(a) There is established within the Commission a Humanities Grant Program to provide subgrants in the humanities.
(b)(1) Each year, the Commission shall make a grant in the amount provided under § 39-205(c-1)(2)(D) to a grant-managing entity, which shall be used to make subgrants for the purpose of promoting cross-cultural understanding and appreciation of local history in all neighborhoods of the District of Columbia.
(2) Any costs to the Commission or the Humanities Grant Program to administer subgrants shall be paid out of the Humanities Grant Program's budget.
(3) Up to 30% of each disbursement from the Humanities Grant Program budget to the grant-managing entity may be utilized by the grant-managing entity for administrative expenses, capacity building, technical assistance, and evaluation of the Humanities Grant Program.
(c) Subgrants shall be:
(1) Awarded on a competitive basis;
(2) Used exclusively to fund District of Columbia residents, non-profits, neighborhood citizen or civic associations, educational institutions, alumni groups, and other entities with qualifying proposals under this section; and
(3) Selected through a process that includes independent review panels.
(d) The Humanities Grant Program shall be administered pursuant to the requirements of part B of subchapter XII-A of Chapter 3 of Title 1
(e) The grant-managing entity shall enter into a Memorandum of Understanding ("MOU") with the Commission. The MOU shall set forth certain administrative requirements for the grant-managing entity to abide by when it obtains District funds and awards subgrants involving District funds, and will clarify and reaffirm the grant-managing entity responsibility and obligation with respect to District funds, including the monitoring of the use of District funds.