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R TRUE COPY r' gn3 *11U . CERTIFICATION ON LAST PAGE ASIC "y btu 49C� I ' AtJ . R . SMITH , CLERK I (a) If HUD finds that the Continuum of Care for a geographic area does not meet the requirements of the Act or its implementing regulations, or that there is no Continuum for a geographic area, HUD may take remedial action to ensure fair distribution of grant funds within the geographic area. Such measures may include: ( 1 ) Designating a replacement Continuum of Care for the geographic area; (2) Designating a replacement collaborative applicant for the Continuum's geographic area, and (3) Accepting applications from other eligible applicants within the Continuum's geographic area. (b) HUD must provide a 30-day prior written notice to the Continuum and its collaborative applicant and give them an opportunity to respond. Subpart C—Application and Grant Award Process § 578 . 15 Eligible applicants. (a) Who may apply. Nonprofit organizations, States, local governments, and instrumentalities of State or local governments are eligible to apply for grants. (b) Designation by the Continuum of Care. Eligible applicants) must have been designated by the Continuum of Care to submit an application for grant funds under this part. The designation must state whether the Continuum is designating more than one applicant to apply for funds and, if it is, which applicant is being designated as the collaborative applicant. If the Continuum is designating only one applicant to apply for funds, the Continuum must designate that applicant to be the collaborative applicant. (c) Exclusion. For-profit entities are not eligible to apply for grants or to be subrecipients of grant funds. § 578. 17 Overview of application and grant award process. (a) Formula. ( 1 ) After enactment of the annual appropriations act for each fiscal year, and issuance of the NOFA, HUD will publish, on its Web site, the Preliminary ProRata Need (PPRN) assigned to metropolitan cities, urban counties, and all other counties. (2) HUD will apply the formula used to determine PPRN established in paragraph (a)(3) of this section, to the amount of funds being made available under the NOFA. That amount is calculated by: (i) Determining the total amount for the Continuum of Care competition in accordance with section 413 of the Act or as otherwise directed by the annual appropriations act, (ii) From the amount in paragraph (a)(2)(i) of this section, deducting the amount published in the NOFA as being set aside to provide a bonus to geographic areas for activities that have proven to be effective in reducing homelessness generally or for specific subpopulations listed in the NOFA or achieving homeless prevention and independent living goals established in the NOFA and to meet policy priorities set in the NOFA; and (iii) Deducting the amount of funding necessary for Continuum of Care planning activities and UFA costs. (3) PPRN is calculated on the amount determined under paragraph (a)(2) of this section by using the following formula: