Formula Grants for Other Than Urbanized Areas (20.509)
Program
20.509 Formula Grants for Other Than Urbanized Areas
Federal Agency
FEDERAL TRANSIT ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
Authorization
49 U.S.C. 5311.
Program Number
20.509
Last Known Status
Active
Objectives
To improve, initiate, or continue public transportation service in nonurbanized areas by providing financial assistance for operating and administrative expenses and for the acquisition, construction, and improvement of facilities and equipment. Also to provide technical assistance for rural transportation providers.
Types of Assistance
Formula Grants.
Uses and Use Restrictions
Section 5311 funding may be used for eligible capital expenses, project administration, and operating expenses needed to provide efficient and coordinated public transportation service in nonurbanized areas. Projects must provide for the maximum feasible coordination of public transportation sources assisted under this section with transportation services assisted by other Federal sources, and must provide for the maximum feasible participation of private operators. Fifteen percent of the State's annual apportionment must be spent to support rural intercity bus transportation, unless the governor certifies that such needs are adequately met. Rural Transit Assistance Program (RTAP) funds may be used for technical assistance, training, research, and related support services.
Eligibility Requirements
Applicant Eligibility
Eligible recipient may include State agencies, local public bodies and agencies thereof, nonprofit organizations, Indian tribes, and operators of public transportation services, including intercity bus service, in rural and small urban areas. Private for-profit operators of transit or paratransit services may participate in the program only through contracts with eligible recipients. Urbanized areas, as defined by the Bureau of the Census, are not eligible.
Beneficiary Eligibility
The general public, both users and nonusers, and private and public providers of public transportation in nonurbanized areas.
Credentials/Documentation
Costs will be determined in accordance with the Section 5311 Program Guidance and Grant Application Instructions (FTA Circular 9040.1E) issued October 1, 1998, and subsequent updates (based on OMB Circular No. A-87). The documents and procedures required of applicants are specified in the above guidance and in the State's application procedure/management plan. Federal Register Notice "FTA Fiscal Year 2001 Apportionments, Allocations, and Program Information" contains the nonurbanized area formula apportionments in Table 5. For fiscal year 2003, the publication date was March 12, 2003. Prior year notices can be found at www.fta.dot.gov/library/legal.
Application and Award Process
Preapplication Coordination
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, if the State has selected the program for review.
Application Procedure
Applicant should submit application to the State agency designated by the Governor. This agency will evaluate and select eligible applicants and submit a program of projects to the Federal Transit Administration that reflect a fair and equitable distribution of funds. Application for RTAP funds is incorporated with the State Section 5311 application. This program is subject to the provisions of 49 CFR, Part 18, and 49 CFR Part 19 in the case of private nonprofit subrecipients.
Award Procedure
The Federal Transit Administration approves the State's program of projects. FTA is responsible for providing notification of approval to the State designated agency.
Deadlines
As prescribed by the State agency designated to administer the Section 5311 program.
Range of Approval/Disapproval Time
Appeals
Interested persons are afforded the opportunity of a public hearing for capital projects.
Renewals
As determined by the designated State agency.
Assistance Considerations
Formula and Matching Requirements
This program operates under a statutory allocation formula to the States as prescribed in 49 U.S.C., Chapter 53, Section 5311. The Federal share for eligible capital and project administration costs shall not exceed 80 percent of these costs; except projects designed specifically to increase the accessibility of public transportation to bicycles may be funded at 90 percent Federal share; vehicle related equipment required to comply with ADA or the Clean Air Act may be funded at 90 percent Federal match. The Federal share of the eligible operating deficit shall not exceed 50 percent. Income from purchase of service contracts with human service agencies may be used for the entire local share. (Many programs of the Department of Health and Human Services and other Federal agencies provide local match through purchase of service contracts.) In addition, current year funds can be transferred from the Federal Highway Administration for capital projects under Nonurbanized Area Formula Grants, 49 U.S.C. Chapter 53, Section 5311.
Length and Time Phasing of Assistance
Funds will be apportioned annually to the States. Sums apportioned shall be available for obligation by the State designated agency for a period of 2 years following the close of the fiscal year for which sums are apportioned, and amounts remaining unobligated at the end of such period shall be apportioned among the States for the succeeding fiscal year. States usually fund local recipients on an annual cycle.
Post Assistance Requirements
Reports
As requested by the State and Federal agencies administering the program. States submit annual reports to FTA.
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, all contract documents, financial records, and supporting documents.
Program Accomplishments
Since 1979 assistance has been provided to over 1,200 providers of rural and small urban transportation.
Financial Information
Account Identification
FTA: 69-1129-0-1-401.
Obligations
(Grants) FY 02 $276,321,000; FY 03 est $235,489,000; and FY 034 est $351,634,000.
Range and Average of Financial Assistance
Not applicable.
Regulations, Guidelines and Literature
FTA Circular 9040.1E, Nonurbanized Area Formula Program Guidance and Grant Application instructions.
Related Programs
20.500, Federal Transit_Capital Investment Grants; 20.507, Federal Transit_Formula Grants; 20.513, Capital Assistance Program for Elderly Persons and Persons with Disabilities.
Information Contacts
Regional or Local Office
See Appendix IV of the Catalog for the address of Federal Transit Administration Regional Offices. State Designated Agency: The Governor in each State has designated a State agency to administer the Section 5311 program. This should be the first contact point. Regional Offices: A person from each Federal Transit Administration Regional Office is available to answer questions about Federal regulations related to the Nonurbanized Formula Program.
Headquarters Office
Federal Transit Administration, Office of Program Management, Office of Capital and Formula Assistance, 400 Seventh Street, SW., Washington, DC 20590. Telephone: (202) 366-2053.
Web Site Address
Examples of Funded Projects
A typical local recipient of Section 5311 operates a fleet of about six vans or small buses in demand responsive and fixed route service. Section 5311 provides replacement vehicles and covers about a quarter of the average $316,000 annual operating budget. The State receives Federal funds for a statewide program of projects.
Criteria for Selecting Proposals
As described by the State designated agency in its procedures or State management plan.
