. The "agency use" space of the form should refer to the
project for which repayment is being made, the amount being repaid by the request, and the
number of the audit report; and,

•

revised SF 424A or SF 424C Budget Forms, documenting the additional costs claimed and
identifying the work performed under the revised grant.

If the project involved was previously approved with nonfederal matching share in excess of the
minimum required, the amount of nonfederal costs must be increased beyond that level by the amount
of the disallowed audit costs to effect recovery.
3. By applying eligible additional matching share costs (total Federal and nonfederal costs must be
verified by the State auditor or other organization that performed the audit prior to submission and
acceptance by NPS) incurred for allowable activities in the current grant(s), evidenced by:
•

an SF 424, Application for Federal Assistance, amending the nonfederal share and total project
costs in the current Annual grant(s). Note: After the matching share and total project costs are
increased by NPS approval of the amendment, subsequent amendments to decrease the
nonfederal share will not be approved; and,

•

an SF 270, Request for Advance or Reimbursement, or SF 272 Federal Cash Transactions Report,
evidencing that less than 50 percent of total project costs incurred as eligible matching share is
being claimed for reimbursement. The "agency use" space of the form should refer to the project
for which repayment is being made, the amount being repaid by the request, and the number of
the audit report; and, revised SF 424A or SF 424C Budget Forms detailing the additional work
items and donor, source, kind, and amount of nonfederal share.

4. All documents evidencing repayment of audit disallowed costs must be forwarded to NPS, Historic
Preservation Grants Division, in accordance with the NPS-approved repayment schedule.
P. Collection Procedures.
When costs questioned during audits are determined to be unallowable, and monies are due the
Government, a Bill for Collection will be issued to the grantee by the Accounting and Special Projects
Team of the NPS Accounting Operations Center. The Bill for Collection will establish a definite due date
for repayment. Interest on audit-related debts shall begin to accrue no later than 30 days from the date of
notification of the debt via the Bill for Collection, and shall continue to accrue when NPS audit
resolution decisions are appealed. Interest charges will be made at a percentage rate prescribed quarterly
by the Department of the Treasury for each 30 day period, or portion thereof, that payment is delayed.
All interest charges levied must be paid in cash, and not through a net reduction of other Federal
assistance to the grantee.
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EXHIBIT 23-A OFFICE OF INSPECTOR GENERAL REGIONAL OFFICES
U.S. DEPARTMENT OF THE INTERIOR

Headquarters
U.S. Department of the Interior
Office of Inspector General
1849 C Street NW
Mail Stop 5341
Washington, DC 20240
Main Number 202-208-5745
Fax 202-219-3856

Albuquerque, New Mexico (Investigations)

Herndon (Audits)
381 Elden Street, Suite 1100
Herndon, VA 20170
Main Number 703-487-8011
Fax 703 487-8055

Rapid City South Dakota (Investigations)

2400 Louisiana Blvd., NE
AFC Building No. 1, Room 230
Albuquerque, NM 87110
Main Number 505-346-2720
Fax 505-346-2744

625 ½ Main Street, Suite 1
Rapid City, SD 57701
Main Number 605-342-7280
Fax 605-342-8690

Herndon (Investigations)
Tulsa Oklahoma (Investigations
381 Elden Street, Suite 1120
Herndon, VA 20170
Main Number 703-487-8057
Fax 703-487-8053
Reston (Audits)
12030 Sunrise Valley Drive
Reston Plaza 1, Suite 230
Reston, VA 20191
Main Number 703-487-5345
Fax 703-487-5214
Atlanta, Georgia (Investigations)
2300 Lake Park Drive, Suite 217
Smyrna, GA 30080
Main Number 770-801-7920
Fax 770-801-7924
Albuquerque, New Mexico (Audits)
2400 Louisiana Blvd., NE
AFC Building No 1, Room 230
Albuquerque, NM 87110
Main Number 505-346-2717
Fax 505-346-2722

November 2020 Release

1603 S. 101 East Avenue
Room 116
Tulsa, Ok 74128
Main Number 918-669-7705
Fax 918- 669-7708
Sacramento, California (Audits)
2800 Cottage Way
Suite E-2712
Sacramento, CA 95825
Main Number 916-978-5650
Fax 916-978-5656
Sacramento, California
2800 Cottage Way
Suite E-2712
Sacramento, CA 95825
Main Number 916-978-5650
Fax 916-978-5656

Historic Preservation Fund Grants Manual
Chapter 23 Grantee Accounting and Audit Responsibilities
Exhibit 23-A Office of Inspector General Regional Offices

23-9

St. Thomas, Virgin Islands (Audits)
Federal Building and U.S.
Courthouse
Veterans Drive, Room 207
St. Thomas, VI 00802
Main Number 340-774-8300
Fax 340-774-7847
Minneapolis/St. Paul, Minnesota
(Investigations)
Farm Credit Services Building
375 Jackson Street
Room 300
St. Paul, MN 55101
Main Number 651-291-1334
Fax 651-291-1355
Fort Lee, New Jersey (Investigations)
New York Field Office
One Executive Drive
Suite L-05
Fort Lee, New Jersey 07024
Main Number 201-944-5327
Fax 201-944-4936
Lakewood, CO (Audits)
134 Union Boulevard
Suite 510
Lakewood, CO 80228
Main Number 303-236-9243
Fax 303-236-8211
Lakewood,CO (Investigations)
134 Union Boulevard
Suite 510
Lakewood, CO 80228
Main Number 303-236-8296
Fax 303-236-8279

November 2020 Release

Exhibit 23-A

Historic Preservation Fund Grants Manual
Chapter 23 Grantee Accounting and Audit Responsibilities
Exhibit 23-A Office of Inspector General Regional Offices

23-10

Billings, MT (Investigations)
Post Office Building
2602 First Avenue North
Room 136
Billings, MT 59101
Main Number 406-657-6298
Fax 406-657-6319
Portland, Oregon (Investigations)
Columbia Tech Center
1498 SE Tech Center Place
Suite 165
Vancouver, WA 98683
Main Number 360-253-9193
Fax 360-253-9190
Honolulu, Hawaii (Audits)
733 Bishop Street
Suite 1400
Honolulu, HI 96813
Main Number 808-525-5310
Fax 808-525-5322
Honolulu, Hawaii (Investigations)
733 Bishop Street
Suite 1480
Honolulu, HI 96813
Main Number 808-525-5348
Fax 808-525-5349
Insular Areas Field Liaison Office-Pacific
415 Chalan San Antonio
Baltej Pavilion
Suite 307
Tamuning, Guam 96911
Main Number 671-647-6303
Fax 671-647-6309

November 2020 Release

Exhibit 23-A

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Chapter 24 Retention of Records

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Chapter 24 - Retention of Records
A. Purpose.
This Chapter sets forth record retention and access requirements for HPF grants in accordance with OMB
Circular A-102, as codified in 43 CFR 12.82 for States and Circular A-110, as codified in 43 CFR
12.950-953 for the National Trust. Its provisions apply to all financial and programmatic records,
supporting documents, and other records which are required to be maintained by the terms of an HPF
grant, or otherwise reasonably considered as pertinent to an HPF grant. This Chapter also details
documentation requirements to support costs incurred, matching share contributed, and work performed
with grant assistance. (See Sections H and I, below.)
B. Applicability to Contractors and Subcontractors.
OMB Circulars A-102 and A-110 require grantees and subgrantees to include a provision in each contract
for access to the contractors' records by the grantee and the Federal Government (see Chapters 17, Section
K. and Chapter 18, Section C.).
C. Retention Period.
Grantees must retain financial records, supporting documents, statistical records, and all other records
pertinent to a grant for a period of 3 years or until an acceptable audit has been performed and all claims
and audit findings involving the records have been resolved. The 3-year retention period starts from the
date of the submission of the final expenditure report.
1. If any litigation, claim, or audit is started before the expiration of the 3-year period, the records must
be retained until all litigations, claims, or audit findings involving the records have been resolved.
2. Records for nonexpendable property acquired with Federal funds must be retained for 3 years after
the final disposition of the property.
D. Microfilm Copies.
Grantees may use microfilm for record keeping.
E. Access to Records.
1. Records of grantees. The Department of the Interior and the Comptroller General of the United States
or any of their duly authorized representatives, have the right of access to any books, documents,
papers, or other records of the grantee which are pertinent to the HPF grant in order to make audit,
examination, excerpts, and transcripts. Examination may be made during the period of retention
required by this Chapter or until all audit issues have been resolved.
2. Records of subgrantees. The Department of the Interior, the Comptroller General of the United
States, and the grantee, or any of their authorized representatives shall have the right of access to any
books, documents, papers, or other records of the subgrantee which are pertinent to the HPF grant in
order to make audit, examination, excerpts, and transcripts.
F. Inspections.
The grantee, its subgrantees, and contractors will permit on-site inspections by NPS representatives, and

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will effectively require their employees and review board members to furnish such documentation as, in
the judgment of NPS representatives, may be relevant to a question of compliance with grant conditions
and NPS directives on the effectiveness, legality, and achievements of the grant-assisted program.
G. Disclosure of Information.
Unless otherwise required by law, and as specified in Chapter 3, Section D.3., NPS will not place
restrictions on grantees that will limit public access to the grantees' records or to the records of their
subgrantees or contractors that are pertinent to a grant, except when the records must remain confidential
for any of the following reasons:
1. To prevent a clearly unwarranted invasion of personal privacy;
2. To comply with an Executive Order or statute which requires the records to be kept secret;
3. To protect commercial or financial information obtained from a person or a firm on a privileged or
confidential basis; or
4. To protect information that can be improperly exploited for personal gain.
H. Reports and Records.
Grantees must maintain documentation to support expenditures by the grantee organization and its
subgrantees in accordance with 43 CFR 12.82 (for States) and 43 CFR 12.953 (for the National Trust).
The grantee and its subgrantees will submit financial, progress, evaluation, and other reports as required
by NPS, and will maintain such property, personnel, financial, other records, and accounts as are deemed
necessary by NPS to ensure proper accounting for all program funds.
I.

Supporting Documentation.
1. Procurement. Grantees must maintain documentation on file to support all procurements involving
Federal funds, including:
a. a copy of contract solicitations;
b. a description of the methods of publicizing the solicitations, including dates and places of
publication and posting;
c. copies of the responses received;
d. method and justification of contractor selection;
e.

bid tabulation;

f.

abstract of bids or proposals;

g. justification of the use of negotiation (if used). (Negotiation by virtue of public exigency or on a
noncompetitive basis requires written justification setting forth the circumstances, and written
authorization by NPS.)

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h. negotiation memorandum documenting that the prices are fair and reasonable;
i.

types of contracts awarded;

j.

a copy of the signed and dated contract;

k. evidence of the satisfactory completion of the contract; and
l.

a copy of the contract specifications.

2. Contract compliance. Grantees must maintain documentation on file to ensure contract compliance as
follows:
a. All construction contracts must evidence:
1) that work was accomplished in accordance with contract specifications;
2) formal advertising, sealed bids, and public openings of bids; or that negotiation only occurred
when no acceptable bids were received after formal advertising; or that other conditions
existed which allowed negotiation in lieu of formal advertising in accordance with the
provisions of Chapter 17;
3) that the terms of all negotiated contracts met contract specifications.
b. All contracts over $10,000 (aggregate) must include evidence of:
1) a provision for termination and basis for settlement;
2) a description of conditions under which the contract may be terminated due to default;
3) a description of conditions for termination of the contract because of circumstances beyond
the control of the contractor; and
4) a provision requiring compliance with Executive Order 11246, "Equal Employment
Opportunity" (for construction contracts over $10,000; see Chapter 18).
3.

Development Projects. SHPO project files must contain the following documentation:
a. A copy of the signed subgrant or contract agreement, which must include:
1) clear description of work to be performed;
2) definite beginning and end dates;
3) the Federal share awarded;

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4) specification of final product(s) to be produced (with specific due dates and applicable
standards);
5) nonfederal share required;
6) equal opportunity compliance statement;
7) specified time frames for billing;
8) amendment procedures;
9) reporting requirements ( Final Project Report);
10) reference to the documentation needed to support billings (timesheets, front and back of
canceled checks, etc.) for Federal and nonfederal share claimed;
11) stipulation that repayment be made to the SHPO organization if terms and conditions of the
subgrant or contract agreement are not followed or costs claimed are disallowed following
audit; and
12) reference to the administrative requirements of OMB Circulars A-87 and A-102 (as codified
in 43 CFR 12). Note: Universities covered by OMB Circulars A-21 and A-110, and
nonprofit organizations covered by OMB Circular A-122 must use the cost principles and
administrative requirements of those Circulars in lieu of A-87 and A-102. (In accordance
with OMB Circular A-21, universities may request payment from the SHPO by submitting an
itemized billing and a certification statement in lieu of copies of invoices and canceled
checks.)
b. Copies of all NPS approved change orders, amendments, and extensions.
c. Copies of vendors' invoices evidencing that:
1) invoices are in the name of the grantee (subgrantee);
2) invoice dates are within the project period;
3) purchase price is compatible with the estimated budget costs; and
4) purchases are relevant to the scope of the project.
d. Evidence that invoices were properly approved for payment, including:
1) that discounts and other credits were deducted; and
2) that merchandise/service was received.

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Chapter 24 Retention of Records
e.

24-5

Documentation to support billings (Federal and nonfederal share):
1) copies of properly endorsed canceled checks (both sides);
2) timesheets; and
3) evidence of employee's rate of pay (including justification for rates paid).

f.

Documentation for procurements:
1) copies of advertisements for bids; and
2) copies of bid tabulations or copies of bids.

g. Evidence that grantee/subgrantee was given prior NPS approval to purchase equipment in excess
of $5,000 per item with grant funds.
h. Evidence that work was accomplished in accordance with the terms of the grant agreement (Final
Project Report).

4.

i.

Evidence that a project sign acknowledging DOI/NPS assistance was erected at the project site,
or a copy of the written NPS waiver of this requirement. (See Chapter 6, Section K.2.b.(3)).

j.

A copy of the executed covenant or preservation agreement (see Chapter 6, Section M).

Acquisition projects. SHPO project files must contain the following documentation:
a. A copy of the signed subgrant or contract agreement. Such agreements must include:
1) a clear description of the property to be acquired and related work to be performed;
2) definite beginning and end dates;
3) the Federal share awarded;
4) nonfederal share required;
5) specified time frames for billing;
6) amendment procedures;
7) reporting requirements (Final Project Report);
8) stipulation that repayment be made to the SHPO organization if terms and conditions of the
subgrant agreement are not followed or costs claimed are disallowed following audit; and

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9) reference to the administrative requirements of OMB Circulars A-87 and A-102. Note:
Universities covered by OMB Circulars A-21 and A-110, and nonprofit organizations
covered by OMB Circular A-122 must use the cost principles and administrative
requirements of those Circulars in lieu of A-87 and A-102.
b. A copy of the appraisal report prepared by a certified land appraiser (see Chapter 6, Exhibit 6-B)
and evidence that State staff reviewed the acceptability of the appraisal report for compliance
with the HPF grants manual;
c. Evidence that the property owner was given the opportunity to accompany the appraiser;
d. A statement of difference in value, if the negotiated purchase price is higher from the appraised
value (see Chapter 6, Exhibit 6-B);
e. A copy of the statement of just compensation signed by the property seller (see Chapters 6,
Section L, and Chapter 20, Section I);
f.

A copy of the deed to the property;

g. Documentation to support billings (Federal and nonfederal share):
1) copies of properly endorsed canceled checks (both sides) for acquisition and/or preacquisition
costs (such as appraisals);
2) timesheets for donated services or for distribution of time for employees working part-time
on the grant; and
3) evidence of employee's rate of pay (including justification for rates paid).
h. Evidence that a legally sufficient title search was performed and clear title confirmed;
i.

Evidence that relocation was/was not involved (including relocation of either residential or
commercial tenants);

j.

A copy of the executed covenant or preservation agreement (see Chapter 6, Section M);

k. Evidence that a project sign acknowledging DOI/NPS assistance was erected at the project site, or
a copy of the written NPS waiver of this requirement. (See Chapter 6, Section K.2.b.)
5.

Nonconstruction projects. SHPO project files must contain the following documentation:
a. A copy of the signed subgrant or contract agreement (including all approved change orders).
Such agreements must include:
1) clear description of work to be performed;
2) definite beginning and end dates with specific due dates and applicable standards;

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3) specification of final product(s) to be produced (with specific due dates and applicable
standards);
4) the approved budget, with Federal share awarded;
5) nonfederal share required;
6) Equal Opportunity compliance statement;
7) specified time frames for billing or expenditure reports;
8) amendment requirements and procedures;
9) reporting requirements (Final Project Report);
10) Reference to the documentation needed to support billings (timesheets, front and back of
canceled checks, etc.) for Federal and nonfederal share claimed;
11) Stipulation that repayment be made to the SHPO organization if terms and conditions of the
subgrant agreement are not followed or costs claimed are disallowed following audit;
12) Reference to the administrative requirements of OMB Circulars A-87 and A-102. Note:
Universities covered by OMB Circulars A-21 and A-110, and nonprofit organizations
covered by OMB Circular A-122 use the cost principles and administrative requirements of
those Circulars in lieu of A-87 and A-102. (In accordance with OMB Circular A-21,
universities may request payment from the SHPO by submitting an itemized billing and a
certification statement in lieu of copies of vendor's invoices and canceled checks.)
b. Copies of vendors' invoices evidencing that:
1) invoices are in the name of the grantee (subgrantee);
2) invoice dates are within the project/contract period;
3) purchase price is compatible with the estimated budget costs;
4) purchase(s) are relevant to the scope of the project/contract.
c. Documentation to support billings (Federal and nonfederal share):
1) copies of properly endorsed canceled checks (both sides);
2) timesheets for donated services or for distribution of time of employees working part-time on
the grant; and
3) evidence of employee's rate of pay (including justification for rates paid).

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d. Evidence of approved extensions and amendments;
e. Evidence that invoices were properly approved for payment including:
1) evidence that discounts and other credits were deducted; and
2) evidence that merchandise/services were received.
f.

Evidence that the grantee/subgrantee was given advance NPS approval to purchase equipment
costing in excess of $5,000 with grant funds;

g. Copies of daily time records (including supervisor verification of time worked);
h. Evidence of employees' rates of pay (including justification for rates paid);
i.

Evidence that work was accomplished in accordance with the terms of the grant
agreement/subgrant agreement/contract (Final Project Report);

j.

Evidence that the method for selecting professional services was accomplished in accordance
with Federal procurement requirements.

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Historic Preservation Fund Grants Manual
Chapter 25 Monitoring and Reporting Program Performance

25-1

Chapter 25 - Monitoring and Reporting Program Performance
A. Purpose.
This Chapter sets forth procedures and requirements for monitoring and reporting grantee program
performance in accordance with OMB Circular A-102, as codified in 43 CFR 12.80, for States and OMB
Circular A-110, as codified in 43 CFR 12.951, for the National Trust.
B. Standard for Monitoring by Grantees.
Each grantee is responsible for administering and monitoring its own HPF assisted activities and activities
performed under its subgrants and contractual agreements to ensure that schedules are being met, work is
being accomplished, and other performance goals are being achieved under the provisions of the HPF
Grants Manual. HPF grant funds shall not be paid for any work or activity that does not conform to the
terms and conditions of the NPS Grant Agreement, including the appropriate Secretary's "Standard(s),"
and the specified scope of work. This prohibition also applies to the cost of goods and services claimed
as matching share for HPF monies. The grantee is responsible to NPS for repayment of misapplied funds.
C. Required Performance Reports.
Each grantee shall submit annual performance reports to NPS and a final performance report after the
completion of each project. These requirements are addressed by use of: 1) An annual "End-of-Year
Report" and 2) a "Final Project Report" for each subgrant or contract, if applicable (see Chapter 8, Section
G for Reduced Review subgrant requirements).
In addition, between the required performance reporting dates, the grantee must inform the NPS as soon
as problems, delays, or adverse conditions become known which will materially affect the ability to attain
program objectives or prevent the meeting of time schedules and goals. This disclosure shall be
accompanied by a statement of the action taken, or contemplated, and any Federal assistance needed to
resolve the situation. If any performance review conducted by the grantee discloses the need for change
in the budget estimates in accordance with the criteria in Chapter 15, the grantee shall submit a written
request for budget revision.
D. End-of-Year Report -- States.
The End-of-Year Report provides a framework for NPS to compare actual results achieved during the
annual grant period (October 1 through September 30) to the planned performance specified in the grant
application and approved through the Grant Agreement. It includes all activities for which costs were
incurred during the grant period, whether funded by the previous or the current year's Annual Grant, or
both. The data contained in the Report may be used for determining allocations of HPF appropriated
funds (see Chapter 2). NPS expects that the State's tracking and reporting system results in data which
are accurate, replicable, and based upon regularly updated source records.

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End-of-Year Report Documents. All End-of-Year Reports must contain the following:
Cumulative Products Table. (Exhibit 7-E)
Project/Activity Database Report. (Exhibit 25-B)
Unexpended Carryover Funds Table and Carryover Statement. (Exhibit 25-C)
Sources of Nonfederal Matching Share Report. (Exhibit 25-A)
Significant Preservation Accomplishments Summary. (Section D.1.e., below)
SF269A, Financial Status Report short form for the current and closing years (Exhibit 25-D)
States without an NPS-approved Comprehensive Statewide Historic Preservation Plan must also
submit:
Accomplishments Narrative. (Section D.1.f., below)
1. Cumulative Products Table.
Refer to the Glossary and the Guidelines for Completing the Cumulative Products Table in Chapter 7,
Exhibit 7-E, before entering any data.
a. Only allowable costs and activities are to be included.
b. There must be some entry (even zero) reported for each element.
c. As part of the Cumulative Products Table, provide the documentation listed below for Review
and Compliance activity only if those specific products are used for HPF apportionment purposes
in a specific fiscal year. States will be informed of such a requirement, in writing, at least 30 days
prior to the beginning of the fiscal year for which such records must be kept. When this
documentation is required, the number of products on each list must equal the number in the
corresponding Products Table blank(s).
Review and Compliance Products. See Chapter 6, Section O for definitions and documentation
requirements. When applicable, provide a list of the following:
1) Eligibility Opinions. Include each property for which an opinion (that it was eligible for
listing on the National Register) was rendered in writing, the date on which each opinion was
sent to the Federal agency, and the name of the Federal agency. Non-eligible properties will
not be used as an apportionment factor.
2) "Findings of 'No Properties' and/or 'No Effect' On Which Written Opinions are Provided."
Identify the specific undertaking, the Federal agency, the type of the finding (i.e., "No
Properties" or "No Effect"), and the date the State's opinion was sent to the Federal agency.
Undertakings with "No Properties" findings and "No Effect" findings may be combined into a
single list.
3) "Other Findings of `Effect' On Which a Written Opinion Has Been Provided." Include
opinions on findings of "No Adverse Effect" and "Adverse Effect." Include in this category
"'Conditional' No Adverse Effects" when the State negotiates the steps that the Federal
agency agrees to take in order for the "Effect" to be determined to have "No Adverse Effect."

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Identify on the list the specific undertaking, the type of the "Effect," the name of the Federal
agency, and the date that the opinion was sent to the Federal agency. Undertakings with
these findings may be combined into a single list.
4) "Memoranda of Agreement (MOAs) Signed." Include new or revised MOAs, but not if only
renewed; there must be substantive changes made. Identify the undertaking, the Federal
agency, and the date signed by the SHPO.
5) "Programmatic Agreements (PAs) Signed." Include new or revised PAs, but not if only
renewed; there must be substantive changes made. Include the name of the agreement, the
Federal agency, and the date signed by the SHPO.
2. Project/Activity Database Report.
The purpose of the Report is to provide data on all subgrants and major in-house activities (data on
how the State is using its HPF grant funds). The database is computerized and is designed to allow
reports, lists, and other kinds of data use by the State, NPS, or any other user. See Exhibit 25-B.
a. Preparation of the Project/Activity Database Report.
As part of the End-of-Year Report, the State must include a record for (and describe the status of)
each major activity/project begun, underway, dropped, or completed during the last fiscal year.
Major activity includes subgrants, contracts, cooperative agreements, and in-house staff work,
even if paid for 100 percent with matching share. It is up to the State to define what its major
activities are; however, every third-party activity must be included. Each Chapter 6 Program
Area must have at least one database report record that addresses: a) a subgrant or a major inhouse activity, or b) includes a statement that routine activities were carried out, or c) includes a
statement that no activity was carried out in that Program Area. "Major in-house activity/project"
means the major or most important in-house activities or projects as defined by the State that have
been completed or are underway as of the end of the year.
Every project or activity that is mentioned in the Annual Application's Anticipated Activities List
or Action Plan Narrative (see Chapter 7) must be addressed in the Project/Activity Database
Report. For each major task described in the Annual Grant Application, briefly report the actual
status to date. For tasks that were completed as described, report "Completed" and describe the
specific accomplishments and products relative to the task. For planned tasks partially completed
or amended, tasks not accomplished at all, or tasks that were canceled, report "Partially
Completed," "Not Accomplished," "Carried Over," or "Canceled" and explain why.
NPS provides each State with information on accessing the databease data fields described in
Exhibit 25-B. The software will allow for the automated generation of reports and electronic
export into NPS’ Project/Activity Database. Each State may use the database software to
generate these reports. However, when submitting this information through the database, a hard
paper copy must also be submitted to ensure NPS’ timely review of the End-of-Year Report, and
to facilitate the State’s verification of the data prior to transmitting it to NPS. See Exhibit 25-B,
below, for the information required for each project/activity included in the annual database
report to NPS.

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b. 10 Percent Minimum CLG Pass-Through. The Project/Activity Database Report will be used by
NPS to confirm that at least 10 percent of each year's apportionment award is passed through as
subgrants to Certified Local Governments or recaptured by NPS.
3. Unexpended Carryover Funds Table and Carryover Statement (Use or Lose Policy).
Each State must complete the Unexpended Funds Table and the Carryover Statement as part of the
End-of-Year Report (see Exhibit 25-E). The Carryover Statement is used to confirm that the grantee
is complying with the "Use or Lose" Policy (see Chapter 3, Section K., for an explanation of the Use
or Lose policy). Accordingly, no more than 25 percent of the prior year's apportionment shall be
carried over into the second year of availability as uncommitted funds unless there is an explicit,
written waiver from NPS.
The total unexpended subgrant Federal funds (for the proper Federal fiscal year) from the
Unexpended Carryover Funds Table, when subtracted from the total amount being carried over,
should result in an amount that is 25 percent or less than the prior year's apportionment award. For
example:
FY 1997 Funds Carried Over into FY 1998

$250,000

Minus the Committed yet Unexpended Subgrant Funds

$150,000

Equals the Uncommitted SHPO Carryover

$100,000

FY 1997 Annual Award

$500,000

$100,000 represents 20 percent of the FY 1997 Annual Award of $500,000,
and is, therefore, under the 25 percent maximum uncommitted funds allowable.
4. Sources of Nonfederal Matching Share Report.
The summary format found in Exhibit 25-A must be used to report this information. State records
must document amounts reported. See the guidelines for completing this Report in Exhibit 25-A.
Pursuant to P.L. 96-205, this Report is optional for American Samoa, the Commonwealth of the
Northern Mariana Islands, the Virgin Islands, the Federated States of Micronesia, the Republic of the
Marshall Islands, the Republic of Palau, and Guam. See Chapter 14, Section D.4.
5. Significant Preservation Accomplishments Summary.
Each State must include a brief narrative (not more than three pages) that discusses three to five of the
State’s significant accomplishments ("success stories") that resulted from HPF grant assistance during
the fiscal year. The narrative must explain how each selected project or activity is identifying,
evaluating, documenting, designating, preserving, or protecting significant historic and archeological
properties. (These “success stories” may be used by NPS in annual reports and other written material
to illustrate the benefits of the HPF grant program.)
Each State without an NPS-approved Comprehensive Statewide Historic Preservation Plan must also
submit the following:
6. Accomplishments Narrative.
The Accomplishments Narrative describes the State's accomplishments in the last fiscal year in

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relation to the Narrative transmitted with the Annual Grant Application. The Accomplishments
Narrative parallels the organization of the Application Narrative. For each major task described in
the Annual Grant Application Narrative, briefly report the actual status to date. For tasks that were
completed as described, report "Completed" and describe the specific accomplishments and products
relative to the task. For planned tasks partially completed or amended, tasks not accomplished at all,
or tasks that were canceled, report "Partially Completed," "Not Accomplished," "Carried Over," or
"Canceled" and explain why.
7. Transmittal of the End-of-Year Report.
The deadline for submitting the End-of-Year Report in its entirety is December 31. In certain cases,
NPS may require States to submit some End-of-Year Products data earlier than December 31 for
apportionment purposes, upon prior written notice.
E. Overdue or Unacceptable Reports.
1. Policy. NPS may take administrative action when required reports (including Project Notifications,
Final Project Reports, End-of-Year Reports, etc.) are not submitted to NPS on a timely basis.
2. Procedures for Obtaining Compliance. If required reports are not submitted, or are substantively
incomplete, the State may be advised in writing that one of the following steps will be taken by NPS:
a. Suspending the State's Electronic Funds Transfer privileges and/or withholding of NPS action on
SF 270 Requests for Advance or Reimbursement until the delinquent documents are received.
b. Withholding the award of additional grants until the relevant documents are received.
c. Halting the processing of the Annual Grant Application.
d. Making the timely submittal of an acceptable End-of-Year Report a special grant condition on the
following year's Annual Grant Agreement.
e. Suspending the Grant by formal written notice that requests for reimbursement will not be
processed for activities funded in the second year of the Annual Grant. See Chapter 22, Section
D.
f.

Making the State ineligible to participate in any subsequent reapportionment of HPF funds during
that year.

g. Imposing additional reporting requirements.
h. Failure to supply adequate data may result in a reduced subsequent HPF apportionment.
i.

The State may lose its Reduced Review Status (see Chapter 8, Section G, for procedures and
criteria).

j.

NPS may take other appropriate administrative action.

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Similar steps, including adjusting the grantee’s obligational authority, may be taken by NPS (with
prior written notice) if the grantee is significantly overdue in submitting acceptable grant applications
or amendments to obligate funds.
F. NPS On-site Review.
NPS will make site visits as necessary or as requested to review program accomplishments and
management control systems; and to provide technical assistance.
G. End-of-Year Report -- National Trust for Historic Preservation.
The National Trust shall submit an acceptable End-of-Year Report to NPS not later than December 31.
This Report shall consist of Attachment A and an accompanying brief narrative shall address major
performance areas specified by NPS.
In the Attachment A, the National Trust shall make a comparison of proposed objectives to actual
accomplishments using the right-hand column of the Attachment A form submitted for the preceding
fiscal year's Annual Grant Application. For every project or activity that is mentioned in the Annual
Application (see Chapter 7), briefly report the actual status to date. For tasks that were completed as
described, report "Completed" and describe the specific accomplishments and products relative to the
task. For planned tasks partially completed or amended, tasks not accomplished at all, or tasks that were
canceled, report "Partially Completed," "Not Accomplished," "Carried Over," or "Canceled" and explain
why.

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OMB Control Number: 1024-0038
Expiration Date: November 30, 2007

EXHIBIT 25-A SOURCES OF NONFEDERAL MATCHING SHARE REPORT
(TO BE SUBMITTED ONLY WITH THE END-OF-YEAR REPORT)
STATE:

FISCAL YEAR:

___

DATE: ___

AMENDMENT:

Each State shall supply the following data on nonfederal matching share. Documentation on file with the
State should support the total amount claimed as contributed during the fiscal year for the matching share.
TOTAL MATCHING FUNDS CONTRIBUTED
DURING THE LAST FISCAL YEAR

SOURCE OF MATCH

CASH ($)

FEDERAL............................................
STATE..................................................
REGIONAL.............................................
TRIBAL..................................................
COUNTY...............................................
MUNICIPAL............................................
CERTIFIED LOCAL GOVERNMENT.............
*EDUCATIONAL INSTITUTION...................
*NONPROFIT...........................................
*COMMERCIAL ORGANIZATION................
*PRIVATE...............................................

TOTAL
* Identify sources and amount of match on a separate sheet of paper.

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Guidelines for Completing the Sources of Nonfederal Matching Share Report
1. Each blank must be filled in, even if the entry is "zero" or "not applicable."
2. The word "contributed" refers to matching funds disbursed for activities performed during the fiscal year.
This includes matching share for activities assisted with funds carried over from the previous fiscal year.
It does not include matching share contributed in the following fiscal year. Contributed funds that are
NPS-approved preagreement costs for the following year's grant should not be included in this year's
Report. List only allowable nonfederal share of cash, goods, services, or property.
3. The "Federal" source line means Community Development Block Grant or other Federal funds that, by the
law governing those funds, may be used as nonfederal share to match other Federal grants (such as
Historic Preservation Fund grants). See Chapter 14, Section M. Do not enter the HPF grant award in this
Report (Sources of Nonfederal Matching Share Report).
4. "Regional" refers to nonfederal governmental organizations or agencies (e.g., Councils of Government)
that have a jurisdiction that is greater than local or municipal but less than Statewide.
5. "Nonprofit" refers only to organizations officially recognized as nonprofit by the Internal Revenue
Service.
6. "Tribal" refers only to Federally-recognized Indian tribes or Native Alaskan groups.
7. The "Commercial Organization" source line means any "for profit" business organization.
8. The "Private" source line means an individual or family unit not contributing as a "nonprofit" or
"commercial organization."
9. The grand total must at least equal the total nonfederal matching share as shown on the SF 424 (plus funds
carried over from the previous fiscal year) minus any matching share that is to be used to match the HPF
funds carried over into the following year. To qualify as "overmatch," additional funds must be listed on
the SF 424 and SF 424A Budget Forms, not just on this Report.

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EXHIBIT 25-B PROJECT/ACTIVITY DATABASE REPORT
As part of the End-of-Year Report, the State must complete a record for each major activity/project begun,
underway, dropped, or completed during the last fiscal year (this includes subgrant, contract, cooperative
agreement, or in-house staff work, even if paid for with 100 percent matching share). Every third-party
activity must be included. "Major in-house activity/project" means for each Chapter 6 Program Area, the
major or most important in-house activities or projects as defined by the State that have been completed or are
underway as of the end of the year. Normally there will be at least one important activity (carried out inhouse or through subgrant) in each Program Area. If a State has completed only routine activities in a
Chapter 6 Program Area, an in-house record should state this situation. Every project or activity listed in the
Anticipated Activities List or Annual Application Narrative must be addressed in a Project/Activity Database
Report (PADB) record.
Data Entry Instructions. Each State must use the NPS approved database for entering information into the
PADB report.
Data must be provided in every applicable field, even if the entry is zero.
Where a data field provides options, the State may check a box from among all of the options or merely type
the choice and erase the other options. For example, a State may check the appropriate Program Area on the
form or type in the appropriate Program Area and delete the rest. Data fields that apply solely to subgrants
may be deleted for in-house activities.
Data Field (The numbers below correspond to the data field number in the report record)
1.

The Record Number is made up of the State Code (i.e., the two letter Post Office Abbreviation), followed
by the funding year, followed by the project/activity number beginning with 001. If a State wishes to use
its own numbering system, it may do so as long as it also supplies a record number using the national
format.
! The "Fiscal Year of funding" means the appropriations year of the money which pays for the project.
For example, "97" should be entered for a project paid for with FY 1997 funds even if the work is
being done during FY 1998.
! The project/activity record numbers start over with each new funding year. For example, if
Wyoming's last project/activity for FY 1997 funding year has a record number of WY-97-105, then
the first project/activity funded with FY 1998 funds has a record number of WY-98-001.
! Do not skip any numbers in submitting the Report. A record number of MS-97-045 for example
would mean that this project or activity was the 45th project initiated by Mississippi with FY 1997
funds.

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! Each project/activity has a unique record number. Updated information is not given a new record
number. However, separately funded phases of an on-going project/activity would receive separate
records.
2.

The Title should be descriptive rather than numeric. For example, use "Inventory Computerization" or
"Doe County Archeological Survey," but not "14-BAL-42B10." Separate phases of the same project
should add phase numbers but retain the same title.

3.

Briefly describe the tangible/measurable product or service that will result from completing the
activity/project.
Describe the status of the project’s products. For projects/activities underway at the time of the End-ofYear Report, describe the currently planned products, services, etc. For activities/projects completed
during the fiscal year, describe the actual accomplishments of the activity/project. If the results are
significantly different (in the State's view) from initial expectations, explain what happened. If a project
is canceled or completed under budget, explain what happened to the remaining funds; e.g.,
reprogrammed to another subgrant, to SHPO operational costs, etc. The description provided in this data
field must be consistent with the status selected in data field 5, below.

4.

Provide the name of the subgrantee or contractor.

5.

Provide the current status of the project (check only one).

6.

Provide the beginning and end dates for the project.

7.

Select SUBGRANT/CONTRACT for subgrant projects and contracts, and IN-HOUSE for activities
conducted within the State Historic Preservation Office.

8.

Check this box only if the project/activity involves a National Historic Landmark.

9.

Check this box only if a subgrant is going to a Certified Local Government.

10. Check the “Primary” Program Area that this project involves. For example, if the project is mainly a
survey that may result in a National Register nomination, check “Survey and Inventory.” “National
Register” should be checked as one of the Secondary Program Areas in Number 5. Never select "Local
Government Certification" for a CLG subgrant. "Local Government Certification" should be selected
only for non-CLG subgrants or “in-house” projects that help a local government become certified or that
help the State administer its CLG program. See the Guidelines for Completing the Cumulative Products
Table in Chapter 7, Exhibit 7-E, and Chapter 6 for more information on Program Areas.
11. Check any additional Program Areas that apply to the project. Please note that each Program Area
should be checked only once--either as the primary Program Area or as a secondary Program Area.
12. This data field refers to the U.S. House of Representatives--not to the State legislature.
13. Enter the State Plan Goal(s) and Objective(s), if any, that this activity or subgrant helps achieve. If
multiple Goals and Objectives are relevant, all may be listed. If the Goals or Objectives of the State Plan

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are not numbered, a short title or description should be used so that the reader can determine which
Goal(s) and/or Objective(s) are being referenced.
14. Enter the number of any subgrant that is related to the current subgrant. This should only be used for
ongoing phased projects that are funded through separate subgrants.
15. Enter the Planned amount of Federal share and nonfederal share at the beginning of the project (i.e.,
written into the subgrant agreement). Please note that this should be the current amount obligated to the
subgrant or contract; the Planned amount should be changed if the subgrant or contract amount has been
amended. For example, if the original subgrant award was $10,000 federal share and $6,000 matching
share and the federal and matching share are increased or reduced through an amendment, the Planned
amounts in the database should reflect those changes).
16. Enter the amounts (Federal and matching share) expended during the first fiscal year of the subgrant. A
State may type in the Federal Fiscal Year (e.g., "FY 1997") rather than use "1st Fiscal Year."
17. Enter the amounts (Federal and matching share) expended during the second fiscal year of the subgrant.
A State may type in the Federal Fiscal Year (e.g., "FY 1997") rather than use "2nd Fiscal Year."
18. Enter the amounts (federal and matching share) expended to date.
OMB Control Number 1024-0038
Expiration Date: November 30, 2007
HPF PROJECT/ACTIVITIES DATABASE REPORT
1.

RECORD #

--

--

(i.e., State - Fiscal Year of funding - Project/Activity #)

2.

TITLE
(Specify phase number if applicable)

3.

BRIEF DESCRIPTION (Include project status and indicate publications, if applicable):

4.

SUBGRANTEE / CONTRACTOR NAME

5.

PROJECT STATUS [check only one]:
ACTIVE
COMPLETED
CANCELED

)
)
)

6.

PROJECT START DATE

7.

SUBGRANT/CONTRACT ( ) IN-HOUSE PROJECT ( ) [Check One]

8.

NHL ( ) [Check, if applicable]

9.

CLG ( ) [Check, if applicable] [subgrants only]
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(
(
(

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10. PRIMARY PROGRAM AREA
[Check the one that best applies] See Chapter 6 and the
Guidelines for Completing the Cumulative Products
Table, Chapter 7, Exhibit 7-E.

Acquisition ( )
Administration ( )
Covenants ( )
Development ( )
Local Government Certification ( )
National Register ( )
Other Activities ( )
Planning ( )
Preservation Tax Incentives ( )
Review and Compliance ( )
Survey and Inventory ( )

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11. SECONDARY PROGRAM AREA
[Check all that apply] See Chapter 6 and the Guidelines
for Completing the Cumulative Products Table, Chapter
7, Exhibit 7-E.

Acquisition ( )
Administration ( )
Covenants ( )
Development ( )
Local Government Certification ( )
National Register ( )
Other Activities ( )
Planning ( )
Preservation Tax Incentives ( )
Review and Compliance ( )
Survey and Inventory ( )

12. CONGRESSIONAL DISTRICT(S)
13. ADDRESSES OR MEETS STATE PLAN OBJECTIVES [Identify the Goal(s) and Objective(s) of the
State Plan that this project helps achieve by description; i.e. number, letter or title.]

14. RECORD NUMBER(s) OF RELATED PHASE(s), if any, of project.
RECORD #

--

--

--

RECORD #

--

--

--

15. PLANNED FEDERAL SHARE $
PLANNED MATCHING SHARE $

16. FEDERAL SHARE EXPENDED 1st FISCAL YEAR $
MATCHING SHARE EXPENDED 1st FISCAL YEAR $

17. FEDERAL SHARE EXPENDED 2nd FISCAL YEAR $

[Subgrants only]
[Subgrants only]

[Subgrants only]
[Subgrants only]

[Subgrants only]

MATCHING SHARE EXPENDED 2nd FISCAL YEAR $

18. FEDERAL SHARE EXPENDED TO DATE $
MATCHING SHARE EXPENDED TO DATE $

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[Subgrants only]

[Subgrants only]
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OMB Control Number: 1024-0038
Expiration Date: November 30, 2007
EXHIBIT 25-C PROJECT/ACTIVITY DATABASE CARRYOVER STATEMENT

Each State must complete the Carryover Statement and the Table of Unexpended Carryover Funds as part
of the End-of-Year Report. Only the Federal Share should be included.
OMB Control Number: 1024-0038
Expiration Date: November 30, 2007
Project/Activity Database Carryover Statement

Item

Amount (Federal Share)

Costs Incurred First Fiscal Year

$

Committed Subgrants/Contracts Unexpended Balance
to be Carried Over

$

Uncommitted Carryover

$
$ 0.00

Total (Should Equal Grant Award)

The total uncommitted dollar amount awarded in FY
(just completed fiscal year) to be carried over
(current fiscal year) that is not committed to subgrants/contracts is $
."
into FY
Please check and complete one of the following sentences (choose the one that applies):
This amount does not exceed 25% of the amount apportioned by NPS, as demonstrated by the
attached Unexpended Carryover Funds Table.
OR
As demonstrated by the attached Unexpended Carryover Funds Table, this amount exceeds
. I am seeking a waiver for
25% of the amount apportioned by NPS by $
this amount to carry these funds over into the next Federal Fiscal Year for the reasons
attached.

Signature of SHPO

Date

Comments:

If the proposed uncommitted carry over amount exceeds 25%, see Chapter 3, Sections D.6. and K. which discuss
Waivers and the Carryover (Use or Lose) policy on HPF funds.

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EXHIBIT 25-D UNEXPENDED CARRYOVER FUNDS TABLE

OMB Control Number: 1024-0038
Expiration Date: November 30, 2007
Unexpended Carryover Funds Table

Subrecipient (Subgrantee or Contractor)

Federal Share of
Certified
Subgrant/
LocalGovernment? Contract Award

Federal Share
Cost not Incurred as
of 9/30/XXXX

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

CLG SUBGRANT TOTAL
GRAND TOTAL

0.00

0.00

Enter with a check mark, or “yes” all subgrants that are passed through to a Certified Local Government in the second
column. All of the subgrants/contracts listed in the Project/Activity Database Report must be included in the
Unexpended Carryover Funds Table.

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Glossary

Glossary - 1

Chapter 26 GLOSSARY

Key:

Terms can have special meanings (different from the standard meaning) depending on the
contexts in which they are used. Terms having special applications are identified by the
following source-related keys:
(60)
(61)
(67)
(800)
(S&G)

36 CFR 60; National Register Related
36 CFR 61
36 CFR 67; Tax Related
36 CFR 800; Advisory Council Related
Secretary's Standards and Guidelines

Abuse. Violations of Departmental, Bureau, or program regulations which impair the effective and efficient
performance of mission responsibilities.
Accessibility. When viewed in its entirety, a program must be readily accessible to and usable by qualified
persons, as defined by Section 504 of the Rehabilitation Act of 1973. This does not mean that every existing
facility or part thereof has to be made physically accessible (43 CFR 17.217 Subpart B). See Chapter 10.
Accrued Expenditures. The charges incurred by the grantee during a given period for: (1) goods and other
tangible property received; (2) services performed by the employees, contractors, subgrantees, and other
payees; and (3) amounts becoming owed under projects for which no current services or performance are
required.
Acquisition Cost of Purchased Nonexpendable Personal Property. Net invoice unit price of a property
including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the
property usable for the purpose for which it was acquired.
Acquisition Project. A grant project which has for its purpose obtaining fee title, or interest other than fee
title, of real property (including the acquisition of development rights or remainder interest).
Act (The). The National Historic Preservation Act of 1966, as amended (16 U.S.C. 470).
Active. Pertaining to an item, report, project, subgrant, etc., that is in process during any part of the reporting
period; e.g., an application for the preliminary certification of rehabilitation that has been received by the
State but the recommendations for which have not yet been forwarded to NPS.
Actual. As used in the End-of-Year Report, Actual refers to Products that are completed during the fiscal
year grant period. See Chapters 7 and 25.

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Administrative Costs. Those costs including budget formulation and execution, personnel management, and
other overhead functions not specifically chargeable to a particular HPF-assisted activity. Administrative
costs include indirect costs, and are limited by the NHPA to 25% of the Annual Grant. See Chapter 6 and
Exhibit 7-B.
Advance by Treasury Check. A payment made by a U.S. Treasury check to a grantee upon submittal of an SF
270 form. An advance is not recorded as an expenditure until the grantee submits an SF 272 Federal Cash
Transactions Report. See Chapter 21.
Adverse Effect. The finding of a Section 106 review in which it is determined that the proposed Federal
action will adversely affect historic properties. See 36 CFR 800.
Advisory Council. The Advisory Council on Historic Preservation (ACHP), established under Section 201 of
the Act.
Allowable Cost. Those eligible, reasonable, necessary, and allocable costs that are permitted under the
appropriate Federal cost principles, in accordance with program policy, within the scope of the project or
program and authorized for HPF participation. See Chapters 12 and 13.
Amendment. An official alteration of the project or program agreement which modifies the approved project
or grant agreement in a specified manner. See Chapter 15.
Annual Appropriation Grant. The grant funded by an appropriation derived from a regular, continuing
resolution, or special purpose appropriation of new funds to the Department of the Interior authorized by
Section 108 of the Act.
Apportionment. 1) A distribution by OMB to individual Federal agencies of amounts appropriated by
Congress. The distribution is for specific time periods, activities, functions, programs, projects, or
combinations thereof. 2) The distribution of Historic Preservation Fund monies made annually by the
Secretary of the Interior to eligible grantees.
Appraisal of Real Property. A standardized procedure to establish the current fair market value of real
property in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act.
Appraisals must be performed by a certified professional real property appraiser. See Chapters 6 and 20.
Appropriation. The amount of funds (obligational authority) Congress makes available annually from the
Historic Preservation Fund for purposes of the Act.
Approved State Program. (61) A State historic preservation program that has been approved by the Secretary
of the Interior in accordance with Section 101(b) of the National Historic Preservation Act.
Audit. A systematic review or assessment to determine and report whether: (1) financial operations are being
properly conducted, (2) financial reports are being presented fairly, and (3) applicable laws and regulations
are being complied with. See Chapter 23.

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Historic Preservation Fund Grants Manual
Glossary

Budget. The financial plan for expenditure of all Federal and nonfederal funds for a program or a project;
developed by cost components in the grant application on the SF 424A (see Chapter 7, Exhibit 7-B), or on a
Project Notification (see Chapter 8, Exhibit 8-A).
Budget Period. 1) The interval of time into which a multi-year period of assistance is divided for budgetary
and funding purposes. 2) The period specified in the grant agreement during which Federal funds are
authorized to be expended, obligated, or legally committed by the grantee for the purposes specified in the
grant agreement.
Building. (60) A man-made construction created to shelter human activity, such as a house, barn, church,
hotel, or similar structure. Building may refer to a historically related complex such as a courthouse and jail,
or a house and barn.
Carryover. Grant funds in excess of that needed for costs incurred during the first year of funding
availability. See Chapter 3, Section J.
Categorical Exclusion. See Chapter 11 for categorical exclusions not requiring preparation of an
environmental assessment for proposed HPF-supported actions. The appropriate exclusion must be cited on
the Environmental Certification transmitted as part of the grant application (see Chapter 11).
Certification. A legally binding statement that certain requirements have been fulfilled. The penalty for false
statements in certifications is prescribed in 18 U.S.C 1001.
Certification of State or Local Districts. The process of certifying that a district designated under a state or
local statute meets substantially all of the requirements for the listing of districts in the National Register of
Historic Places (see 36 CFR 67).
Certified Historic Structure. (67) A building (and its structural components) which is of a character subject to
the allowance for depreciation provided in the Internal Revenue Code which is either (a) individually listed in
the National Register; or (b) located in a registered historic district and certified by the Secretary as being of
historical significance to the district. Portions of larger buildings, such as single condominium apartment
units, are not independently considered certified historic structures. Rowhouses, even with abutting or party
walls, are considered as separate buildings. For purposes of the charitable contribution provisions only, a
certified historic structure need not be depreciable to qualify, may be a structure other than a building, and
may also be a remnant of a building such as a facade, if that is all that remains. For purposes of the other
rehabilitation tax credits under the Internal Revenue Code, any property located in a registered historic district
is considered a certified historic structure so that other rehabilitation tax credits are not available; exemption
from this provision can generally occur only if the Secretary has determined, prior to the rehabilitation of the
property, that it is not of historic significance to the district.
Certified Local Government (CLG). A local government whose local historic preservation program has been
certified pursuant to Section 101(c) of the Act.
Certified Rehabilitation. (67) The rehabilitation of a certified historic structure which the Secretary has
certified as being consistent with the historic character of the structure and, where applicable, with the district
in which such a structure is located.

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Historic Preservation Fund Grants Manual
Glossary

Chief Elected Local Official. 1) (61) The elected head of a local government. 2) (60) The mayor, county
judge, county executive, or otherwise titled chief elected administrative official who is the elected head of the
local political jurisdiction in which a property is located.
Clearinghouse. An agency of State government designated by the Governor to review and disseminate to
other interested public agencies for review, notices of intent to apply for Federal grant assistance in
accordance with Executive Order 12372. Also known as the Single Point of Contact; see Chapter 4.
CLG Share. (61) HPF grant funds that are transferred to Certified Local Governments in accordance with
Section 103(c) of the Act.
Code of Federal Regulation (CFR). A series published by the Federal Government which contains
codification of the general and permanent rules published by agencies of the Federal Government.
Cognizant Federal Agency. The Federal agency responsible for reviewing, negotiating, and approving cost
allocation plans or indirect cost proposals prepared by grantees under OMB Circular A-87 or other Federal
Cost Principles. The Federal agency that provides the largest amount of funding to a particular grantee is
deemed to be the cognizant Federal agency for that grant recipient.
Competitive Negotiation. A method of procurement used when the nature of services or products needed
precludes development of a precise description or specification that will enable prospective suppliers to have
an identical understanding of the requirement. Competitive negotiation is used when formal advertising is not
appropriate, and is normally the method used for obtaining professional services for nonconstruction work.
Comprehensive Statewide Historic Preservation Plan. (61) Required by the Act, the Comprehensive
Statewide Historic Preservation Plan is a major tangible product of the State’s Historic Preservation Planning
Process. The State Plan is a document that articulates a vision of the future for historic preservation across
the State and identifies goals and strategies for achieving them in the future. The State Plan is a tool for the
State Historic Preservation Office and others throughout the State for guiding effective decision-making on a
general level, for coordinating Statewide preservation activities, and for communicating Statewide
preservation policy, goals, and values to the preservation constituency, decision-makers, and interested and
affected parties across the State.
Conditional No Adverse Effect. The finding of a Section 106 review in which the SHPO determines that the
project will not adversely affect properties, but only because of specified conditions which the Federal agency
proposes or agrees to. For example, it includes "no adverse effect" findings contingent upon the satisfactory
recovery of data present in archeological properties.
Conflict of Interest. A conflict between one's obligation to the public good and one's self-interest.
See Chapter 3, Section B.4.
Considered Eligible. Those properties that both the SHPO and the Federal agency agree should be considered
eligible for listing in the National Register of Historic Places, but have not been forwarded to NPS for a
formal Determination of Eligibility. These are not Determinations of Eligibility.
Consultant. An individual who is engaged to give professional advice or services, for a fee, but not as an
employee of the party that engages him/her. The term includes paid guest lecturers and speakers.

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Glossary - 5

Continuing Resolution Grant. A grant awarded under a Continuing Resolution when congressional action on
appropriations is not completed by the beginning of a fiscal year. A Continuing Resolution is legislation
enacted to provide funding so that specific activities may continue operation until the regular appropriations
are enacted. Continuing Resolution Grants are awarded by the Secretary of the Interior to prevent disruption
during this period.
Contract. A written procurement agreement between the grantee (or its subgrantees) and another party (the
contractor) obligating the grantee to pay for and the contractor to furnish property or services needed to
accomplish the purposes of the grant. A "subcontract" means a procurement subcontract under such a
contract. For purposes of HPF grants, a contract is considered equal to a subgrant for commitment of funds.
Contributing Property (Resource). A property or resource that has historical significance through location,
design, setting, materials, workmanship, feeling, or association, and adds to the sense of time and place and
historical development in a historic property (i.e., a National Register eligible property or resource). See 36
CFR 67.5 "Standards for Evaluating Significance within Registered Historic Districts."
Cost. For purposes of HPF assistance, a cost is determined on a cash, accrual, or other basis acceptable to
NPS as a discharge of the grantee's accountability for Federal funds. See Chapter 12.
Cost Allocation Plan. The documentation identifying, accumulating, and distributing allocable costs under
grants and contracts together with the allocation methods used. This plan forms the basis for a percentage
indirect cost rate proposal to be submitted to the cognizant Federal agency for approval. The plan must
describe the services provided and relevance to the grants program, list the expenses to be charged to grants,
and explain the method used to distribute costs. See Chapter 12.
Cost-Plus-a-Percentage-of-Cost Contract. A cost-reimbursement contract whereby the contractor is
reimbursed for costs plus a fixed percentage of costs. Its effect is to increase the profits of a contractor in
proportion to the contractor's increased costs. Its use is prohibited by law [41 U.S.C. 254b and 10 U.S.C.
2306(a)] in Government contracting, and prohibited by 43 CFR 12.76(f)(4) and by 43 CFR 12.944(c) in
grantee or subgrantee contracting.
Cost-Reimbursement Contract. A contract that establishes an estimate of total costs for the purpose of
committing funds and a ceiling that the contractor may not exceed (except at contractor risk) unless the
awarding party agrees to amend the contract to provide additional funds. This kind of contract may also
provide for a fixed dollar profit (usually not more than 10 percent) which may not be increased unless the
contract is amended to increase the scope of work. The contract provides for payment of all allowable costs
to the extent prescribed in the contract.
Covenant. A deed restriction which is binding on future owners of a property during the term of the
covenant. See Preservation Agreement.
Cultural Resource. Any district, site, building, structure, or object significant in American history,
architecture, archeology, engineering, or culture at the national, State, or local level.
Cumulative Products Table. The form used in the annual grant application and End-of-Year Report to record
Products in the program areas applicable to HPF eligible activities. See Chapters 7 and 25.

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Cumulative Projection. The sum of estimates (Products) In the HPF Grant Application for activities to be
accomplished with all of the current Federal fiscal year's grant awards made to the State to date. By the end
of the fiscal year, this will include all awards made to the State during the fiscal year including any carryover
funds, Continuing Resolution Grants, regular apportionment grants, etc.
Curation. The placement in a museum and subsequent care of artifacts and records associated with those
archeological resources recovered with grant assistance.
Deferral. A Federal action to temporarily delay the obligational availability of appropriated funds. Deferrals
may not extend beyond the end of the Federal fiscal year in which the deferral is proposed.
Depreciation. The systematic and rational allocation of the costs of equipment and buildings (having a useful
life of more than 1 year) over their useful lives.
Designation of SHPO. The official written appointment by the Governor of an individual or specified agency
official with authority to represent the State and to be responsible for carrying out the purposes of the Act.
See 36 CFR 61 and Chapter 3, Section B.2.
Determination of Eligibility. (60) A decision by the Department of the Interior that a district, site, building,
structure, or object meets the criteria for evaluation although the property is not formally listed in the National
Register of Historic Places. A determination of eligibility does not make the property eligible for such
benefits as grants, loans, or tax incentives that have listing on the National Register as a prerequisite.
Development Project. A project which has for its purpose the protection, rehabilitation, restoration, or
reconstruction of a historic property.
Direct Cost. Any cost that can be specifically identified with a particular project or program. Direct costs
include, but are not limited to, salaries, travel, equipment, and supplies directly benefiting a particular project
or activity.
Disabled Person. Any person who has a physical, mental, or sensory impairment which substantially limits
one or more major life activities, has a record of such impairment, or is regarded as having such an
impairment as outlined in 43 CFR 17.202 Subpart B(k)(2)(i). With respect to employment, "Qualified
handicapped person" means a disabled person who, with reasonable accommodation, can perform the
essential functions of the job in question (43 CFR 17.202 Subpart B(k)(1)).
Disallowed Costs. Those charges to a grant which are determined to be unallowable.
Disbursements. Payments represented by valid invoices and documentation.
District. (60) A geographically definable area, urban or rural, possessing a significant concentration, linkage,
or continuity of sites, buildings, structures, or objects united by past events or aesthetically by plan or physical
development. A district may also comprise individual elements separated geographically but linked by
association or history.
Donation. Cash, land, material, or services provided to or by a subgrantee (or contractor) or third-party for
incorporation in the project at no cost to the subgrantee. Donations must be necessary and reasonable

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contributions directly benefiting and specifically identifiable to the project or grant to qualify as allowable
matching share. See Chapter 14.
Duly Authorized Representative. (67) A state or locality's Chief Elected Official or his or her representative
who is authorized to apply for certification of State/local statutes and historic districts.
Easement. The right of one person to use the property or property rights (e.g., the right of access, the right to
limit exterior alterations) of another for a stated term. The owner retains the major interest and can live in the
property, will the property to another, or sell the property. Transfer of title does not affect the easement,
which remains in effect for the stated term.
Effective Date. See Project Beginning Date.
EISs (State Review). The substantive review of any Environmental Impact Statement (Preliminary, Draft,
Final, etc.) promulgated by or on behalf of a Federal agency pursuant to the National Environmental Policy
Act.
Evaluation. A process which permits a determination of whether a grantee or subgrantee is achieving defined
program objectives.
Evaluations of Significance. The evaluation of whether a particular structure qualifies as a certified historic
structure pursuant to 36 CFR 67. This term includes both determinations of significance and determinations
of non-significance (i.e., decertifications of significance).
Executive Order (E.O.) 12372. This document establishes procedures for the cooperative implementation of
proposed Federal assistance programs, Federal requirements for plans, and direct Federal development
projects, through consultation which accommodates the concerns of the State and local elected officials.
Replaces OMB Circular A-95. See Chapter 4.
Expenditures. All allowable disbursements chargeable to the approved budget plus the recorded dollar value
of all unpaid invoices for materials received and services rendered, and all in-kind services and materials
applied to the operation of projects.
Extension of Time. An NPS-approved amendment extending the end date of a project or grant period. See
Chapter 15.
FAADS (The Federal Assistance Awards Data System). A computer-based, central collection of selected,
uniform information on Federal assistance transactions. Such information includes the name and location of
the recipient, amount of Federal funding, project description, and Federal program reported by geographic
location. See Chapter 7, Exhibit 7-A.
Feasibility Study. A detailed physical investigation and analysis of a historic property conducted to determine
the financial, technical, or economic advisability of a proposed project and/or alternative courses of action.
Federal Assistance. The term "Federal Assistance," (or "Federal Financial Assistance," "Federal Assistance
Programs," or "Federally Assisted Program") means programs that provide assistance through grant or

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contractual agreements, and includes technical assistance programs or programs providing assistance in the
form of loans, loan guarantees, or insurance.
Federal Ownership or Control. (60) Federal ownership or control for Federal nominations to the National
Register means property for which a Federal agency holds fee-simple title and other properties over which the
Federal Government has jurisdiction, including those on the Outer Continental Shelf.
Federal Preservation Officer. (60) The official designated by the head of each Federal agency responsible for
coordinating that agency's activities under the National Historic Preservation Act, as amended, including
nominating properties under that agency's ownership or control to the National Register. The Federal
Preservation Officer may delegate the authority to submit nominations to the National Register.
Federally Recognized Indian Tribal Government. An Indian tribe, band, nation, or other organized group or
community, including a Native Village, Regional Corporation or Village Corporation, as those terms are
defined in Section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602), which is recognized as
eligible for the special programs and services provided by the United States to Indians because of their status
as Indians.
Fee-Simple Acquisition. Acquisition of absolute ownership of real property without limitation or condition.
Final Project Report. A subgrant closeout report submitted to NPS. See Chapter 8 and Exhibit 8-E.
Fiscal Year. The Federal fiscal year; the 12-month period from October 1 through September 30.
Flood Plain. The area along waterways subject to periodic inundation.
Force Account (or Force Account Work). The performance of a project with the employees and facilities of
the grantee or its State and local government subgrantees, rather than by contract with an outside
organization.
Formal Advertising. A competitive procurement method which is normally used when the nature of the
product or service permits development of a precise description or adequate specifications so that prospective
suppliers will be enabled to have an identical understanding of the requirement. Bids are solicited publicly
through advertising and by issuing "Invitations for Bids." In response to the solicitation, "formal" sealed bids
are submitted which are not subject to negotiation or change. The sealed bids are opened publicly on a
specified date and are read aloud. A firm fixed-price contract is awarded to the responsible bidder (see
definition) whose bid, conforming to the material terms and conditions of the invitation for bids, is lowest in
price. Formal advertising is normally the required method of procurement for construction work. See
Chapter 17.
Fraud. The intentional, wrongful obtaining of money or some unfair or dishonest advantage or benefit from
government programs. Fraud includes theft, embezzlement, false statements, illegal commissions, kickbacks,
conspiracies, obtaining contracts through collusive arrangements, and similar activities.
General Conditions of Grant Award. Legally binding provisions applicable to and part of all HPF grant
agreements. See Chapter 5. Also see Special Conditions of Grant Award.

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General Conditions for Construction Contracts. Costs incurred by a general contractor for common elements
to be used by other contractors or subcontractors. Included are temporary heat, power, lighting, water,
sanitary facilities, scaffolding, elevators, walkways, railings, and office and storage space necessary for
performance of contract work at the project site. (These items are distinct from "contingencies," which are
unallowable.) See Chapter 13.
Goal. A timeless value statement that expresses the desired change that the grantee wants to accomplish and
which serves as a guide for the grantee's planning and programming.
Grant. An award of financial assistance paid by the Federal Government under the National Historic
Preservation Act to carry out specific objectives for a specified period of time consistent with the terms of an
approved budget and executed grant agreement. The term does not include any Federal procurements subject
to the procurement regulations in 41 CFR, nor does it include technical assistance or other assistance in the
form of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or direct congressional
appropriations.
Grant Agreement. The written contractual agreement and any subsequently approved amendments between
NPS and a grantee in which the terms and conditions governing the grant award are stated and agreed to by
both parties, and which documents the obligation of Federal funds in the NPS accounting system.
Grant Awarding Official. The NPS official whose name/title appears on the Grant Agreement.
Grant Budget. The NPS-approved financial plan for use of both the Federal and nonfederal shares to carry
out the purposes of the grant-assisted program and projects.
Grant Beginning Date. The NPS-approved date when the grantee may begin to incur costs chargeable to the
grant.
Grant Closeout. The process by which NPS determines that all applicable administrative actions and all
required work of the grant have been completed by the grantee.
Grantee. The term generally means the department or agency of State government, Federally recognized
Indian tribal government, or other direct recipient of HPF grant assistance from NPS. Primary recipients are
States, as defined in the Act, tribes, and the National Trust for Historic Preservation. The organizational
entity to which a grant is awarded is responsible and accountable to the Federal Government both for the use
of the funds provided, including cash and non-cash contributions applied in support of the grant, and for the
performance of grant-supported programs, projects, or activities. The grantee is the entire legal entity even if
a particular component is designated in the grant award document. See Subgrantee.
Grant Period. The period of time specified in the grant agreement during which costs may be charged against
a grant.
Grant Program. The activities and operations of the States, the National Trust for Historic Preservation, and
any other grantee assisted under the Act, which are necessary to carry out the purposes of the grant, including
that portion of the program financed by the nonfederal share.
Historic Context. A structured framework for organizing information about historic, prehistoric, and cultural
resources based on a shared theme, time period, and geographical area. Historic contexts are those patterns or

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trends in history by which a specific occurrence, property, site, or place is understood and its meaning (and
ultimately its significance) within prehistory or history is made clear. In National Register Multiple Property
Submissions, historic contexts provide for a standardized means of describing, comparing, and explaining the
significance of a wide variety of properties. When the historic context contains goals and priorities for the
identification, evaluation, registration, and treatment of historic properties, it plays an important role in
preservation planning and decision making.
Historic District. (67) A geographically definable area, urban or rural, that possesses a significant
concentration, linkage, or continuity of sites, buildings, structures, or objects united by past events or
aesthetically by plan or physical development. A district may also comprise individual elements separated
geographically but linked by association or history. See Registered Historic District.
Historic Preservation. "Historic preservation," or "preservation" includes identification, evaluation,
recordation, documentation, curation, acquisition, protection, management, rehabilitation, restoration,
stabilization, maintenance, research, interpretation, conservation, and education and training regarding the
foregoing activities or any combination of the foregoing activities.
Historic Preservation Fund. (61) The source from which monies are appropriated to fund the program of
matching grants-in-aid to the States (and other authorized grant recipients) for carrying out the purposes of the
Act, as authorized by Section 108 of the National Historic Preservation Act.
Historic Preservation Review Commission (Local Commission). (61) A board, council, commission, or other
similar collegial body which is established by State or local legislation as provided in Section 101(c)(1)(B) of
the Act, and the members of which are appointed, unless otherwise provided by State or local legislation, by
the chief elected official of the jurisdiction concerned from among:
(A)

professionals in the disciplines of architecture, history, architectural history, planning, prehistoric and
historic archeology, folklore, cultural anthropology, curation, conservation, and landscape
architecture or related disciplines, to the extent such professionals are available in the community
concerned, and

(B)

such other persons as have demonstrated special interest, experience, or knowledge in history,
architecture, or related disciplines and as will provide for an adequate and qualified commission.

Historic Property. Any prehistoric or historic district, site, building, structure, or object included in, or
eligible for inclusion in the National Register, including artifacts, records, and material remains related to
such a property or resource.
Historic Structure Report. The report required prior to development of a historic resource when the work
involves fabricating significant missing architectural or landscape features, recapturing the appearance of a
property at one particular period of history, or removing later additions.
Identification. (S&G) Identification is undertaken for the purpose of locating historic properties and is
composed of a number of activities which include, but are not limited to archival research, informant
interviews, field survey, and analysis. Within a comprehensive planning process, identification is normally
undertaken to acquire property-specific information needed to refine a particular historic context or to develop
any new historic contexts. See Chapter 6.

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Indian Tribe. See Federally Recognized Indian Tribal government.
Indirect Costs. Costs incurred for common or joint objectives, and which therefore cannot be identified
specifically with a particular project or program without effort disproportionate to the results achieved. These
costs are allocated to the various classes of work in proportion to the benefit to each class. The cognizant
Federal agency must approve a rate based on a cost allocation plan. See Chapter 12.
In-House. Refers to any HPF eligible activity conducted by Grantee staff rather than by contract or subgrant.
In-Kind Contributions. The value of non-cash contributions provided by the grantee or non-Federal third
parties. In-kind contributions may consist of charges for nonexpendable personal property, and the value of
goods and services directly benefiting and specifically identifiable to the grant program.
Inspection. 1) (67) A visit by an authorized representative of the Secretary to a certified historic structure for
the purposes of reviewing and evaluating the significance of the structure and the completed rehabilitation
work. 2) The term is also used in relation to monitoring visits to grant-assisted properties or SHPO facilities.
Insular Areas. The Virgin Islands, Guam, American Samoa, the Republic of the Marshall Islands, the
Federated State of Micronesia, the Republic of Palau, and the Commonwealth of the Northern Mariana
Islands. (Does not include Puerto Rico). Nonfederal share matching requirements were waived for insular
areas by Section 601 of P.L. 96-205 (48 U.S.C. 1469a).
Integrity. (S&G) The authenticity of a property's historic identity, evidenced by the survival of physical
characteristics that existed during the property's historic or prehistoric period.
Intensive Level Survey. Systematic, detailed field (and archival) inspection of an area designed to identify
fully the architectural, archeological, and historic properties; and calculated to produce a level of
documentation sufficient, without any further data, to evaluate National Register eligibility (and nominate if
appropriate).
Internal Operations (referred to in SF 424A, Budget Form). In-house activities that are tied directly to a
Program Area other than Administrative Costs. See Chapter 7, Exhibit 7-A, Additional Instructions.
Internal Control or Management Control. The plan of organization, methods and procedures adopted by
management to provide reasonable assurance that obligations and costs are in compliance with applicable
laws; funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or
misappropriation; and revenues and expenditures applicable to operations are properly recorded and
accounted for to permit the preparation of reliable financial and statistical reports and to maintain
accountability over the assets. An Internal Control Review is a detailed examination of the system of internal
controls to determine whether adequate control measures exist and are being utilized to detect, prevent, and
deter fraud, waste, and abuse in a cost-effective manner. See OMB Circular A-123.
Inventory. 1) (S&G) A list of historic properties determined to meet specified criteria of significance.
2) A list or compilation of what is known about resources within a specified jurisdiction. An inventory
includes historic properties and other properties that have been evaluated but not found to be historic.

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Invitation for Bids (IFB). A set of documents which includes a description of the product or service desired
and all other information needed to enable a prospective contractor to submit a bid. The invitation for bids is
the specific term applied to the solicitation used in contracts involving Federal funds when the formal
advertising procurement method is used.
Keeper of the National Register of Historic Places (Keeper). The individual to whom the authority has been
delegated to list properties and determine their eligibility for the National Register.
Liquidation of Cash Advance. The reporting of the expenditure of funds, drawn as a cash advance from the
U.S. Treasury, on the Report of Federal Cash Transactions (SF 272). An advance is not considered an
expenditure until reported as liquidated. See Chapter 21.
Lobbying. Any activity designed to influence an officer or employee of an agency, a member of Congress, or
an officer or employee of Congress to favor or oppose any legislation (including appropriation), whether
before or after the introduction of any bill or resolution proposing such legislation. In accordance with 18
U.S.C. 1913, costs associated with lobbying efforts are unallowable as charges to HPF grants. See Chapter 5
and Chapter 13, Section D.25.
Local Commission. (61) See Historic Preservation Review Commission.
Local Government. (61) A city, county, parish, township, municipality or borough, or any other general
purpose political subdivision of any State.
Market Value. As determined by competent appraisal or court decision, the highest price a property could
reasonably be expected to bring if exposed for sale in the open market for a reasonable time, unaffected by
grant assistance considerations, and taking into account all lawful uses to which such property is adapted and
could reasonably be put. See Chapter 6, Exhibit 6-B, for appraisal methods.
Matching Share (Nonfederal Share). Matching share (or "cost sharing") represents that portion of total
project or program costs not borne by the Federal Government and that is supplied by the grantee or other
nonfederal third parties in cash, in-kind, or in services contributed. See Chapter 14.
Memoranda of Agreement (MOA) (as it relates to Review and Compliance). Written agreements between the
SHPO and a Federal agency involving a single Federal undertaking. Any project-specific or programmatic
memoranda of agreement signed by the SHPO that is produced when a project triggers Section 106, or any
proposal for such an agreement in which the SHPO concurs in writing (see 36 CFR 800; also see
Programmatic Agreement).
Mitigation. Any action which reduces or eliminates adverse impacts resulting from a proposed action.
Mitigation may include project redesign or relocation, data recovery and documentation, etc. See 36 CFR
800.
Monitoring. A process whereby the programmatic and business management performance aspects of a grant
are reviewed by means of the collection and assessment of information gathered from various reports, audits,
site visits, and other sources.

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Multiple Property Submission. A Multiple Property Submission for nominating properties to the National
Register is one which includes all or a defined portion of the cultural resources identified in a specified
geographical area. A Multiple Property Submission consists of a Multiple Property Documentation Form,
NPS-Form 10-900-b, together with individual registration forms.
National Park Service (NPS). The bureau of the Department of the Interior through which the Secretary of
the Interior administers the National Historic Preservation Program.
National Register Criteria. The established criteria for evaluating the eligibility of properties for inclusion in
the National Register of Historic Places.
National Register Nomination Form. (60) National Register Nomination Form means National Register
Nomination Form NPS-Form 10-900, with accompanying continuation sheets where necessary (Form 10900a), maps, and photographs (and Form 10-900b for Multiple Property Submissions). The forms and
accompanying maps and photographs must be completed in accordance with the requirements and guidance
in National Register Bulletin 16A, and other NPS technical publications on this subject. Descriptions and
statements of significance must be prepared in accordance with standards generally accepted by academic
historians, architectural historians, archeologists, and/or other relevant professionals. The nomination form is
a legal document and reference for historical, architectural, and archeological data upon which the protections
for listed and eligible properties are founded. The nominating authority must certify that the nomination is
adequately documented and technically and professionally correct and sufficient.
National Register of Historic Places. The national list of districts, sites, buildings, structures, and objects
significant in American history, architecture, archeology, engineering, or culture, maintained by the Secretary
of the Interior under authority of Section 101(a)(1)(A) of the Act.
National Trust for Historic Preservation. The private, nonprofit organization chartered by legislation
approved by Congress on October 26, 1949 (63 Stat. 927), with the responsibility of encouraging public
participation in the preservation of districts, structures, sites, buildings, and objects significant in American
history and culture.
Negotiated Procurement. A procurement method, normally competitive, which is used when the nature of a
product or service precludes the development of specifications or a precise description enabling all
prospective suppliers to have an identical understanding of the requirement. Requests for Proposals are
circulated to at least three firms. Responses to solicitation (proposals) are not opened publicly; contents are
generally not revealed prior to award; and they may be changed following evaluation, discussion, and
negotiation. See Chapter 17.
NEPA Process. The process for the consideration of environmental impacts during project planning. This
may include the preparation of an Environmental Assessment or Environmental Impact Statement, pursuant to
the National Environmental Policy Act. See Chapter 11.
Nepotism. Patronage bestowed or favoritism shown on the basis of family relationship.
No Adverse Effect. The finding of a Section 106 review that the proposed Federal project will not adversely
affect historic properties located within the impact area of the project. See 36 CFR 800.

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Nomination (To Nominate). (60) To nominate is to propose that a district, site, building, structure, or object
be listed in the National Register of Historic Places or, where a private owner or a majority of owners object
to listing, that the property be determined eligible by submitting a nomination form, with accompanying maps
and photographs which adequately document the property and are technically and professionally correct and
sufficient.
Noncompetitive Negotiation. A negotiated procurement in which a proposal for goods or services is solicited
from only one source. Only allowable in extraordinary circumstances. See Chapter 17.
No Effect on Properties. The finding of a Section 106 review in that there is no effect on historic properties
that are or may be located within the impact area of the proposed project. See 36 CFR 800.
Nonexpendable Personal Property. Tangible personal property (including equipment) having an expected
useful life of more than 1 year and an acquisition cost of $5,000 or more per unit. Personal property is
property of any kind except real property.
Nonfederal Share. See Matching Share.
Nonprofit Organization. For purposes of the HPF grant program, a nonprofit organization means any
corporation, trust, foundation, agency, or other organization which: (1) has been recognized by the Internal
Revenue Service as being entitled to exemption under Section 501(c)(3) of the Internal Revenue Code, or (2)
is not organized for profit and no part of the net earnings of which inures, or will inure upon dissolution, to
the benefit of any private shareholder or individual.
No Properties in Impact Area. The finding of a Section 106 review that no properties meeting National
Register eligibility criteria (or already listed on the National Register) are located within the impact area of
the project. See 36 CFR 800.
Object. (60) A material thing of functional, aesthetic, cultural, historical, or scientific value that may be, by
nature or design, movable yet related to a specific setting or environment.
Objective. A specific, often measurable, statement of results that the grantee intends to accomplish in relation
to an identified problem within a determined time period. Objectives should be consistent with goals and
strategies for achieving desired change.
Obligation. For purposes of HPF grants, an obligation of funds is the NPS action in approving a grant
application via a grant agreement or subsequent amendments for the period of time specified in the grant
agreement and amendments to it.
Obligational Authority. The total amount of Federal funds authorized for obligation which establishes the
ceiling for obligation of Federal funds. This amount may include any unexpended funds (carryover) from
prior apportionments.
Office of Management and Budget (OMB). Established in the Executive Office of the President to, among
other things, assist the President in the formulation and administration of the Federal budget; and to
promulgate uniform standards and requirements (issued as Circulars) governing Federal grants.

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OMB Circular A-21. This Circular establishes principles for determining costs applicable to grants, contracts,
and other agreements with educational institutions. For purposes of HPF grants, these cost principles apply to
third parties that are educational institutions receiving HPF grant funds through agreements with grantees or
through direct grants from NPS.
OMB Circular A-87. This Circular establishes principles and standards for determining costs applicable to
Federal grants and contracts with State and local governments, and Indian tribes. See Chapter 12.
OMB Circular A-102. Promulgates the standards for establishing consistency and uniformity among
Federal agencies in the administration of grants to State and local governments, and Indian tribes.
Implemented by the Department of the Interior and codified as 43 CFR 12.1-92.
OMB Circular A-110. Promulgates standards for obtaining consistency and uniformity among Federal
agencies in the administration of grants to, and other agreements with, public and private institutions of higher
education, public and private hospitals, and other quasi-public and private nonprofit organizations.
Implemented by the Department of the Interior and codified as 43 CFR 12.901-972.
OMB Circular A-122. Stipulates principles and standards for determining costs applicable to Federal grants
and contracts with nonprofit organizations. For purposes of HPF grants, these cost principles apply to
nonprofit organizations receiving HPF grant funds through subgrant or contract agreements with grantees or
through direct grants from NPS.
OMB Circular A-133. Stipulates requirements for grantees and subgrantees who expend $300,000 of Federal
assistance annually to obtain fiscal audits and to transmit them to Federal grantor agencies.
Operating Costs. The costs of staff and delivery of services for purposes defined in the Act, proposed for
assistance in the NPS-approved annual grant application, and performed under arrangement with the State
agency which administers the HPF-assisted program in the State. Operating costs assist activities directly
related to the accomplishments of Program Area activities described in Chapter 6.
Outlays. The charges made to the HPF grant.
Owner. 1) For the purposes of HPF grants, the term means a) an owner of a compensable interest in a
property; or b) a person who holds fee title, a life estate, or a 99-year lease. 2) (67) For Preservation Tax
Incentive purposes, "owner" means a person, partnership, corporation, or public agency holding a fee-simple
interest in a building or any other person or entity recognized by the Internal Revenue Code for purposes of
the applicable tax benefits. 3) (60) For National Register purposes, owner or owners means those individuals,
partnerships, corporations, or public agencies holding fee-simple title to property. 4) The term owner or
owners also means Indian tribes or members of Indian tribes who own beneficial title to Indian lands either
held in trust by the United States or subject to a restriction against alienation imposed by the United States.
(Owner or owners does not include individuals, partnerships, corporations, or public agencies holding
easements or less-than-fee interests in property of any nature, except for owners of Indian lands.)
Pass-Through Subgrant. A subgrant to a Certified Local Government (CLG) required by Section 103(c) of
the Act.
Personal Property. Property of any kind, tangible or intangible, except real property.

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Phase. A logical, identifiable portion of a project, consisting of one or more elements of acquisition,
development, planning, or other activities specifically activated by an agreement and one or more subsequent
amendments. It is an incremental approach to work in which several distinct stages of work are proposed.
Planning. This does not include internal fiscal or office management planning. See Comprehensive
Statewide Historic Preservation Planning.
Planning Process. An ongoing series of activities designed to develop, produce, implement, and revise a
Comprehensive Statewide Historic Preservation Plan. It typically includes such activities as public
participation, assessing historic resource information, analyzing preservation needs, identifying goals and
objectives, determining strategies for and monitoring goal achievement, and identifying the plan revision
cycle and procedures. See Chapter 6, Section G.
Plans and Specifications. The detailed working drawings and technical specifications necessary to determine
the scope of the work and provide a firm basis for competitive bidding and contractual obligations for
proposed construction work.
Political Subdivision. A local unit of government, including specifically a county, parish, township, or
municipal corporation created by or pursuant to State Law.
Preagreement Costs. Costs incurred prior to the NPS-approved grant beginning date stipulated in an HPF
grant agreement; they must be authorized by NPS in writing. See Chapter 13, Section C.
Predevelopment Work. The historical, architectural, and/or archeological research necessary to properly
document proposed construction work on a historic structure or site performed prior to the commencement of
development. See Chapter 6.
Preservation. 1) As used in the Act, preservation includes the identification, evaluation, recordation,
documentation, curation, acquisition, protection, management, rehabilitation, restoration, stabilization,
maintenance, research, interpretation, conservation, and education and training regarding the foregoing
activities or any combination of the foregoing activities. 2) The act or process of applying measures
necessary to sustain the existing form, integrity, and materials of an historic property. Work, including
preliminary measures to protect and stabilize the property, generally focuses upon the ongoing maintenance
and repair of historic materials and features rather than extensive replacement and new construction. New
exterior additions are not within the scope of this treatment; however, the limited and sensitive upgrading of
mechanical, electrical, and plumbing systems and other code-required work to make properties functional is
appropriate within a preservation project.
Preservation Agreement. An executed personal contract enforceable in a court of law that binds the owner of
a property acquired or developed in part with funds authorized by the National Historic Preservation Act to
assume responsibility for maintenance and administration of the property for a period of time relative to the
amount of HPF assistance provided, and to provide access for viewing and enjoyment by the public in
accordance with the terms of the agreement. See Chapter 6, Section M.

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Prior Approval. The written approval required from the authorized NPS official before certain activities may
be undertaken, funds expended, or when the cost of proposed actions exceed a certain dollar level. See
Chapter 13.
Procurement. The acquisition of property or services, including construction (through purchase orders,
contracts, leases, or other means) which are needed by NPS grantees or their subgrantees in carrying out
projects under HPF grants. See Chapter 17.
Procurement by Formal Advertising. The procedure for selecting contractors and making contracts by means
of competitive bids and awards solicited through public invitation for bids. This procedure is required by 43
CFR 12.76 in all cases in which its use is at all feasible and practicable.
Procurement by Negotiation. The procedure for selecting contractors and making contracts without formal
advertising but still conducted in a manner so as to provide maximum open and free competition. See
Chapter 17.
Procurement by Small Purchase Procedures. Those relatively simple and informal procurement methods that
are sound and appropriate for a procurement of services, supplies, or other property, costing in the aggregate
not more than $100,000. Grantees shall comply with State or local government small purchase dollar limits
under $100,000. Price or rate quotations must be obtained from an adequate number of qualified sources to
ensure competition. See Small Purchases.
Professional Staff Requirements. The minimum qualified staff required to administer the State's historic
preservation program (see 36 CFR 61; also see Chapter 3, Section B.3.).
Program. The overall plan for the use of Federal funds which is intended to be put into effect by the grantee
through functions, activities, services, projects, and processes. Section 101(e)(1) of the Act provides for
Grants to States: "The Secretary shall administer a program of matching grants to the States for the purposes
of carrying out this Act." Section 101(b)(1) of the Act defines a State's historic preservation program as one
that (a) provides for the designation and appointment by the Governor of a "State Historic Preservation
Officer" to administer such programs in accordance with Section 101 (b)(3) of the Act and for the
employment by such officer of such professionally qualified staff as may be necessary for such purposes; (b)
provides for an adequate and qualified State Historic Preservation Review Board designated by the State
Historic Preservation Officer unless otherwise specified by law; and (c) provides for adequate public
participation in the program, including the process of recommending properties for nomination to the
National Register.
Program Area. A category or grouping HPF-eligible activities. Program Areas are a useful means to track,
report on, and evaluate grantee programs. See Chapter 6.
Program Income. The proceeds from the sale, transfer, or disposition of real and personal property; royalties,
patents and copyrights; the sale of publications; and permit fees realized from grant-assisted activities during
the grant period. Proceeds from the sale, transfer, or disposition of real and personal property shall be
handled in accordance with the procedures of 43 CFR 12.65, 43 CFR 12.71, and 43 CFR 12.72. A synonym
for program income is grant-related income.

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Programmatic Agreement (PA). Written agreement between the SHPO, a Federal agency, and the Advisory
Council on Historic Preservation involving a type of activity or resource. PAs are published in the Federal
Register; deal with types of activities, rather than specific projects; may be initiated by either the SHPO or a
Federal agency; are signed by the Federal agency representative and the SHPO and ratified by the Chairman
of the Advisory Council on Historic Preservation (ACHP). See 36 CFR 800.
Project. A project is any operation with the following elements: 1) a scheduled list of component activities,
2) a logical sequence or ordering of these activities, 3) a statement of the time required to perform each
activity, and 4) an indication of activity costs in the case of resource allocation problems. For HPF grant
purposes, a project is an organized activity carried out to reach a defined goal, usually under a subgrant, with
a specified terminal point. The term "project" also applies to any HPF-assisted activity conducted through
subgrants/contracts.
Project Activity. The smallest identifiable unit of work that in varying combinations constitutes the work to
be performed as part of a project. An activity also refers to any portion of a project which consumes time and
resources and has a specific starting and ending point.
Project/Activity Database Report. Information on individual subgrants and major in-house activities supplied
as part of the State End-of-Year Report. See Chapter 25.
Project Beginning Date. The date the grantee or subgrantee may begin to incur costs chargeable to the
project.
Project Costs. The sum of the allowable costs as set forth in the applicable Federal cost principles, incurred
by the grantee or subgrantee in accomplishing the objectives of a grant during the project period. This
includes allowable and necessary in-kind contributions made by third parties.
Project Notification. A brief description of proposed third-party subgrant/contract projects. These are not
obligational authority documents; however, for States not on Reduced Review Status, and for all subgrants
with a Federal share greater than $25,000, Project Notifications must be submitted to NPS for review at least
20 days prior to the award of each subgrant. See Chapter 8 and Exhibit 8-A.
Project (or Grant) Period. The total time for which a project (or grant) has been approved by the grant award
agreement and subsequent amendments for support with Federal funds and during which all work is to be
accomplished.
Property. See Historic Property; see Real Property.
Property Type. (S&G) A grouping of individual properties characterized by common physical and/or
associative attributes.
Protection. 1) The act or process of applying measures designed to affect the physical condition of a property
by defending or guarding it from deterioration, loss, or attack, or to cover or shield the property from danger
or injury. In the case of buildings and structures, such treatment is generally of a temporary nature and
anticipates future historic preservation treatment; in the case of archeological sites, the protective measure
may be temporary or permanent. 2) Also, "protection" means a local review process under State or local law

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for proposed demolition of, changes to, or other action that may affect historic properties designated pursuant
to Section 101(c) of the Act.
Public Benefit. The access and other advantages enjoyed by the public under the terms of the Preservation
Agreement or covenant to the deed of properties assisted by Historic Preservation Fund grants. See Chapter
6.
Public Education. The provision of information, techniques, processes, requirements, etc., concerning the
elements of the National Historic Preservation Act and the State and local programs operated under its
requirements.
Public Participation. Active involvement of a wide range of public, private, and professional organizations
and individuals is essential to the success of State Historic Preservation Office or other grantee programs.
The term also includes activities directly related to involving the public in the Statewide Historic Preservation
Planning Process, as well as in the identification, evaluation, or protection of a historic or archeological
resource. The grantee's Open Project Selection process is an element of public participation (see Chapter 8,
Section C). Other elements may include: the development of a public participation program/plan that
provides an opportunity for citizens to participate in the development of the annual HPF grant application
and/or provides citizens with adequate information concerning program emphasis or purposes and funding
requirements; provides for public meetings or hearings to obtain the views of citizens on the substance of the
program, including consideration of environmental and other possible effects; and/or provides an opportunity
for the public to submit comments.
Purchase Price. The cash price agreed upon as a consideration for which property is sold.
Real Property. Land, land improvements, structures, and appurtenances thereto, excluding movable
machinery and equipment.
Reasonable Cost. A cost that in its nature or amount does not exceed that which would be incurred by a
prudent person under the circumstances prevailing at the time the decision was made to incur the cost.
Reconnaissance Level Survey. Small-scale archival or field research, designed to provide a general
impression of an area's architectural, archeological, and historical properties and their values, but not
calculated to produce a level of documentation sufficient to determine a property's eligibility or to nominate a
property to the National Register.
Reconstruction. The act or process of depicting, by means of new construction, the form features, and
detailing of a non-surviving site, landscape, building, structure, or object for the purpose of replicating its
appearance at a specific period of time and in its historic location.
Records. Documents of actions taken with respect to a grant, including financial records, performance
records, and supporting documents.
Registered Historic District. (67) Any district listed in the National Register or any district: a) which is
designated under a State or local statute which has been certified by the Secretary as containing criteria which
will substantially achieve the purpose of preserving and rehabilitating buildings of significance to the district;

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and, b) which is certified by the Secretary as meeting substantially all of the requirements for the listing of
districts in the National Register.
Rehabilitation. The act or process of returning a property to a state of utility through repair or alteration
which makes possible an efficient contemporary use while preserving those portions or features of the
property which are significant to its historical, architectural, and cultural values.
Reimbursement by Treasury Check. Payment made to a grantee with a Treasury Check upon request for
reimbursement, by submission of an SF 270, from the grantee. See Chapter 21.
Remainder Interest. A future possessory interest in real property given to a third party which matures upon
the stated term for a fee.
Reprogramming. The deobligation from one grant and reobligation into another grant by NPS of previously
obligated but unexpended funds. Reobligation of HPF monies is limited to the year of appropriation by
Congress plus the following Federal fiscal year. Funds deobligated after that period revert to the U.S.
Treasury. This term should not be confused with change of scope amendments. See Chapter 15.
Request for Proposal (RFP). A set of documents which includes a sufficiently detailed description of the
product or service desired to enable a prospective contractor to submit a proposal which includes information
that procurement and technical personnel need to evaluate proposals submitted. The request for proposals is
the specific term applied to the solicitation used in contracts involving Federal funds when negotiated
procurement procedures are used. See Chapter 17.
Rescission. Legislatively approved cancellation of funds previously appropriated by Congress prior to the
time when that authority would otherwise lapse. A rescission proposal transmitted to Congress must be
approved by both Houses of Congress within 45 legislative days, or funds must be made available for
obligation. See Impoundment Control Act of 1974 (31 U.S.C. 1400 et seq.).
Research Design. (S&G) A statement of proposed identification, documentation, investigation, or other
treatment of a historic property that identifies the project's goals, methods, and techniques, expected results,
and the relationship of the expected results to other proposed activities or treatments.
Responsible Contractor (or responsible bidder). A contractor or prospective contractor who appears to
possess the ability to perform successfully under the terms and conditions of a proposed procurement based
on a review of such factors as a satisfactory record of past performance, integrity, and business ethics; and
financial and technical resources or access to such resources.
Responsive Bid. A bid or proposal which complies, with respect to method and timeliness of submission and
to substance of the bid or proposal, in all material respects, with the requirements of the invitation for bids or
request for proposal. A minor irregularity in a bid or proposal which is deemed a matter of form rather than
substance, and the correction of which would not be prejudicial to other bidders, does not render a bid or
proposal nonresponsive.
Restoration. The act or process of accurately depicting the form, features, and character of a property as it
appeared at a particular period of time by means of the removal of features from other periods in its history
and reconstruction of missing features from the restoration period. The limited and sensitive upgrading of

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mechanical, electrical, and plumbing systems and other code-required work to make properties functional is
appropriate within a restoration project.
Review Board. See State Historic Preservation Review Board.
Revolving Fund. Broadly defined for preservation purposes, a revolving fund is cash or other equities, a line
of credit, or any combination of these owned and administered by a nonprofit organization. It can be cash lent
by a nonprofit organization to individuals or organizations for the same purpose.
Sample Survey. (S&G) A survey of a representative sample of lands within a given area in order to generate
or test predictions about the types and distributions of historic properties in the entire area.
Scope Change Amendment. Any revision requested by the grantee to the approved objectives or work
products to be achieved by a grant or subgrant during the grant or project period. See Chapter 15.
Secretary. "Secretary" means the Secretary of the Interior acting through the Director of the National Park
Service, except where otherwise specified.
Secretary's Standards and Guidelines. The Secretary of the Interior's Standards and Guidelines for
Archeology and Historic Preservation which provide technical information about historic preservation
activities and methods. The Standards and Guidelines are prepared under the authority of Section 101(f), (g),
and (h), and Section 110 of the Act. The subjects covered in the Standards and Guidelines include:
Preservation Planning, Identification, Evaluation, Registration, Historic Research and Documentation,
Architectural and Engineering Documentation, Archeological Documentation, Treatment of Historic
Properties, Professional Qualifications, and Preservation Terminology.
SHPO. State Historic Preservation Officer.
Site. (60) The location of a significant event, a prehistoric or historic occupation or activity, landscape or
traditional cultural property, or a building or structure, whether standing, ruined, or vanished, where the
location itself maintains historical or archeological value regardless of the value of any existing structure.
Small Purchases. Purchases of services or supplies in which the aggregate amount in any one transaction,
including handling and other costs, is $100,000 or less. Unless State or local laws require otherwise, bilateral
agreements are normally not required, and purchase orders, vouchers or bills, sales slips, memoranda of oral
price quotations, or similar records provide adequate documentation to meet Federal audit standards. See
Chapter 17.
Sources of Nonfederal Matching Share Report. The form used in the End-of-Year Report to record State
sources of nonfederal matching share. See Chapter 25.
Special Appropriation Grant. A grant whose ultimate source is outside the annual Departmental
Appropriations process and that usually has a specific congressionally imposed use (e.g., Emergency Jobs
Act).
Special Condition of Grant Award. A legally binding stipulation placed by NPS on the award of HPF funds
for a particular grant, project, or activity.

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State. Any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam,
the Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
State Historic Preservation Officer (SHPO). The term “SHPO” means State Historic Preservation Officer or
office. “SHPO” is used interchangeably throughout this document to refer to the State level organization that
will oversee Preservation Project subgrants.
State Historic Preservation Review Board. A board, council, commission, or other similar collegial body
established as provided in Section 101(b)(1)(B): (a) the members of which are appointed by the State
Historic Preservation Officer (unless otherwise provided by State law), (b) a majority of the members of
which are professionals qualified in the following and related disciplines: history, prehistoric and historic
archeology, architectural history, architecture, folklore, cultural anthropology, curation, conservation, and
landscape architecture; and (c) which has the authority to: (i) review National Register nominations and
appeals from nominations; (ii) review appropriate documentation submitted in conjunction with the Historic
Preservation Fund; (iii) provide general advice and guidance to the State Historic Preservation Officer, and
(iv) perform such other duties as may be appropriate.
Statement of Differences in Appraised Value. A statement from the grantee detailing circumstances which
may justify a real property acquisition cost in excess of the appraised market value. This justification may be
accepted at NPS discretion. See Chapters 6 and 20.
State or Local Statute. 1) (67) Law of the State or local government in this case designating or providing a
method for the designation of a historical district or districts. 2) (CLG) State or local legislation for
designation and protection of historic properties. For purposes of the CLG program, "designation" means the
identification and registration of properties for protection that meet criteria established by the State or the
locality for significant historic and prehistoric resources within the jurisdiction of a local government.
"Protection" means a local review process under State or local law for proposed demolition of, changes, to, or
other action that may affect historic properties designated by any certified local government.
State Plan. The comprehensive statewide preservation plan required by the Act. See Comprehensive
Statewide Historic Preservation Plan.
State Program Review Process. The assessment performed by NPS pursuant to Section 101(b)(2) of the Act
to determine if the State programs are consistent with the Act, applicable regulations, and the terms and
condition of grant awards.
Structure. (60) A man-made construction built for purposes other than shelter. It can be an engineering
project large in scale, such as a bridge or tunnel.
Sub-agreement. A written agreement between an HPF grantee and another party for the furnishing of
services, supplies, or equipment necessary to complete the project for which a grant was awarded, including
sub-contracts for personal and professional services and purchase orders.
Subgrant. An award of financial assistance made under a grant to an eligible subgrantee by a grantee.

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Subgrantee. The agency, institution, organization, other legal entity, or individual to which a subgrant is
made by the State or other grantee and which is accountable to the State or other grantee for use of the funds
provided. The subgrantee is the entire legal entity even if only one particular component of the entity is
designated in the subgrant agreement.
Substantial Impairment. A permanent alteration that results in a significant loss of the integrity of finished
materials, design quality, or special character.
Substantive Review. Substantive Review means that a National Register nomination is given a professional
review concerning whether or not the nomination meets the National Register criteria for evaluation, as well
as a technical review.
Supporting Activities. 1) The auxiliary functions necessary to sustain the direct effort involved in
administering the HPF grant program or an activity providing service to the HPF grant program. These
services may be centralized in the grantee department or some other agency, and include procurement,
payroll, personnel functions, maintenance and operation of office space, data processing, accounting,
budgeting, auditing, mail, messenger service, and the like. 2) The actions through which the State carries out
its responsibilities (as delineated by the Act) and addresses needs and problems identified in the Program
Overview or State Historic Preservation Plan.
Suspension. Action taken by NPS which temporarily withdraws the grantee's authority to utilize Federal
financial assistance under the grant pending corrective action by the grantee as specified by NPS, or pending a
decision by the NPS to terminate the grant. Suspension also limits incurring additional costs under the grant.
See Chapter 22.
Technical Assistance. Development of skills or the provision of knowledge of the background, meaning,
operation, or implications of some aspect of historic preservation. This includes providing assistance to
anyone who is not a part of the SHPO staff; e.g., subgrantees, local governments, State or Federal agencies,
the public, etc. Issuance of previously prepared material, by itself, does not constitute technical assistance;
there must be some significant action added. Mass mailings of brochures, forms, or publications would not
count as technical assistance, because they do not require an understanding of what was sent out. On the
other hand, answering an inquiry on how to fill out a survey form or a detailed discussion on mortar analysis
would constitute technical assistance. For subgrantees, assistance that strengthens their capacity to plan,
implement, evaluate, and manage their subgrants would qualify as technical assistance as long as the
assistance is substantive as described above.
Termination. The cancellation of Federal assistance, in whole or in part, under a grant or project at any time
prior to the date of completion. See Chapter 22.
Terms and Conditions of a Grant or Subgrant. All requirements of the grant or subgrant imposed by the
Federal Government whether under statute, regulations, the grant award document, or other documents. The
terms of the grant award may include standard and special provisions, appearing on each Grant Agreement,
that are considered necessary to obtain the objective of the grant, facilitate post-award administration of the
grant, conserve grant funds, or otherwise protect the Federal Government's interest.

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Third Party. Any organization legally distinct from the grantee (whether or not affiliated with the grantee but
cannot be part of the same organizational budgetary unit of government) or any individual not employed by
the grantee other than a consultant or volunteer acting directly under the grantee's direction or control.
Tribal Lands. As defined in Section 301(14) of the Act, tribal lands include: (a) all lands within the exterior
boundaries of any Indian Reservation; and (b) all dependent Indian communities.
Undertaking. Undertaking means a project, activity, or program funded in whole or in part under the direct or
indirect jurisdiction of a Federal agency, including: (a) those carried out by or on behalf of the agency; (b)
those carried out with Federal financial assistance; (c) those requiring a Federal permit, license, or approval;
and (d) those subject to State or local regulation administered pursuant to a delegation or approval by a
Federal agency. See 36 CFR 800.
Unexpended Balance. The actual Federal funds awarded less unpaid amounts remaining at a given time
during the funding or budget period.
Unobligated Balance. That portion of the funds authorized by NPS which has not been obligated by the
grantee according to NPS records; it is determined by deducting the cumulative obligations from the
obligational authority apportioned to the grantee by the Secretary.
Waste. Incurring unnecessary costs as a result of inefficient or ineffective practices, systems, or controls.
Withholding Payments. An action taken by NPS where a grantee is notified that until a deficiency is
corrected payments will be withheld for previously incurred costs. Grantees are not restricted from incurring
additional allowable costs, but suspension or termination of the grant may be subsequently imposed by NPS.
See Chapter 22.

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Access Notification Covenant Requirement .................................................................................................. 6-30
Access Provision of Covenants and Preservation Agreements ...................................................................... 6-29
Access to Archeological Records .................................................................................................................. 6-15
Access to Contractors' Records .................................................................................................................... 17-10
Access to HPF-assisted Property Covenant Requirement ............................................................................. 6-29
Access to Records ............................................................................................................................... 5-5, 17-9, 4
Access to Records, Exclusion from ................................................................................................................. 5-5
Accessibility of Data to the Public................................................................................................................. 6-16
Accessibility, Physical ...................................................................................................................5-5, 6-40, 10-6
Accessibility, Transition Plan Towards Achieving Program ......................................................................... 10-7
Accomplishments Summary, Significant Preservation ........................................................................................4
Accountability of SHPO ......................................................................................................................... 3-2, 12-4
Accounting Records Documentation ...................................................................................................................1
Accounting Requirements ................................................................................................................................ 3-2
Accounting Requirements, Subgrantee ............................................................................................................ 8-3
Accounting Standards ..........................................................................................................................................1
Acknowledgment of NPS Grant Support in Publications ..................................................................... 3-10, 19-6
Acquisition Costs, Ineligible .......................................................................................................................... 6-26
Acquisition Documentation .................................................................................................................................4
Acquisition of Previously Assisted Properties, Ineligible.............................................................................. 6-27
Acquisition or Development Photographs ............................................................................................... 6-42, 32
Acquisition Project Notification .................................................................................................................... 8-20
Action Plan Narrative ...................................................................................................................................... 7-7
ADA Accessibility Guidelines ......................................................................................................................... 5-5
Adjustment of Obligational Authority .................................................................................................... 3-16, 7-9
Administration Program Area ................................................................................................ 6-7, 6-8, 7-28, 7-32
Administrative and Operating Cost Instructions, Budget Form..................................................................... 7-19
Administrative Costs...................................................................................................................................... 7-19
Administrative Costs, Limitation on .............................................................................................................. 12-6
Admission Fee, Nondiscriminatory ........................................................................................................ 5-3, 6-39
Advisory Council on Historic Preservation ........................................................................... 5-8, 6-4, 6-32, 7-30
Affirmative Action Notice .................................................................................................................... 18-1, 18-5
Allocable Costs .............................................................................................................................................. 12-3
Allocation Base for Indirect Costs ................................................................................................................. 12-8
Allowability of Costs, Criteria for ................................................................................................................. 12-2
Allowable Costs Requiring Prior NPS Approval .................................................................................. 3-14, 12-1
Allowable Costs, Specific NPS Criteria ........................................................................................................ 12-4
Allowable Costs, Standards for...................................................................................................................... 12-2
Alternative Review Board Solutions................................................................................................................ 3-4
Alternative Staffing Solutions.......................................................................................................................... 3-4
Amendment, Grant, for Audit Disallowed Costs .................................................................................................6
Amendments are Required, Criteria for When Grant .................................................................................... 15-2
Amendments, Grant ....................................................................................................................................... 15-1
Amendments, Project Notification.....................................................................................................................33
Americans with Disabilities Act Accessibility Guidelines .............................................................................. 5-5
Annual Grant Applications, Components of .................................................................................................... 7-3
Appearance of Conflict of Interest ................................................................................................................... 3-6

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Applicable Credits ......................................................................................................................................... 12-4
Application and Budget Changes................................................................................................................... 15-1
Applications for CLG Certification to the SHPO ............................................................................................ 9-4
Apportionment Formula................................................................................................................................... 2-1
Apportionment of Recaptured Funds ............................................................................................................... 2-3
Apportionment, Reduction of ................................................................................................................. 1-2, 15-5
Appraisal Costs .............................................................................................................................................. 6-26
Appraisal Documentation ............................................................................................................6-26, 6-41, 8-21
Appraisal Report Format................................................................................................................................ 6-41
Appraisal Report Records ................................................................................................................................3, 5
Appraisal Requirements ................................................................................................................................. 6-26
Appraisal Standards for Federal Land Acquisitions, Uniform.............................................................................4
Appraisals of Real Property .................................................................................................................. 6-26, 6-41
Appraisals, Differences in Value ................................................................................................................... 6-41
Appraiser, Licensed Professional................................................................................................................... 6-26
Approved State Program .................................................................................................................................. 1-1
Archeological Activities, Ineligible ............................................................................................................... 6-23
Archeological Records, Access to ................................................................................................................. 6-15
Archeological Reports and Documentation ................................................................................................... 6-14
Archeological Resources, Consideration of ................................................................................................... 6-21
Archeological Site Protection and Stabilization ............................................................................................ 6-20
Archeological Survey..................................................................................................................................... 6-15
Archeological Testing .................................................................................................................................... 6-15
Architectural Barriers Act ................................................................................................................................ 5-5
Architectural Plans and Specifications .......................................................................................................... 6-22
Architectural/Engineering Services, Procurement of..................................................................................... 17-7
Archival Research, Unallowable Costs........................................................................................................ 13-12
Arm's Length Relationship Between Donor and Donee ................................................................................ 14-6
Assurances, Grant Application ................................................................................................................. 5-3, 7-3
Assurances, Non-Construction Programs ...................................................................................................... 7-23
Attachment B, Sources of Nonfederal Matching Share ......................................................................... 8-17, 4, 7
Audit Clearinghouse ............................................................................................................................................5
Audit Disallowances ........................................................................................................................................ 3-3
Audit Documentation ..................................................................................................................................... 14-4
Audit Resolution ...................................................................................................................................... 5-6, 1, 7
Audit Standards................................................................................................................................................3, 5
Audit, Access to Records for ...............................................................................................................................5
Automating the State Inventory ..................................................................................................................... 6-16
Bid Guarantee ................................................................................................................................................ 17-9
Bid Tabulations ....................................................................................................................................................2
Bids, Opening of ............................................................................................................................................ 17-5
Bids, Rejecting ............................................................................................................................................... 17-5
Bids, Time Allowed for ................................................................................................................................. 17-5
Bill for Collection ............................................................................................................................................5, 7
Billings, Final................................................................................................................................................... 7-8
Bonding and Insurance .................................................................................................................................. 17-3
Bonds, Sources of ........................................................................................................................................ 17-10

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Borrowing Funds, Cost of, Unallowable ....................................................................................................... 6-27
Boundary of HPF Acquisition Project ........................................................................................................... 6-26
Bribery and Kickbacks ..................................................................................................................................... 3-7
Budget Revisions .............................................................................................................................. 15-1, 15-2, 1
Buyer and Seller, Independent Relationship between.................................................................................... 6-26
Cancellation of Subgrants .............................................................................................................................. 15-3
Carryover Calculation Example ..................................................................................................................... 3-18
Carryover Limitation, Relationship to CLG Subgrants ................................................................................. 9-12
Carryover Policy, 25% Limitation ............................................................................................................. 3-19, 4
Carryover Statement .................................................................................................................................. 3-17, 4
Carryover Statement Format ..............................................................................................................................14
Cash Contributions......................................................................................................................................... 14-1
Categorical Exclusions, Environmental .........................................................................................3-9, 8-22, 11-1
Categorical Exclusions, Exceptions to Environmental .................................................................................. 11-6
Categorical Exclusions, NPS-Specific ........................................................................................................... 11-2
Categorical No Effects ................................................................................................................................... 7-30
CDBG Funds as Matching Share ............................................................................................................... 14-6, 8
CDBG Funds as Matching Share and Davis-Bacon Act................................................................................ 17-8
Certification of Non-Segregated Facilities ......................................................................................... 18-1, 18-13
Certified Local Government Subgrant Requirements .................................................................................... 9-11
Certified Local Governments, 10% Pass-Through Requirement .........................................................................4
Certified Local Governments, Certification Agreement .................................................................................. 9-5
Certified Local Governments, Notification of Nomination ............................................................................. 9-8
Certified Local Governments, Pooling Subgrants ......................................................................................... 9-13
Certified Local Governments, Public Participation ......................................................................................... 9-3
Certified Local Governments, State Records...................................................................................9-5, 9-9, 9-14
Certified Local Governments, Survey System Requirement ........................................................................... 9-2
Change Orders, Contracting........................................................................................................................... 17-7
Changes in Key Persons................................................................................................................................. 15-2
Church-Owned Property .................................................................................................................................. 5-8
Civil Rights Requirements ...................................................................................................................... 5-3, 10-1
Clearinghouse Comments ................................................................................................................................ 7-6
CLG Certification Applications, NPS Review of ............................................................................................ 9-5
CLG Decertification....................................................................................................................................... 9-15
CLG Participation in the National Register Nomination Process .................................................................... 9-7
CLG Pass-Through Requirement ............................................................................................................... 9-10, 4
CLG Program, Eligible Applicants/Activities ............................................................................................... 9-10
CLG Review Commission ............................................................................................................................... 9-2
CLG Subgrants Requirements ....................................................................................................................... 9-11
CLGs, Notice to, of Grant Availability .......................................................................................................... 9-11
Coastal Zone Management Act ................................................................................................................. 4-2, 5-4
Code of Conduct, Employee ............................................................................................................................ 3-6
Cognizant Federal Agency, Audits ......................................................................................................................5
Cognizant Federal Agency, Indirect Cost Rates ................................................................................... 12-7, 13-8
Collections Officer, NPS ........................................................................................................................... 16-3, 6
Comment Period, Clearinghouse ..................................................................................................................... 4-3
Community Development Block Grants, as Matching Share .................................................................... 14-6, 8

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Compensation for Personal Services.............................................................................................................. 14-5
Compensation Limits for Consultants.......................................................................................................... 13-11
Competitive Negotiation, Procurement by..................................................................................................... 17-4
Completion at Lower Cost, Subgrants ........................................................................................................... 15-3
Compliance with Secretary's Standards .......................................................................................5-2, 6-2, 9-10, 1
Comptroller General Opinion, on 2-Year Availability of HPF........................................................................ 7-1
Computing 40 Percent Nonfederal Share......................................................................................................... 7-1
Conditional Donations, Unallowable ............................................................................................................. 14-8
Conferences, Program Income from .............................................................................................................. 8-17
Conferences, Unallowable Costs ................................................................................................................. 13-10
Confidentiality Under Section 304 of NHPA ........................................................................................... 3-9, 7-2
Conflict of Interest Avoidance ......................................................................................................................... 6-7
Conflict of Interest Enforcement...................................................................................................................... 3-7
Conflict of Interest Policy, Enforcement Documentation ................................................................................ 3-8
Conflict of Interest Violations ......................................................................................................................... 3-8
Conflict of Interest, Declaration and Recusal .................................................................................................. 3-6
Conflict of Interest, Effects on Impartial Decision-Making ............................................................................ 3-6
Conflict of Interest, Pattern of.......................................................................................................................... 3-7
Conflict of Interest, Procurement ................................................................................................................... 17-1
Conflict of Interest, Review Board Rules on ................................................................................................... 3-4
Consequences of Noncompliance with Grant Conditions ............................................................................... 5-2
Construction Assurances (SF 424D) ................................................................................................................ 7-4
Construction Specification Terms ......................................................................................................................34
Consultants, Maximum Rate for ......................................................................................................... 8-16, 13-11
Contingent Fees Prohibition ................................................................................................................. 3-7, 13-11
Continuing Contractual Commitments, States ...................................................................................................15
Continuing Resolution Grant Awards .............................................................................................................. 7-1
Contract Breach Remedies ............................................................................................................................. 17-8
Contract Compliance Documentation ..................................................................................................................3
Contract Compliance, Equal Employment..................................................................................................... 18-1
Contract Price Analysis.................................................................................................................................. 17-7
Contract Work Hours and Safety Standards Act............................................................................................ 17-8
Contracting Records....................................................................................................................................... 17-7
Contracting Requirements ............................................................................................................................. 17-1
Contracts, Not Awarded to Drafter of Contract Specifications ..................................................................... 17-4
Contractual Basis for Grant ............................................................................................................................. 7-8
Contributing Properties .................................................................................................................................. 6-19
Copeland "Anti-Kickback" Act ..................................................................................................................... 17-8
Copies of Publications to NPS ........................................................................................................ 3-11, 8-13, 31
Copyrights ...................................................................................................................................................... 19-6
Copyrights and Data, Federal Rights To........................................................................................................ 19-6
Corrupt Practices, Prohibition Against ............................................................................................................ 3-7
Cost Allocation Plan ............................................................................................................................................5
Cost Overruns ................................................................................................................................................ 3-15
Cost Principles ............................................................................................................................................... 12-1
Cost Principles, Relationship to Grant Amendment ...................................................................................... 15-1
Cost-Plus-a-Percentage-of-Cost Contracts Prohibition.................................................................................. 17-3

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Costs Requiring Prior NPS Approval ................................................................ 3-14, 7-20, 8-6, 12-1, 15-1, 15-4
Covenant and Preservation Agreement Violations ........................................................................................ 6-31
Covenant Enforcement............................................................................................................................ 6-6, 6-28
Covenant Execution Certification ............................................................................................................ 8-20, 32
Covenant Monitoring ............................................................................................................................ 6-19, 6-30
Covenant Not Effected by Partial Termination of Grant .....................................................................................3
Covenant or Preservation Agreement, Duration of ........................................................................................ 6-28
Covenant Provisions, Required ...................................................................................................................... 10-5
Covenant Severability Clause ........................................................................................................................ 6-40
Covenant, Notification of Public Access Provision ....................................................................................... 6-30
Covenant, Prerequisite for Disbursement of Funds ....................................................................................... 6-30
Covenants and Preservation Agreements, Required Provisions .................................................................... 6-29
Covenants Term Chart ................................................................................................................................... 6-28
Covenants, Nullification of, Prohibition Against........................................................................................... 6-32
Covenants, Requirement for Up-to-Date List ................................................................................................ 6-30
Cumulative Products Table .......................................................................................................................... 7-4, 2
Cumulative Products Table, Guidelines for Completing the ......................................................................... 7-27
Curation .......................................................................................................................................6-14, 6-22, 6-24
Curation Costs, Unallowable ......................................................................................................................... 6-24
Damage to Grant-Assisted Property ..................................................................................................... 6-29, 6-31
Davis-Bacon Act ................................................................................................................................... 14-6, 17-8
Debarred Contractors, List of......................................................................................................................... 18-2
Debt Collection Procedures .................................................................................................................................2
Delegation of Signature Authority from SHPO to State Staff .................................................................. 3-9, 7-2
Designation of Historic Properties by CLGs ................................................................................................... 9-1
Designation of the SHPO, Required Language................................................................................................ 3-1
Determination of National Register Eligibility .............................................................................................. 6-20
Development Project Documentation ........................................................................................................ 6-14, 3
Development Project Notification ................................................................................................................. 8-19
Development, Acquisition, and Covenants Program Area ............................................................................ 6-18
Difference in Value in Appraisals....................................................................................................................4, 5
Difference in Value in Appraisals, Justification for....................................................................................... 6-41
Direct Costs.................................................................................................................................................... 12-6
Disallowances, Audit ....................................................................................................................................... 3-3
Disallowed Costs for Noncompliance.............................................................................................................. 5-8
Disallowed Costs, Recovery of ............................................................................................................................1
Disapproved State Program ............................................................................................................................. 1-2
Disclaimer Required in Publications.............................................................................................................. 3-11
Disclosure of Information in Grant Application .............................................................................................. 7-8
Disclosure of Possible Conflict of Interest ...................................................................................................... 3-6
Discrimination Complaint Processing ........................................................................................................... 10-8
Discrimination in Employment Prohibited .................................................................................................... 10-1
Displacement (Relocation Assistance).................................................................................................................1
Disposition of Equipment .......................................................................................................................... 19-3, 1
Disposition of Property ..................................................................................................................... 19-1, 19-2, 1
Distribution of Time Documentation ............................................................................................................. 13-5
Documentation of Formal Advertising of Contract ....................................................................................... 17-6

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Documentation, Property Acquisition..................................................................................................................3
Documentation, Supporting, for Grants ...............................................................................................................1
Donated Equipment ....................................................................................................................................... 14-5
Donated Labor Time Sheet ............................................................................................................................ 14-8
Donated Material and Supplies, Valuation of ................................................................................................ 14-5
Donated Services as Matching Share ............................................................................................................. 14-4
Donated Space ............................................................................................................................................... 14-6
Donation of Less-Than-Appraised-Value of Property ................................................................................... 14-6
Donation, Reversionary or Conditional, Unallowable ........................................................................ 13-16, 14-8
Dues to the NCSHPO................................................................................................................................... 13-10
Duration of Grant Awards ...................................................................................................................... 1-2, 3-14
Easements, Purchase of .................................................................................................................................. 6-25
Electronic Funds Transfer Payment Corrections .................................................................................................5
Electronic Funds Transfer Payment Method .......................................................................................................2
Electronic Funds Transfer, Suspension of, as Sanction .......................................................................................5
Eligibility Opinions, National Register ................................................................................................................2
Eligible Activities ................................................................................................................................... 6-1, 13-1
Eligible Applicants for HPF Grants ................................................................................................................. 1-1
Eligible Applicants/Activities, CLG Program ............................................................................................... 9-10
Employee Code of Conduct ............................................................................................................................. 3-7
Employer Identification Number ................................................................................................................... 7-13
Employment Nondiscrimination ...................................................................................................................... 5-6
End-of-Year Report, States ............................................................................................................................ 3-17
Endorsement Disclaimer in Publications ....................................................................................................... 3-11
Energy Conservation ...................................................................................................................................... 17-9
Environmental Assessment ................................................................................................................. 11-7, 11-12
Environmental Categorical Exclusions ................................................................................................. 11-1, 11-2
Environmental Categorical Exclusions, Exceptions to .................................................................................. 11-6
Environmental Categorical Exclusions, NPS-specific ................................................................................... 11-2
Environmental Certification.......................................................................................................7-5, 8-8, 11-6, 15
Environmental Compliance Requirements .................................................................................................... 11-1
Environmental Impact Statement (EIS) ................................................................................................ 11-1, 11-8
EPA List of Violating Facilities ..................................................................................................................... 17-9
Equal Employment Opportunity ...................................................................................................................... 5-6
Equal Employment Opportunity Clause ....................................................................................17-8, 18-1, 18-11
Equal Employment Opportunity Contract Compliance ................................................................................. 18-1
Equal Opportunity Requirements..................................................................................................................... 5-3
Equipment Inventory Requirements .............................................................................................................. 19-5
Equipment Purchases, NPS Prior Approval for ....................................................................................... 13-14, 4
Equipment Sales, Program Income from ....................................................................................................... 16-2
Equipment, Disposition of ............................................................................................................................. 19-3
Equivalency of Experience, Review Board ..................................................................................................... 3-4
Equivalency of Experience, State Staff............................................................................................................ 3-4
Ethics Officers, State ....................................................................................................................................... 3-8
Exceptions to Public Access Requirement..................................................................................................... 6-30
Exceptions, Requests for .................................................................................................................................. 5-2
Excessive Drawdowns .........................................................................................................................................6

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Executive Order 11246 .................................................................................................. 17-8, 18-1, 18-5, 18-6, 3
Executive Order 11988 ........................................................................................................................... 5-7, 11-1
Executive Order 11990 ........................................................................................................................... 5-7, 11-1
Executive Order 12372 .......................................................................................... 4-1, 7-3, 7-6, 8-5, 10-3, 11-13
Expenditure Reports.............................................................................................................................................2
Extensions of Time ........................................................................................................................................ 15-2
Failure to Comply, Subgrantee ............................................................................................................... 3-15, 5-1
Failure to Disclose Information in Application ............................................................................................... 7-8
Fair Labor Standards Act ............................................................................................................................... 14-7
Fair Market Value, Appraisal Required ............................................................................................ 6-25, 14-5, 5
Fair Market Value, of Disposed Property ...................................................................................................... 19-2
False Certifications, Penalty for .........................................................................................................3-9, 5-2, 7-2
Feasibility Studies .......................................................................................................................................... 14-3
Federal Assistance Award Data System (FAADS)........................................................................................ 7-12
Federal Cash Transactions Report (SF 272) ........................................................................................................6
Federal Deposit Insurance Corporation (FDIC) ...................................................................................................6
Federal Employees Ineligible for HPF Reimbursement .............................................................................. 13-17
Federal Funds as Matching Share .............................................................................................................. 14-1, 8
Federal Land, Surveys on .............................................................................................................................. 6-16
Federally Guaranteed Loans, Ineligible Matching Share............................................................................... 14-7
Federally Owned Properties, Ineligibility for HPF Grants .......................................................................... 13-17
Fees For Services ........................................................................................................................................... 16-4
Fees, Admission ............................................................................................................................................... 5-3
Fidelity Bond ............................................................................................................................................. 13-2, 1
Final Billing ..................................................................................................................................................... 7-8
Final Project Report .........................................................................................................................8-4, 8-8, 8-14
Final Project Report Format...............................................................................................................................33
Final Project Report Requirement........................................................................................................................3
Financial Management Standards ........................................................................................................................1
Financial Reporting Requirements.......................................................................................................................1
Financial Status Report, NPS ....................................................................................................................... 7-8, 2
Finding of No Significant Impact ..............................................................................................11-7, 11-8, 11-15
Flood Insurance..................................................................................................................................... 5-4, 11-12
Force Account Labor ............................................................................................................................ 6-22, 18-2
Foreign Travel Costs .................................................................................................................................... 13-13
Formal Advertising for Bids ................................................................................................................................3
Formal Advertising For Bids ......................................................................................................................... 17-4
Formal Advertising, Procurement by ............................................................................................................. 17-4
Freedom of Information Act ...................................................................................................... 3-9, 5-5, 7-1, 7-2
Fringe Benefit Costs ...................................................................................................................................... 14-4
Fundraising Costs, Unallowable ....................................................................................................... 13-12, 13-19
Furnishings..................................................................................................................................................... 6-19
General Conditions Governing Grants .................................................................................................... 3-12, 5-1
Geographic Information Systems (GIS) ......................................................................................6-13, 6-15, 6-16
Governor's Designation and Appointment of SHPO ................................................................................ 1-1, 3-1
Graft ................................................................................................................................................................. 3-7
Grant Agreement........................................................................................................................3-12, 5-1, 14-1, 1

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Grant Amendments, NPS-Initiated ................................................................................................................ 3-15
Grant Application Forms and Certifications .................................................................................................... 7-3
Grant Applications, Contents of Annual .......................................................................................................... 7-3
Grant Award and Spend-out Sequence, Key Dates ......................................................................................... 7-8
Grant Suspension .................................................................................................................................................2
Grant Termination................................................................................................................................................3
Grantee, Definition of ...................................................................................................................................... 1-1
Guidelines For Completing the Cumulative Products Table ......................................................................... 7-27
HABS/HAER Memorandum of Agreement .................................................................................................. 6-46
Hatch Political Activity Act ............................................................................................................................. 5-8
Historic Context-Based Tasks .......................................................................................................................... 7-7
Historic Landscape Studies ............................................................................................................................ 6-21
Historic Preservation Review Commission ..................................................................................................... 9-2
Historic Structure Report Format................................................................................................................... 6-44
Historic Structure Reports.............................................................................................................................. 6-21
HPF Grants Manager .............................................................................................................................. 7-5, 7-34
Impartial Decision-making .............................................................................................................................. 3-6
Improper Payments ...................................................................................................................................... 3-3, 1
Income Tax Liability.................................................................................................................................... 13-13
Income, Program (Grant-related) ................................................................................................................... 16-1
Independent Auditor ............................................................................................................................................2
Independent Relationship Between Buyer and Seller .................................................................................... 6-26
Indian Tribal Governments ........................................................................................................13-3, 13-7, 13-17
Indirect Cost Pool .......................................................................................................................................... 12-5
Indirect Cost Rate .......................................................................................................................................... 3-14
Indirect Costs, Limitation on ......................................................................................................................... 12-7
Indirect Costs, Predetermined Fixed Rate...................................................................................................... 12-7
Ineligible Archeological Activities ................................................................................................................ 6-23
Ineligible Grant Costs, Refunding ................................................................................................................. 8-14
Ineligible Landscaping Costs ......................................................................................................................... 6-24
In-house Expenses ......................................................................................................................................... 3-19
In-house Personnel, Definition of .................................................................................................................... 7-5
In-kind Contributions, Eligibility Test ........................................................................................................... 14-2
Inspections, On-Site Visits............................................................................................................................... 8-8
Inspector General, Regional Offices of ............................................................................................................8
Instructions for SF 424 Grant Application Facesheet ................................................................................... 7-12
Instructions for Completion of the Final Project Report....................................................................................31
Instructions for SF-424A Nonconstruction Budget Form.............................................................................. 7-19
Instructions for the Project/Activity Database Report ...................................................................................9
Insular Areas, Waiver of Matching Share ...................................................................................................... 14-2
Insurance Coverage ..............................................................................................................................................2
Integrity of the Resource ................................................................................................................................ 6-19
Intensive Level Survey .................................................................................................................................. 6-15
Interest on Advances, Program Income from ............................................................................................ 16-3, 2
Interest on Audit-related Debts ............................................................................................................................7
Interest Penalties for Late Payment, Unallowable ....................................................................................... 13-18
Intergovernmental Review ........................................................................................................................ 4-1, 7-6

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Internal Controls, Adequate SHPO .............................................................................................................. 3-2, 2
Interpretive Expenses, Unallowable ................................................................................................................ 6-7
Inventions, as Intangible Property ................................................................................................................. 19-6
Invitation For Bids ......................................................................................................................................... 17-4
Just Compensation Statement for Matching Share ........................................................................................ 14-6
Just Compensation Waiver Statement, Contents of .............................................................................................5
Just Compensation, Statement of ................................................................................................................... 8-20
Kickbacks......................................................................................................................................................... 3-7
Landscaping (Site Improvements), Ineligible Costs of .................................................................................. 6-24
Landscaping, Eligible Costs........................................................................................................................... 6-20
Lease Versus Purchase Cost Analysis ........................................................................................................... 17-2
Lease, Irrevocable Long-Term....................................................................................................................... 14-8
Legal Entity Receiving Grant .......................................................................................................................... 1-2
Less Than 50-Year-Old Properties .................................................................................................................. 6-3
Less-Than-Appraised Value Donation........................................................................................................... 14-6
Less-Than-Appraised Value, Acquisition of Real Property at....................................................................... 6-25
Limitation on Administrative and Indirect Costs ........................................................................................... 12-7
Limitation on Award of Obligational Authority ..................................................................................... 3-17, 7-1
Limited Archeological Testing ...................................................................................................................... 6-15
Maintenance, Routine .................................................................................................................................... 6-24
Major Reconstruction..................................................................................................................................... 6-24
Matching Share Recordkeeping Forms .......................................................................................................... 14-8
Matching Share Treatment for Program Income ........................................................................................... 16-2
Matching Share, 100% Nonfederal Project......................................................................................8-4, 8-7, 8-15
Matching Share, 40% Nonfederal Share Calculation .................................................................................... 14-2
Matching Share, Documentation Of .............................................................................................................. 14-8
Matching Share, Donated Real Property........................................................................................................ 14-6
Matching Share, Eligibility Criteria ............................................................................................................... 14-1
Matching Share, Federal Funds As ............................................................................................................ 14-1, 8
Matching Share, Nonexpendable Personal Property...................................................................................... 14-5
Matching Share, Volunteer Services.............................................................................................................. 14-4
Meals Costs, Unallowable ........................................................................................................................... 13-16
Memorandum of Agreement for NPS Involvement in HABS/HAER Proje.................................................. 6-46
Methods of Achieving Program Accessibility ................................................................................................. 5-5
Mileage Rate ................................................................................................................................................ 13-14
Minimum Wage ............................................................................................................................................. 14-4
Minority Business Enterprise (MBE) ............................................................................................................ 17-2
Minority Business Enterprise, Office of ..............................................................................................................2
Minority Business Enterprise, Procurement Report..................................................................................... 17-12
Minority Business Enterprise, Utilization Report .................................................................................. 17-11
Minority, Definition of................................................................................................................................... 18-6
Mitigation Expenses, Unallowable ................................................................................................................ 6-35
Model CLG Certification Agreement ............................................................................................................ 9-18
Model Preservation Agreement ..................................................................................................................... 6-39
Monitoring Covenants .......................................................................................................................... 6-19, 6-30
Monitoring Mechanisms, NPS ......................................................................................................................... 3-3
Mortgaged Property, Covenants for ............................................................................................................... 6-28

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Moving Costs .......................................................................................................................................................6
Moving Historic Structures, Restrictions on .................................................................................................. 6-19
National Conference of State Historic Preservation Officers .......................................................................... 5-8
National Environmental Policy Act ...................................................................................................3-9, 4-2, 5-6
National Historic Landmark ................................................................................................................... 6-18, 8-6
National Register Criteria for Evaluation ....................................................................................6-14, 6-17, 6-35
National Register Determination of Eligibility .............................................................................................. 6-14
National Register Listing, Prerequisite for HPF Grant ........................................................................... 6-7, 6-19
National Register Nomination Project Notifications ..................................................................................... 8-18
National Register, Listing of Minority Properties.......................................................................................... 10-4
National Trust Grant Application Instructions................................................................................................. 7-9
Native American Graves Protection and Repatriation Act (NAGPRA .......................................6-14, 6-22, 6-29
NCSHPO, Dues to the.................................................................................................................................. 13-10
NEPA Compliance ......................................................................................................................................... 11-1
Nepotism .......................................................................................................................................................... 3-7
Noncompetitive Negotiation .......................................................................................................................... 17-7
Noncompliance and Disallowed Costs ............................................................................................................ 5-8
Noncompliance with Grant Conditions, Penalties for...................................................................................... 5-2
Nonconformance with Secretary's Standards............................................................................................... 5-2, 1
Nonconstruction Project Documentation .............................................................................................................5
Nondiscrimination in Employment ................................................................................................................ 10-1
Nondiscrimination on the Basis of Disability .................................................................................................. 5-5
Nondiscrimination Statement Required in Publications ......................................................................... 3-11, 5-4
Nondiscriminatory Admission Fee ......................................................................................................... 5-3, 6-39
Nonexpendable Personal Property ................................................................................................................. 19-3
Nonfederal Share (also see Matching Share) ................................................................................................. 14-1
Non-Performing Subgrantees......................................................................................................................... 8-11
Non-Segregated Facilities, Certification of ................................................................................................... 18-1
Notice of Requirement for Affirmative Action..................................................................................... 18-1, 18-5
Notification to CLG of Proposed Nomination ................................................................................................ 9-8
Notification to CLGS of Availability of Grant Funds ................................................................................... 9-11
Notification to the General Public of Access ................................................................................................. 6-30
NPS Monitoring Mechanisms .......................................................................................................................... 3-3
NPS Review of CLG Certification Applications ............................................................................................. 9-5
NPS-Initiated Amendments ........................................................................................................................... 3-15
Nullification of Covenants Prohibition .......................................................................................................... 6-32
Obligational Authority Reduction by NPS ........................................................................................... 3-19, 15-5
Obligational Authority, Limitation On .......................................................................................................... 3-17
Obligational Authority, Time Period of ........................................................................................................... 2-5
Office of Inspector General Regional Offices Addresses................................................................................8
Officials Not to Benefit Requirement .............................................................................................................. 3-7
OMB Circular A-123 ...........................................................................................................................................1
OMB Circular A-133 ...........................................................................................................................................1
Open Project Selection Process........................................................................................................8-6, 8-9, 10-2
Organization Chart .................................................................................................................................. 7-4, 7-34
Other Activities Project Notification ............................................................................................................. 8-19
Outside Employment, As Conflict of Interest .................................................................................................. 3-5

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Overmatch Shown on Budget Form........................................................................................................... 7-20, 8
Overtime Costs............................................................................................................................................... 14-7
Pass-Through funds ....................................................................................................................................... 6-13
Pass-Through Subgrants to CLGs .............................................................................................................. 6-37, 4
Patents, as Intangible Property ....................................................................................................................... 19-6
Patents, Program Income from....................................................................................................................... 16-3
Pattern of Conflict of Interest........................................................................................................................... 3-7
Payment Bond ................................................................................................................................................ 17-9
Payments by Electronic Fund Transfer ................................................................................................................3
Payments, Repayment of Improper......................................................................................................................1
Penalties for Noncompliance ........................................................................................................................... 5-2
Penalty for False Certification ......................................................................................................................... 5-2
Performance Bond ......................................................................................................................................... 17-9
Person, Definition of, for Conflict of Interest Policy ....................................................................................... 3-5
Personal Compensation ....................................................................................................................... 8-16, 13-11
Personal Property, Nonexpendable ................................................................................................................ 19-1
Photographs Required with Final Reports for Development Work ...................................................................32
Photographs, Requirement for Acquisition Projects ...................................................................................... 8-21
Photographs, Requirement for Development Projects ................................................................................... 8-20
Physical Accessibility for the Disabled .................................................................................................. 5-5, 10-4
Planning Project Notifications ....................................................................................................................... 8-18
Plans and Specifications ................................................................................................................................ 6-21
Political Activities, Restrictions on.............................................................................................................. 13-19
Pooling CLG Subgrants ................................................................................................................................. 9-13
Pooling Matching Share ................................................................................................................................... 8-7
Post-Grant Monitoring ..................................................................................................................................... 3-3
Preagreement Costs.......................................................................................... 3-16, 8-17, 12-4, 14-3, 15-1, 15-4
Predevelopment Costs for Churches, Allowable ............................................................................................. 6-6
Predevelopment Research and Documentation.............................................................................................. 6-21
Predevelopment Research Certification ......................................................................................................... 8-20
Predevelopment Studies ................................................................................................................................. 6-21
Preservation Agreement .......................................................................................................................... 5-5, 6-27
Preservation Agreement for 100% Nonfederal Share Project.......................................................................... 8-7
Preservation Agreement for Mortgaged Property .......................................................................................... 6-29
Preservation Agreement Revisions, NPS Prior Approval of ......................................................................... 6-32
Preservation Agreement, Execution Certification.......................................................................................... 8-20
Preservation Agreement, Model .................................................................................................................... 6-28
Preservation Agreement, Notification of Public Access ................................................................................ 6-30
Preservation Tax Incentives, HPF-assisted Work Ineligible for ................................................6-23, 6-34, 13-15
Prior Approval, Costs Requiring................................................................................. 3-16, 8-6, 12-1, 15-1, 15-4
Prison Labor ..................................................................................................................................................... 5-4
Procurement Documentation ...............................................................................................................................2
Procurement of Architectural/Engineering Professional Services ................................................................. 17-7
Procurement of Professional Services..................................................................................................................6
Procurement of Professional Services, Records for .............................................................................................6
Procurement Standards .................................................................................................................................. 17-1
Professional Qualification Standards ........................................................................................................ 3-3, 6-2

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Professional Qualification Standards and CLG Commissions......................................................................... 9-2
Professional Review by Qualified CLG Commision ....................................................................................... 9-9
Professional Review by Qualified Staff ........................................................................................................... 6-2
Professional Review of Proposed Work .......................................................................................................... 8-2
Professional Services, Procurement of........................................................................................................... 17-7
Program Areas, HPF Grant .............................................................................................................................. 6-1
Program Income Treatment ........................................................................................................................... 16-1
Program Income, From Copyrighted Material ............................................................................................... 16-2
Program Income, Interest on Advances ......................................................................................................... 16-3
Program Income, Matching Treatment .......................................................................................................... 16-2
Program Income, Reporting ........................................................................................................................... 16-4
Program Income, Service Fees....................................................................................................................... 16-4
Program Income, Shown on Project Notification .......................................................................................... 8-17
Program Overview ........................................................................................................................................... 7-6
Programmatic Agreement ..............................................................................................................6-4, 6-32, 7-30
Progress Reports ................................................................................................................................................33
Project Notification ........................................................................................................................3-15, 8-5, 8-15
Project Notification Amendments ...................................................................................... 8-13, 8-14, 8-16, 15-2
Project Notification for Acquisition Project .................................................................................................. 8-20
Project Notification for Development Project ............................................................................................... 8-19
Project Notification for National Register Nomination ................................................................................. 8-18
Project Notification for Other Activities Project ........................................................................................... 8-19
Project Notification for Planning Project ....................................................................................................... 8-18
Project Notification for Survey Project.......................................................................................................... 8-18
Project Notifications, Requirement for Submission to NPS ............................................................................ 8-5
Project Signs .............................................................................................................................................. 6-22, 4
Project/Activities Database Format ...................................................................................................................11
Project/Activity Database Report...................................................................................................... 3-16, 15-4, 3
Project/Activity Database Report, Instructions for the ..................................................................................9
Projects/Activities List, Grant Application ...................................................................................................... 7-5
Properties not Eligible for HPF Grants .......................................................................................................... 6-20
Property Inventory Records ........................................................................................................................... 19-5
Property Management Standards ................................................................................................................... 19-1
Property Title ................................................................................................................................................. 6-25
Property, Disposition of ............................................................................................................................. 19-2, 1
Protection of Historic Properties ...................................................................................................................... 9-1
Public Access Covenant or Preservation Agreement Provision .................................................................... 6-29
Public Access to HPF-assisted Properties...................................................................................................... 6-28
Public Participation, CLG Program ................................................................................................................. 9-3
Publications, Acknowledgment of NPS Support ........................................................................................... 3-10
Publications, Copies to NPS ........................................................................................................... 3-11, 8-13, 31
Publications, Copyright of ............................................................................................................................. 19-6
Publications, Disclaimer of Endorsement ...................................................................................................... 3-11
Publications, Required Nondiscrimination Statement ............................................................................ 3-11, 5-4
Publications, Royalty-free Use by NPS ......................................................................................................... 19-6
Publications, Sale of....................................................................................................................................... 16-2
Qualified Professional Staff, Prerequisite for Reduced Review .................................................................... 8-11

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Rates for Volunteer Services as Matching Share ........................................................................................... 14-4
Real Property Acquisition Policies Act .................................................................................................. 5-8, 6-25
Real Property, Use and Disposition ...................................................................................................... 19-1, 19-2
Reapportionment of Recaptured Funds............................................................................................................ 2-3
Reasonable Costs, Tests of ............................................................................................................................ 12-3
Rebates and Credits, Deductions for ................................................................................................... 12-4, 13-10
Reconnaissance Level Survey........................................................................................................................ 6-15
Reconstruction Restrictions ........................................................................................................................... 6-24
Recordkeeping by Reduced Review States .................................................................................................... 8-13
Recordkeeping, Grant ............................................................................................ 14-2, 14-5, 17-6, 19-5, 1, 4, 1
Records Needed for Grants ..................................................................................................................................2
Records of Abstentions and Recusals for Conflict of Interest ......................................................................... 3-7
Records Retention Period ........................................................................................................ 5-6, 17-9, 17-10, 1
Records, Access to ....................................................................................................................................... 18-11
Recovery of Ineligible Costs ..............................................................................................................................31
Recusal from Decision-making Process for Conflict of Interest ..................................................................... 3-6
Reduced Review Status....................................................................................... 3-15, 6-41, 8-4, 8-8, 31, 11-1, 5
Reduction of Obligational Authority .................................................................................................... 3-19, 15-5
Refunding Ineligible Grant Costs ....................................................................................................... 5-2, 8-14, 1
Rehabilitation Act of 1973, Section 504 ........................................................................................................ 10-1
Relocation Assistance Annual Report ...............................................................................................................................7
Repayment of Misapplied Funds ........................................................................................................... 5-2, 31, 1
Reporting Grant Program Performance ...............................................................................................................1
Reporting Program Income ............................................................................................................................ 16-4
Request for Proposals, Drafting ..................................................................................................................... 17-4
Request for Proposals, Requirements Applicable to ...................................................................................... 17-6
Responsible Subgrantee Criteria ...................................................................................................................... 8-3
Resurvey of Properties, Criteria for ............................................................................................................... 6-15
Retainer Fee Costs ....................................................................................................................................... 13-11
Return of Grant Application Without Action .................................................................................................. 7-9
Revegetation .................................................................................................................................................. 6-20
Reversionary Donation ....................................................................................................................... 13-16, 14-8
Review Board Services, as Matching Share .................................................................................................. 14-4
Review Board, Meetings Requirement ............................................................................................................ 3-4
Review Board, Qualified State......................................................................................................................... 3-3
Review Commission, CLG .............................................................................................................................. 9-2
Revolving Fund, NPS Approval of Using Grants for a ................................................... 8-5, 8-8, 8-14, 8-21, 30
Right to Just Compensation, Waiver of ...............................................................................................................5
Routine Maintenance ..................................................................................................................................... 6-24
Royalties from Grant-related Publications ............................................................................................ 16-1, 16-2
Royalty-free Use of Publications ................................................................................................................... 19-6
Scope of Work Changes................................................................................................................................. 15-2
Scope of Work Changes and Bidding ............................................................................................................ 17-5
Sealed Bids..................................................................................................................................................... 17-4
Secretary’s Professional Qualification Standards ..................................................................................... 3-4, 6-2
Secretary’s Standards, Compliance with ................................................................................................ 6-2, 6-20
Secretary's Standards, Compliance with .......................................................................... 5-2, 5-6, 9-10, 13-20, 1

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Section 106 Activities .................................................................................................................................... 6-35
Section 304, Confidentiality Provisions of ........................................................................................3-9, 5-5, 7-1
Section 304, Exceptions to Public Access ............................................................................................ 6-15, 6-30
Section 504 of the Rehabilitation Act, Requirements of..................................................................5-3, 5-5, 10-1
Section 504 Self-Evaluation .......................................................................................................................... 10-5
Seller and Buyer, Independent Relationship Between ................................................................................... 6-26
Service Fees Prohibited.................................................................................................................................. 16-4
Severability Clause in Covenant .................................................................................................................... 6-40
SF 270 ..................................................................................................................................................................6
SF 272 ..................................................................................................................................................................6
SHPO Responsibilities ..................................................................................................................................... 1-2
SHPO Responsibilities, Limits on Delegation of............................................................................................. 9-5
Sign, Project Site............................................................................................................................................ 6-22
Signature Authority, Delegation of, by SHPO to Staff ............................................................................. 3-9, 7-2
Signature Cards (SF 1194) ...................................................................................................................................8
Significance, Evaluations of National Register ...................................................................................... 6-3, 6-19
Significant Preservation Accomplishments Summary .........................................................................................4
Single Audit Requirements .......................................................................................................................... 5-2, 1
Single Point of Contact (SPOC) Clearinghouse ....................................................................................... 4-2, 7-6
Small Purchase Procedures, Procurement by................................................................................................. 17-4
SMARTLINK Payment Management System .....................................................................................................2
SMARTLINK Sample Payment Screen ..............................................................................................................7
Sole Source Procurements ............................................................................................................................. 17-6
Sources of Nonfederal Matching Share Report (Attachment B) ...................................................................7
Special Conditions on Grant .......................................................................................................................... 3-14
Staffing Solutions, Alternative......................................................................................................................... 3-4
Staffing Summary Statement ........................................................................................................................... 7-4
Standards for Archeological Documentation ................................................................................................. 6-21
State Historic Preservation Officer Responsibilities ............................................................................... 3-1, 6-36
State Historic Preservation Plan....................................................................................................................... 6-9
State Intergovernmental Review Process (E.O. 12372) ............................................................................ 4-1, 7-6
State Plan, Required Elements of................................................................................................................... 6-10
State Review Board, Equivalency of Experience ............................................................................................ 3-4
State Review Board, Qualified......................................................................................................................... 3-3
State Single Point of Contact ........................................................................................................................... 7-6
State Staff, Equivalency of Experience............................................................................................................ 3-4
State Subgrant Application Instructions, Required Components..................................................................... 8-1
State, Definition of ........................................................................................................................................... 1-1
Statement of Differences in Value in Appraisals ........................................................................................... 6-41
Statement of Just Compensation for Purchase of Real Property............................................................ 14-6, 3, 5
Student Loan Programs .................................................................................................................................. 14-7
Subgrant Selection ......................................................................................................................................... 17-1
Subgrant Selection, CLG ............................................................................................................................... 9-11
Subgrantee, Criteria for Responsible ............................................................................................................... 8-3
Survey Project Notification............................................................................................................................ 8-18
Surveys on Federal Land ............................................................................................................................... 6-16
Suspension of Grant by NPS............................................................................................................................ 5-2

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Tax Incentives Program Area ........................................................................................................................ 6-32
Ten Percent Pass-Through to CLGs...................................................................................................... 9-10, 9-12
Term of Covenant or Preservation Agreement .............................................................................................. 6-28
Termination of Grant ....................................................................................................................................... 5-2
Third Party Agreement ........................................................................................................................... 7-10, 8-4
Timing of Advances .............................................................................................................................................6
Title VI and Section 504 Compliance ..............................................................................................5-3, 7-5, 7-34
Title VI and Section 504 Noncompliance ...................................................................................................... 10-9
Title VI of the Civil Rights Act of 1964 ........................................................................................................ 10-1
Transfer of Funds Between Subgrants ........................................................................................................... 15-4
Transition Plan for Section 504 Compliance ................................................................................................. 10-7
Treasury Check Payment Method ........................................................................................................................5
Twenty-five Percent Uncommitted Carryover Limitation ............................................................................. 3-17
Two-Year HPF Appropriation, Limitations on Availability ............................................................................ 7-1
Unallowable Costs, Grantee Repayment of .................................................................................3-9, 5-2, 8-14, 1
Unexpended Carryover Funds Table .................................................................................................................15
Uniform Appraisal Standards for Federal Land Acquisitions.................................................................... 6-41, 4
Uniform Federal Accessibility Standards ...................................................................................................... 6-23
Uniform Relocation Assistance and Real Property Acquisition Ac ....................................................... 5-8, 6-25
Unjust Enrichment, Prohibition Against ........................................................................................................ 6-26
Unobligated Funds, Reduction by NPS ........................................................................................................... 2-5
Variances, Floodplain Management ............................................................................................................ 11-12
Violation of the Conflict of Interest Policy...................................................................................................... 3-8
Violations, Covenant...................................................................................................................................... 6-31
Volunteer Services ......................................................................................................................................... 14-4
Waiver of 25 Percent Carryover Limitation .................................................................................................. 3-19
Waiver of Accessibility Requirements .......................................................................................................... 10-6
Waiver of Grant Condition, Request for .......................................................................................................... 5-2
Waiver of Physical Accessibility ..................................................................................................................... 5-5
Waiver of Right to Just Compensation ...................................................................................................... 6-25, 5
Waiver of Section 504 Accessibility Requirements....................................................................................... 10-6
Waiver, Qualified Review Board ..................................................................................................................... 3-4
Waiver, Qualified Staff .................................................................................................................................... 3-4
Withholding of Payments ................................................................................................................................ 5-2
Women's Business Enterprise (WBE) ........................................................................................................... 17-3
Women's Business Enterprise, Procurement Report .................................................................................... 17-12
Women's Business Enterprise, Utilization Report .................................................................................. 17-11
Work/Study Programs .................................................................................................................................... 14-7
Workshops, Physical Accessibility to ............................................................................................................ 10-4
Workshops, Program Income from ................................................................................................................ 8-17
Written Agreements with Consultants ........................................................................................................... 17-4
Written Subgrant Agreement Components ...................................................................................................... 8-4

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