Federal Transit-Formula Grants (20.507)
Program
20.507 Federal Transit-Formula Grants
Federal Agency
FEDERAL TRANSIT ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
Authorization
49 U.S.C. 5307.
Program Number
20.507
Last Known Status
Active
Objectives
To assist in financing the acquisition, construction, cost-effective leasing, maintenance, planning, and improvement of facilities and equipment for use by operation, lease, contract, or otherwise in mass transportation service, and for urbanized areas with populations under 200,000, to assist with the payment of operating expenses to improve or to continue such service by operation, lease, contract or otherwise.
Types of Assistance
Formula Grants.
Uses and Use Restrictions
The Secretary of Transportation may make grants under this section for capital projects to finance the planning, acquisition, construction, lease, improvement, and maintenance of equipment and facilities for use in transit subject to regulations. One percent of the funds apportioned to urbanized areas with a population of at least 200,000 shall be made available for transit enhancements. For urbanized areas with populations under 200,000, the Secretary may also make grants under this section to finance transit operating costs. Recipients of these grants are required to make information available to the public and to publish a program of projects to afford affected citizens opportunities through public hearings to submit comments on the proposed program and the performance of the recipient.
Eligibility Requirements
Applicant Eligibility
Funds will be made available to urbanized areas (as defined by the Bureau of the Census) through designated recipients which must be public entities and legally capable of receiving and dispensing Federal funds. The Governor, responsible local officials, and publicly owned operators of mass transportation services must jointly designate the recipient(s) for urbanized areas of 200,000 or more in population. The Governor or his designee is the designated recipient for urbanized areas of 50,000 to 200,000 population. Recipients must submit a program of projects to FTA; submit a program application to FTA; enter into formal agreements with FTA; and certify that public notification has been conducted.
Beneficiary Eligibility
Publicly owned operators of mass transportation services.
Credentials/Documentation
Resolution by an authorized public body approving the filing for an application; projects must be included in an urbanized area's transportation improvement program (TIP), and in the Statewide transportation improvement program (STIP) approved by FTA and FHWA. Information must be provided on labor agreements and relocation planning; environmental impact; legal capacity; coordinated regional planning; and compliance with certifications and assurances as compiled in FTA's Annual List of Certifications and Assurances. Eligible costs must be in accordance with OMB Circular No. A-87 for State and local governments. A Federal Register Notice is published annually on FTA fiscal year apportionments, allocations and program information. The notice contains the urbalized area formula apportionments. For fiscal year 2003, the notice was published on March 12, 2003. Prior year notices can be found on the FTA website at www.fta.dot.gov/ or by contacting the appropriate FTA Regional Office to obtain copies or publication dates.
Application and Award Process
Preapplication Coordination
The standard application forms as furnished by the Federal agency and required by 49 CFR Part 18 must be used for this program. An environmental impact assessment is required. In addition, an environmental impact statement may also be required. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance under the FTA 49 U.S.C. 5307 program.
Application Procedure
This program is subject to the provisions of OMB Circular No. A-87 and 49 CFR Part 18. Applications are to be submitted to the regional office of the Federal Transit Administration listed in Appendix IV of the Catalog.
Award Procedure
An FTA grant award obligating Federal funds is reflected in a grant agreement. To access funds, the recipient must execute the grant agreement.
Deadlines
Applications may be submitted throughout the fiscal year.
Range of Approval/Disapproval Time
Appeals
Opportunity for public hearing for interested persons.
Renewals
Amendments may be granted subject to the availability of funds for the urbanized area.
Assistance Considerations
Formula and Matching Requirements
Funding is apportioned on the basis of legislative formulas. For urbanized areas 50,000 to 199,999 in population, the formula is based on population and population density. For urbanized areas with population of 200,000 and greater, the formula is based on a combination of bus revenue vehicle miles, bus passenger miles, fixed guideway revenue miles, and fixed guideway route miles as well as population and population density. The program operates under a statutory formula as prescribed in 49 USC 5307 and 49 USC 5336. The Federal share is not to exceed 80 percent of the net project cost. The Federal share may be 90 percent for the cost of vehicle-related equipment attributable to compliance with the American with Disabilities Act and the Clear Air Act. The Federal share may also be 90 percent for projects or portions of projects related to bicycles. The Federal share may not exceed 50 percent of the net cost for operating assistance.
Length and Time Phasing of Assistance
Sums apportioned under the formula grant program are available for obligation by the Governor, designated recipient, or authorized grant recipient for a period of 3 years following the close of the fiscal year for which such sums are apportioned. Any amounts remaining unobligated at the end of this period will be reapportioned within the same activity for which they were originally appropriated.
Post Assistance Requirements
Reports
(1) Progress reports; (2) construction reports where applicable; and (3) final audit report.
Audits
In accordance with the provisions of OMB Circular No. A-133, "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend $500,000 or more in a year in Federal awards shall have a single or program specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year with certain exceptions as stated in OMB Circular No. A-133.
Records
Recipient is required to retain intact, for 3 years following submission of the final expenditure report, pending resolution of audit findings, all project contract documents, financial records and supporting documents.
Program Accomplishments
Federal funds have supported the replacement and rehabilitation of the existing rail fleet and restoration of rail facilities such as stations, track, and yards and shops; helped to increase the percentage of bus and rail maintenance facilities in good or better condition; and contributed significantly to the continuing effort to make the national fixed-route bus system 100 percent lift-or-ramp equipped. In fiscal year 2002 $3.2 billion was awarded in grants.
Financial Information
Account Identification
69-1129-0-1-401.
Obligations
(Grants) FY 02 $4,285,536,000; FY 03 est $3,405,688,000; and FY 04 est $3,980,000,000.
Range and Average of Financial Assistance
Varies according to local programming of available formula funds and the level of operating expenses incurred.
Regulations, Guidelines and Literature
Formula Grant Application Instructions may be accessed on the FTA website or secured at no charge from the FTA Regional Offices - FTA Circular 9030.1C, "Urbanized Area Formula Program: Grant Application Instructions," October 1, 1998.
Related Programs
20.205, Highway Planning and Construction; 20.500, Federal Transit_Capital Investment Grants; 20.505, Federal Transit_Metropolitan Planning Grants; 20.509, Formula Grants for Other Than Urbanized Areas.
Information Contacts
Regional or Local Office
See Appendix IV of the Catalog for a listing of Federal Transit Administration regional offices.
Headquarters Office
FTA Office of Program Management, Director, Office of Resource Management and State Programs, 400 Seventh Street, SW., Washington, DC 20590. Telephone: (202) 366-2053.
Web Site Address
Examples of Funded Projects
Grants were awarded to: (1) Kansas City Area Transportation Authority for engineering, design and construction of the Kansas City Union Station Intermodal Facility; (2) Flint, MI Mass Transportation Authority for expansion of existing bus garage and renovation of operations/maintenance facility; (3) Golden Gate Bridge, Highway and Transportation District for 48 replacement buses, one expansion ferry vessel, and operating assistance; (4) Southwest Ohio Regional Transit Authority for Park and Ride lots and right-of-way acquisition; and (5) Southeastern Pennsylvania Transportation for Rail Transit Way Lines, rail station stops/terminals and rail support equipment and facilities.
Criteria for Selecting Proposals
Projects must be eligible mass transit projects and meet all formula grant requirements.
